ICTMT 2025 | International Journal of Research and Innovation in Social Science (IJRISS)
ISSN: 2454-6186 | DOI: 10.47772/IJRISS
Special Issue | Volume IX Issue XXVIII November 2025
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Foreign Tourist Expenditure in Indonesia: Impact of Length of Stay,
Tourist Arrivals, Occupation, and MICE
Filda Rahmiati
1*
, Budi Suprapto
2
, Hana Anisa Muthiah
3
1,2
Fakulti Pengurusan Teknologi dan Teknousahawanan, Universiti Teknikal Malaysia Melaka,
Malaysia
1,3
Faculty of Business, President University, Indonesia
2
Faculty of Business and Economics, Universitas Atma Jaya Yogyakarta. Indonesia
*Corresponding Author
DOI: https://dx.doi.org/10.47772/IJRISS.2025.92800027
Received: 13 November 2025; Accepted: 24 November 2025; Published: 19 December 2025
ABSTRACT
Tourism is a crucial activity with a global impact, substantially boosting the economy and altering the
environment, consequently improving the lives of millions. The government has increasingly prioritized the
expansion of tourism in Indonesia. Based on the direct travel and tourist GDP calculation, Indonesia ranks as
the sixth largest economy in the Asia-Pacific area. This study analyses the attributes of tourists that influence
average tourist expenditure. The attributes of tourists encompass Length of Stay, Tourist Arrivals, Professional
Occupations, and MICE activities. This study examines data through quantitative methodologies. The
researcher utilized secondary data from the Central Bureau of Statistics of Indonesia for each variable spanning
2022 to 2024 across 18 countries for this analysis. The total data collected was 54 data and used for analysis.
This study employs descriptive analysis, multiple regression analysis, classical assumption testing, and
hypothesis testing. The findings of this study demonstrate that Length of Stay and Professional Occupation have
no significant influence on Tourist Expenditure. Nonetheless, Tourist Arrivals and MICE negatively significant
influence Tourist Expenditure. The findings indicate that the tourist sector ought to enhance promotion and
services by implementing strategies customized for professional occupation, MICE, and duration of stay. It is
recommended to integrate MICE activities with local tourism programs to enhance participants’ overall
experience while stimulating local economic growth.
Keywords: Social Media, Academic Performance, Students, Digital Learning, Education
INTRODUCTION
Tourism is a fundamental activity that has a global impact, considerably contributing to the international
economy and reshaping the world, thereby improving the lives of millions of people (Setiorini et al., 2022). As
the sixth largest contributor to travel and tourism GDP in the Asia-Pacific region (Rahmiati et al., 2020),
Indonesia demonstrates significant potential for growth in its tourism industry (Mun’im, 2022), reinforcing its
importance in the global tourism landscape. The Minister of Tourism, Widiyanti Putri Wardhana, listed some
encouraging developments in the tourism industry for 2024. The tourist industry's 4.01% contribution to the
GDP in the first half of 2024 is one of these markers. This figure exceeds the anticipated 3.9% contribution in
2023. Tourism-related foreign trade earnings reached 12.63 billion US dollars by the third quarter of 2024 (Sh
& Sari, 2024). Statista data indicates that the travel & tourism industry's income is anticipated to reach
US$854.80 billion in 2023, resulting in a market volume of US$1,016.00 billion in 2027, with an annual revenue
growth rate of 4.41% (Hasibuan et al., 2023).
The Indonesian tourism industry has clearly demonstrated expansion in terms of international visitor
measurement in addition to make a significant contribution to national economic development through GDP.
ICTMT 2025 | International Journal of Research and Innovation in Social Science (IJRISS)
ISSN: 2454-6186 | DOI: 10.47772/IJRISS
Special Issue | Volume IX Issue XXVIII November 2025
Page 282
www.rsisinternational.org
The Minister of Tourism, Widiyanti Putri Wardhana, stated that the number of domestic and foreign visitor visits
in 2024 exhibited a significant increase in comparison to the previous year (Kemenpar, 2025). According to the
Central Bureau of Statistics, the number of international visitor arrivals in 2024 exceeded that of 2023 in nearly
every month. This corroborates the assertion that the confidence of international visitors is increasing in order
to organize a travel to Indonesia. The cumulative number of foreign visitors until the end of 2024 is approaching
the pre-pandemic level, with 13,902,420 international tourist arrival. In comparison to 2023, its value increased
by 19.05% (Ummah, 2025). Indonesia is one of the emerging nations that is striving to overcome unemployment
(Kurniawan, 2024). The arrival of tourists to a place might generate chances for local residents to establish
commercial ventures, hence providing jobs and income for its residents (Mukaffi & Haryanto, 2022).
