Model of International Tourism Demand in Indonesia During the Covid-19: Gravity Model Approach

Authors

  • Hertiana Ikasari Dian Nuswantoro University https://orcid.org/0000-0002-4077-8381
  • FX. Sugiyanto Faculty of Economics and Business, Diponegoro University
  • Akhmad Kurnia Faculty of Economics and Business, Diponegoro University

Abstract

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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Published

2022-12-31

Issue

Vol. 19 No. 2 (2022)

Section

Articles

License

e-Review of Tourism Research (eRTR) is an international electronic bulletin for tourism research (ISSN:1941-5842). It comprises current tourism research articles, commentaries and reviews by industry professionals. The materials are provided for the personal noncommercial use of registered users of the eRTR, free to individuals and institutions. Copies of articles may be distributed for research or educational purpose, free of charge and without permission. However, commercial use of the eRTR or the articles contained herein is expressly prohibited without the written consent of the publisher.

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How to Cite

“Model of International Tourism Demand in Indonesia During the Covid-19: Gravity Model Approach” (2022) e-Review of Tourism Research, 19(2), pp. 237–260. Available at: https://ertr-ojs-tamu.tdl.org/ertr/article/view/858 (Accessed: 6 May 2024).