Factors Affecting Increase of Visits Tourists Resulting in SMEs and Implications In The Creation of Employment and Regional Income

Purpose: The research objective was to study and analyze the relationship among tourism activities (security and macro economics policy, tourism budget policy, development strategy of tourism object destination, development strategy of supporting facilities, programs of stays). Specifically, the research analyzed the degree of either partial or simultant impacts of tourism activities to domestic and foregin tourism visits, the degree of either partial or simultant impacts of domestic and foreign tourism visits on the development of micro, small, middle industries, the degree of either partial or simultant impacts the development of SMEs on creation of employment and regional income of tourism sector especially in DKI Jakarta. The research was conducted in DKI Jakarta in 2009. The research population was of corporation of tourism sector adding up to 350 institution, consisting of 120 travel agencies, 70 hotels and 160 restaurants. Methodology: The research sample was collected through propotionale stratified random sampling and was determined to 172 corporations (big, middle and small). This research also used secondary data from DKI Jakarta Tourism Agency, Association of Indonesia Tourism and Travel Agency (ASITA), Association of Indonesia Hotel and Restaurant Agency (APHRI) in the form of time series data ranging from since 1988 to 2007. This research used descriptive analysis as well as inferential. The research type was of explanatory research through which path anaysis was applied to explain the degrees of direct and indirrect contribution among variables. To support the efficiency and accurate of data processing, statistical software, SPSS Ver 16.00 was used. Findings: The results of this research indicated there was significant relationship among the variables within tourism activities. There was either partial or simultant impact of the tourism activities on foreign and domestic tourism visits very significantly. There was either partial or simultant impact of foreign and domestic tourism visits on the development of micro, small, middle industries very significantly. There was a very signficant impact the development of SMEs on creation of employment and regional revenue. The results of this research brought about implication that there was a need to create good business climate supported by policy and regulation, tourism information centre, human resources quality improvement and the development of SMEs industries capital aid. Recommendations: Besides, the business network development, tourism support participation, improvement of tourism workers welfare and good cooperation among other provincies in Indonesia are some necessary aspects to consider when developing national tourism industries.