FACTOR THAT INFLUENCE TOURIST ARRIVAL IN MELAKA FOR THE YEAR SITI HASMIZAR BINTI RAHMAT

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1 FACTOR THAT INFLUENCE TOURIST ARRIVAL IN MELAKA FOR THE YEAR SITI HASMIZAR BINTI RAHMAT Submitted in Partial Fulfillment ofthe Requirement for the Bachelor ofbusiness Administration (Rons) International Business FACULTY OF BUSINESS MANAGEMENT UITM, MELAKA 2007

2 ACKNOWLEDGEMENT First of all, I thank Allah for giving me the strength to persevere through the challenges I have faced in completing this thesis. Without Allah's support I would never have accomplished this task. Secondly, I wish to express the utmost thanks to my advisor, Mrs. Noraizan Binti Mohamed, for guiding and supporting me through this thesis. Without her invaluable expertise and advice this finished product would not have been possible. I also wish to express my appreciation for the support of my supervisor, Miss Emilia Binti Idris. Special thanks to Melaka Tourism Promotion Division for providing me with all the information that I needed for this research. Finally I wish to thank my parents and friends for their support and refreshing outlook that continually helps me keep things in perspective. 11

3 TABLE OF CONTENT ACKNOWLEDGEMENT TABLE OF CONTENT LIST OF TABLES ABSTRACT PAGE ii iii v vi CHAPTERS 1. INTRODUCTION Background Tourism Industry In Malaysia Tourism Industry In Melaka Problem Statement Significant ofstudy Research Question Research Objectives Theoretical Framework Scope and Coverage Time Frame Definitions ofterms Limitations LITERATURE REVIEW Review ofrelated Literature Definition Factors Influence Impacts Tourism Issues Challenges RESEARCH METHODOLOGY The Data Collection (Secondary) Model Variables and Data Variables and Measurement Functional Form Procedure ofanalysis

4 ABSTRACT Tourism industry is one ofthe major contributors to the national income. Melaka is strongly dependent on tourism industry in order to generate economic growth. Therefore, the purpose of this study is to identify the factors that influenced the number oftourist arrival in Melaka that leads towards focusing on the certain aspects that will playa role in order to boost the economic condition. This kind of study also will be helpful to know the performance of tourism industry in this state. Finally, recommendations are formulated for development and improvement purposes in the tourism industry in Melaka. VI

5 1.1 Background OfTourism Industry Tourism is traveling for predominantly recreational or leisure purposes, and also refers to the provision of services in support of this act. According to the World Tourism Organization, tourists are people who "travel to and stay in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited". Tourism has become an extremely popular, global activity. In 2004, there were over 763 million international tourist arrivals. As a service industry, tourism has numerous tangible and intangible elements. Major tangible elements include transportation, accommodation, and other components of a hospitality industry. Major intangible elements relate to the purpose or motivation for becoming a tourist, such as rest, relaxation, the opportunity to meet new people and experience other cultures, or simply to do something different and have an adventure. Tourism is vital for many countries, due to the income generated by the consumption of goods and services by tourists, the taxes levied on businesses in the tourism industry, and the opportunity for employment and economic advancement by working in the industry. The employment provided by tourism industry can help to reduce the unemployment rate among the local people especially for those who are fresh graduates from university to gain their job experience. 2