The Effect of the Tourism Sector on Economic Growth in Indonesia

Abstract

This study uses descriptive quantitative methods to explain the influence of the tourism sector on economic growth in Indonesia in the 2006–2021 period. The Ordinary Least Squares (OLS) model is the model chosen to explain the influence between variables. The variables used in projecting the tourism sector in this study are foreign exchange receipts in the tourism sector, the number of workers in the tourism industry, and travel services. The results showed that foreign exchange receipts in the tourism and travel services sectors positively influence Indonesia’s economic growth. Conversely, the variable number of workers in the tourism industry is detrimental to economic growth in Indonesia. Furthermore, it is known that foreign exchange receipts in the tourism sector and workers in the tourism industry significantly impact economic growth in Indonesia. Meanwhile, the increase in travel services in Indonesia has not been able to contribute to Indonesia’s economic growth in the 2006–2021 time period.