CROSS-BORDER TOURISM FROM BRUNEI DARUSSALAM TO EASTERN MALAYSIA: AN EMPIRICAL ANALYSIS

Abstract

We analysed the factors influencing the level of cross-border tourism from Brunei Darussalam to Eastern Malaysia based on a random survey of 675 Bruneian residents returning from land and sea trips to Eastern Malaysia and using simple statistical and multiple regression analysis. The results revealed that the age of the respondents, personal income, perceived quality of Eastern Malaysia as a better place to rest and relax, perceived quality of goods and services in Eastern Malaysia, use of alcohol by respondents and having family members and friends living in Eastern Malaysia were significant factors affecting the number of visits to Eastern Malaysia. This analysis was based on visits over the 12-month period prior to the survey, a period of relative price stability. Regression analysis of personal expenditures on goods and services of respondents during their most recently completed trip indicated that personal income, travelling with friends, number of days spent on the trip, perception of Eastern Malaysia as a better place to rest and relax and use of public transport were the significant factors affecting expenditures. We estimated that Bruneian residents spent about B$426 million a year on goods and services while visiting Eastern Malaysia, and this amount accounted for roughly 5.7% of Brunei's gross domestic product (GDP) in the year 2000.