The Economy of Tourism and Its Impact to Other Sectors in Lampung Province

Abstract

Tourism sector has been identified contribute to the economy of Lampung Province. The study aims to assess the direct and indirect linkage towards economic sectors, analyze the sensitivity of tourism sector distribution, to asses the multiplier effect of dispersion in the tourism sector, and calculate the final demand of tourism sector in the economy of Lampung Province in 2015. The results revealed that the score of the forward linkages from the tourism sector in Lampung is relatively small compared to the backward linkage. Both directly and indirectly, the tourism sector is a 'down stream' sector of Lampung economy, which the output is directly consumed by final consumers. Therefore if tourism sector is developed, it can pull output that is in the upstream sector.