FACTOR AFFECTING THE EXPENDITURE OF FOREIGN TOURISTS THE EVIDENCE FROM INDONESIA

Abstract

Tourist expenditure could determine the probability obtained by the country, which will affect economic activities. This study examines the Length of stay, Accommodation, Travel Purpose, and Occupation that affect foreign tourist expenditure in Indonesia. The study uses secondary data from the Indonesia Ministry of Tourism from the year 2013 – 2016 of 34 countries with 136 total samplings. This study using quantitative research. Analysis of the data collected using multiple regression. The hypothesis testing analysis method uses the T-test, F-test, and coefficient of determination (R2). This study says that all variables (Length of stay, accommodation, travel purpose, and occupation) have a significant effect on daily tourist expenditure partially and simultaneously; hence, Length of stay has a negative effect. The simultaneous effect was 58%, and 42% are affected by other variables.