The Effect of Exchange Rate and Crisis on the Number of Tourist Visits in Indonesia

Abstract

Foreign exchange is a transaction tool in an international market. Therefore, changes in domestic currency exchange rates on foreign currencies will affect macroeconomic variables. Besides, a crisis that occurs will also have an impact on the economy, especially the tourism sector. This study aims to examine the effect of the Rupiah exchange rate on the USD Dollar and the crisis on the number of tourists visits Indonesia. The data used to test this effect were annual time series data from 1990-2022. The results of data analysis using Autoregressive distributed lag (ARDL) model show that there is a long-term effect of exchange rates and crises on the number of tourists. Furthermore, the crisis has a short-term effect on the number of tourists.