The Effect of Tourist, Tourism Object, GRDP, Populations on Local Own-Source Revenues of Yogyakarta Province

Abstract

Special Province of Yogyakarta is the region with the lowest Local Own-Source Revenue among other provinces in Java. This province is one of the tourist destinations because there are many tourist destinations, so the intensity visitors are very high. It has potential to increase revenue sources through tourism. This study aimed to analyze the effect of the number of tourists visitor, the number of tourism objects, Gross Regional Domestic Product, and the number of population on Local Own-Source Revenue in the Special Province of Yogyakarta. The data used in this study was the secondary data obtained from the Central Bureau Statistics, Regional Development Planning, Research and Development Agency (BAPPEDA), and the Tourism Office in 5 District/Cities Special Province of Yogyakarta in 2011-2020. This study used a quantitative analysis method with a panel data regression analysis tool Fixed Effect Model (FEM) with Cross-Section SUR weighting. Based on the result, it found that the variable number of tourists visitors and GRDP had a positive and significant effect on Local-Own Source Revenue. However, the variables of the number of tourism objects and the number of residents had no effect on the Local-Own Source Revenue of the Special Region of Yogyakarta.

Enhancing Local Retribution as a Key Source of Local Revenue

“…Given the shortfall in achieving the set targets for local levies, it is crucial for concerned agencies to investigate the reasons behind the underperformance in local levy collection, as it poses a risk to future local revenue streams. A contributing factor to this shortfall may be a decline in the efficacy of collaboration between relevant agencies and units (Muhammad & Safarida, 2023;Putra & Woyanti, 2023). To counteract this, there needs to be a proactive approach in seeking new strategies to enhance existing collaborations.…”