THE ROLE OF THE TOURISM SECTOR ON THE ECONOMY OF EAST  JAVA: INPUT-OUTPUT ANALYSIS

Indonesia is a country that regulates the authority of regional government. Local governments are given the freedom to regulate their own regions with regionalautonomy to explore the potential of each region. Thus, development must determine the priority of the potential of one of the tourism sector. For examplecultural tours, history, nature or artificial, religious. Tourism is a large and growing industry. The development of tourism is very influential and influenced by other sectors because tourism is a mulitectorectoral that has links with other sectors. East Java province is renowned for its tourism potential, many historical attractions, for recreation, education and more. The development and change of the tourism sector cannot be separated from the interrelationship with other sectors of the economy, and vice versa. The occurrence of changes in one sector of the economy, will also affect the tourism sector. The inter-sectoral linkages in the economy can be seen in Input-Output Analysis. Input-Output Analysis is an analysis of the region's economy comprehensively as it sees the inter-sectoral linkages of the economy in the region as a whole. This study aims to find out how the role of the tourism sector in the formation of output, gross added value, demand between and end of East Java Province, how much is related to other sectors, the economic impacts of economic growth, income and employment are viewed based on Multiplier effects on output, income and labor. The data collected in this study is secondary data Table InputOutput East Java Province. Analyzer uses APLIKASI I-O PAU UGM 2000 and Microsoft Excel. The result, it is expected that the tourism sector has an important role in the formation of GDP, labor, demand between and the end of demand, as well as direct output linkage forward.

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OVERVIEWING EAST JAVA’S MARITIME ECONOMIC POTENTIAL: INPUT-OUTPUT ANALYSIS

East Java Economic Journal ◽

10.53572/ejavec.v1i1.4 ◽

2017 ◽

Vol 1 (1) ◽

pp. 96-109

Author(s):

Gisty Ajeng Septami ◽

Pyan Putro Surya Amin Muchtar ◽

Irfan Teguh Prima

Keyword(s):

Economic Growth ◽

National Economy ◽

Local Governments ◽

Marine Resources ◽

Economic Potential ◽

Input Output ◽

Output Analysis ◽

Input Output Analysis ◽

The Impact

East Java marine resources play important role as development assets and have enormous opportunities for generating economic growth. The main potential includes 11 subsectors reinforced by the role of this province as a center of logistics and connectivity of the Eastern Indonesia Region (KIT). Realizing such potential, both central and local governments intensively attract investors to invest funds into the maritime sector in East Java. The study also attempts to deliberate the impact of investment in the maritime sector on the East Java economy in particular and Indonesia in general. The impact includes economic growth, society’s welfare, and employment. This study uses Input-Output Table of East Java Province 2008 published by the Central Bureau of Statistics (BPS). The data is quantitatively employed to find the linkage and impact multiplier of the investment. The results of this study indicate that the investment in the maritime sector induces economic growth of East Java by 11%, which also rises people income and employment rate. With the contribution of East Java to the national economy, which is about 15%, the investment will also contribute to boost the national economy.

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