Impact of Covid-19 Pandemic on Economic Growth of the Tourism Sector in Indonesia

Mursalina Mursalina, Raja Masbar, Suriani Suriani


Indonesia has made the tourism sector one of its current development priorities. However, the Covid-19 pandemic has harmed various economic sectors, and the tourism sector is the most affected in Indonesia. As a result of policies carried out by various countries including Indonesia, such as lockdown, social distancing, and its kind, economic activity has slowed, tourist arrivals have decreased drastically, and investment has decreased due to the uncertainty caused by the pandemic. This study aims to examine the effect of the Covid-19 pandemic on tourist arrivals and investment (domestic and foreign investment) and its impact on the economic growth of the tourism sector in Indonesia. This study uses the path analysis method by using mediating variables, namely tourist arrivals, and investment paths. Panel data regression is used to regress the path analysis equation, with data series 2018q1 – 2021q2 and cross-sections in 22 provinces in Indonesia that have tourist entrances.

Full Text:



Arifin, Y. (2016). Pengaruh harga minyak dunia, nilai tukar dan inflasi terhadap pertumbuhan ekonomi Indonesia. Economics Development Analysis Journal, 5(4), 474–483.

Atmojo, M. E., & Fridayani, H. D. (2021). An assessment of Covid-19 pandemic impact on Indonesian tourism sector. Journal of Governance and Public Policy, 8(1), 1–9.

BKPM. (2020). Pengaruh Covid-19 terhadap investasi di Indonesia.

Brida, J. G., Punzo, L. F., & Risso, W. A. (2011). Research note: Tourism as a factor of growth - the case of Brazil. Tourism Economics, 17(6), 1375–1386.

Cetin, G. (2020). Impact of Covid-19 on tourism industry. Journal of Tourismology, April.

Deloitte. (2020). Economic impact of the COVID-19 pandemic on East African economies. Economic Impact of COVID-19 at a Glance, 1(2), 55–60.

Djulius, H., Wongyu, C., Juanim, J., & Santy, R. D. (2019). Nexus of foreign direct investment, domestic investment, and manufacturing industry value added in Indonesia. Signifikan: Jurnal Ilmu Ekonomi, 8(1), 1–8.

Dornbusch, R., Fischer, S., & Startz, R. (2011). Macroeconomics (11th Ed). The Mcgraw Hill Companies, Inc.

Facciola, A., Lagana, P., & Caruso, G. (2021). The COVID-19 pandemic and its implications on the environment. Environmental Research, 201(111648).

Fathia, N., Silvia, V., & Gunawan, E. (2021). Analysis of foreign investment determinants in Indonesia. Economic Development Analysis Journal, 3, 338–350.

Fayissa, B., Nsiah, C., & Tadasse, B. (2008). Impact of tourism on economic growth and development in Africa. Tourism Economics, 14(4), 807–818.

Foo, L. P., Chin, M. Y., Tan, K. L., & Phuah, K. T. (2020). The impact of COVID-19 on tourism industry in Malaysia. Current Issues in Tourism, 0(0), 1–5.

Fotiadis, A., Polyzos, S., & Huan, T. C. T. C. (2021). The good, the bad and the ugly on COVID-19 tourism recovery. Annals of Tourism Research, 87, 103117.

Habibi, F., Rahmati, M., & Karimi, A. (2018). Contribution of tourism to economic growth in Iran’s Provinces: GDM approach. Future Business Journal, 4(2), 261–271.

Haque, M. Z. (2016). The impact of economic crisis on tourism industry: a Bangladesh perspective. International Research Journal of Engineering, IT & Scientific Research, 2(1).

Inegbedion, H. (2021a). Impact of COVID-19 on economic growth in Nigeria: opinions and attitudes. Heliyon, 7(e06943).

Inegbedion, H. (2021b). Impact of COVID-19 on economic growth in Nigeria: opinions and attitudes. Heliyon, 7(5), e06943.

ITU. (2020). Economic impact of COVID-19 on digita infrastructure report of economic experts roundtable organized by ITU. In International Telecommunication Union (Issue July).

Jayasinghe, M., Selvanathan, S., & Selvanathan, E. A. (2021). The Asian Tsunami and tourism industry: impact and recovery. In Economic Effects of Natural Disasters. INC.

Kapiki, S. (2011). The impact of economic crisis on tourism and hospitality: results from a study in Greece. Central European Review of Economics & Finance, Vol. 2, No 1, 19–30.

