Abstract

Over the last two decades, disaster events have affected tourist destinations in many countries around the world. Although disasters have attracted considerable attention in academia, little attention has been paid to the impacts of recurring disasters on the multiyear performance of the tourism industry in a specific country. This paper discusses the relationship between the performance of the tourism industry and disaster events and examines the spillover effects of disasters on the tourism sector in Indonesia. It also highlights the Indonesian policy responses in tourism following multiple disasters. The paper analyses the multiyear (1998-2016) performance of the tourism industry using the variables number of inbound tourists, national/regional income from tourism, and hotel room occupancy rates. Secondary data were collected from several sources, including legal documents, Indonesia’s tourism statistics, media outlets and newspapers articles. The results show that during the past 18 years, disasters have affected the performance of the tourism industry differently in terms of the scale of destruction, the location of disasters and the type of disasters (human vs. nature induced). The spillover effect between provinces has also been captured from the data. Overall, this paper argues that in dealing with multiple disasters over long periods of time, the continuation of regular tourism activities needs a structural approach in terms of policy responses.

Highlights

  • IntroductionSince the tourism industry is an economic activity that is mostly influenced by the image of the destination, negative images of a destination affect the performance of the tourism industry

  • This paper argues that in dealing with multiple disasters over long periods of time, the continuation of regular tourism activities needs a structural approach in terms of policy responses

  • A positive spillover effect can be seen in the case of the terrorist attack in Bali (t = 2002), when Bali suffered a 10.7% fall in room occupancy rate, Yogyakarta experienced a 1.5% increase and Aceh a 38.42% increase, the number of tourists visiting Bali dropped by 5%, and the number visiting Yogyakarta increased by 5%

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Summary

Introduction

Since the tourism industry is an economic activity that is mostly influenced by the image of the destination, negative images of a destination affect the performance of the tourism industry. Despite such disasters, the tourism industry is continuing to grow both locally and globally and is a major source of economic development in many countries. The relation between the nature of disasters (both single and recurring events) and the long-term impacts on the performance of the tourism industry could benefit from more structural and systematic analyses and subsequent policy responses

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