Micro-level indicators of tourist expenditure can be measured by tourist spending which the money spent directly
by individual tourist during their stay. Therefore, tourist expenditure can be determined through length of stay,
occupation, MICE, and tourist arrival. Prior studies substantiate a favorable association between length of stay
(LOS) and tourism expenditure, owing to increased daily expenditure by tourists who remain longer (Aguiló,
Rosselló, and Vila 2017; Aguilar and Díaz 2019; Fansurya et al. 2024). Tourists may explore secondary tourist
attractions and sites by extending their visits and dispersing throughout the region. The resulting financial
assistance may be beneficial to a higher number of local residents, particularly those who reside outside the
primary conurbation (Oklevik et al., 2021). The length of stay will determine the quantity of money expended.
MICE industry can be characterized as a major source of employment, foreign currency revenues, travel
expenditure, and investment (Harman & Zemanová, 2022). For the majority of time spent by business people
have incurred greater expenditures, which is customary for this type of travel due to the fact that conference
participants are demanding visitors with significant purchasing power. However, the aggregate number of MICE
tourists in Indonesia remains relatively low. This could be the result of a lack of interest among visitors visiting
Indonesia for MICE purposes, even in developed countries. Japan is the country that contributes the most to
MICE visitors in Indonesia. Other nations, including the United States, Canada, Saudi Arabia, and South
America, have encountered inconsistent fluctuations. In 2023, the number of international MICE tourists reached
157.07%, an increase of 9.71% from the previous year. This figure continued to rise to 13.59% by 2024. The
contribution of tourist expenditure in Indonesia may be impacted by the relatively low number of MICE tourists,
despite the fact that the phenomenon is continuing to grow.
There are striking differences in tourist expenditure from various countries, raising important questions
regarding the factors that impact tourism. Although tourist expenditure may continue to increase each year, it
does not necessarily have a proportional impact on economic contribution. Leakage theory posits that the
majority of the money that tourists expend in the host economy does not remain in the country, thereby
diminishing the impact of tourism on GDP growth (Seraj et al., 2025). This study will further examine tourism
factors that can contribute to tourist expenditure, such as length of stay, tourist arrivals, professional occupation,
and MICE.
Hypothesis Development
Length of Stay have a significant impact on Tourist Expenditure The differences in length of stay and intended
expenditure affect actual expenditure on lodging, retail, dining, entertainment, and transportation (Listyorini et
al., 2023). Also, the expenditure categories are impacted by the length of stay (LOS) (Listyorini et al. 2023; Ab
Rahman et al. 2023). Tourists who stay for a lengthy period develop a more comprehensive understanding of the
destination's products and services, which increases their likelihood of incurring expenditures and contributes to
the multiplier effect of tourism revenue (Gokovali, Bahar, and Kozak 2007; Bam 2023).
H1: There is a significant impact of tourist length of stay on tourist expenditure.
Providing tourists with the opportunity to purchase items or engage in transactions upon their arrival at tourist
attractions will be beneficial for the economy of the region and the nation as a whole (Putra et al., 2021).
According to Antara and Pitana (2012), assert that the number of foreign visitors to a tourist destination would
impact the amount of money that those visitors expend (Bagus & Wijaya, 2015). The average amount of money
ICTMT 2025 | International Journal of Research and Innovation in Social Science (IJRISS)
ISSN: 2454-6186 | DOI: 10.47772/IJRISS
Special Issue | Volume IX Issue XXVIII November 2025
Page 283
www.rsisinternational.org
expended by foreign visitors is directly and substantially impacted by the number of visitors, according to the
research conducted by (Bagus & Wijaya, 2015).
H2: There is a significant impact of tourist arrival on tourist expenditure.