Kuo, H. I., Chen, C. C., Tseng, W. C., Ju, L. F., & Huang, B. W. (2008). Assessing impacts of SARS and Avian Flu on international tourism demand to Asia. Tourism Management, 29(5), 917–928.

Lean, H. H., & Tan, B. W. (2011). Linkages between foreign direct investment, domestic investment and economic growth in Malaysia. Journal of Economic Cooperation and Development, 32(4), 75–96.

Malba, E., & Taher, I. M. (2016). Analisis input-output atas dampak sektor pariwisata terhadap perekonomian Maluku. Bina Ekonomi, 20(2), 213–229.

Maliszewska, M., Mattoo, A., & van der Mensbrugghe, D. (2020). The potential impact of COVID-19 on GDP and trade: a preliminary assessment. In Policy Research Working Paper, World Bank Group (Vol. 9211, Issue April).

Mankiw, N. G. (2011). Macroeconomics Book. 456.

Morrissey, O., & Udomkerdmongkol, M. (2012). Governance, private investment and foreign direct investment in developing countries. World Development, 40(3), 437–445. 4

Mulder, N. (2020). The impact of the COVID-19 pandemic on the tourism sector in Latin America and the Caribbean, and options for a sustainable and resilient recovery. In International Trade (Vol. 157).

Muljadi, A. J. (2009). Kepariwisataan dan Perjalanan. PT. Raja Grafindo Persada.

Nau, R. (2014). The Logarithm Transformation.

Ozili, P. K., & Arun, T. (2020). Spillover of COVID-19: impact on the global economy. SSRN Electronic Journal.

Page, S., Song, H., & Wu, D. C. (2012). Assessing the impacts of the global economic crisis and swine flu on inbound tourism demand in the United Kingdom. Journal of Travel Research, 51(2), 142–153.

Pine, R., & McKercher, B. (2004). The impact of SARS on Hong Kong’s tourism industry. International Journal of Contemporary Hospitality Management, 16(2), 139–143.

Rahma, V. S., & Arvianti, G. F. (2020). the impacts of Covid-19 pandemic in Indonesia and China’S hotel industry: how to overcome it? Jelajah: Journal Tourism and Hospitality, 2(1), 2020.

Retherford, R. D., & Choe, M. K. (1993). Statistical models for causal analysis. In A Wiley-Interscience Publication. John Wiley & Sons, Inc.

Scarlett, H. G. (2021). Tourism recovery and the economic impact: a panel assessment. Research in Globalization, 3(January), 100044.

Škare, M., Soriano, D. R., & Porada-Rochoń, M. (2021). Impact of COVID-19 on the travel and tourism industry. Technological Forecasting and Social Change, 163(November 2020).

Statistics Indonesia. (2017). Neraca Satelit Pariwisata Nasional (Nesparnas) 2017. BPS RI.

Statistics Indonesia. (2019). Statistik Pengeluaran Wisatawan Mancanegara 2019. BPS RI.

Statistics Indonesia. (2021). Tourism Satellite Account Indonesia 2016-2019. Badan Pusat Statistik.

Sugihamretha, I. D. G. (2020). Respon kebijakan: mitigasi dampak wabah Covid-19 pada sektor pariwisata. Jurnal Perencanaan Pembangunan: The Indonesian Journal of Development Planning, 4(2), 191–206.

Sukirno, S. (2013). Makroekonomi, Teori Pengantar (Edisi Keti). Rajawali Pers.

Uğur, N. G., & Akbıyık, A. (2020). Impacts of COVID-19 on global tourism industry: A cross-regional comparison. Tourism Management Perspectives, 36(September), 100744.

UNWTO. (2010). Role of the International Recommendations for Tourism Statistics 2008 (Series M N). United Nations Publication.

Veyadi Purba, J. H., Fathiah, R., & Steven. (2021). The impact of COVID-19 on the tourism sector in Indonesia. Riset : Jurnal Aplikasi Ekonomi, 3(No.1), 389–401.

WHO. (2020). The origin of SARS-CoV-2. The Lancet. Infectious Diseases.

WHO. (2021). Health topic overview.



  • There are currently no refbacks.

Copyright (c) 2022 International Journal of Quantitative Research and Modeling

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Published By: 

IJQRM: Jalan Riung Ampuh No. 3, Riung Bandung, Kota Bandung 40295, Jawa Barat, Indonesia


IJQRM Indexed By: 

width= width= width= width= width= width=


Lisensi Creative Commons Creation is distributed below Lisensi Creative Commons Atribusi 4.0 Internasional.

View My Stats