Applied Spatial Durbin Model to Assess Factors Influencing the Number of Foreign Tourists in Indonesia 2011-2015

Abstract

Most of the study of the number of foreign tourists in Indonesia base on their origin country, have only focused on panel data analysis. It could be misleading because there may be a spatial influence among the original country. This study analyzed some factors that could affect the number of tourists who came to Indonesia for 2011-2015. The Spatial Durbin Model (SDM) was used in this study. Two types of proximity matrices were used i.e. contiguity matrix and inverse distance matrix. The results showed that the best model was the SDM model with contiguity matrix. The factors which significantly affected the number of tourists were GDP per capita, number of population, and existing the direct flight to Indonesia.