4th Sriwijaya Economics, Accounting, and Business Conference 2018 (SEABC 2018)

7 / 2018-08-19 00:32:46

Tourism and Economic Growth: Spatial Perspective

regional tourism,economic growth,spatial

In regard to the shifting of Indonesian people to leisure activities, tourism sector has been becoming prospective sector for economic development in many regions in Indonesia. This study analyzes whether spillover of tourism growth occurs or not and how the impact of tourism sector on Gross Regional Domestic Product (GRDP) in 33 provinces in Indonesia against to its neighbors. In particular, this study also aims to identify what factors influence the tourism development and to estimate the impact of tourism growth on regional economic growth.
Spatial analysis was performed using Moran's I test and spatial regression. The result shows that a positive spatial spillover of tourism among 33 provinces. Furthermore, accommodation, tourism labor productivity, and education have a positive significant effect and increase the number of tourists in a province. However, investment and budget realization of public infrastructure are not significant. Furthermore, in the outside Java, the main and weighted variable of foreign tourists have a significant positive effect on GRDP growth, while in Java, only weighted foreign tourists had a significant effect with negative sign. However, domestic tourists are not significant in both categories. So that, tourism is evidently more potential in outside Java for influencing GRDP growth, since in Java other sectors are more dominant than tourism sector.