The Effect of the Tourism Sector on Economic Growth in Indonesia
NELI AIDA1*, GHANIA ATIQASANI2, WIDIA ANGGI PALUPI3
Economic Development, Faculty of Economics and Business,
University of Lampung,
Jalan Dipangga Satya No. 42, Rajabasa, Bandar Lampung,
INDONESIA
Economic Development, Faculty of Economics and Business,
University of Lampung,
Jalan Nusantara, Kota Sepang, Bandar Lampung,
INDONESIA
Economic Development, Faculty of Economics and Business,
University of Lampung,
Jalan Setia Budi Timur No. 6, Setiabudi, Jakarta Selatan,
INDONESIA
*Corresponding Author
Abstract: - This study uses descriptive quantitative methods to explain the influence of the tourism sector on
economic growth in Indonesia in the 2006–2021 period. The Ordinary Least Squares (OLS) model is the model
chosen to explain the influence between variables. The variables used in projecting the tourism sector in this
study are foreign exchange receipts in the tourism sector, the number of workers in the tourism industry, and
travel services. The results showed that foreign exchange receipts in the tourism and travel services sectors
positively influence Indonesia's economic growth. Conversely, the variable number of workers in the tourism
industry is detrimental to economic growth in Indonesia. Furthermore, it is known that foreign exchange
receipts in the tourism sector and workers in the tourism industry significantly impact economic growth in
Indonesia. Meanwhile, the increase in travel services in Indonesia has not been able to contribute to Indonesia's
economic growth in the 2006–2021 time period.
Key-Words: - economic growth, foreign exchange receipts, labor, tourism, travel services, Indonesia.
Received: July 21, 2023. Revised: February 23, 2024. Accepted: April 19, 2024. Published: May 10, 2024.
1 Introduction
Every country strives to achieve a high economy
because a high economy is not only a means to
reach welfare, but more from that, growth high
economy is wrong one indicator to gauge success in
the development area, [1]. Based on the World Bank
classification, Indonesia is a developed country
because it enters a country with an income medium
to below in the Asian region. For medium countries
that grow and have natural riches like Indonesia,
industry tourism could be said to be a medium of
development in an economy that doesn't need
infestation too big, [2].
Indonesia, is a country where famous for the
inherent slogan of Bhineka Tunggal Ika with an
image from the zamin. Differences in religion,
culture, and language, to state natural based on
location by geographical is a diamonds that don't
give priceless and a unique for Indonesia. So not
surprised a few foreign and domestic travelers in
droves make several places in Indonesia the desired
destination they visit. That makes the Indonesian
tourism sector still a topic interesting to discuss for
discussion and research.
The results of the percentage of tourist
destinations coming survey shows that more than
half the percentage of tourists coming to Indonesia
makes Indonesia the main tourist destination for
vacation, while 38% come for business purposes—
but although the main destination for tourists to
come to Indonesia is business, most of them will
make tourist visits at least capture the moment or
buy fruits so that even though the main destination
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1
2
3
is business but not closes the possibility of being
interspersed with tours.
Sector Tourists provide a positive multiplier
effect to sector others, for example, for sector
accommodation, transportation, a micro and
medium business activity that produces souvenirs,
and culinary that can absorb power work many, so
that reduce unemployment and increase income per
capita. Indonesian tourism is not only a favorite by
domestic tourists but also by travelers in foreign
countries. This thing is seen from the reception of
tourist international. Here is a reception tourist
Indonesian international.
Fig. 1: International Tourism Receipts Indonesia
2006-2021
Source: World Bank (2022)
Fig. 1 shows that international tourism receipts
in Indonesia experienced enhancement from 2010 to
2019. In 2020 global tourism receipts in Indonesia
experienced a sharp drop because of the COVID-19
pandemic. With the existence of sector COVID-19
pandemic, tourism is very sector down because the
mobility of tourists in foreign countries has become
very limited. The study, in line with [3], found that
international reception tourists positively affect the
growth economy. However, it is compared
backward with research conducted by [4], who
found that the reception of tourists internationally
does not take effect a growth economy.
One service journey necessary for travel
travelers is a travel service, [5]. According to the
World Bank, travel service covers goods and
services obtained from something economy by the
traveler for use alone during the visit good for
destination business or private. In the middle of
development, increasingly brief technology moment
this travel service could with easily found in form of
electronics. Studies, [6], find that the service
journey is sector contributing services money enter
most prominent for Indonesia. However, based on
published data by the World Bank in Fig. 2,
Indonesia's travel services are relatively
experiencing a drop from 2016 to the year 2021.
