International Journal of Research and Review DOI: https://doi.org/10.52403/ijrr.20211061 Vol.8; Issue: 10; October 2021 Website: www.ijrrjournal.com Research Paper E-ISSN: 2349-9788; P-ISSN: 2454-2237 International Journal of Research and Review (ijrrjournal.com) 465 Vol.8; Issue: 10; October 2021 Disasters and Domestic Tourist Arrivals in Indonesia in 2013-2017 Alla Asmara 1 , Annisa Hafizhah Uzdah 2 1 Department of Economics, Faculty of Economics and Management, IPB University, Jl. Agatis, IPB Dramaga, Bogor 16680 2 Department of Economics, Faculty of Economics and Management, IPB University, Jl. Agatis, IPB Dramaga, Bogor 16680 Corresponding Author: Alla Asmara ABSTRACT The tourism sector is the leading sector in Indonesia's economic development in the future. One of the potential demands for Indonesia tourism sector comes from domestic tourist arrivals who show an increasing trend each year. On the other hand, the number of disasters in Indonesia in the last 10 years also showed an increasing trend. Starting from this phenomenon, the purpose of this study is to analyze the impact of disasters on domestic tourist arrivals in Indonesia. The analytical method used is descriptive analysis and panel data with Fixed Effect Model (FEM) approach. In this study, natural disasters were proxied through frequency of disasters and the number of fatalities. The results of the analysis indicate that frequency of disasters and the number of fatalities have a negative effect on the domestic tourist arrivals. However, only the number of fatalities has a statistically significant effect. Economic variables which also have a significant effect on domestic tourist arrivals are GRDP/capita, CPI, population, number of hotel rooms and accessibility. All of these variables have a positive effect on domestic tourist arrivals. Keywords: Disasters, panel data, tourism, domestic tourist JEL Classification code: Z38; O20; R58 INTRODUCTION Tourism is one of the basic sectors that has a large multiplier effect because it is able to attract other sectors to develop. This sector becomes the leading sector of the 5 sectors of the Indonesian government's development targets in 2014-2019. The five sectors include infrastructure, maritime, energy, food and tourism. Tourism is set as the leading sector because in the short, medium and long term is predicted will have a positive growth and is considered a strategic sector and able to become a media integration program between sectors (Kemenpar 2017). Liu and Wu's research (2019) shows that a 10% increase in tourism productivity will increase tourism added value by 4.11% and cause real GDP growth of 0.61%. In addition, the tourism sector has a rapid recovery process after the financial crisis and shows outstanding performance in several countries in Europe (Dogru and Bulut 2017). The tourism sector is seen as an important engine for economic growth and country development (Brida and Risso 2009; Tang and Tan 2013), helping to improve economic welfare for local residents (Webster and Ivanov, 2014), encouraging employment, tax revenues, investment in infrastructure, human resources and technology, encourage efficiency for local industries to compete and facilitate exploitation of economies of scale (Shahzad et al. 2017). Domestic tourists play a large role in the development of Indonesian tourism. Although domestic tourist arrivals do not generate foreign exchange, but the