KnE Social Sciences

ISSN: 2518-668X

The latest conference proceedings on humanities, arts and social sciences.

Multiplier Effect of Investment in the Tourism Sector of West Papua Province on Regional Economic Development

Published date:Feb 19 2025

Journal Title: KnE Social Sciences

Issue title: The International Conference on Economic and Sustainable Development (ICESIDE)

Pages:1 - 13

DOI: 10.18502/kss.v10i5.18090

Authors:

Vallen Tonny BaransanoFaculty of Economics and Business, Papua University

Albertus Girik Alloag.allo@unipa.ac.idDepartment of Development Economics, Faculty of Economics and Business, Papua University

Roni BawoleDepartment of Marine Science, Faculty of Fisheries and Marine Sciences, Papua University

Abstract:

Tourism is one of the sectors that can be used as a mainstay for economic growth in a region oriented towards sustainable development. The tourism sector in this study uses the proxy of the accommodation and food and beverage provision sector. This study aims to see the multiplier effect value arising from investments made in the tourism sector locally (in West Papua Province) and nationally (in all provinces). The approach used in seeing the multiplier effect value is Inter-Regional Input Output (IRIO). The analysis results show that the multiplier effect value of investment in the tourism sector in West Papua Province is 1.51 times the investment value that will be received by West Papua Province and 1.86 times the total investment for the nation. This shows that the tourism sector can be used as one of the options for improving the economy of West Papua Province with the concept of sustainable development.

Keywords: investment, tourism sector, regional economic, development

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