Here served Indonesian travel service from 2008 to
2021.
Fig. 2: Travel Service (% Exports) Indonesia 2008-
2021
Source: World Bank (2022)
In addition to total service and reception,
tourists are influential internationally in a growing
economy. According to Slow Swan, power work is a
significant factor in a growth economy. According
to the theory of Growth Sollow, a growth economy
functions as capital formation, [7]. Much research
sees power or force work's influence on growth
economics. Based on study, [8], the tourism
industry's labor-intake contribution tends to grow
more quickly than its GDP-formation contribution.
This data suggests that the labor productivity of the
tourism industry is not improving and may perhaps
be trending worse. The low welfare of workers will
be impacted by stagnant or declining worker
productivity. The fact that the majority of workers
in this industry have less education is probably a
factor in the low labor productivity. Still, the
literature has not much discussed related power
work sector tourists to a growth economy, so this
study uses the power work sector tourists to grow
Indonesia's economy from 2006-2021.
2 Literature Review
The study [6], finds that sector tourism has become
a dynamic sector and influences the segment
economy. This thing implies that sector tourists
affect the growth economy. The survey from [9] to
[10] mentions that the impact of tourism on the
economy is still ignored by economists and makers
of policy and income tourists in the growth model
economy.
Variable sector tourists could be seen from
reception tourist international, energy work sector
tourism, and travel services. Use variable based on a
study from [3] found that reception tourist global
takes to effect positive significant on a growth
economy. The survey from [6], finds that the service
journey is sector contributing services money enter
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most prominent for Indonesia. And based on The
Solow-Swan theory states that a growth economy
functions from capital formation, [7].
Activity travelers overseas could increase
backup foreign exchange, [11]. Enhancement
backup foreign exchange show trust perpetrator
market financial impact on stability score exchange.
A stability score swap this capable increase the
growth economy something a country. Traveler in to
do journey no miss from travel service needs.
Availability of travel services attractive interests
travelers for a visit to something country. Besides
that also capable increase the amount of power
work. So that study this enter variable power work
sector tourist to a growth economy. Solow's
developed theory can describe how a country's
growth economy grows, which Solow uses a
combination of capital accumulation and power
work, [12].
3 Research Method
The research method in this study is a quantitative
descriptive method. The scope used in this study is
Indonesia, with a period of 2006 - 2021, using
secondary data sourced from the World Bank and
UNWTO. The analysis method used is a regression
analysis method for time series data using the OLS
method, In the OLS regression model, the results of
the linear regression model can be used as an
estimation method if the model meets classical
assumptions and is free from classical assumption
tests, namely multicollinearity, heteroscedasticity,
autocorrelation, and normality tests. If all these
conditions are met, then the linear regression model
is said to be BLUE (Best Linear Unbiased
Estimation). The following equations can be
compiled:
EGt = β0 + β1LNITRt + β2TSt – β3LNKPt + et (1)
Information:
EG : Indonesia's Economic Growth;
ITR : Tourism Sector Foreign Exchange
Receipts (USD);
TS : Travel service (% Export);
KP : Labor force of the tourism sector
(thousand inhabitants);
β0 : Constanta;
β1,β2… : Coefficient of each free variable; and et is
an error term
4 Result
4.1 Classical Assumption Test
Normality tests are used in statistics to examine
whether or not normal distributions accurately
describe a data set and to estimate the likelihood
that a random variable underlying a normally
distributed data set will occur. The Jarque-Bera
probability value was compared to the significant
value of 0.05 to perform the normality test in this
study. The data are regularly distributed if the value
of the Jarque-Fallow is less than the significance
value. The information is not normally distributed,
on the other hand, if the Jarque-Fallow probability
value is more important. The Fig. 3 displays the
findings of the normalcy test conducted for this
investigation:
Fig. 3: Normality Test Result
Source: Processed using Eviews.10
From the Fig. 3, the results of the Jarque-Bera
probability value (p-value) of 0.726283 were
obtained compared to the significant value of 5
percent; it can be concluded that in this study
because the Jarque-Fallow probability value was
smaller than the significance value and showed that
the normally distributed data.
