Abstract
The aims this study is to examine the dynamic demand for tourism in Sumatra, Indonesia. There are ten provinces in Sumatra and the research period from 2003 to 2019 with 170-panel data samples. Pooled Mean Group (PMG)–ARDL is utilized to examine Sumatra's dynamic demand for tourism. Long-term research results show that hotel income and facilities positively and significantly affect tourism demand. Furthermore, transportation costs and exchange rates harm the demand for tourism. Meanwhile, the results of short-term studies provide different results. Income has a negative effect, while transportation costs have a positive effect. In the short term, hotel facilities and exchange rates do not affect the dynamic demand for tourism. These results show that the long term is more influential on tourism, so tourism development should be carried out well in the long term to attract tourists to come to Indonesia.
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