The Role of Tourism in Promoting Export Performance in Indonesia: Gravity Model Approach

Abstract

The tourism sector has the opportunity as a source of information regarding the demand preferences of foreign tourists for goods produced in tourist destination countries. The preference of foreign tourists in this study is measured by using the value of Indonesian exports of goods to the country of origin of tourists one year after their visits. The purpose of this study is to analyze the role of the tourism sector in increasing demand for exports of domestic goods by foreign tourists. To overcome the endogeneity problem, this study uses the Corruption Perception Index (CPI) as an instrumental variable which is estimated by Two Stage Least Square (2SLS). By using data on exports of goods based on Broad Economic Categories, the results show that the preferences of tourists from Malaysia, Singapore, China, Japan, and Australia for Indonesian products are in food and beverages (primary), food and beverages (processed), industrial commodities. supplies, and consumer goods. These results conclude that the tourism sector can boost export performance through intensive and extensive trade margins.

The relationship between the tourist attractiveness of the country and the sales of national brands: The example of BeerLao

“…In A. Refiana study of Indonesian exports connection to tourist inflow was shown that the preferences of tourists from Malaysia, Singapore, China, Japan, and Australia for Indonesian products are mostly in "food and beverages (primary)" and "food and beverages (processed)", followed only then with "industrial commodities" and "consumer goods". These results conclude that inbound tourism can stimulate export performance in certain areas (Refiana, Purwono, 2021).…”