Multicollinearity is also a linear association
between independent variables that affect the
dependent variable in a single regression. This study
employed the Variance Inflation Factor (VIF)
technique to identify multicollinearity. VIF > 10
demonstrates high colinearity, VIF 5 - 10
demonstrates medium colinearity, and VIF 1 - 5
demonstrates moderate collinearity are the standards
utilized to demonstrate the presence of
multicollinearity. This study's multicollinearity test
results are displayed in the Table 1.
Table 1. Multicollinearity Detection Results
Variable
Coefficient Variance
Uncentered VIF
Centered VIF
LNITR
0.499861
3185.452
1.183382
TS
0.000602
15.07397
1.253479
LNKP
0.173967
76.53172
1.133914
Source: Processed using Eviews.10
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Table 1 show the results of multicollinearity
statistics detection in this study, the VIF value in
each of the variables of foreign exchange receipts in
the tourism sector 1.183382, travel services
(1.253479), and tourism sector workers (1.133914)
were at a vulnerable 1 - < 5, meaning that the
problem of multicollinearity in this study was low or
in other words, there were no multicollinearity
statistics problems that could damage the results of
the estimated regression of the variables used.
When the variance of the variables relating to
the disorder or residue differs, there is a breach of
classical principles known as heteroskedasticity. In
this study, the heteroskedasticity test was conducted
using the Heteroskedasticity Test: Harvey method,
which involved comparing the calculated Chi-
Square value to the Chi-Square table value (df = 3,
and a significance level of 5%) and the estimated
Chi-Square probability value to the significance
level. The analysis of heteroskedasticity in this
study yielded the following results:
Table 2. Heteroskedasticity Test Results
F-statistic
1.231891
Prob. F(3,12)
0.3409
Obs*R-squared
3.767329
Prob. Chi-Square(3)
0.2877
Scaled explained SS
2.040178
Prob. Chi-Square(3)
0.5641
Source: Processed using Eviews.10
Heteroskedasticity testing in Table 2 showed
that the calculated Chi-Square value of 3.767329
was smaller than the Chi-Square table value of
7.815, and the estimated Chi-Square probability
value of 0.2877 was more significant than the
significance value of 5 percent. Thus, it can be said
that this study did not have the problem of
heteroskedasticity.
Concerning the assumptions of the OLS
method, one of the essential assumptions of the OLS
method is the absence of serial correlations; in other
words, there is no relationship between one nuisance
variable and another, while autocorrelation is a
correlation or relationship between one disorder
variable and another. To test related autocorrelation
problems, this study used the Breusch-Godfrey
Serial Correlation LM Test method by comparing
the calculated Chi-Square value with the Chi-Square
table value (df = 2, and the significance value 5
percent) and comparing the estimated Chi-Square
probability value with the significance value. The
results of autocorrelation testing in this study are as
follows:
Table 3. Result of Auto-Correlation Test
F-statistic
0.968441
Prob. F(2,10)
0.4126
Obs*R-squared
2.596165
Prob. Chi-Square(2)
0.2731
Source: Processed using Eviews.10
The autocorrelation test in Table 3 resulted in a
calculated Chi-Square value of 2.596165, smaller
than the Chi-Square table value of 5.591, and an
estimated Chi-Square probability value of 0.2731
more significant than the significance value of 5
percent. Thus, it can be said that this study did not
have autocorrelation problems.
4.2 Regression Estimation Results
Each number in the calculations—constants,
coefficients, and test results—has a specific
significance that may be analyzed and taken into
account when making decisions. The following
formula can be used to create a regression equation
function in Eviews computations.
Table 4. Regression Estimation Results
Variable
Coefficient
Std. Error
t-Statistic
Prob.
C
-30.95231
15.51482
-1.99502
0.0693
LNITR
1.973505
0.707008
2.79135
0.0163
TS
0.025524
0.024546
1.03986
0.3189
LNKP
-1.761646
0.417093
-4.22363
0.0012
R-squared
0.730941
Mean dependent var
4.8922
Adjusted R-squared
0.663676
S.D. dependent var
1.98253
S.E. of regression
1.149738
Akaike info criterion
3.32926
Sum squared resid
15.86278
Schwarz criterion
3.52241
Log likelihood
-22.63411
Hannan-Quinn criter.
