Impacts and implications of a pandemic on tourism demand in Indonesia

Esquivias, Miguel Angel; Sugiharti, Lilik; Rohmawati, Hilda; Sethi, Narayan

doi:10.14254/2071-789x.2021/14-4/8

Cited by 19 publications

(19 citation statements)

References 45 publications

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“…The approach is chosen as it is robust and able to produce better results with a small sample size of data. It can also estimate a long-run linear regression model in the presence of co-integration among the variables (Esquivias et al, 2021). Several other co-integration techniques can also be employed, such as Engle-Granger (1987) as well as Johansen and Juselius (1990).…”

Section: Methodsmentioning

confidence: 99%

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The Impact of Violent Crime on Tourist Arrivals in Malaysia

SHAARI¹,

RAFEI²,

NANGLE³

et al. 2022

GTG

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The tourism industry plays an important role in boosting economic growth, providing job opportunities, and reducing the poverty rates in many countries. For this reason, the factors influencing tourism should be investigated, to ensure continued growth within the industry. Few studies had examined the effect of violent crime on tourist arrivals and price competitiveness in Malaysia. An increasing criminal activity and a rise in prices may discourage tourism arrivals. This paper applies an autoregressive distributed lag (ARDL) model to estimate Malaysia's determinants of tourism arrivals, on the period from 1986 to 2016. Tourism demand is modeled as a function of economic growth, tourism accommodation, prices (proxied by exchange rates and inflation), unemployment, and the crime index to proxy criminal activity in Malaysia. The results showed that inflation can reduce the number of tourists in the long run and in the short run. Similarly, the results also show that a higher exchange rate and violent crime index can reduce the number of tourists visiting Malaysia in the short run. Economic growth can attract more tourists to Malaysia in the long run.These findings are important for the formulation and implementation of policies. The Malaysian government should combat violent crime in the first place to prevent any reduction in tourist arrivals. Increasing government expenditure on national security could lead to a reduction in the violent crime index, thus increasing the number of tourist arrivals in Malaysia.

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Section: Methodsmentioning

confidence: 99%

“…The tourism industry comprises several service sectors, such as hotels, restaurants, public transportation, shopping, tours, among others (Esquivias et al, 2021). These sectors provide services to tourists, and so an increase in the number of tourist arrivals can provide a financial boost to these sectors.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Violent Crime on Tourist Arrivals in Malaysia

SHAARI¹,

RAFEI²,

NANGLE³

et al. 2022

GTG

Self Cite

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“…The news that the virus has spread has caused great concern among tourists, potential tourists and the wider tourism industry. During the COVID-19 pandemic, consumer prices and the incomes of overseas tourists are still adjusting to the changed financial environment, and this has altered the price competitiveness landscape (Esquivias et al,2021).…”

Section: Data and Variables Definitionmentioning

confidence: 99%

Determinants of Tourism Demand in Selected EU Med Countries: Empirical Panel Analysis

Dreshaj

Krasniqi

Dreshaj

2022

JoTS

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Due to its significant contribution to the prosperity and growth of economies, the tourism industry has always been the one that attracted the attention of many practitioners and researchers who have tried in different ways and from different aspects to identify the key variables that determine tourism demand. The importance of tourism is especially evident in the group of countries included in the EUrope Mediterranean (EU Med) alliance. Considering the importance and role of tourism, the main objective of this research is to examine the influence of different factors on tourism demand for selected eight countries from EU Med alliance during the period 2010-2020 with the application of a dynamic panel data model. The variables encompassed in the model, i.e., income and trade, show a statistically significant positive influence on tourist arrivals in eight countries from EU Med alliance. The results of the empirical research confirmed the positive impact of previous demand on current demand as well as its statistical significance. On the other hand, we also found that terrorism and Covid-19 negatively impact tourist demand. These results imply that for any country in the eight countries from EU Med alliance to attract more arrivals of tourists, it should invest significantly in the tourism sector in terms of upgrading tourism infrastructure, increasing trade openness and promoting a peaceful reputation and safe country.

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“…A second contribution is examining the effects of ET on tourism flows in the ASEAN, where intratrade liberalization has been at the center of the regional plan. Several studies have considered the role of FTA in Asia on trade applications (Handoyo et al , 2021; Purwono et al , 2022), but few studies focus on the role of free trade on tourism flows in the ASEAN.…”

Section: Introductionmentioning

confidence: 99%

“…It is also important to note that the COVID-19 pandemic has crippled the tourism sector globally, so countries need to recalibrate their operations and redirect their strategies (Esquivias et al , 2021; Salinas Fernández et al , 2022). Looking into price and income elasticities can approximate the potential decline in tourism arrivals derived from the economic slowdown and changes in consumer prices across countries (Xie and Tveterås, 2020).…”

Section: Introductionmentioning

confidence: 99%

The role of cultural distance in boosting international tourism arrivals in ASEAN: a gravity model

Heriqbaldi

Esquivias

Agusti

2023

CBTH

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Purpose This study aims to explore the role of cultural distance, economic integration, price competitiveness and substitution prices for tourism arrivals between 10 Southeast Asian (ASEAN) countries and 22 other origin countries from 2007 to 2019. Design/methodology/approach A panel-data gravity model is applied to estimate tourism demand in the ASEAN region. An index of cultural distance (time-variant) is introduced to examine the role of cultural differences across bilateral partners. Moreover, relative prices and substitution prices are introduced to the gravity equation to estimate price elasticities. Finally, this study tested whether the ASEAN free trade agreements (FTAs) encourage intraregional tourism arrivals. Two-panel regression approaches are used to test the model. Findings Cultural distance positively affects tourism inflows, boosting foreign arrivals. Income and price elasticities are important determinants in the demand model for ASEAN. A gain in price competitiveness versus alternative destinations can lead to substitution in destination choice. Meanwhile, geographic distance has a negative impact on arrivals, suggesting that connectivity and transportation are key in boosting tourism inflows in ASEAN. A decline in the disposable incomes of tourists caused by the COVID-19 pandemic may reduce tourism arrivals in the region. However, when currencies in ASEAN weaken, and consumer prices are lower than in other destinations, arrivals in ASEAN will be stimulated. FTAs have facilitated travel intra-ASEAN, which is an advantage over the extra-ASEAN sector. Practical implications Cultural heritage could be used in tourism promotion as ASEAN can attract tourists seeking novelty and new excitements. ASEAN countries could create complementary destinations and jointly promote cultural heritage to accelerate the region’s recovery. The depreciation of currencies in ASEAN and the gain in relative price competitiveness could attract more tourist visits, helping the region reestablish tourism activities in a postpandemic economy. Originality/value The model accounts for three key variables in the gravity approach: cultural distance in ASEAN tourism inflows, the effects of the ASEAN economic community on intraregional tourism, and relative and alternative price competitiveness. This study enriches the literature about tourism-demand approaches in modeling tourism arrivals.

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Impacts and implications of a pandemic on tourism demand in Indonesia

Cited by 19 publications

References 45 publications

The Impact of Violent Crime on Tourist Arrivals in Malaysia

The Impact of Violent Crime on Tourist Arrivals in Malaysia

Determinants of Tourism Demand in Selected EU Med Countries: Empirical Panel Analysis

The role of cultural distance in boosting international tourism arrivals in ASEAN: a gravity model

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