International Journal of Social Science & Economic Research
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Title:
CHARACTERISTICS OF INBOUND TOURISM DEMAND IN INDONESIA AND RESPONSES OF THE GOVERNMENT

Authors:
Raditya

Abstract:
The efficient planning and management of the tourism sector requires appropriate knowledge about the characteristics of inbound tourism demand, especially in Indonesia, where most industries are highly dependent on the government. This study examined the relationship between the determinants of inbound tourism demand and international visitor arrivals in Indonesia and the responses of the government to changes in the determinants. The findings show that changes in tourists' origin country income, real exchange rates, travel costs, and the time trend affect international tourist arrivals in Indonesia. However, the inbound tourism demand in Indonesia is sensitive only to changes in the income variable. Moreover, the relationship between changes in income and tourist arrivals in Indonesia is not linear. The government has realized the impact of the changes of the determinants and responded positively through the instrument of budgeting policy. The implication of the findings will affect the budget allocation priority for the tourism marketing program.

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