Abstract:

This study analyzed the influence of FDI (Foreign Direct Investment) and DDI (Domestic Direct Investment) in Hotel and Restaurant in Indonesia. The results of this study indicate a one-way relationship between FDI and DDI. This is evident from the results of the analysis using VECM that FDI provides a positive short-term and long-term impact on DDI, as well as showing strong influence. However, the DDI variable does not affect the FDI either short or long term. Therefore, the government needs to add strategies to improve FDI in the field of Hotels and Restaurants in Indonesia, especially in areas that have potential in terms of tourism.