Clean energy-led tourism development in Malaysia: Do environmental degradation, FDI, Education and ICT matter?

Concerning tourism, two lines of evidence are available in the literature, i.e., tourism's impact on macro fundamentals and determinants of tourism development. Regarding determinants, researchers have documented positive and negative associations between selected macro fundamentals and tourism development. The study's objective is to examine the impact of clean energy, foreign direct investment (FDI), education, and information and communication technology (ICT) on tourism development in Malaysia from 1990 to 2021. The study employed several econometrical techniques in investigating the empirical nexus, including the Bayer-Hancked cointegration test, ARDL Bound testing, Nonlinear ARDL, Toda-Yamamoto causality, and Fourier TY causality test. Moreover, the study employed dynamic OLS, Fully-modified OLS and CCR for the coefficient robust test. The study indicates that the utilization of renewable energy sources has the potential to alleviate the adverse environmental impacts associated with conventional energy sources. This, in turn, can enhance the appeal of tourist destinations to environmentally conscious visitors. Clean energy sources can provide tourism enterprises with cost-saving opportunities, improving profitability and ensuring long-term sustainability. Furthermore, the study reveals a noteworthy correlation between foreign direct investment (FDI) and tourism development. This implies that FDI plays a significant role in fostering tourism activities within the economy. Moreover, it has been found that education plays a crucial role in fostering tourism growth by positively influencing the quality of services and experiences offered to travelers. Finally, the study emphasizes the positive impact of information and communication technology (ICT) on the growth and advancement of the tourism industry. This is particularly evident in utilizing online booking systems, mobile applications, and immersive virtual tourism experiences.