Oil Price and Fijian Tourism Cycle: A Markov Regime-switching Model

Authors

  • Ann-Ni Soh Faculty of Economics and Business, Universiti Malaysia Sarawak, 94300 Kota Samarahan, Sarawak, Malaysia.
  • Chin-Hong Puah Faculty of Economics and Business, Universiti Malaysia Sarawak, 94300 Kota Samarahan, Sarawak, Malaysia.
  • M. Affendy Arip Faculty of Economics and Business, Universiti Malaysia Sarawak, 94300 Kota Samarahan, Sarawak, Malaysia.
  • Tai-Hock Kuek Faculty of Economics and Business, Universiti Malaysia Sarawak, 94300 Kota Samarahan, Sarawak, Malaysia.

Abstract

The fluctuation of oil price tends to have adverse effect on the tourism industry of a nation. This paper investigates the dynamic changes of the inbound tourism market for Fiji and the driving forces of the Fijian tourism cycle. A set of fundamental determinants of tourism demand including international crude oil price has been utilized to predict the Fijian tourism cycle for the period of 2000-2017. The Markov regime-switching model identifies two distinct phases of the Fijian tourism cycle which are an expansion and a recession period. The filtered and smoothed probabilities signalled the Fijian tourism development significantly with the transition probabilities supported. The adequate dating evaluation can offer essential information for policymakers, tourism industry players and even the community in decision making for Fijian tourism to enhance the nation's development.   Keywords: Markov-switching model, Fijian tourism cycle, Oil price fluctuation, ForecastingJEL Classifications: Z32; O01; E32DOI: https://doi.org/10.32479/ijeep.8087

Downloads

Download data is not yet available.

Downloads

Published

2019-10-04

How to Cite

Soh, A.-N., Puah, C.-H., Arip, M. A., & Kuek, T.-H. (2019). Oil Price and Fijian Tourism Cycle: A Markov Regime-switching Model. International Journal of Energy Economics and Policy, 9(6), 188–192. Retrieved from https://econjournals.com/index.php/ijeep/article/view/8087

Issue

Vol. 9 No. 6 (2019)

Section

Articles

License

Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.