The Impact of the Tourism Sector on Regional Original Income on the Island of Sulawesi Panel Data Analysis 2017–2021

Abstract

This study analyzes the impact of the tourism sector on Local Own-Source Revenue (PAD) in six provinces in Sulawesi during the period 2017–2021 using panel data regression with the Fixed Effect Model (FEM). The results show that the number of hotels, hotel occupancy rates, and the number of tourist attractions have a positive but insignificant effect on PAD. Meanwhile, the number of tourists has a significant negative effect, indicating tourism leakage due to the dominance of the informal sector and weak retribution management. These findings emphasize the need for tax digitalization, destination management strengthening, and informal sector integration so that the contribution of tourism to PAD is more optimal.