FACTORS INFLUENCING DEMAND
Economy
In an effort to diversify the economy and make Malaysia’s economy less dependent on exported goods, the government has pushed to increase tourism in Malaysia. As a result tourism has become Malaysia’s third largest source of income from foreign exchange, although it is threatened by the negative effects of the growing industrial economy, with large amounts of air and water pollution along with deforestation affecting tourism.
The majority of Malaysia's tourists come from its bordering country, Singapore. In 1999, Malaysia launched a worldwide marketing campaign called “Malaysia, Truly Asia” which was largely successful in bringing in over 7.4 million tourists.In recent years tourism has been threatened by the negative effects of the growing industrial economy, with large amounts of air and water pollution along with deforestation affecting tourism.
Demographic Change
Improvements in health and the related rise in life expectancy are among the most remarkable demographic changes of the past century. For the world as a whole, life expectancy more than doubled from around 30 years in 1900 to 65 years by 2000 (and is projected to rise to 81 by the end of this century; Lee 2003).
Most of the historical rise reflects declines in infant and child mortality due to public health interventions related to water and sanitation, and to medical interventions such as vaccine coverage and the use of antibiotics. By contrast, the life expectancy gains observed over the past few decades (especially in
high-income countries) and projected into the future are predominantly associated with reductions in
age-specific death rates at the middle and older ages. These reductions are typically associated with improvements in medical technology, life-style changes, and income growth.
Good's Own Price
The basic demand relationship is between potential prices of a good and the quantities that would be purchased at those prices. Generally the relationship is negative meaning that an increase in price will induce a decrease in the quantity demanded. This negative relationship is embodied in the downward slope of the consumer demand curve. The assumption of a negative relationship is reasonable and intuitive. If the price of a new novel is high, a person might decide to borrow the book from the public library rather than buy it.
Price Of Related Goods
The principal related goods are complements and substitutes. A complement is a good that is used with the primary good. Examples include hotdogs and mustard, beer and pretzels, automobiles and gasoline.(Perfect complements behave as a single good.) If the price of the complement goes up the quantity demanded of the other good goes down. Mathematically, the variable representing the price of the complementary good would have a negative coefficient in the demand function.
For example, Qd = a - P - Pg where Q is the quantity of automobiles demanded, P is the price of automobiles and Pg is the price of gasoline. The other main category of related goods are substitutes. Substitutes are goods that can be used in place of the primary good. The mathematical relationship between the price of the substitute and the demand for the good in question is positive. If the price of the substitute goes down the demand for the good in question goes down.
Personal Dispocable Income
In most cases, the more disposable income (income after tax and receipt of benefits) a person has the more likely that person is to buy.
Tastes or Preferences
The greater the desire to own a good the more likely one is to buy the good There is a basic distinction between desire and demand. Desire is a measure of the willingness to buy a good based on its intrinsic qualities. Demand is the willingness and ability to put one's desires into effect. It is assumed that tastes and preferences are relatively constant.
Consumer expectations about future prices and income
If a consumer believes that the price of the good will be higher in the future he is more likely to purchase the good now. If the consumer expects that his income will be higher in the future the consumer may buy the good now.
If the population grows this means that demand will also increase.
:If the good is a basic commodity, it will lead to a higher demand.
1) Cameron Highland
The Cameron Highlands is one of Malaysia’s most extensive hill stations, first developed by the British in the 1920s. It has a population of more than 34,000 people consisting of Malays, Chinese, Indians and other ethnic groups. The Cameron Highlands is renowned for its trails. They lead visitors through the forest to waterfalls and other tranquil spots. Apart from its jungle walks, the sanctuary is also known for its tea plantations and visitors can book several “tea factory” tours.
2) Georgetown Inner City
Named after Britain’s King George III, Georgetown is located on the north-east corner of Penang Island. Most of George Town’s population is of Chinese origin. Due to strict controls, George Town retains many of its colonial-era shophouses to this day. It is officially recognized as having a unique architectural and cultural townscape without parallel anywhere in Southeast Asia. The town truly springs to life in the evenings, when most of the locals head to the nearby street hawkers to have their meals and drinks.
3) Taman Negara
Taman Negara, which literally means “national park” in Malay, is one of the oldest tropical rain forest in the world. It features massive trees, waterfalls, jungle treks of various duration and the world’s longest canopy walkways. Several trails enable the visitor to explore the forest without a guide. Taman Negara is a haven for endangered species such as the Asian elephant, tigers, leopards and rhinos, but numbers are low and sightings are very rare. It’s unlikely that you will see anything more than birds, small deer, lizards, snakes
and perhaps a tapir.
4) Pulau Tioman
Tioman is a small island located off the east coast of peninsular Malaysia. In the 1970s, Time Magazine selected Tioman as one of the world’s most beautiful islands. Tourists have surged to the island ever since, seeking a taste of paradises. The island is surrounded by numerous white coral reefs, making it a haven for scuba divers while the interior is densely forested. Visitors outnumber villagers outside the monsoon (November to February), but Tioman can be virtually deserted at other times.
5) Mount Kinabalu
With a summit height at 4,095 meters (13,435 ft), Mount Kinabalu is the highest mountain in Borneo. The mountain is known worldwide for its tremendous botanical and biological species biodiversity. Over 600 species of ferns, 326 species of birds, and 100 mammalian species have been identified at Mount Kinabalu and its surrounding. The main peak of the mountain can be climbed easily by a person with a good physical condition, and requires no mountaineering equipment although climbers must be accompanied by guides at
all times.
6) Perhentian Islands
Located off the coast of northeastern Malaysia not far from the Thai border. The Perhentian Islands are the must-go place in Malaysia for budget travelers. They have some of the world’s most beautiful beaches and great diving with plenty of cheap accommodation. The two main islands are Perhentian Besar (“Big Perhentian”) and Perhentian Kecil (“Small Perhentian”). Both the islands have palm-fringed white sandy beaches and turquoise blue sea.