Abstract:

Tourism can be considered as an industry. The development of this industry provides multiplier effects for other sectors. The positive effects of tourism on the economy can be seen from various aspects including foreign exchange revenue, foreign exchange earnings, employment absorption, infrastructure development, and economic empowerment of local communities. Since Palembang the capital city of South Sumatra Province was determined as a tourism destination of MICE (Meeting, Incentive, Convention and Exhibition) in 2011, various facilities and infrastructure needed for MICE activities have been built. There have also been numerous MICE events in Palembang. This study investigates the economic effects of tourism development in South Sumatra.