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International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Perhentian Islands' Cost of Environment: Estimating the Loss of Revenue from Tourism Impact

Rosmini Ismail, Khalizul Khalid, Hartini Jaafar, Ramlee Ismail

http://dx.doi.org/10.6007/IJARBSS/v10-i8/7639

Open access

Tourism activities typically caused disturbances to the functions provided by the environment. Regrettably, these environmental impacts are commonly ignored in the measurement of financial performance. Therefore, the focus of the study is to account for the environmental degradations such as overshoot and overcapacity of environmental resources and overuse of environmental asset. Consequently, the study estimates the Perhentian Islands' tourism revenue and use it as a proxy to estimate the loss of revenue due to the environmental impact caused. Therefore, the paper highlights on financial estimates of environmental degradations and environmental asset overuse. The quantification of these estimates were based on secondary resources. Concurrently, the paper briefly discussed the estimation of tourism revenue which derived from 923 visitors spending on Perhentian Island, analysed using two-steps Chi-Square Automatic Interaction Detection (CHAID). The costs of the environment were measured loosely based on ecological footprint and tourism carrying capacity concepts, and economic valuation techniques. The findings suggest that the cost of the environment comprised of RM5, 446, 563.00 overshoot, RM506, 576.00 overcapacity and between 1, 343, 041.00 to 3, 357, 602.00 for environmental asset overuse. Thus, overall tourism cost of environment for Perhentian Island was recorded between RM 7, 296, 180.00 to -RM 9, 310, 741.00.

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In-Text Citation: (Ismail, Khalid, Jaafar, & Ismail, 2020)
To Cite this Article: Ismail, R., Khalid, K., Jaafar, H., & Ismail, R. (2020). Perhentian Islands' Cost of Environment: Estimating the Loss of Revenue from Tourism Impact. International Journal of Academic Research in Business and Social Sciences. 10(8), 826-842.