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

Mursalina Mursalina, Raja Masbar, Suriani Suriani

Abstract


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:

PDF

References


Arifin, Y. (2016). Pengaruh harga minyak dunia, nilai tukar dan inflasi terhadap pertumbuhan ekonomi Indonesia. Economics Development Analysis Journal, 5(4), 474–483. http://journal.unnes.ac.id/sju/index.php/edaj

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. https://doi.org/10.18196/jgpp.811338

BKPM. (2020). Pengaruh Covid-19 terhadap investasi di Indonesia. https://www.investindonesia.go.id/id/artikel-investasi/detail/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. https://doi.org/https://doi.org/10.5367/te.2011.0094

Cetin, G. (2020). Impact of Covid-19 on tourism industry. Journal of Tourismology, April. https://doi.org/10.18111/9789284421152

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. https://www2.deloitte.com/tz/en/pages/finance/articles/impact-of-covid19-on-ea-economies.html#

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. https://doi.org/10.15408/sjie.v8i1.9520

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). https://doi.org/10.1016/j.envres.2021.111648

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. https://doi.org/10.1080/13683500.2020.1777951

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. https://doi.org/10.1016/j.annals.2020.103117

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. https://doi.org/10.1016/j.fbj.2018.09.001

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). https://doi.org/10.21744/irjeis.v2i1.35

Inegbedion, H. (2021a). Impact of COVID-19 on economic growth in Nigeria: opinions and attitudes. Heliyon, 7(e06943). https://doi.org/10.1016/j.heliyon.2021.e06943

Inegbedion, H. (2021b). Impact of COVID-19 on economic growth in Nigeria: opinions and attitudes. Heliyon, 7(5), e06943. https://doi.org/10.1016/j.heliyon.2021.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. https://doi.org/10.1016/b978-0-12-817465-4.00021-2

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. https://doi.org/10.1016/j.tourman.2007.10.006

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. https://doi.org/10.26593/be.v20i2.2310.213-229

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). https://doi.org/10.1596/1813-9450-9211

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. https://doi.org/https://doi.org/10.1016/j.worlddev.2011.07.00 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. https://people.duke.edu/~rnau/411log.htm

Ozili, P. K., & Arun, T. (2020). Spillover of COVID-19: impact on the global economy. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3562570

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. https://doi.org/10.1177/0047287511400754

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. https://doi.org/10.1108/09596110410520034

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. https://www.worldometers.info/coronavirus/?#countries

Retherford, R. D., & Choe, M. K. (1993). Statistical models for causal analysis. In A Wiley-Interscience Publication. John Wiley & Sons, Inc. https://doi.org/10.1002/9781118033135

Scarlett, H. G. (2021). Tourism recovery and the economic impact: a panel assessment. Research in Globalization, 3(January), 100044. https://doi.org/10.1016/j.resglo.2021.100044

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). https://doi.org/10.1016/j.techfore.2020.120469

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. https://doi.org/10.36574/jpp.v4i2.113

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. https://doi.org/10.1016/j.tmp.2020.100744

UNWTO. (2010). Role of the International Recommendations for Tourism Statistics 2008 (Series M N). United Nations Publication. https://doi.org/10.18356/05265168-en

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. https://www.who.int/publications/i/item/origin-of-sars-cov-2

WHO. (2021). Health topic overview. www.who.int/health-topics/coronavirus#tab=tab_1




DOI: https://doi.org/10.46336/ijqrm.v3i1.261

Refbacks

  • 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