Summary: | Tourism is a commodity that has an important role in the Indonesian economy is as a
source of non-oil revenues are the largest foreign exchange . This study aims to
examine the factors that affect demand for Indonesian tourism which is illustrated by
the number of foreign tourist arrivals . Factors affecting the number of foreign
tourists is the price of tourism , the country's national tourist income , exchange rate
Rupiah against foreign tourists currencies, and geographical distance between
Indonesia and the country of origin of tourists. Tourism is a commodity that is prone
to be influenced by external factors that unexpected or unpredictable influences.
Therefore, in addition to the above factors , this study also examines the effect of the
financial crisis . This study uses panel data analysis of cross - section . Results
obtained using random effects panel data models claim that the price of tourism , the
national income of the country of origin of tourists, exchange rate Rupiah against
foreign tourists currencies, the geographical distance between Indonesia and the
country of origin of tourists, and the world financial crisis which is happened in 2009
significantly affect the number of tourist visit to Indonesia.
Keywords: tourism demand, tourism price, national income, exchange rate,
geographically distance, financial crisis, random effect.
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