The Influence of Tourism Performance on Economic Growth in Indonesia

Nurul Febriani Br. Regar; Ayu Angelina Pasaribu; Siti Maisyarah; Yosie Gabriela Panjaitan

doi:10.55927/fjas.v5i9.112

Authors

Nurul Febriani Br. Regar Universitas Senior Medan
Ayu Angelina Pasaribu Universitas Senior Medan
Siti Maisyarah Universitas Senior Medan
Yosie Gabriela Panjaitan Universitas Senior Medan

DOI:

https://doi.org/10.55927/fjas.v5i9.112

Keywords:

Number of Foreign Tourist Visits, Room Occupancy Rate in Star Hotels, Tourism Contribution to GDP, Economic Growth

Abstract

The extent to which the performance of the tourism industry affects the country's economic growth is the objective of this study. The industry's contribution to GDP, the number of foreign tourist visits, and the occupancy rate in star hotels are the indicators used. The study applies a quantitative approach, combining time-lapse and cross-regional data over a period of time. Some of the analysis models used include the Common Effect Model, Fixed Effect Model, and Random Effect Model (REM), and the Chow, Hausman, and Lagrange Multiplier tests are used to find the best model. The results show that, although the occupancy rate of star-rated hotel rooms and the number of tourist visits have a positive and significant impact on Indonesia's economic growth, however, tourism's contribution to GDP is negative and significant. Simultaneously, these three components have a major impact on Indonesia's economic growth.

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