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The Effects of Environmental Quality on Indonesia s Inbound Tourism

Author

Listed:
  • Suharyono Suharyono

    (Department of Management, University of National, Jakarta, Indonesia)

  • Kumba Digdowiseiso

    (Department of Management, University of National, Jakarta, Indonesia)

Abstract

In recent years, Indonesia s inbound tourism grew slowly. This study examined the effects of quality of environment on inbound tourism in 32 provinces over the period 2009 2018. We utilized several indices of environmental quality such as water quality index (WQI), air quality index (AQI), and environmental quality index (EQI). Meanwhile, our dependent variable, inbound tourism, is measured in terms of incidence and duration of stay. Previous studies acknowledged that there was a potential endogeneity between quality of environment and tourism. Therefore, instrumental variable (IV) in a static panel dataset was carried out in the estimation. The results showed that both WQI and EQI were positively and significantly correlated with the demand for inbound travelers. Furthermore, we found that there was a positive and significant relationship between AQI and length of stay of inbound visitors.

Suggested Citation

  • Suharyono Suharyono & Kumba Digdowiseiso, 2021. "The Effects of Environmental Quality on Indonesia s Inbound Tourism," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 9-14.
    • Handle: RePEc:eco:journ2:2021-01-2
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Environmental Quality; Inbound Tourism; Indonesia.;
    All these keywords.

    JEL classification:

    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Z30 - Other Special Topics - - Tourism Economics - - - General

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