The Effect Of Tourism On Bali Provincial Income Inequality: A Quantile Data Panel Approach

Tourism is a rapidly growing sector and plays an important role in economic development in a country. However, the development of tourism has consequences for the distribution of different incomes in each region. This research uses quantile panel data regression to analyze the influence of the tourism sector on income inequality across districts/cities in Bali Province from 2014-2022 with control variables of economic growth and human development. Research findings show that the tourism sector has only succeeded in equalizing income in areas with moderate levels of inequality. Apart from that, other findings are that economic growth and the Human Development Index (HDI) which have increased significantly worsen income inequality or inequality even though the overall economy is developing and people's quality of life is increasing. The policy implications in the form of infrastructure, workforce training, and promotion of sustainable tourism, the government can reduce income inequality in Bali through the tourism sector can increase accessibility and economic benefits of tourism in rural areas, as well as prepare the local workforce.