SPATIAL SPILLOVER EFFECTS OF THE ECONOMIC IMPACT OF TOURISM IN NORTH SUMATRA PROVINCE

• Main Author: Harahap, Agustian
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/87056
• Institution: Institut Teknologi Bandung

North Sumatra has experienced substantial tourism development, especially in the Lake Toba area, which is designated as a Super Priority Tourism Destination. This has had a major impact on the economy of the province of North Sumatra. However, the economic impact of tourism does not only occur in the North Sumatra region but also has indirect effects and induction effects that spread to the broader economy and lead to spatial spillover effects outside the administrative area of North Sumatra. This is due to multi-faceted tourism activities and the creation of a flow of economic activities that require supplies of goods and raw materials from sectors outside the tourist destination. As a result, there is a spatial spillover in the surrounding areas, indicating a large influence of tourism on the local and regional economy. Therefore, this study aims to analyze the spillover effects of tourism growth in North Sumatra and its impact on the economy of other provinces in Indonesia. This study uses a quantitative research method with the Interregional Input-Output (IRIO) analysis model to capture broader economic impacts. Using a spatial approach, this study seeks to identify the contribution of tourist spending to economic indicators and improve our understanding of how large this spatial spillover effect is. The data used is secondary data sourced from the National and Regional Statistics Agency of the Province of Sumatra. The results of this study reveal that tourism activities in the province of North Sumatra have significantly contributed to supporting this province's economy. The expenditure of domestic and foreign tourists in 2023 has impacted output and income in the province of North Sumatra by 125.39 and 27.94 trillion rupiah, respectively. Meanwhile, the impact on Gross Value Added (GVA) received by North Sumatra reached a value of 64.92 trillion rupiah, which contributed 6.18% to the recipient of the GRDP of the province of North Sumatra in 2023. The impact of the tourism expenditure also played a role in the employment of around 1.36 million people or contributed 18.1% to the total employment in North Sumatra in 2023. In addition, domestic tourist expenditure contributed around 93% of the total impact caused, which shows the important role of local tourism activities in driving the economic growth of tourism in the province of North Sumatra. Meanwhile, the total spillover impact of tourist spending in North Sumatra to all regions in Indonesia reached 231.19 trillion rupiah for output impact, 49.41 trillion rupiah for income impact, 123.54 trillion rupiah for GVA impact, and 2.05 million people for employment impact. Over 40% of the total impact is a spillover effect outside the North Sumatra region and spreads to other provinces in Indonesia. This shows the magnitude of the spatial spillover effect on the economic impact of tourism in North Sumatra, which is no less than the impact in the province of North Sumatra itself. Overall, the spatial spillover effect occurs most in provinces located on the island of Java, including DKI Jakarta, East Java, West Java, and Central Java, which shows that these provinces have strong economic relationships and connections with North Sumatra. The direct impact of tourist spending can be seen in various industries such as accommodation, food and beverage, transportation, entertainment/recreation, retail, etc. It is multiplied through indirect and induced impacts that produce greater economic impacts. However, the effect of foreign tourist expenditure indicates that the international tourist market in North Sumatra has not been optimized. Thus, a strategy for developing and promoting tourism in North Sumatra province that is more focused on increasing foreign tourist visits is needed. In addition, the components of tourist expenditure are not limited to one type of industry, which makes the overall impact of tourism activities invisible in North Sumatra's economic statistics. Therefore, it is necessary to make satellite accounts annually to measure and provide tourism contributions to the economy.