Identification of tourism potential and investment strategy - A case study of banyuwangi regency.

Abstract

Tourism as one of the potential resources in Indonesia significantly affects the country's development. However, it has not been well-managed due to many obstacles such as financing, promotion, and natural disasters. This study aimed to identify tourism attractions in Banyuwangi Regency as a newly developing district in Indonesia. The quantitative approach with the descriptive analysis applied in this study indicated that that the leading tourist attractions in Banyuwangi have excellent economic growth potential and good financial ratios. Based on the results of Financial Analysis analyzed through variables Payback Period (PP), Average Rate of Return (ARR), Net Present Value (NPV), Internal rate of Return (IRR), and Profitability Index (PI), Banyuwangi has the potential feasible for investment in the tourism sector. This research would provide further consideration for investors before investing in the tourism sector in Banyuwangi Regency.