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      International Tourism Demand in Indonesia: Gravity Model Approach

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      JEJAK VOL 12 2019.pdf (446.5Kb)
      Date
      2019
      Author
      Nahar, Faiza Husnayeni
      Adha, Mufti Alam
      Ulfi, Izzani
      Karimah, Husna
      Azizurrohman, Muhammad
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      Abstract
      Tourism is considered as big industry which growing up faster compare to other industry in this recent year. It is reported that Indonesia received approximately 11.5 million of international tourists in 2016. The government willing to boost up the factors that might contribute more on attracting international tourist. This study tried to analyse the international tourism demand in Indonesia by gravity model approach. Besides that, visa-free policy was involved to see the effect of its policy on tourism demand in Indonesia. Then, exchange rate of origin country is used as a control variable. The data is collected by many different sources during the period of 2006 to 2016, The study found that all variables are statistically significant. GDPs origin and destination country and country with visa-free entry have positive effect to the number of international tourist arrival while the rest which is exchange rate of origin country and length of distance have negative effect to the international tourists. From the result, it can be concluded that gravity model in this paper is a good tool for measuring the tourism demand in the case of tourism demand in Indonesia. Hence, the government needs to promote aggressively to the international tourist by conducting important events, increasing the number of countries that receive Indonesia visa-free and maintain the GDP in both origin and destination country.
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      http://repository.umy.ac.id/handle/123456789/34351
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