1. Introduction
Travel and tourism play an essential role in supporting the foreign currency economy and income sources for many countries (United Nations World Tourism Organization, 2017). Mcewen and Bennett (2010) and Bremner (2017) stated that tourism contributes up to US$1.4 trillion of foreign earnings worldwide after the mining industry (United Nations World Tourism Organization, 2017). According to the calculation obtained from the direct travel and tourism GDP, Indonesia is sixth out of the top ten largest cities in Asia-Pacific. Indonesia is a country with total land and sea area of 5,180,053 km2 , comprising 13,487 islands and 1,340 ethnic groups (Nuryadi, 2018). The natural, cultural, historical, religious, culinary, and shopping richness makes it a popular tourism destination. According to the Minister of Tourism Arief Yahya the country initially ranked 40 out of 114 countries in the tourism sector. However, after some branding, the rating increased to 38, thereby beating Thailand and Malaysia, which is an excellent achievement due to the strict assessment of tourism indicators (CNN Indonesia, 2019).
The World Economic Forum (2017) stated that the Indonesian tourism sector is putting in more effort into infrastructure, information, economic, cultural, historical, traditional, and local tourism festivals. According to Ulusoy (2011), tourist revenue is a significant economic growth source that needs to be supported by tourism facilities. Subsequently, Al-Ababneh (2013) reported that tourism service quality is access to attractive facilities that positively or negatively impact on tourist satisfaction (Rohman, 2020) thereby increasing or decreasing their loyalty. Liang (2008) stated that competitive advantage is created by satisfactorily fulfilling the quality of tourism products and services, contributing to customer satisfaction, thereby increasing the tendency for a revisit. This is similar to Canny (2013) research, which stated the importance in delivering quality services to tourists with the provision of outstanding travel agency, tour guides with in-depth knowledge and details on destinations, effective transport services, and access to food. Furthermore, Chan, Hsu and Baum (2015) also reported that the tour guide’s quality affects tourist satisfaction.
In 2015, the Indonesian government provided a visa-free policy to citizens of over 169 countries for a maximum period of 30 days, which was the 2nd strongest visa policy (World Economic Forum, 2017). This aims to effectively improve the service quality of Indonesia tourism to attract foreign tourists. Besides service quality, another important factor in tourism is tourist product availability. This is achievable because the country consists of 34 provinces with growing tourist attractions that are naturally beautiful (beaches, mountains), with unique culture, buildings, and high-value historical objects (Nuryadi, 2018). The Central and Local Governments need to promote and enhance the quality of services regarding airlines, hotels, restaurants, and other destinations, through online and offline channels to make it easier for tourists to travel to Indonesia. Furthermore, they need to ensure the uniqueness of tourist attractions such as infrastructure, seasonal festivals, and other activities (Al-Lamy et al., 2018). Adequate information needs to be provided to tourists throughout their visits to Indonesia because it is one indicator that provides satisfaction to foreign tourists.
The Indonesian government has facilitated many tourists’ platforms in order to produce suggestions. Foreign tourists can get information offered by the tour agency, such as the available attraction areas, lodging, transportation, culture, and culinary from brochures, magazines, and the information-centers at airports. Several studies indicate that an increase in satisfaction level leads to a rise in the loyalty of returning visitors to the tourism destination (Hermawan, 2017; Priyanto & Hermawan, 2017). According to Kotler and Armstrong (2017), each consumer demands that the company’s product or service can provide great satisfaction. Tourist satisfaction helps to achieve faithful and loyal visitors capable of revisiting that particular area, with the ability to suggest other tourist destinations. When tourism facilities provide tourists with adequate satisfaction, it allows for future return trips and their ability to say positive things regarding others, thereby building loyalty, which creates a strong foundation. There are still some shortcomings and problems associated with the Indonesian tourism sector.