The affordability of a journey is significantly impacted by occupational status, which is a significant social and
economic factor. Households with leaders who are not actively involved in the labour market are less likely to
embark on trips. In contrast, communities in which the chief of the family occupies a prominent position are
more likely to engage in both international and domestic travel than domestic travel (Bernini & Cracolici, 2015).
H3: There is a significant impact of tourist professional occupation on tourist expenditure.
MICE events are one way to generate more revenue from tourists who come from other countries. It's important
to remember that business tourists spend three times as much as typical tourists, which is a good thing for the
Indonesian economy (Septemuryantoro, 2019). On the other hand, according to (Syah et al., 2023), When MICE
destinations are the primary focus, it may generate seven times the amount of visitor expenditure as leisure
tourism. O'Toole (2011:51) posits that business events are designed to stimulate commercial activity by
attracting attendants who have a "high expend pattern," thereby significantly influencing the economy of the
host city or country during the event (Bavuma, 2018).
H4: There is a significant impact of tourist MICE on tourist expenditure.
The researcher used independent variables consisting of length of stay, tourist arrivals, professional occupation,
and MICE on tourist expenditure. Based on previous studies, these tourist indicators have a positive impact. The
results of the OLS regression indicate that tourists' expenditures for travel are significantly impacted in Taiwan
by the following factors: geography, visit frequency, transportation modalities, length of stay, tourist count,
gender, income, age, and education (Lubowiecki-vikuk & Sousa, 2021). However, it is very rare to use
occupation as an independent variable for tourist expenditure. Previous research frequently distinguishes
triprelated parameters from socio-demographic and psychographic variables in relation to the determinants of
microlevel tourism expenditures (Wang et al. 2006; van Loon and Rouwendal 2017). For example, the length of
stay and the size of the travel group are important factors that affect how much each person spends. It's clear that
both have a nonlinear impact (Thrane and Farstad 2011; Lubowiecki-vikuk and Sousa 2021). They identify a
positive correlation between the length of stay and tourist expenditures; however, the incremental impact of an
additional day is decreased (Lubowiecki-vikuk & Sousa, 2021). Tourists participating in MICE are inclined to
extend their stays, which results in an overall increase in expenditures (Wiraharja, 2022).
H5: There is a simultaneously significant of tourist length of stay, tourist arrival, tourist professional
occupation, and tourist MICE on tourist expenditure.
METHODOLOGY
This study uses quantitative methods to analyze the impact of length of stay, tourist arrivals, professional
occupation, and MICE tourists on tourist expenditure. A methodical and organized approach to scientific
research that emphasizes the collection and interpretation of numerical data is quantitative research (Dehalwar
& Sharma, 2024). The objective of quantitative research is to test hypotheses in accordance with specific
theoretical interpretations and to analyses the relationships among variables using specific population data or
samples represented numerically. This positivist-based methodology is employed through statistical technique.
This research methodology focuses on calculating input data to obtain output data. The data is obtained in the
form of panel data. Panel data, also known as longitudinal data, are collection of individuals, households,
enterprises, nations, and other entities that are monitored over time. In general, the temporal dimension is less
than the number of units (e.g., individuals, enterprises, etc.) (Zamore, 2022).
Population of this study was all data available in the Central Bureau of Statistics (BPS) on length of stay, tourist
arrivals, professional occupation, MICE and tourist expenditure. The data used in this study is secondary data.
ICTMT 2025 | International Journal of Research and Innovation in Social Science (IJRISS)
ISSN: 2454-6186 | DOI: 10.47772/IJRISS
Special Issue | Volume IX Issue XXVIII November 2025
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In determining the sample, this study get 18 countries for 3 years from 2022 to 2024. The sample data is in the
form of annual data. This research will use, n = 54. Data were analyzed using a descriptive statistic test and
inferential statistical testing. In the inferential statistical testing must be conducted through the multiple
regression analysis test. This research also using a classical assumption test, and a hypothesis test. In the classical
assumption test, there are four tests that must be conducted: the normality test, the multicollinearity test, the
autocorrelation test, and the heteroscedasticity test. Multiple linear regression, researchers may ascertain not
only whether these four variables impact tourist expenditure outcomes, but also the extent to which each impact
them (Aflah & Hamdani, 2025). In addition, the third-stage test must also be conducted through, such as, the
coefficient of determination test, the simultaneous test (F–test), and the partial test (T–test). In calculating the
data to obtain the results, this study was assisted by a tool called IBM SPSS version 31.0.0.0 to generate the
output. IBM SPSS, or Statistical Package for the Social Sciences, is a widely used statistical analysis application
among social scientists worldwide (Dehalwar & Sharma, 2024).
