The Effect of Tourism Sector on Regional Financial Autonomy and Economic Growth in Regency / City of Bali Province

ABSTRACT : Tourism as one of the sectors that plays a role in regional revenue which further affects theregional autonomy in terms of financial and is expected to accelerate the economic growth. The objectives whichneed to be achieved: 1) to analyze the influence of the period stay of the tourists, the number of hotels, andoccupancy rates of hotel rooms on the regional financial autonomy/ in Bali, 2) to analyze the influence of the periodstay of the tourists, the number of hotels, occupancy rates of hotel rooms, and regional financial autonomy on theeconomic growth in regencies / cities in the Province of Bali, 3) to determine the indirect effect of the period stay ofthe tourists, the number of hotels, and occupancy rates of hotel rooms on economic growth through financialautonomy of regencies / cities in the Province of Bali. This study uses secondary data with 81 observations indistricts / cities in Bali Province in 2010-2018. The analysis technique used is path analysis. The results show that 1)the number of hotels and occupancy rates of hotel rooms had a significant positive effect on regional financialautonomy while the period stay of the tourists has no positive and not significant effect on regional financialautonomy, 2) the period stay of the tourists had a significant positive effect on economic growth, while the numberof hotels and occupancy rates of hotel rooms has no positive and not significant effect on economic growth, and 3)regional financial autonomy mediates the relationship of the number of hotels and occupancy rates of hotel rooms toeconomic growth, but regional financial autonomy does not mediate the relationship of the period of the tourists’stay to economic growth in districts / cities in Bali Province.

KEYWORDS : The period stay of the tourists, the number of hotels, occupancy rates of hotel rooms, regionalfinancial autonomy, and economic growth.