According to Agung Kuswandono, the Secretary of the Coordinating Ministry for Maritime Affairs and Investment on Liputa6.com, Indonesia’s natural conditions are more beautiful than the three nations, with lack of facilities and behavior of local people and various related parties unaware of tourism (Ariyanti, 2019). Based on a 2019 Tourism Competitiveness Index in Southeast Asia, Indonesia’s tourism industry is still inferior compared to Singapore, Malaysia, and Thailand (World Economic Forum, 2019). These three neighboring countries are ranked 17th, 29th, and 31st, respectively, in the world. This is in accordance with the index measured based on several indicators, such as the environment, quality services, and supporting conditions, infrastructure, attractions, and culture (Databoks, 2019). Indonesian Tourism Service Quality negatively impacts on its performance because only a few tour guides can adequately speak English, thereby posing obstacles to the significant explanation of tourism products to international tourists (Purwaningsih, 2013).
Travel agencies tend to help tourists in booking their airline, hotel, and other activities related to their trip through the Internet. The travel agency’s ability to provide the best Tourism Service Quality and tour guide tends to affect the convenience for tourists, thereby affecting their satisfaction and loyalty rate (Bakri, Dabas, Ismail, & Hamid, 2017). However, the biggest obstacle in Indonesia’s tourism growth is the issue of product availability, such as shortage of accommodation, inadequate provision of hotel rooms, high logistics costs, less desirable investment, poor infrastructure, and unsmooth tourism travel (Scowsill, 2017). Across the archipelago, only Bali and Jakarta own an appropriate tourism network. In terms of inadequate infrastructures, such as lack of airports, ports, highways, and hotels, Eastern Indonesia is least. In the meantime, product availability is a tourist issue used to decide destinations with inadequate products, thereby contributing to Indonesian tourism’s unprofessional view. The tourism foreign exchange earnings tremendously decreased while tourist arrivals increased in 2019. However, irrespective of this increase, the exchange earnings were not balanced due to the increase in tourist arrivals compared to the previous year (Bakri et al ,2018). One way to earn easily foreign exchange through tourist loyalty as return visits, buy back, and talk about their positive experiences, thereby generating revenue from the country. The form of loyalty is by providing quality services as well as by providing fast and accurate information. Therefore, based on the above, this study aims to determine the contributions of Tourism Service Quality and Tourism Product Availability towards Foreign Tourist Loyalty
2. Literature Review
2.1. Tourist Loyalty
Tourist loyalty is a deep commitment to buy back consistently or re-subscribe to products or services in the future, thereby causing repeated purchases of the same brand (Andreas & Tunjungsari, 2019). Satisfied tourists tend to revisit, re-buy and talk about their positive experience with a particular tourism area when satisfied with their services, which ultimately leads to higher revisit intention, generates revenue from the country, automatically provides free promotion to the tourism destination and is a key element of the business strategies of many companies (Khuong & Ha, 2014; Gnanapala, 2015; Chiu, Zeng, & Cheng, 2016). One of the methods used to form loyalty is by providing good quality service to meet customers’ needs and the provision of fast and accurate information on hospitality when carrying out services (Sulistyowati, 2015). The indicators of tourist loyalty in this study are their intention to revisit or return to Indonesia, try more tourist products and services in the future, say positive things, and recommending Indonesia to friends and families.
2.2. Tourist Satisfaction
Tourist satisfaction is of the utmost importance to the tourism industry, which depends on their ability to revisit purchases and analyze their positive experiences. This is the last key to higher revisit levels, increase in country revenue and enhanced business strategies of many companies (Khuong and Ha, 2014; Gnanapala, 2015; Chiu et al., 2016; Ying et al., 2016). In order to provide convenience and meet tourists’ needs during visits, good service quality and product availability need to be provided to suit their various needs. Kotler and Keller (2014) stated that facilities are all items intentionally delivered by service providers to be used and appreciated by customers aimed to achieve the highest satisfaction level. The factors influencing tourist satisfaction are basic amenities, cultural attractions, tourist substructures, transportation, and economy (Coban, 2012; Idris et al., 2016). In conclusion, tourism service quality and product availability are variables used to measure tourist satisfaction (Vu, Tran, Nguyen, & Nguyen, 2020).
