Tourism Development Impact on Economic Growth and Poverty Alleviation in West Java
DOI:
https://doi.org/10.47608/jki.v18i22024.175-196Keywords:
economic growth, Partial Least Square (PLS), poverty alleviation, tourism development impactAbstract
Poverty alleviation is on the agenda of regional development in West Java. One of the priority sectors is tourism development, which supports inclusive economic growth and is expected to address poverty. Through various unit analyses, the study analyzed how tourism development in West Java impacts economic growth and poverty alleviation. These included indicators such as the number of tourist visits, hotel room occupancy rate, the number of hotels and restaurants, average length of stay, and the tourism sector's contribution to Original Local Government Revenue (PAD). Economic growth was assessed using indicators such as Gross Regional Domestic Product (GRDP), unemployment rate, Gini Index, and regional investment value. In contrast, the poverty variable used the percentage and number of people living in poverty, poverty line statistics, Poverty Depth Index, and Poverty Severity Index. Inferential statistical analysis, specifically Partial Least Square (PLS), was conducted using a quantitative approach and data from BPS - Statistics of West Java. Hypotheses were formulated based on the literature review, asserting that tourism development significantly and positively impacted economic growth and poverty alleviation in West Java. Results showed that tourism development significantly boosted economic performance, directly influencing economic growth. Additionally, high economic growth correlated with reduced poverty rates, highlighting the importance of inclusive growth for alleviation. Key indicators played crucial roles in poverty alleviation, including the number of hotels and restaurants, the tourism sector's contribution to regional revenue, GRDP, and regional investment value. These findings provided valuable insights for policymakers and stakeholders to develop effective strategies for leveraging tourism potential to promote inclusive economic growth and alleviate poverty in West Java.
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