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

Azizurrohman, Muhammad; Hartarto, Romi Bhakti; Lin, Yih-Ming; Nahar, Faiza Husnayeni

doi:10.18196/jesp.v22i2.11591

Cited by 3 publications

(3 citation statements)

References 27 publications

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“…When the trade is open freely, it would benefit both host or destination country since they could fulfil their supplies and demands. In the context of tourism, attracting tourist by improving trade openness is not enough, government is advocated to design some strategy to attract visitor for coming to the country (Azizurrohman et al, 2021). Thus, visitor could stay longer for spending their holiday.…”

Section: Cheng and Naharmentioning

confidence: 99%

The Determinants of International Tourism: Evidence from European Countries and China’s Provinces

Zhang¹,

Nahar

2023

JESP

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Tourism has been reported as one of the largest economic sectors in the world. It is shown by more than hundreds of jobs involved in this sector which directly escalate the welfare and economic growth of a country. Thus, government will support any actions that could improve competitiveness and profitability of tourism industry. The main objective of this paper is to determine the significant factors of international tourism receipts by 18 European countries and 12 provinces of Western China between 1995 and 2019. Based on data, Europe known as the world’s largest international tourist receipt in 2019 followed by Asia and the Pacific including China. It is interesting to note that China, particularly in western part, has contributed more on achieving tourism receipt. China has potential to grow its tourism sector in significant trend due to its large land size and massive human resources that might further defeat Europe’s total tourist receipt. By using panel Autoregressive Distributed lag (ARDL) model, there would be different responses related to determinant factors of tourism over long run and short run. The result revealed that population, carbon dioxide emission and trade openness have positive effect to the international tourism receipt in Europe in the long run while the rest explanatory variables such as transportation infrastructure and energy consumption have negative effect to the international tourism receipt in Europe. While in case of China, population and energy consumption are statistically significant and positive to international tourism receipt in the long-run correlation, but the rest variables are having negative effect. Unfortunately, in the short-run effect, it was found that all variables are not statistically significant at least at the ten percent significance level in both Europe and China. From the result, the Europe and Chinese policy makers can evaluate the policy based on each result. For instance, the fact that the high level of population density could reach larger tourism receipt is not always true, government need to provide some training for the party who will be involved in tourism industry to gain knowledge and encourage them to be more creative and innovative. Hence the good quality of listed tourism destination would attract more tourist to the destination country

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Section: Cheng and Naharmentioning

confidence: 99%

The Determinants of International Tourism: Evidence from European Countries and China’s Provinces

Zhang¹,

Nahar

2023

JESP

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“…Foreign tourists with USD currency where the IDR is weakening will gain advantages over the previous exchange rate. Foreign tourists can use this advantage to extend the period of their trip or increase the purchase of goods.The depreciation of the Indonesian currency significantly contributes to improving economic growth (Azizurrohman et al, 2021).…”

Section: Overview Of the Research Objectmentioning

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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“…Tourism is recognized as one of the leading sectors in Indonesia, making it one of the country's primary sources of foreign currency, which is anticipated to stimulate economic growth (Azizurrohman et al, 2021). Based on the Ministry of Tourism Performance Report (2019) , it is known that the tourism sector may create substantial quantities of foreign exchange and that this amount increases significantly every year, from Rp.…”

Section: Introductionmentioning

confidence: 99%

How Important is Environmentally Sustainable Tourism? Evidence in Indonesia from 1974-2018 Using NARDL Cointegration

Setiawati

Pamungkas

2022

JESP

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Tourism is one of the most important sectors of the Indonesian economy because it is one of the mainstay sectors in obtaining foreign exchange, which is expected to increase economic growth. However, along with its positive impact on economic growth, the expansion of the tourism industry is also a significant contribution to rising CO2 emissions and energy consumption. This study focuses on assessing the impact of the tourism sector as proxied by the number of international tourist visits on GDP per capita and the environment as seen from CO2 emissions and total energy consumption. This study uses data covering 44 years (1974 - 2018). The Nonlinear Autoregressive Distributed Lag (NARDL) method was used in this study. The results indicate that an increase in total foreign tourist arrivals has a positive impact on real GDP per capita and total energy consumption in the short term, whereas a decrease has a beneficial effect on reducing real GDP per capita, CO2 emissions, and total energy consumption. In the long term, an increase in total international tourist arrivals is known to have a positive effect on increasing real GDP per capita, CO2 emissions, and total energy consumption; then, the decrease has a positive effect on reducing real GDP per capita and CO2 emissions. The result of this study demonstrates that an increase in total international tourist arrivals has a positive effect on short- and long-term impact on real GDP per capita and total energy consumption. There are several policy implications as a consideration of the results of this study, such as the use of carbon-neutral transportation and hybrid energy as well as tax breaks or low-cost financing opportunities to purchase and install green technology.

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

Cited by 3 publications

References 27 publications

The Determinants of International Tourism: Evidence from European Countries and China’s Provinces

The Determinants of International Tourism: Evidence from European Countries and China’s Provinces

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

How Important is Environmentally Sustainable Tourism? Evidence in Indonesia from 1974-2018 Using NARDL Cointegration

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