3.33915
F-statistic
10.8666
Durbin-Watson stat
2.07632
Prob(F-statistic)
0.000976
Source: Processed using Eviews.10
Through the results of regression estimation in
the Table 4, the equations in the study can be
compiled as follows:
EGt = -30.965231 + 1.973505 LNITRt + 0.025524
TSt – 1.761646 LNKPt
In the equation, it can be concluded that foreign
exchange receipts in the tourism sector (ITR) and
travel services (TS) have a positive impact on
economic growth (EG). This means that if the
tourism sector's foreign exchange receipts increase
by one percent, it will boost economic growth by
1.973505 percent, ceteris paribus. Similarly, if travel
services increase by one percent, it will increase
economic growth by 0.025524 percent, cetris
paribus. Meanwhile, tourism sector workers
negatively impact economic growth, meaning that
increasing by one percent will reduce economic
growth by 1.761646 percent, cetris paribus.
4.3 Significance Test
Table 4 shows that out of three independent
variables, the variable of foreign exchange receipts
of the tourism sector (ITR) and the variable of
employees of the tourism sector (KP) significantly
influence the variable of economic growth. This can
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be seen through the t-statistical value of each of the
foreign exchange receipts of the tourism sector
(2.79135), and employees of the tourism sector (-
4.22363) is greater than the value of the t-table
which in this study is 1.78229, and if the probability
value is smaller than the significance level of 5
percent. Meanwhile, the travel service (TS) variable
has a t-statistical value (1.03986) smaller than the t-
table value (1.78229) and a probability value higher
than the significance value of 5 percent, meaning
that travel service does not significantly affect
economic growth.
Furthermore, the F-statistics in Table 4 show
that the study’s F-statistical value (10.8666) is
greater than the F-table value (3.49). That is, at least
one of the coefficients is not equal to zero, or it can
be said that the independent variables affect together
against the bound variable. Or in other words, the
variables of foreign exchange receipts in the tourism
sector, travel services, and tourism sector employees
are significantly based on economic growth.
The value of the coefficient of determination
(R2) of 0.730941 means that variations in
independent variables (variables of foreign
exchange receipts in the tourism sector, travel
services, and tourism sector employees) can explain
economic growth of 73.0941%, the remaining
26.9059% explained by other variables which don't
include in this model.
5 Discussion
Both directly and indirectly related to job creation,
the balance of payments, and the reduction of
poverty in the nation, tourism supports GDP growth
and helps to generate foreign cash, [13]. The
creation of jobs, increased foreign exchange
earnings, and expansion of the tourism sector are all
benefits of tourism. Therefore, it has the potential to
spur economic growth and, specifically, motivate
other nations to strengthen their tourism industries,
[14]. Robert Solow contends that labor, capital
accumulation, contemporary technology, and yield
(output) are the four fundamental sources of
economic growth. Simply put, the Solow growth
model establishes the relationship between labor and
capital in terms of how they affect the income
function (Y) helps drive productivity in the
economy. Foreign exchange receipts are one of the
capital channels used in this study, where foreign
exchange receipts can create currency stability and
interest rates, which can later influence investors'
decisions in investing.
Furthermore, Keynes's theory explains that
when interest rates are low, the preconceptions
about investing are higher. In line with this
mechanism, the regression estimates in this study
show that the increase in foreign exchange receipts
in the tourism sector significantly affects the
increase in economic growth. These results are also
consistent with the research conducted by [15], on
the positive and significant relationship between
foreign exchange and economic growth.
Through receipts of foreign currency, the
tourism industry has historically made a direct
contribution to Indonesia's Gross Domestic Product
(GDP), [16]. This is in line with research conducted
by [17]. The amount of foreign exchange that the
nation receives from this industry rises as more
international visitors arrive and spend their money
on lodging, dining, travel, and other tourist
activities. By immediately raising national income,
bolstering the domestic economy, and fostering
economic expansion, this foreign exchange gain.
Tourism has a substantial multiplier effect in
terms of the economic side. The economy of
Indonesia is impacted in a cascading fashion by
foreign tourists' purchases. For instance, hotels will
use their earnings to pay their employees, make
purchases from local vendors, and pay taxes to the
government. As a result, those who receive those
incomes will keep spending money, which will
increase revenue and open up new job opportunities
in sectors like trade, agriculture, and the creative
industries.
Indonesia's economy, which formerly depended
on specific economic sectors, can benefit from
economic diversification. Nonetheless,
diversification requires fundamental changes and
must be considered in the context of a cohesive
development strategy, [18]. By promoting tourism,
the nation may shift its focus away from primary
industries like mining and agriculture and toward
the tourism industry, which has significant room for
expansion. Long-term stability and a decreased
chance of economic instabilities are both benefits of
diversification.