2.3. Tourism Service Quality
The quality of tourist attraction services, uniqueness, and high value is the basis for tourists to revisit a destination (Rakhastiwi, 2019). Visitors’ facilities, in terms of access to tourist sites, and attractiveness directly affect their satisfaction rate. Therefore, quality service can be realized by providing excellent services by competent human resources, which is supported by adequate infrastructure or facilities able to provide positive values. Tourists who have visited a destination more than once are satisfied because according to their experience of tourism products such as the choices of diverse tourism products and information available both offline and online have met these tourists’ expectations and can give an impression on tourists, so as to make tourists revisit a destination (Rahmiati, Othman, & Tahir, 2020a). The Tourism Service Quality includes tour guide services, infrastructure or transportation accessibility, and tourist attractions such as products and accommodation. The availability of tour guides is needed to improve services’ quality by conveying information on products (Isdarmanto, 2017). In tourism, quality is created by delivering outstanding services in terms of hospitality, courtesy, efficient accommodation, food, and recreation facilities (Gallarza, Ruiz-Molina, & Gil-Saura, 2016). Additionally, Gallarza, Gil Saura and Arteaga Moreno (2013, 2017) and Latiff and Ng (2015) stated that efficiency measured by ease and accessibility is an essential relationship for the provision of satisfied and loyal tourists in the transportation and accommodation during the tourism activities. Efficiency can cognitively be perceived, such as in information provision, because competent is of prime importance for tourism (Gallarza et al., 2013).
Several studies on tourism service quality, such as the research carried out by Latiff and Ng (2015) on accommodation, hospitality, entertainment, transportation, and quality car service for the overall satisfaction, desire to return, and willingness to recommend relatives and friends. Liang (2008) stated that in the pre-delivery stage of travel experience, information speed and accuracy are important. Similarly, law No. 10 of 2009 concerning Tourism article 20 (a) stated that every tourist has the right to obtain accurate information on tourist attractions. Activities in the field of tourism information lead the management of tourism to discuss the ease of providing adequate information regarding tourist attractions, such as lodging, transportation, infrastructure, etc. (Ruslan, 2014). Vignati and Laumans (2010) reported that the quality of services consisting of tour guides, accommodation, food, attractions, and transportation depend on each other. The standard of tourism services can be realized by qualified human resources in excellent service, competent, and assisted by adequate infrastructure or facilities to provide positive values (Priyanto & Hemawan, 2017). Hanif, Kusumawati and Mawardi (2016) also stated that Tourist Satisfaction has a significant effect on loyalty. The service quality indicators used in this study are focused on personnel (approachable, friendly, respectful, competent) information (detailed information transportation, hotels, restaurants, tourist activities), and transportation (efficient and accessible).
2.4. Tourism Product Availability
According to Pitana and Diarta (2009), tourism product availability is the tourists’ belief on the possible products or services to be bought. The more information and tourist products available, the more interest for tourists to visit (Rahmiati, Othman, Ismail, Bakri, & Amin, 2020b). Tourism sector growth can be achieved by optimizing tourist destinations’ marketing strategy, which includes service quality and availability of important products in the market (Sumantri, 2020). Arief Yahya stated that the secret to tourist destinations’ successful creation is 3A’s tourism attributes, namely attractions, accessibility, and amenities. According to Sunaryo (2013), the tourism growth system includes ancillary services, attractions, accessibility, and amenities. These attributes are explained in the following sub-sections.
a. Attractions, which include natural, cultural, or artificial areas such as events, are sometimes referred to as special interests. These areas’ intrinsic characteristics, comprising of natural, historical, and cultural resources, attract tourists, and make it their first travel destination (Liang, 2008).
b. Accessibility is associated with the means of transportation, which includes routes, terminal facilities, airports, ports, etc. According to Soekadijo (2003), accessibility consists of access to information where facilities need to be easily found and achieved to have access to road conditions that can be traversed with attractions.
