ABSTRACT
This study aims to evaluate the pattern of consumer demand for spending on tourism. One area that is quite progressive in developing the tourism sector is East Java. Using East Java household microdata, this study yielded several important findings. First, the demand for the tourism sector is relatively inelastic. This means that price changes in this sector do not significantly affect household demand for tourism needs. Second, the income elasticity for tourism is relatively elastic. This suggests that improvements in household income have the potential to increase spending on the tourism sector. The results of the study strengthen the hypothesis that the tourism sector is one of the economic sectors that will soon recover after the economy is released from the COVID-19 snare.
