The Impact of Tourism on Economic Growth: Evidence from Aceh Province, Indonesia

Abstract

Tourism is one of the sectors expected to provide employment, increase people's income, and activate other production sectors in the regional economy. This study mainly focuses on determining the impact of tourism income, tourist visits, infrastructure, and labour on economic growth using panel data regression of 23 districts/cities in Aceh Province, Indonesia, year observation 2016-2020. Based on estimation results, all independent variables were significant and positive effects on Economic Growth. Furthermore, the panel data regression model that has been formed is found to be fit, which means that Tourism Income, Tourist Visits, Infrastructure, and Labour are considered capable of representing the factors that influence Economic Growth in Aceh Province. Based on these findings, it is hoped that the government will be able to formulate a strategic policy, especially in the tourism sector, that can accelerate and maintain economic growth in Aceh Province.

Analysis of Leading Sectors in Improving the Economy East Java Province in 2016-2020

“…(2) the mining and quarrying sector; (3) the electricity and gas procurement sector; (4) the construction sector; (5) the transportation and warehousing sector; (6) the financial services and insurance sectors; (7) the real estate sector; (8) the company's service sector; (9) the government administration, land, and compulsory social security sectors; (10) the education service sector; (11) the health services sector and social activities; and (12) other service sectors (Saputra et al, 2022). Based on the results of the dynamic location quotient analysis above, it can be concluded that in 2016-2020 there were 9 economic sectors that were included in the category of potential sectors to be developed, where this sector had faster growth.…”