Economic and Environmental Impacts of Mass Tourism on Regional Tourism Destinations in Indonesia

Journal of Asian Finance, Economics and Business, Vol. 5 No. 3 pp.31-41, 2018, DOI: 10.13106/jafeb.2018.vol5.no3.31

12 Pages Posted: 27 Oct 2018

See all articles by Jung Wan Lee

Jung Wan Lee

Boston University - Department of Administrative Sciences

Ahmad Mujafar Syah

Boston University, Metropolitan College (MET), Department of Administrative Sciences

Date Written: July 30, 2018

Abstract

The study examines economic and environmental impacts of mass tourism on regional tourism destinations, particularly the establishment of “Ten New Bali”, in Indonesia. The sample is restricted to the period of time in which annual data is available and comparable among variables from 1980 to 2015 (36 observations). All of the time series data was collected and retrieved from the World Development Indicator database published by the World Bank. This study applies cointegrating regression analysis using the fully modified OLS, canonical cointegrating regression, and dynamic OLS. The results of the study suggest that 1) there is a long-run equilibrium relationship between tourism receipts, environmental degradation and economic growth in Indonesia, 2) tourism growth and agriculture land growth are positively related to an increase of total output in the short-run in Indonesia, and 3) arable land is significant at the 0.01 level, but forest rents and CO2 from transport are not significant in the short-run in Indonesia. The results confirm that arable land is negatively related to an increase of total output in Indonesia. That is, when tourism growth in the economy is getting realized it shows that the environmental degradation increases greatly in inverse in the model, eventually negative impacts to the environment.

Keywords: Environmental Impact, Tourism Destinations, Regional Tourism, Ten New Bali, Indonesia

JEL Classification: F63, F64, O13, O44, O53

Suggested Citation

Lee, Jung Wan and Syah, Ahmad Mujafar, Economic and Environmental Impacts of Mass Tourism on Regional Tourism Destinations in Indonesia (July 30, 2018). Journal of Asian Finance, Economics and Business, Vol. 5 No. 3 pp.31-41, 2018, DOI: 10.13106/jafeb.2018.vol5.no3.31. Available at SSRN: https://ssrn.com/abstract=3250133

Jung Wan Lee (Contact Author)

Boston University - Department of Administrative Sciences ( email )

808 Commonwealth Avenue
Boston, MA 02215
United States
617 358 5627 (Phone)
617 353 6840 (Fax)

HOME PAGE: http://www.bu.edu/met

Ahmad Mujafar Syah

Boston University, Metropolitan College (MET), Department of Administrative Sciences ( email )

MA
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
41
Abstract Views
87
PlumX Metrics
!

Under construction: SSRN citations while be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information