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Analysis of the Role of Tourism in Indonesia’s Economic Growth

In: Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024)

Author

Listed:
  • Rusneni Rusneni

    (Hasanuddin University)

  • Nursini Nursini

    (Hasanuddin University)

  • A. R. Rahman

    (Hasanuddin University)

  • S. Suhab

    (Hasanuddin University)

Abstract

Tourism has a very important role in encouraging and accelerating a nation’s economic development. Output of goods and services can increase due to tourism activities that can create investment demand and consumption demand. It eventually results in a rise in the output of goods and services in Indonesia (GDP) through variables such as room occupancy rate, government spending in the tourism sector, tourism sector workforce, number of tourists and expenditure made by tourist. This study uses secondary data for 12 years (2011-2022) acquired from Bureau Statistics Agency (BPS) and the Ministry of Tourism and Creative Economy (Kemenparekraf). Using Eviews 12 software, the data analysis method employs multiple linier regression analysis. The analyses conducted resulted in 1) economic growth in Indonesia is influenced by room occupancy rates. 2) government investment in the travel and tourism industry has a detrimental and substantial influence on the economic expansion of Indonesia. 3) the tourism sector workforce has a positive and substantial influence on the economic expansion of Indonesia. 4) The quantity of visitors has a significant and favorable impact on Indonesia’s economic growth. 5) spending by tourists significantly and favorably impacts Indonesia’s economic expansion.

Suggested Citation

  • Rusneni Rusneni & Nursini Nursini & A. R. Rahman & S. Suhab, 2025. "Analysis of the Role of Tourism in Indonesia’s Economic Growth," Advances in Economics, Business and Management Research, in: Mursalim Nohong & Fitra Roman Cahaya & Phung Minh Tuan & Arifuddin Mannan & Anas Iswanto Anwar & Ria (ed.), Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024), pages 4-15, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-758-8_2
    DOI: 10.2991/978-94-6463-758-8_2
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