c. Amenity includes supporting tourism facility that needs to be developed, consisting of accommodation, restaurants, tourist information centers, souvenir shops, health centers, banking service centers, communication facilities, security posts, travel agencies, and availability of clean water, electricity, etc. Setyanto and Pangestuti (2019) stated that amenity is related to accommodation facilities’ availability for overnight stays, including restaurants or food stalls for eating and drinking.
d. Ancillary services comprises of the availability of supporting facilities used by tourists such as banks, telecommunications, postal services, hospitals, etc. Sugiama (2011) reported that ancillary or supporting facilities include the existence of various organizations that facilitate and encourage the development and marketing of a tourist destination.
According to Zaenuri (2012), the availability of tourism products when supported by facilities and quality increases tourist interest and loyalty. Efforts in making quality standards for a product or service are adjusted to satisfy tourists (Aprilia & Pangestuti, 2017). The indicators of tourist product availability in this study are varied and detailed, with a wide selection of transportation, travel agent, accommodation, and restaurant.
H1: There is a significant influence of tourist service quality toward tourist satisfaction in Indonesia tourism
H2: There is a significant influence of tourist product availability toward tourist satisfaction in Indonesia tourism
H3: There is a significant influence of tourist service quality toward tourist loyalty in Indonesia tourism
H4: There is a significant influence of tourist product availability toward tourist loyalty in Indonesia tourism
H5: There is a significant influence of tourist satisfaction towards tourist loyalty in Indonesia tourism
H6: There is a significant influence of tourism service quality mediated by tourist satisfaction towards tourist loyalty in Indonesia tourism
H7: There is a significant influence of tourism product availability mediated by tourist satisfaction towards tourist loyalty in Indonesia tourism.
Figure 1: Conceptual Model
3. Data and Methodology
3.1. Construct Measurement
This study used primary data, obtained from the questionnaire used for the survey. A questionnaire is a data collection technique that provides a set of written questions consisting of research variables that need to be answered by the respondent (Kountur, 2009). This research utilized a 7-point Likert scale, “1” = “strongly disagree” to “7” = “strongly agree” to indicate their level of agreement or disagreement with the statement provided. The questionnaire was composed of questions on the following three major sections, namely, (i) demographic profile, (ii) travel characteristics, and (iii) measure of tourism service quality, product availability, satisfaction, and loyalty.
3.2. Study Site and Sample
The accidental sampling technique, also known as the grab or opportunity sampling process, was used to carry out this research. According to Sugiyono (2017), the accidental sampling technique is a determination process that enables the accidental or incidental use of a suitable data source. Hair et al. (2014) stated that this sampling technique’s sample size needs to be at least four or five times of total questions of variables or items used in the research. As a general rule, the minimum is to have at least five times as many observations as the number of variables to be analyzed, and the more acceptable sample size would have a 10:1 ratio. Data were collected from a foreign tourist that visited Indonesia through Soekarno Hatta Airport using the accidental sampling method. A total of 424 questionnaires were returned, with 35 removed due to errors. Finally, 389 questionnaires were coded and used in the analysis.
3.3. Data analysis
The Statistical Package for the Social Science (SPSS) 17.0 was employed for descriptive statistics and determined the demographic profile and travel characteristics. AMOS 7.0 was also utilized to examine the model’s psychometric properties via confirmatory factor analysis (CFA) and to test the hypothesized theoretical relationships of the model through structural equation modeling (SEM).
