Tourism GDP Share and Economic Growth in Indonesia:A Structural Analysis (2019–2023)

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Authors: Shrihitha Komandur Sreenivasa, Priyanshi Jain
Cited by: 0
References: 1

Abstract

: Tourism has been positioned as a strategic sector in Indonesia’s development agenda because of its capacity to generate employment, foreign exchange, and regionally dispersed economic activity. However, the COVID-19 pandemic exposed the sector’s vulnerability to systemic shocks and raised questions about the alignment between tourism performance and aggregate economic recovery. This study examines the relationship between Indonesia’s annual GDP growth and tourism’s direct contribution to GDP from 2019 to 2023, focusing on structural rather than causal analysis. Using secondary data from the Tourism Satellite Account compiled by Statistics Indonesia and annual GDP growth data from the World Bank’s World Development Indicators, the study applies a descriptive quantitative design combined with a macro‑financial structural interpretation. The results show that tourism’s GDP share was close to 5 percent in 2019 but fell to about half that level in 2020, while aggregate GDP contracted by slightly more than 2%.GDP growth returned to positive territory in 2021 and exceeded 5% in 2022 and 2023, yet tourism’s share of GDP, although recovering, remained marginally below its pre‑pandemic level by 2023. This pattern indicates an asymmetric shock with a deeper collapse and slower recovery in tourism compared to the broader economy, generating a structural lag between macroeconomic and sectoral recovery. The study argues that relying solely on aggregate GDP growth as an indicator of tourism recovery risks overstating sectoral resilience and underestimating hysteresis effects in tourism‑dependent activities. Policy evaluation and tourism-led development strategies should therefore incorporate structural indicators such as tourism’s GDP share, sectoral volatility, and institutional constraints that influence the translation of policy initiatives into realized value added.

Fields of Study & Subjects

Diverse Aspects of Tourism Research Regional Economic Trends and Sectoral Structure Economic Growth and Fiscal Policies

Publication details

Journal / source
Community Service Journal Adarma Acitya
Volume
1
Issue
2
Pages
16–27
Publication date
2 March 2026
Language
EN