Tourist arrivals to Indonesia: does religion matter?

Abstract

ABSTRACT The Government of Indonesia has initiated halal tourism strategies to attract tourists from Muslim countries. The number of tourists coming from Muslim countries has been increasing, yet it remains smaller than that of non-Muslim countries. This study uses a gravity model framework for tourism flows to investigate the effect of Muslim countries on the number of tourist arrivals in Indonesia. Using panel data from 196 countries of origin in Indonesia from 2017–2019, the gravity model for bilateral tourism flow was estimated using the random effect model. The variable religion is represented by the membership of the Organization of Islamic Cooperation (OIC). The model also includes standard gravity model variables and institutional factors to control for bilateral tourism flows. The finding suggests that religion does not matter in enhancing international tourist arrivals in Indonesia. Further, tourist arrivals in Indonesia are more influenced by visa-free policies rather than similarities in religion.