Economic Impact of Haze-Related Air Pollution on the Tourism Industry in Brunei Darussalam by Kwabena A. Anaman & Chee N. Looi
The impact of the 1997 and 1998 haze-related air pollution episodes on the tourism industry in Brunei Darussalam has been analysed using multiple regression analysis and monthly arrival data of tourists from January 1995 to September 1999, a sample of 57 monthly observations. The analysis is first undertaken using ordinary least squares (OLS) regression. Count data models based on Poisson regression are then used to estimate the impact of the haze-related air pollution. Conservative estimates of impact of the haze-related air pollution using OLS regression are a reduction of 3.75 per cent in the number of tourists and direct economic loss to the tourism industry of about one million Brunei dollars (B$). Using the Poisson regression analysis, monthly arrivals are estimated to be reduced by about 28.7 per cent resulting in total direct loss of about B$8 million.
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