ANALYSIS OF THE INFLUENCE OF FOREIGN TOURIST VISIT ON TOURISM ECONOMIC GROWTH IN NUSA TENGGARA

Abstract

Tourism plays an important role in driving regional economic growth by increasing the consumption of goods and services, creating jobs, and encouraging local investment. This study aims to determine the extent of influence of foreign tourist visits on the economic growth of the tourism sector in the Nusa Tenggara region, which includes the provinces of Bali, West Nusa Tenggara (NTB), and East Nusa Tenggara (NTT). This study uses a quantitative approach with a panel data regression method (Ordinary Least Squares) that combines time series data (2015–2024) and cross-section data from three provinces. The variables used include the number of foreign tourist visits (X) and Gross Regional Domestic Product (GRDP) as an indicator of economic growth (Y). The results of the study show that foreign tourist visits have a positive and significant influence on regional economic growth, especially in Bali Province which has a more developed tourism infrastructure and strong international promotion. Meanwhile, the contribution of the tourism sector in NTB and NTT is still limited due to accessibility constraints and limited supporting facilities. This finding is in line with Solow's economic growth theory which states that capital, labor, and technology are important factors in economic growth. Foreign tourists are seen as a source of consumer capital inflows that drive productive activities in related sectors. Therefore, targeted tourism development needs to be continuously improved to strengthen regional economic growth in the Nusa Tenggara region.