Relationship between Soft Power and Inbound Tourism Arrivals

Abstract

The study aims to examine the relationship between soft power and tourism arrivals using unbalanced panel data from 56 countries around the world from 2020 to 2022. The analysis used the Fixed Effect and Random Effect models with the Generalized Least Square Regression method (GLS). The data used in the analysis includes the Global Soft Power Index and the number of inbound tourism arrivals. The result from the Hausman test found that the fixed effect is more appropriate than the random effect. The Soft Power index and the number of inbound tourist arrivals have a positive impact together. Hence, soft power and tourism can drive together and creation in each country. It helps to connect the country's values with international values through improving tourism and soft power, together with mechanisms to enhance economic growth.