In publications, [19], although sometimes the
impact is not seen by the public, travel services are
closely related to economic development. The
participation and availability of travel services can
create jobs, generate tax revenue, and create
attractive tourist destinations. In America, travel
services have a ripple effect that touches the lives of
millions of people. Effective travel promotion leads
to increased economic activity, high-paying jobs,
and substantial tax revenues supporting critical
public services. Furthermore, the [19], also
explained that travel-related tax revenue is pure
profit generated by visitors without requiring
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additional public service fees or the intermediary of
a public agency. Without tax revenue from travel,
people will be required to shoulder a higher tax
burden to pay for other general service-related costs.
The results showed an insignificant positive
relationship with economic growth, meaning that
the availability of travel services can impact
increasing economic growth. Still, travel services in
Indonesia cannot be said to be efficient or have
enough impact to improve the economy.
In order side, to bring in a variety of passengers
and increase their duration of stay, it is crucial to
diversify the travel experiences and products
available. The development of several forms of
tourism, including ecotourism, cultural tourism,
adventure tourism, and others, is necessary. To
further improve Indonesia's tourism attractiveness,
innovative products and services must also be
developed, including alluring travel packages,
interesting activities, and one-of-a-kind experiences.
The government's bureaucratic structure must be
made easier to navigate to foster the development of
diverse tourism products and experiences. The
development of the tourism business may be
constrained by some onerous rules and bureaucracy.
Complex licensing procedures, murky regulations,
and inconsistent policies might impede the growth
and investment of tourism businesses. To support
the expansion of Indonesia's tourism industry,
regulatory reform initiatives and ease of doing
business are required. Economic diversification is
needed to increase regional revenues and increase
economic growth, in addition to reducing poverty
and creating job opportunities, [20].
Fig. 4: Share of the Global Market does Indonesia
Export
Source: The Atlas of Economic Complexity, 2022
On the other hand, based on Fig. 4, the natural
resources sector is the sector that has the highest
global market share exported by Indonesia.
Meanwhile, the service sector is among the five
lowest industries that contribute a market share to
Indonesia, even though tourism is one of the sectors
predicted to be a leading sector for Indonesia. For a
developing country with natural wealth like
Indonesia, the tourism industry can be said to be a
medium of economic development that does not
require too much investment, [2].
The local economy gains from tourism by
increasing labor mobility. The travel and tourism
industry makes it simple for migrants to stay in
touch with loved ones and make visits back home.
Increased labor mobility benefits both the host
nation and the country of origin. An increasingly
significant source of revenue for developing nations
is money that migrants send to family members
back home, [21]. The quantity of workers in the
tourism industry is another way in which Solow's
theory of labor is described in this study. Contrary
to Solow's hypothesis, the estimation results from
this study reveal a substantial inverse link between
employment and economic growth.
Even though the tourism industry has the
potential to provide employment, the majority of
tourism workers in Indonesia often hold low-wage,
low-skill occupations. This may lead to income
disparity between those employed in the tourism
industry and those in other economic sectors. It
might be difficult for tourism workers to make
purchases and limit their ability to contribute to
economic growth if they are paid an inadequate
wage. In Indonesia, a large number of workers in
the tourism industry have short-term or seasonal
contracts. Most of them might only be employed
during the tourist season or go through significant
employment rate variations. For those who work in
tourism, this may result in stable economic
conditions and uncertain revenue. Dependence on
temporary employment over the long term might
impede social mobility and career advancement,
which in turn can impair overall economic growth.
However, the tourism industry is typically one
of those most impacted by economic shifts and
crises. Workers in the tourism industry are at risk of
losing their employment or seeing their pay reduced
when visitor numbers are down. Travel restrictions
and a drop in tourist demand during the COVID-19
pandemic posed serious problems for the tourism
industry. The earnings of tourism industry workers
and overall economic growth may suffer from a
crisis of this nature.
It's important to keep in mind that, despite its
drawbacks, the tourist industry in Indonesia
continues to contribute favorably to the country's
overall economic growth. Policies and initiatives
aimed at worker empowerment, social protection,
and skill upskilling for those employed in the
tourism industry are required to reduce negative
effects and increase beneficial contributions.
