The Impact of International Tourists on Regional Economic Growth, 2014–2024

Muhammad Nur Ichsan Bafaqih

doi:10.38142/jebd.v4i4.438

Authors

Muhammad Nur Ichsan Bafaqih Universitas Katolik Parahyangan, Indonesia

DOI:

https://doi.org/10.38142/jebd.v4i4.438

Keywords:

International Tourists, GRDP, Regional Economic Growth, Labor, Star-Rated Hotels, Road Infrastructure

Abstract

Purpose:
This study analyzes the effects of international tourist arrivals, the number of star-rated hotels, labor, and road infrastructure on Gross Regional Domestic Product (GRDP) across major tourism-destination provinces in Indonesia.
Methodology:
The study uses annual panel data for 13 major tourist-destination provinces in Indonesia during 2014–2024, yielding 143 observations. Panel-data regression is estimated using Common Effect, Fixed Effect, and Random Effect specifications, with model selection based on the Chow, Lagrange Multiplier, and Hausman tests.
Findings:
The Fixed Effect Model is selected as the most appropriate specification. Labor has a positive and statistically significant effect on GRDP (coefficient = 4.1422; p = 0.0004), whereas international tourist arrivals, star-rated hotels, and road infrastructure are not statistically significant. The model has an R² of 0.4969 and is jointly significant.
Implication:
Regional tourism development should be integrated with improvements in labor productivity, the quality and utilization of supporting facilities, infrastructure connectivity, and stronger linkages with local economic activity so that tourism can generate a greater contribution to regional economic performance.

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