4. Results and Discussion
4.1. Demographic Profile of Respondents
Out of five regions, the majority of respondents were coming from Asia (71.5%) followed by European (21.3%). In terms of country of origins, 139 respondents were coming from United Arab Emirates, next China tourists accounted for 51 respondents. Gender of respondents in this study was divided into male (62%) and female (38%) with a majority of respondent being 21-40 years old (58,8%). Occupation of respondents were dominated by students (39.3%) and selfemployed (21.9%). For travel characteristics, the majority were first time visitors (39.1%), followed by 2-4 times (38.6%) travelled by friends and relatives (37.5%), with length of stay about 7-14 days (33.4%). Most of respondent, 236 respondents (60.7%) got information about Indonesia tourism from the Internet and only less than 10% (9.5%) from travel agents. This result related to travel mode, whereby 75.3% were self-organized and the purpose of visiting Indonesia was for vacation purposes (72%).
4.2. Measurement Model
The Confirmatory Factor Analysis (CFA) was employed to establish confidence in the measurement model with maximum likelihood (ML) estimated because it is consistent and asymptomatically efficient in large-scale samples as shown in Table 1 (Bollen, 1989). Proper evaluation of the measurement model is a prerequisite of the structural model, with the convergent validity of the measurement scale examined in terms of factor loadings and average variance extracted (AVE). According to Hair et al. (2014), convergent validity requires a factor loading that is greater than 0.60 and AVE not less than 0.50. Table 2 shows that the majority of the indicators had significant factor loadings higher than 0.60 (p<0.05). However, five indicators, namely, TSQ2, TSQ3, TSQ6, TPA7, and TS8, were removed because the factor loadings were below 0.60. The average variances extracted ranged from 0.559 to 0.668, which showed strong convergent validity, therefore, the AVE surpassed the threshold value of 0.50. The Cronbach’s alpha values for all constructs showed strong internal consistency ranging from 0.870 to 0.907, while the construct reliability (CR) values were above the suggested standard of 0.70. Therefore, it can be concluded that all latent constructs possess sufficient reliability. According to Fornell and Larcker (1981), discriminant validity can be established when the AVE values for the latent constructs are compared with the squared correlations between the corresponding constructs, with none of the squared correlations surpassing the AVE. These tests indicated that the discriminant validity was upheld for all constructs.
Table 1: Confirmative Factor analysis
Source: Constructed by the researcher (2020)
Table 2: Results of the structural equation modelling for structural model
4.3. Structural Model
The structural model involves the significance tests used to estimate coefficients (paths), which provide the basis for accepting or rejecting the proposed relationships between latent constructs (Chi & Qu, 2008). Prior to the estimation of path coefficients, a structural model with five constructs was estimated using ML estimation, as shown in Figure 2. The normed chi-square (w2/df = 2.471) was lower than the suggested cut-off value, which is below 3.0 (Hair et al., 2010). The root means square error of approximation (RMSEA) value indicated that the structural model had a good fit at 0.062 (Hu & Bentler, 1999). The Standard Root Mean Square Residual (SRMR) (0.061) had an appropriate value ≤0.10 (Kline, 2005), while the Comparative Fit Index (CFI) at 0.957, was excellent (Kline, 2005). Furthermore, GFI was 0.906, which is indicative of a good model (Kline, 2005). The hypothesized structural model was estimated to examine the hypotheses with regard to the effect of service quality and product availability on tourist satisfaction and loyalty. The tested model included a total of 23 latent constructs and four manifest variables (Table 3).
Figure 2: Tested structured model
Four out of the five direct effects of hypotheses (paths) were found to be significant, with the exception being the effect of tourism service quality on tourist loyalty with b and p values of 0.052 and 0.453. The standardized direct effects of tourism service quality had a positive influence on tourist satisfaction (b = 0.415, p-value = 0.000) and tourism product availability (b = 0.338, p-value = 0.000), respectively. Therefore, hypotheses 1 and 2 were accepted. Furthermore, the standardized direct effect of tourism product availability had a positive influence on tourist loyalty (b = 0.232, p-value = 0.000), therefore, hypotheses 4 was also accepted. The standardized direct effect of tourist satisfaction was found to exert a positive influence on tourist loyalty (b = 0.415, p-value = 0.000), therefore, hypothesis 5 was accepted. Hypothesis 6 is associated with service quality’s indirect effect on tourist satisfaction and loyalty (b = 0.168, p-value = 0.000). Meanwhile, hypothesis 7 is associated with the indirect effect of product availability on tourist satisfaction and loyalty, which showed a positive relationship (b = 0.137, p-value = 0.000). Therefore, hypothesis 6 and 7 were supported.
