Analyzing Inflation Influence Toward the Number of Foreign Tourists Visiting Indonesia and Their Impact on Indonesia’s Economic Growth

Sulasmiyati, Sri

doi:10.33758/mbi.v14i3.321

Cited by 4 publications

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“…Nonetheless, price increases normally lower demand (Varian 1999), especially in sectors such as tourism where demand is highly sensitive to price variations (Sancho 1998). Effectively, in the case of Indonesia, it has been found that inflation has a negative impact on international tourist arrivals (Sulasmiyati 2018). Meanwhile, in Mexico, high inflation rates have slowed down investment in tourism due to increases in the cost of water, electricity, and fuel (Forbes Staff 2022).…”

Section: Tourism Employment and Inflationmentioning

confidence: 99%

Tourism and Economic Misery: Theory and Empirical Evidence from Mexico

Sánchez López

2024

Economies

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The misery index (MI) was devised to summarize the most evident costs for a society, attempting to objectively measure the loss in general welfare. It has been remarked in the literature that economic growth exerts a negative impact on the MI; however, analyses of this relationship in the tourism field have been neglected. This study assessed the effectiveness of the tourism sector at improving welfare conditions by measuring the impact of tourism GDP on the misery index and providing a theoretical framework for the relationship between tourism and the MI. A quantitative analysis was conducted using quarterly time series data for the period 2005Q1–2021Q2. Firstly, the existence of a long-term relationship was tested by using the Toda–Yamamoto procedure, and secondly, by applying linear and nonlinear ARDL models. The main results show that tourism can help to reduce the loss of welfare mirrored by the MI. These findings have policy implications, as they provide evidence that expanding the tourism sector counters the MI, and, consequently, the economic malaises derived from it.

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Section: Tourism Employment and Inflationmentioning

confidence: 99%

Tourism and Economic Misery: Theory and Empirical Evidence from Mexico

Sánchez López

2024

Economies

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“…Due to the reduction in purchasing power, tourism economic activities are hindered. Inflation factors have been proven to harm the number of foreign tourist visits; therefore, the government must effectively control national inflation (Sulasmiyati, 2019).…”

Section: Introductionmentioning

confidence: 99%

The Influence of economic growth, exchange rate, and inflation on foreign tourist visits to Indonesia

Rifai,

Kurniawan

2023

JSeD

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Tourism is one of the economic sectors that can quickly bring in foreign exchange for the country if managed properly and sustainably. Many economic variable factors influence the demand and supply of the tourism industry, especially the level of foreign tourist visits, such as economic growth, exchange rate, and inflation. This study aimed to determine the influence of economic variable factors, especially economic growth, exchange rate, and inflation, on the number of foreign tourist visits in Indonesia. A quantitative descriptive method is used in this study. To analyze the factors influencing the number of foreign tourist visits in Indonesia, independent variables such as economic growth, exchange rate, and inflation are used in the Multiple Linear Regression equation model. The data used in this study is secondary data on annual time series for the period 2001 – 2020. The research result shows that the number of foreign tourist visits in Indonesia is significantly influenced by economic growth and the exchange rate, while inflation has no significant effect. There are still other factors (non-economic) that influence the decision of tourists to visit. Several factors that need to be considered to increase the interest of foreign tourists visits in Indonesia are tourist attractions, accessibility, amenities, ancillary, attractive promotions, and social, political, and security stabilityJEL Classification A13; B55; D69

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“…Specifically, it has generated US$ 14.11 billion in foreign exchange until 2018 (Statistics Indonesia, 2020). It comes from the flights, hotels, restaurants, and products from Micro, Small, and Medium Enterprises that are all the sources of foreign exchange revenues for tourism (MSMEs) (Sulasmiyati, 2019). This industry also employs a large number of people, supporting the local economies.…”

Section: Introductionmentioning

confidence: 99%

“…This industry also employs a large number of people, supporting the local economies. The Indonesian government predicted that foreign tourists would contribute to 20 million visits per year, out of a total foreign exchange of US$ 17.6 billion (Sulasmiyati, 2019). Nonetheless, the contribution of tourism to GDP has remained stable at roughly 4% per year from 2015 to 2017 (Statistics Indonesia, 2018).…”

Section: Introductionmentioning

confidence: 99%

The Role of Foreign Tourists in Economic Growth: Evidence from Indonesia

Azizurrohman¹,

Hartarto

Lin

et al. 2021

JESP

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Foreign tourism is indicated as one of the important instruments to encourage economic growth in several countries, including Indonesia. However, some studies only focus on the influence of tourist arrivals. Thus, the main objective of this study is to take a deeper look at the contribution of foreign tourism indicators to economic growth in Indonesia. Using panel data analysis from 33 countries between 2006 and 2016, this study applies three models: Pooled Least Square (PLS), Fixed Effect Model (FEM), and Random Effect Model (FEM). Based on the fixed-effect model, this study reveals that foreign tourist arrivals have a significant and positive effect on economic growth. However, other tourism indicators such as length of stay and expenditure of foreign tourists appear to have no contribution to economic growth. From these findings, it can be implied that the Indonesian government should not only attract more tourists to come but also design strategies to encourage tourists to spend more money and stay longer. This study also finds that depreciation of Indonesian currency and visa-free policies have a significant contribution to higher economic growth.

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Analyzing Inflation Influence Toward the Number of Foreign Tourists Visiting Indonesia and Their Impact on Indonesia’s Economic Growth

Cited by 4 publications

References 0 publications

Tourism and Economic Misery: Theory and Empirical Evidence from Mexico

Tourism and Economic Misery: Theory and Empirical Evidence from Mexico

The Influence of economic growth, exchange rate, and inflation on foreign tourist visits to Indonesia

The Role of Foreign Tourists in Economic Growth: Evidence from Indonesia

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