Determinant of the Number of Visits by Domestic and Foreign Tourists on Economic Growth in Indonesia

Tourism emerges as a pivotal sector with the potential for rapid contributions to the economy, fostering the prospect of sustainable economic development. This study seeks to conduct an in-depth analysis of the impact of domestic tourist visits and foreign guests in both star and non-star hotels on Indonesia’s overall economic growth. To accomplish this, panel data from the Indonesia Statistics Center (BPS) spanning 2015 to 2019 across all 34 provinces is employed. The method used is random effects with multiple regression model, OLS analysis model. The results show that partially and together, there is a significant and positive effect of the number of visits by domestic tourists and the number of foreign guests staying in star hotels and non-starred hotels on the Indonesian economy. Economic Growth is affected by as much as 66.0byrom variable the number of visits by domestic tourists, the number of foreign guests staying at star hotels and non-starred hotels with the cateris paribus assumption. The variable with the most significant influence on the economy is the number of Indonesian tourists, followed by the number of foreign tourists staying in non-star hotels, and finally, foreign tourists visiting in-star hotels. So, the cooperation of the government, the private sector, stakeholders, and the community will be able to encourage improving marketing strategies for domestic and foreign tourists to increase economic growth.