Model of International Tourism Demand in Indonesia During the Covid-19: Gravity Model Approach
This study examines the factors influencing tourism demand during the Covid-19 pandemic for foreign tourists in Indonesia by employing a Gravity model. This study used panel data analysis of the random effects model (REM) on Indonesia's top nine source countries of foreign tourists from 2007 to 2021. The study results show that the GDP per capita of origin countries, "Wonderful Indonesia" nation branding, and the policy of developing ten priority tourism destinations (10 new Balis) variables positively and significantly impacted the number of foreign tourists arrivals in Indonesia. On the other hand, the variables of distance, relative price, and Covid-19 negatively and significantly affected the number of foreign tourist visits in Indonesia. Therefore, the government is expected to improve cooperation in expanding international flight routes to increase the number of tourists from various countries, improve tourism facilities, continuously strive to build a positive image of the country through a nation branding strategy, and have a blueprint of policy strategy for Indonesia’s tourism to deal with crisis conditions.
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