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Fig. 5: The Relationship Between Labor in the
Tourism Sector and Economic Growth
Source: UNWTO and World Bank
The data in Fig. 5 released by UNWTO and the
World Bank can be seen as related to the movement
between the labor of the tourism sector and
economic growth. Through these movements, it can
be seen that economic growth tends to fluctuate
while the tourism sector workforce tends to increase
slowly. The picture shows that in 2020 economic
growth experienced an extreme decline while the
decline in the tourism sector workforce was only
3,500 people. The decline in economic growth in
2020 was caused by the COVID-19 pandemic,
which caused the global economy to experience a
slowdown due to limitations in mobility and
economic activity. Thus, instead of being a sector
that contributes to increasing economic growth in
the tourism sector, it creates additional costs due to
revenues that tend to be stuck. Still, the government
has a responsibility for providing subsidies for the
affected tourism sector workers. In addition, the
negative impact can illustrate that a high number of
workers cannot fully guarantee an increase in
economic growth; this is because the rise in the
labor force of the tourism sector has not been
accompanied by productivity and development that
can increase the income of the tourism sector.
Therefore, some questions arise about the
effectiveness of labor in the tourism sector to the
economy.
6 Conclusion
Foreign exchange receipts in the tourism and travel
service sectors have contributed to increasing
Indonesia's economic growth. However, the
insignificant news of travel services shows that
travel services cannot be maximized in Indonesia.
Exports for services are still ranked in the bottom
five, and it is known that Indonesia's highest exports
are from the agricultural sector. COVID-19 caused
the tourism sector to slump and created a loss of
revenue for the tourism sector. Meanwhile, the
workforce of the tourism sector cannot be said to be
small. Thus, instead of encouraging economic
growth, the tourism sector workforce creates
additional costs because the government is
responsible for maintaining the stability and welfare
of each community through various social assistance
policies for affected workers. In addition, the
tourism sector workforce may not be productive. It
has not been an impact on economic growth
postpositively impact.
6.1 Limitation
Travel service is one of several indicators used in
this study. Several tourism indicators can still be
used and further researched related to their
contribution to the Indonesian economy, including
the average length of stay and the number of
tourism destinations. In addition, there has not been
a deepening of explanations related to specific
situations that have caused the tourism sector and
the Indonesian economy to experience a decline,
such as the global crisis that has hit several times
and created limitations in various aspects of
supporting the Indonesian economy.
Acknowledgment:
The regression estimates show that the variables of
foreign exchange receipts and travel services have a
positive relationship with economic growth.
Meanwhile, the labor variables of the tourism sector
hurt economic growth. Among the total three
variables, two variables significantly influence
economic growth: the variables of foreign exchange
receipts for the tourism sector and the labor of the
tourism sector. Based on these results, the variable
of foreign exchange receipts for the tourism sector is
consistent with Solow's growth model. At the same
time, the workforce has effects that are contrary to
the Solow model.
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doi: 10.26593/be.v23i1.4654.39-55.
[3] A. P. Yakup and T. Haryanto, “The
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DOI: 10.37394/23207.2024.21.95
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WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2024.21.95
Neli Aida, Ghania Atiqasani, Widia Anggi Palupi
E-ISSN: 2224-2899
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Volume 21, 2024
Contribution of Individual Authors to the
Creation of a Scientific Article (Ghostwriting
Policy)
- Neli Aida made a research framework and
collected literature reviews.
- Ghania Atiqasani proposes policy
recommendations and wrote the research.
- Widia Anggi Palupi collects and processes
research data.
Sources of Funding for Research Presented in a
Scientific Article or Scientific Article Itself
The research in this manuscript is supported by
Lembaga Penelitian dan Pengabdian kepada
Masyarakat (LPPM) Universitas Lampung.
Conflict of Interest
An interesting phenomenon related to the estimated
results is that the tourism sector's labor significantly
negatively impacts economic growth. The results
contradict Solow's growth model, which explains
that labor has a non-linear positive impact on
output. Thus, the topic related to the influence of the
tourism sector workforce on economic growth is an
exciting conflict that can be further examined.
Nevertheless, the authors have no conflict of interest
to declare.
Creative Commons Attribution License 4.0
(Attribution 4.0 International, CC BY 4.0)
This article is published under the terms of the
Creative Commons Attribution License 4.0
https://creativecommons.org/licenses/by/4.0/deed.en
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WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2024.21.95
Neli Aida, Ghania Atiqasani, Widia Anggi Palupi
E-ISSN: 2224-2899
1166
Volume 21, 2024