RESULTS
Descriptive Analysis
A descriptive statistical analysis to present the results of tourist length of stay in days, tourist arrivals in thousands
(.000), tourist professional occupation in percent (%), tourist MICE in percent (%), and tourist expenditure in
dollars (US$). The result of Tourist expenditure with the smallest expenditure was US$591.03 in 2023 for
Malaysian tourists. However, the highest tourist expenditure was in the same year but for Austrian tourist with
a nominal value of US$4,274.22. The average (mean) of tourist expenditure was US$2,063.9996 while the
standard deviation is US$746.29265. In terms of length of Stay, the minimum value was 2.96 days, in 2023 for
Singaporean tourists. It can be interpreted that the shortest days who tourist stays in Indonesia were around 3
days, while the maximum value was 21.01 in 2022 for Dutch tourists. It can be interpreted that the longest days
who tourist stays in Indonesia were around 21 days. The mean value of this variable is 12.9069, it can be
interpreted that the average tourist stays in Indonesia from 2022 to 2024 are around 13 days.
Tourist arrivals shows that the minimum value is 1,450. So, it can be interpreted that the least tourist arrival is
only 1,450 people, which occurred among South American tourists in 2022. However, the maximum value is
22,782,181. So, it can be interpreted that the most tourist arrivals are 22,782,181 people, which occurred among
Malaysian tourists in 2024. The mean value of this variable is 352009.0741, it means the average of tourist
arrival in Indonesia were 352,009.0741 from 2022 to 2024. Professional employment is another variable in this
study. The result shows the minimum value of 17.52%, then it can be interpreted that the number of tourists who
come to Indonesia who have the least professional occupation was 17.52%, occurring among Malaysian tourists
in 2022. However, the maximum value of this variable was 63.20%, then it can be interpreted that the number
of tourists who come to Indonesia who have the most professional occupation was 63.20% in 2022 among
Austrian tourists. The mean value of this variable was 43.5350%, the it can be interpreted that the number of
tourists who come to Indonesia who have professional occupation was 43.5350% from 2022 to 2024. In terms
of MICE activity, the minimum value was 3.23%, then it can be interpreted that the number of tourists who come
to Indonesia which occurred among Spanish tourists in 2022, then it can be interpreted that the number of tourists
who come to Indonesia with the least MICE purpose was 3.23%. However, the maximum value of this variable
is 22.49%, then it can be interpreted that the number of tourists who come to Indonesia with the purpose of
MICE is at most as large as 22.49%, which occurred among Japanese tourists in 2024. The mean value of this
variable is 8.8639%, then it can be interpreted that the average number of tourists coming to Indonesia for MICE
purposes in 2022 to 2024 was 8.8639%.
Multiple Regression Analysis
Table 1 below shows the relationship between each independent variable and the dependent variable is as
follows, as determined by the standardized coefficients of multiple regression equations. Table 1. Multiple
Regression Analysis
ICTMT 2025 | International Journal of Research and Innovation in Social Science (IJRISS)
ISSN: 2454-6186 | DOI: 10.47772/IJRISS
Special Issue | Volume IX Issue XXVIII November 2025
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Hypothesis Testing Result
Before testing the hypothesis, classical assumption test must be performed. This
stud shows that it was met the classical assumption test and ready for the
hypothesis testing. Thus, the Hypothesis result shows in Table 1 indicate that a
T-test or partial test can be used. To meet the significance requirement in the
T-test, the significance value must be ≤ 0.05. The result for each hypothesis is
as follow:
The impact of length of stay (X1) is not significant on tourist expenditure (Y) because the results of the
significant value are greater than 0.05. The effect of tourist arrival (X2) is significant on tourist expenditure (Y)
because the results of the significant value is lower than 0.05. The effect of tourist professional occupation (X3)
is not significant on tourist expenditure (Y) because the significant value is greater than 0.05 so it does not meet
the criteria. The effect of MICE tourists (X4) is significant on tourist expenditure (Y) because the results of the
significant value is lower than 0.05 so that it meets the criteria.
