The Impact of Foreign Tourism to Economic Growth in Indonesia

Abstract:

Foreign tourism is indicated as one of important instruments to boost up economic growth of some countries, include Indonesia. It is reported that more than 15 million tourist visit Indonesia in 2018 and the number is going to increase for further years ahead. Meanwhile, the Indonesian economic growth also experience the positive trend over the years which more than 1 trillion US Dollar in the same year. Hence, this research tried to find variables that can boost up the number of foreign tourist and indirectly affect the economy of Indonesia in the future. International tourist expenditure and length of stay, exchange rate of origin country, countries with free visa entry exemplifies the other considered variables as independent variables. This research is conducted for a decade start from 2006 to 2016. Study found that all variables are statistically significant with positive signs except tourist length of stay.   Hence, Government need to more focus on improving tourism industry such as build more attractive tourism places, educate more human resources to escalate tourism services, expand more job creation and bring more income to local communities or society. By these elements, it probably lead to broaden the economic growth.

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