Tourism Impact on the Regional Economy (Case Study of the Kalimantan Tengah Province)

ABSTRACT:Tourism plays an important and strategic role in economic development and the Indonesia’sgovernment has established tourism as one of the priority sectors in national development. This study aims tomeasure the impact of tourism activities on the economy in Kalimantan Tengah Province in 2019 using theInput-Output Model. The results of the study found that local tourists play an important role in driving tourismin Kalimantan Tengah. The water transportat, accommodation, and food and beverage service activities arestrategic industries because they have a strong driving force in spurring economic growth. Meanwhile, thewholesale trade (except of motor vehicles and motorcycles), land transport, and information and communicationservices are sectors that can meet the final demand from other sectors above the average capacity. In total, theimpact of tourism activities on Kalimantan Tengah’s GRDP in 2019 reached 1.09 percent. Wholesale trade(except of motor vehicles and motorcycles)received the largest impact, while enterprise services andaccommodation made the largest contribution to the industries.

KEYWORDS :local tourist, GRDP, backward linkage, forward linkage