F test
The F-test was used to determine the correlation between length of stay, tourist
arrivals, professional occupation, and MICE on tourist expenditure using the
ANOVA test. The test can be considered significant if ≤ 0.05. Table 2 shows the
result of F test result with the significant value <.001. This demonstrates that,
simultaneously, the independent variables trip-related aspects such as Length
of Stay and Tourist Arrival, the socio-economic characteristic of Professional
Occupation, and the niche tourism feature of MICE travel purpose significantly
influence the dependent variable, tourist expenditure.
Table 2. F-test result
ICTMT 2025 | International Journal of Research and Innovation in Social Science (IJRISS)
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DISCUSSION
Hypothesis 1 (H1) research demonstrated that the length of stay has an insignificant influence on tourist
expenditure. As a consequence, Hypothesis 1 (H1) rejected and the finding was contradiction with some previous
research (Ab Rahman et al., 2023; Bam, 2023; Gokovali et al., 2007; Listyorini et al., 2023). This result may
contradict the logical thinking that the longer the stay of tourists, the more the tourists expend. However, in the
case of this study, tourists who stay in Indonesia for a long time are likely to save money. The results of this
study are in line with previous studies, (Yoga Suastika & YasaI, Mahendra, 2015), which obtained the same
results, namely negative insignificance. Technological advancements have simplified the process of organising
journeys for tourists. The most evident factor is that the internet assists tourists in determining the best places to
stay and how to navigate tourist areas. This has an influence on the length of their stay, which they began to plan
well in advance of their departure. As a result, the length of stay cannot be used as an independent variable to
evaluate its correlation with the tourist expenditure. Likewise, according to (Santos, 2024), the study also claims
that tourists may reduce their daily expenditures by saving money over time, which could result in a decrease in
their overall income, regardless of the length of their stay. Also, if tourists stay longer, they can choose cheaper
places to stay or do cheaper activities, which might decrease how much money they make.
Hypothesis 2 (H2) research demonstrated that the tourist arrival has a negative significant influence on tourist
expenditure. The statistical T–value of –4.066 which is greater than 1.96, and the P–value or meaningful value
of 0.001 support this statement. As a consequence, Hypothesis 2 (H2) is accepted. This study supports previous
studies, demonstrating that tourist arrivals significantly influence expenditure patterns (Travel, 2023; Bagus &
Wijaya, 2015; Putra et al., 2021). The tourist arrival factor that decreases tourist expenditure can be caused by
overtourism. Overtourism is defined as “a situation in which tourism adversely affects the perceived quality of
life of citizens and the quality of tourists’ experiences in a destination. “Good tourists” are benevolent, high
expenditure, and treat others with respect (García-Buades et al., 2022). According to the journal, high tourist
expenditure is a characteristic of a good tourist, while over tourism is characterized by negative influences.
Therefore, over tourism, or excessive tourist arrivals, contributes to the decline in tourist expenditure. The feeling
of being disconnected from a place can happen for several reasons: not being able to see the true local identity,
culture, or environment because of changes caused by tourism; feeling out of place when talking in different
languages; or not being able to join in on traditional activities like going to markets, restaurants, or local sights
or getting around because of too many tourists (García–Buades et al. 2022; Dimitrovski and Vallbona 2018).
Hypothesis 3 (H3) research demonstrated that the Professional Occupation has an insignificant influence on
tourist expenditure. The statistical T–value of 0.428, which is lower than 1.96, and the P–value or meaningful
value of 0.670 support this statement. As a consequence, Hypothesis 3 (H3) is rejected. These results contradict
prior research (Kyophilavong, 2024) that highlighted occupation as a significant factor influencing tourist
expenditures. Meanwhile, the results are in line with the findings of the study (Ivanus & Damanhuri, 2024;
Tanana et al., 2022). This is because tourists who have a professional occupations background get a budget from
their company. However, the budget is not fully spent on traveling in Indonesia. This phenomenon contradicts
previous research which states that the daily expenditures of international tourists in Indonesia are significantly
influenced by the tourist occupations (Rahmiati & Misnawati, 2021) The findings indicate that occupation is not
a significant determinant of the amount of money tourists would expend.
