Feasibility Analysis of Marketing Budget in Increasing International Tourist Arrivals to Indonesia Using System Dynamic
Keywords:
Marketing Budget, Tourism Promotion, Destination Branding, System DynamicsAbstract
This study analyses the relevance of the marketing budget in achieving the target of international tourist arrivals (ITA) to Indonesia post-pandemic. Using system dynamics modelling and Powersim 10 software, this research examines the relationship between marketing budget allocation, destination branding, and international tourist arrivals. The results of the model show that the allocated budget is insufficient to meet the established target. It is recommended that the Ministry of Tourism and Creative Economy (Kemenparekraf) consider increasing the marketing budget by 10% annually to achieve the desired target. This budgetary intervention is expected to significantly impact the growth in international tourist arrivals and the resulting foreign exchange earnings.References
Aaker, D. (2025). Aaker on Branding: The Playbook to Building Strong Brands. Morgan James Publishing.
Alonso-Muñoz, S., Torrejón-Ramos, M., Medina-Salgado, M.-S., & González-Sánchez, R. (2022). Sustainability as a building block for tourism–future research: tourism agenda 2030. Tourism Review, 78(2), 461–474.
De Myttenaere, A., Golden, B., Le Grand, B., & Rossi, F. (2016). Mean absolute percentage error for regression models. Neurocomputing, 192, 38–48.
Eddyono, F., Darusman, D., Sumarwan, U., & Sunarminto, T. (2020). Correlation of tourism competitiveness towards tourist visit and non-tax revenue in Nasional Parks in Indonesia. Journal of Critical Reviews, 7(16), 1155–1171.
Eddyono, F., Darusman, D., Sumarwan, U., & Sunarminto, T. (2021a). Performance of tourism competitiveness in national park area of Indonesia. Journal of Environmental Management & Tourism, 12(4), 1098–1110.
Eddyono, F., Darusman, D., Sumarwan, U., & Sunarminto, T. (2021b). Tourism competitiveness on the utilization zone of National Park in Indonesia. Jurnal Penelitian Kehutanan Wallacea, 10(2), 145–164.
Eddyono, F., Darusman, D., Sumarwan, U., & Sunarminto, T. (2025). Optimization model: the innovation and future of e-ecotourism for sustainability. Journal of Tourism Futures, 11(1), 96–113.
Florido-Benítez, L. (2024). Tourism promotion budgets and tourism demand: The Andalusian case. Consumer Behavior in Tourism and Hospitality, 19(2), 310–322.
Florido-Benítez, L. (2025). Tourism promotion as a marketing tool to enhance tourism demand in the eight provinces of Andalusia. Discover Cities, 2(1), 1–22.
Horita, Y., & Kato, K. (2020). 2 Tourism research on Japan–overview of major trends. Tourism Development in Japan: Themes, Issues and Challenges, 19.
Hyunsoo, Y. O. O. (2024). Consumer Experience and Management Response Under the Impact of COVID-19 Crisis. Korean Journal of Artificial Intelligence, 12(2), 25–33.
Johar, K., Tan, D., Maung, Y., & Douglas, I. (2022). Destination marketing: Optimizing resource allocation using modern portfolio theory. Journal of Travel Research, 61(6), 1358–1377.
Kotler, P., & Gertner, D. (2011). A place marketing and place branding perspective revisited. Destination Brands, 33–53.
Lin, S., Xu, S., Liu, Y., & Zhang, L. (2024). Destination brand experience, brand positioning, and intention to visit: A multi-destination comparison study. Journal of Vacation Marketing, 30(3), 599–614.
Long, Y., & Shi, P. (2017). Pricing strategies of tour operator and online travel agency based on cooperation to achieve O2O model. Tourism Management, 62, 302–311.
Moreno-Luna, L., Robina-Ramírez, R., Sánchez, M. S.-O., & Castro-Serrano, J. (2021). Tourism and sustainability in times of COVID-19: The case of Spain. International Journal of Environmental Research and Public Health, 18(4), 1859.
Ruiz-Meza, J., Sotaquirá, R., & Montoya-Torres, J. R. (2024). Effects of tourism planning and marketing strategies on destination brand equity: A system dynamics model. Journal of Simulation, 18(3), 360–377.
Saraswati, H. D., & Afifi, S. (2022). Strategi komunikasi pemasaran pariwisata di masa pandemi COVID-19. CoverAge: Journal of Strategic Communication, 12(2), 138–155.
Schmitt, B. (2011). Experience marketing: Concepts, frameworks and consumer insights. Foundations and Trends® in Marketing, 5(2), 55–112.
Shizhen, L., Hussain, K., Ari Ragavan, N., & Nisar, Q. A. (2025). The role of destination brand experience, emotions and brand credibility in influencing destination brand equity. Journal of Hospitality and Tourism Insights.
Sterman, J. (2014). System Dynamics: systems thinking and modeling for a complex world.
Tappy, Y. P., & Mandagi, D. W. (2023). Evaluating the Brand Gestalt of Emerging Health Tourism Destinations. Jurnal Studi Perhotelan Dan Pariwisata (JSPP), 2(2), 71–85.
Tarigan, M. I., Silalahi, E., Tinambunan, A. P., Margery, E., & Lusiah, L. (2024). Impact of Destination Brand Experience to Increase Destination Brand Loyalty. Jurnal Aplikasi Manajemen, 22(1), 219–236.
Published
Issue
Section
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Lisensi Creative Commons Atribution-ShareAlike 4.0 Internasional. that allows others to share the work with an acknowledgement of the works authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journals published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