5. Conclusion
Based on findings, tourism service quality does not influence tourist loyalty, it means tourism service quality is not a significant factor that influences tourist loyalty. The result in line with findings from Priyanto et al. (2017). However, tourism service quality has a significant indirect effect on tourist satisfaction and loyalty. Approachable and competent personnel, free visa policy, and detailed information online and offline are factors that influence tourist loyalty. It makes tourists to definitely return to Indonesia when they feel satisfy. Thus, all parties in Indonesia tourism are necessary to maintain the good service quality. This result is similar to findings from Rahmiati et al., (2020b) as information available both offline and online have met these tourists’ expectations and can make an impression on tourists. Additionally, studies by Gallarza et al. (2013, 2017) and Latiff and Ng (2015) emphasized that ease and accessibility are essential for satisfied and loyal tourists. Based on indicators, the tourism service quality match for foreign tourist were dominated by the personnel’s behavior (such as approachable, friendly, and respectful), also the transportation service quality. Thus, transportation service quality should stand alone as a variable as recommended by Rahmiati et al. (2020b).
Tourism product availability significantly influences tourist satisfaction. Availability of tourism products is very important in the tourism sector and it improves tourist satisfaction toward Indonesian tourism, the varieties of product availability, wide selection of tour agents and tourist products, and wide variety of amenity services as indicators explained in this research become factors of tourist satisfaction. Tourism product availability significantly influence toward tourist loyalty for Indonesian tourism. It has met their expectation and influenced tourists to return to Indonesia in the future and recommend it to their friends and family.
Also, foreign tourists satisfied with the availability of tourism products in Indonesia will definitely return to Indonesia in the future, will try more tourist products and services, say positive things, and recommend Indonesia to friends and family. This study strengthens the findings from Zaenuri (2012) that the availability of tourism products increases tourist interest and loyalty. Furthermore, Aprilia and Pangestuti (2017) also mentioned that efforts in enforcing quality standards for products or services are bound to satisfy tourists. During data reduction, this variable only needs to remove one indicator, therefore, this variable is quite important to measure the foreign tourist perspective on the availability of tourism products of Indonesia tourism.
Tourist satisfaction has a significant influence toward tourist loyalty; based on theory, tourist satisfaction directly and positively affects tourist loyalty, it affects tourism service quality and tourism product availability indicators. This research showed that tourist satisfaction has a direct positive effect on tourist loyalty. The higher the satisfaction of tourist, the greater the intention to revisit Indonesia and recommend this destination to their friends and family. This study’s findings strengthen past studies stating that satisfied tourists tend to revisit, re-buy and talk about their positive experience, which leads to higher revisit intention and enhancing loyalty (Khuong & Ha, 2014; Gnanapala, 2015; Chiu et al., 2016). Implications from this study are that actions are needed to improve the service quality of tourism in Indonesia to generate tourism satisfaction and loyalty. The service quality of tourism products should focusing on the personnel’s behavior in serving tourists as well as transportation service quality (Ismail et al., 2017). Moreover, tourism product availability should be highly emphasized given tourists’ interest in quality products or services, which is the basis for their satisfaction.
Acknowledgments
The researchers would like to express gratitude to the Ministry of Research and Technology of the Republic of Indonesia (Kementerian Riset dan Teknologi Republik Indonesia) for supporting this study through the National Competitive Research Grant under Research Collaboration Between Universities scheme year 2020. The authors thank the Faculty of Business, President University Indonesia and Faculty of Technology Management and Technopreneurship, Universiti Teknikal Malaysia Melaka, Malaysia and Centre of Technopreneurship Development, Universiti Teknikal Malaysia Melaka for their support.
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