Hypothesis 4 (H4) research demonstrated that the MICE has a negative significant influence on Tourist
Expenditure. The statistical T–value of –2.309, which is greater than 1.96, and the P–value or meaningful value
of 0.025 support this statement. As a consequence, Hypothesis 4 (H4) is accepted. MICE attendees have little
time for discretionary expenditures due to meetings, presentations, and professional obligations. Previous
research has shown that heavily scheduled corporate travel schedules decrease visitor expenditure as excessive
entertainment or shopping may result in distraction, tardiness at work, and overspending during a business trip
(Mercan & Sandıkcı, 2024).
Hypothesis 5 (H5) research demonstrated that the Length of Stay, Tourist Arrival, Professional Occupation, and
MICE have a significant influence on Tourist Expenditure. The statistical F–test result show that F = 10.125, p
< 0.001. As a consequence, Hypothesis 5 (H5) is accepted. This study confirms that the independent variables
ICTMT 2025 | International Journal of Research and Innovation in Social Science (IJRISS)
ISSN: 2454-6186 | DOI: 10.47772/IJRISS
Special Issue | Volume IX Issue XXVIII November 2025
Page 287
www.rsisinternational.org
have a significant influence on expenditure patterns, in accordance with previous research (Lubowiecki-vikuk
& Sousa, 2021; van Loon & Rouwendal, 2017; Wang et al., 2006; Thrane & Farstad, 2011; Wiraharja, 2022).
This is in line with previous research In Taiwan, the following factors significantly influence the travel
expenditures of tourists, as indicated by the OLS regression results: gender, income, age, and education, as well
as geography, visit frequency, transportation modalities, length of stay, and tourist count (Lubowiecki-vikuk &
Sousa, 2021). The significant influence between tourist arrivals and tourist expenditure is supported by research
(Bagus & Wijaya, 2015). In this study, tourist arrivals had a significant direct influence on tourist expenditure.
CONCLUSION
Based on the results of the study, length of stay has an insignificant on tourist’s expenditure because tourists
choose to live frugally and seek inexpensive accommodation. Tourist arrivals has a significant influence,
meaning that tourist arrivals are influencing but has a negative influence on tourist expenditure due to over
tourism, causing tourists to be reluctant to shop, which can reduce tourist expenditure. Professional occupation
has an insignificant influence, meaning that occupation did not influence on tourist expenditure and was not
dominant enough to be used as a variable in this study. Last variable, MICE has a significant influence, meaning
that MICE influence on tourist expenditure, but it is negative because it misuses expend that was originally
intended for meetings but is used for leisure tourism. The overall, independent variables such as length of stay,
tourist arrival, professional occupation, and MICE have a significant influence on tourist expenditure.
This study also provides several recommendations specifically for the tourism industry, government, and future
researchers. These recommendations aim to boost tourist expenditure in Indonesia. It is necessary to optimize
and innovate in the development of tourism concepts that have shorter durations. The government must establish
sufficient infrastructure in tourist regions to prevent over tourism and facilitate tourists' shopping experiences.
In terms of MICE, it is necessary to develop attractive ideas for MICE activities in Indonesia so that MICE
tourist expenditure can be optimized. Such as MICE members have the opportunity to arrange trips that are not
solely focused on attending events, the tourist bureau should maintain a close relationship with the organizers
and monitor MICE activities.
Professional occupations which come for MICE activities, it is necessary to improve promotion and services
with concepts that are tailored to the interests and occupations of tourists so that tourist expenditure according
to occupation can have an effective influence. One of the suggestions to Indonesia Government is to initiate a
campaign to encourage tourists to purchase products from local micro, small, and medium-sized enterprises
(MSME). This will promote the purchase of traditional Indonesian food, Indonesian cultural mementoes, and
other items, thereby distributing tourist expenditure more equitably across various sectors.
ACKNOWLEDGEMENTS
The authors would like to Universiti Teknikal Malaysia Melaka (UTeM) and President University for their
valuable contributions to this study.
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