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The Effect of Number of Visitors, Tourist Destinations, Hotel Room Tax and Accommodations on Original Local Government Revenue: Case Study West Sumatra Province, Indonesia

Author

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  • Lusiana
  • Mondra Neldi
  • Sigit Sanjaya
  • Zefriyenni

Abstract

This research aims to discover 1) The effect of number of domestic visitors on Original Local Government Revenue (OLGR) 2) The effect of number of foreign visitors on OLGR 3) The effect of number of tourist destinations on OLGR 4) The effect of restaurant tax on OLGR 5) The effect of hotel room tax on OLGR 6) Number of accommodations as a moderating variable for relationship hotel room tax and OLGR. The study population consisted of 12 regencies and 7 municipalities. The sampling technique uses purposive sampling. The selected sample is considered the most appropriate to represent tourism according to Tourism Office of West Sumatra Province. The selected sample is 3 municipalities and 2 regencies. Data source obtain from Central Bureau of Statistics (BPS) West Sumatra Province. Data analysis consisted of statistical descriptive analysis, model estimation test, classical assumption test, coefficient of determination test, F-test and t-test. The results show 1) The number of domestic visitors has a positive and significant effect on OLGR 2) The number of foreign visitors has a positive and significant effect on OLGR 3) The number of tourist destinations has a positive and significant effect on OLGR 4) Restaurant tax has a positive and significant effect on OLGR 5) Hotel room tax has a positive and significant effect on OLGR 6) Number of accommodations show evidence as a moderating variable for relationship hotel room tax and OLGR.

Suggested Citation

  • Lusiana & Mondra Neldi & Sigit Sanjaya & Zefriyenni, 2021. "The Effect of Number of Visitors, Tourist Destinations, Hotel Room Tax and Accommodations on Original Local Government Revenue: Case Study West Sumatra Province, Indonesia," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 12(3), pages 230-239, May.
    • Handle: RePEc:jfr:ijfr11:v:12:y:2021:i:3:p:230-239
    DOI: 10.5430/ijfr.v12n3p230
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    References listed on IDEAS

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    2. Bird, Richard M., 1992. "Taxing tourism in developing countries," World Development, Elsevier, vol. 20(8), pages 1145-1158, August.
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