The Contribution of Tourism Sector to Locally Generated Revenue in Indonesia’s Top Priority Tourist Destination

Authors

  • Najwa Khairina Economic Development Program, Faculty of Economics and Business Universitas Islam Negeri Syarif Hidayatullah Jakarta
  • Leni Anggraeni Economic Development Program, Faculty of Economics and Business Universitas Islam Negeri Syarif Hidayatullah Jakarta

DOI:

https://doi.org/10.24269/ekuilibrium.v18i1.2023.pp48-61

Abstract

This research is aimed to analyze the association between tourist expenditure, labor force in accommodation sector and room occupancy rate with locally generated revenue (PAD) in five province of top priority tourist destination in Indonesia (North Sumatera, Central Java, West and East Nusa Tenggara and North Sulawesi). We use data of tourism statistics from Statistics Bureau and Ministry of Creative Economy. By applying random effect panel data analysis, we found that all variables are significantly associated with PAD. Our empirical estimates shows that a one percent increase of labor force in accommodation sector is associated with 0.0075% increase in PAD, one percent increase of room occupancy rate associated with 2.85% increase in PAD while one percent increase of tourist expenditure is associated with 0.257% increase in PAD. The individual effect estimates show higher impact in Central Java and North Sumatera compared to West and East Nusa Tenggara and North Sulawesi and thus further confirming our presumption that there are some disparities between tourism spots in West and Eastern part of Indonesia.

 

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Author Biographies

Najwa Khairina, Economic Development Program, Faculty of Economics and Business Universitas Islam Negeri Syarif Hidayatullah Jakarta

SINTAID : 6797850

Leni Anggraeni, Economic Development Program, Faculty of Economics and Business Universitas Islam Negeri Syarif Hidayatullah Jakarta

SINTAID : 5988484

SCOPUSID : 57213362351

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Published

2023-03-11

How to Cite

Khairina, N., & Anggraeni, L. (2023). The Contribution of Tourism Sector to Locally Generated Revenue in Indonesia’s Top Priority Tourist Destination. Ekuilibrium : Jurnal Ilmiah Bidang Ilmu Ekonomi, 18(1), 48–61. https://doi.org/10.24269/ekuilibrium.v18i1.2023.pp48-61

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Vol. 18 No. 1 (2023): March

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