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All Journal Journal of Economics, Business, & Accountancy Ventura Media Trend: Berkala Kajian Ekonomi dan Studi Pembangunan Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan JIET (Jurnal Ilmu Ekonomi Terapan) JDE (Journal of Developing Economies) Jurnal Ekonomi dan Bisnis Islam Jurnal Dimensi Journal of Economic Education Jurnal Ekonomi dan Bisnis Ekuilibrium : Jurnal Ilmiah Bidang Ilmu Ekonomi Jurnal Ekonomi Pembangunan Studi Kasus Inovasi Ekonomi Jurnal Berdaya Mandiri Jurnal Layanan Masyarakat (Journal of Public Service) Jurnal Ekonomi Pembangunan Economic Development Analysis Journal
Wasiaturrahma, Wasiaturrahma
Departemen Ilmu Ekonomi, Fakultas Ekonomi Dan Bisnis, Universitas Airlangga
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Journal : Economic Development Analysis Journal

 1 
Multicollinearity in Tourism Demand Model : Evidence from Indonesia Wasiaturrahma Wasiaturrahma; Hilda Rohmawati
Economics Development Analysis Journal Vol 10 No 1 (2021): Economics Development Analysis Journal
Publisher : Economics Development Department, Universitas Negeri Semarang, Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.15294/edaj.v10i1.42078

Abstract

The demand for tourism in Indonesia continues to increase every year but cannot reach thepredetermined target. Studies on tourism demand have been done a lot, especially in Indonesia.The selection of the dependent variable in tourism demand is not problematic and acceptable,however, the selection of the independent variable is still unclear. This study aims to provide anappropriate Indonesian tourism demand model and analyze the determinants of tourism demandin Indonesia. The estimation technique used is a static panel regression. The results of this studyprove that there is multicollinearity in the tourism demand model when exchange rate and relativeprice are combined into one model, showing that relative price are good proxies in representingtourism price, and showing that substitution price are the main determinants of tourism demand inIndonesia. The policy implications recommended in this study are monitoring the economicgrowth of the origin countries of most tourists visiting Indonesia, improving the qual ity ofIndonesian tourism, and developing the Wonderful Indonesia program.
Co-Authors Abdillah, Khubbi Anwar, Anas Iswanto Avianto Nugroho Chorry Sulistyowati, Chorry Dhina, Arga Prati Dina Heriyati Dita Normalaksana Putri Dyah Wulan Sari Fajariyanto, Muhammad Bagja Hilda Rohmawati Kurniasari, Anita Lucky Makatutu, Anas Iswanto Anwar Mashabi, M meylinda sulfiana putri Mimi Hardini Nanda Chairunissa Putra, Ivan Pradana Putri Anggia Putri, Dita Normalaksana Ramadhanty, Firyal Ramses Muhammad Rizal Rohmawati, Hilda Romauli Nainggolan Rossanto Dwi Handoyo Setyawan, Anggie Bayu Shochrul Rohmatul Ajija Yuliana Tri Wahyuningtyas