The Impact of Tourism on Economic Growth: Evidence from Aceh Province, Indonesia

Abstract

Tourism is one of the sectors expected to provide employment, increase people's income, and activate other production sectors in the regional economy. This study mainly focuses on determining the impact of tourism income, tourist visits, infrastructure, and labour on economic growth using panel data regression of 23 districts/cities in Aceh Province, Indonesia, year observation 2016-2020. Based on estimation results, all independent variables were significant and positive effects on Economic Growth. Furthermore, the panel data regression model that has been formed is found to be fit, which means that Tourism Income, Tourist Visits, Infrastructure, and Labour are considered capable of representing the factors that influence Economic Growth in Aceh Province. Based on these findings, it is hoped that the government will be able to formulate a strategic policy, especially in the tourism sector, that can accelerate and maintain economic growth in Aceh Province.