The environmental-visual pollution impact of service sectors growth on the tourism performance: Regression analysis of tourism receipts in Malaysia

Abstract

The main purpose of this study was to investigate the environmental impact of service sector growth on the tourism performance. The importance of tourism industry and the concept and dimensions of service sectors was reviewed initially and then the environmental impact of service sector in tourism was studied specifically. Upon examining the study, a yearly time series data from the period of 1995 to 2018 of Malaysia were used. Models, methods or analysis such as Descriptive Statistic Analysis, Correlation of Variables, Residual Plot, Normality Plot and regression analysis test. This empirical results proof that this outcome has demonstrated that higher mean will result higher standard deviation and vice versa. On the other hand, Correlation of Variables showed positive relationship between tourism performance and service sector growth level with all the variables. For the regression analysis the value of coefficient determined the positive relationship between those variables to the tourism performance in Malaysia. The results extracted from regression test indicated that tourism growth, all variables at level seems to be stationary a significance of 5%. Lastly, environmental impact of service sector has significant influence on tourism performance in Malaysia. Empirical findings suggest that economic policy reforms are required to channelize environmental of service sector to increase tourism performance. The governments should pull out policies on tourism, service sector and the environmental issues in order to achieve sustainable economic growth and development.