Does Domestic Tourism Stimulate Economic Growth? Evidence from Indonesian Provincial Panel Data

Tourism, both domestic and international, is considered to have a significant influence on economic growth in many countries around the world.However, studies that specifically examine the impact of domestic tourism on regional growth have received little attention.This study aims to fill this gap so that the contribution of domestic tourism to regional growth can be identified and enrich the literature on the tourism-led growth hypothesis.This study uses panel data from 33 provinces in Indonesia from 2011 to 2018.The results show that domestic tourism has a significant and positive impact on regional economic growth in Indonesia.The findings prove that domestic tourism is important to develop in promoting regional growth.For the sustainability of domestic tourism, its governance needs to be formulated wisely by involving various stakeholders because domestic tourism will also encourage an increase in international tourism.