The Impact of the Tourism Industry on Employment Absorption in Indonesia: A Literature Review

Authors

DOI:

https://doi.org/10.59535/rk4ard33

Keywords:

Tourism Sector, Employment Absorption, Regional Analysis, Indonesia, Job Creation

Abstract

This literature review explores the impact of the tourism sector on employment absorption in various Indonesian regions. By synthesizing findings from multiple studies, we investigate how sub-sectors such as hotels, restaurants, tourist attractions, and travel agencies contribute to job creation. The analysis reveals that while there is generally a positive relationship between tourism activities and employment, the significance and nature of this impact vary across different regions and contexts. Notably, the studies highlight discrepancies in the effects of tourism investments and tourist numbers, indicating the presence of unique regional factors influencing employment outcomes. The findings underscore the need for more region-specific and longitudinal research to understand the nuanced effects of the tourism sector on local labor markets. This review also emphasizes the importance of considering qualitative aspects, such as job quality and economic impact, in future studies to provide a comprehensive understanding of the sector's contribution to employment.

References

[1] A. Andrinata, ‘Community-Based Sustainable Tourism as a Pillar of Tetebatu Village Development’, Socio-Economic and Humanistic Aspects for Township and Industry, vol. 1, no. 3, Art. no. 3, Dec. 2023, doi: 10.59535/sehati.v1i3.162.

[2] M.-W. Li, H.-Y. Teng, and C.-Y. Chen, ‘Unlocking the customer engagement-brand loyalty relationship in tourism social media: The roles of brand attachment and customer trust’, Journal of Hospitality and Tourism Management, vol. 44, pp. 184–192, 2020.

[3] U. Kement, S. Çavuşoğlu, B. Demirağ, Y. Durmaz, and A. Bükey, ‘Effect of perception of COVID-19 and nonpharmaceutical intervention on desire and behavioral intention in touristic travels in Turkey’, Journal of Hospitality and Tourism Insights, 2020.

[4] R. Malfiany and D. Apdian, ‘Analysis of The Influence of Akulaku Application Quality on User Satisfaction Using Netqual Method’, in Proceeding The First International Conference on Government Education Management and Tourism, 2021, pp. 500–511.

[5] S. Syafruddin, H. Wadi, and S. Suud, ‘Tourism Industry and Women’s Employment Mobility in the Special Economic Zone (SEZ) of Mandalika Kuta Lombok’, Society, vol. 8, no. 1, Art. no. 1, Jun. 2020, doi: 10.33019/society.v8i1.175.

[6] Y. Zhuang, S. Yang, A. Razzaq, and Z. Khan, ‘Environmental impact of infrastructure-led Chinese outward FDI, tourism development and technology innovation: a regional country analysis’, Journal of Environmental Planning and Management, vol. 66, no. 2, pp. 367–399, Nov. 2022, doi: 10.1080/09640568.2021.1989672.

[7] H. Ogutu, G. F. C. Adol, Z. Bujdosó, B. Andrea, M. Fekete-Farkas, and L. D. Dávid, ‘Theoretical Nexus of Knowledge Management and Tourism Business Enterprise Competitiveness: An Integrated Overview’, Sustainability, vol. 15, no. 3, Art. no. 3, Jan. 2023, doi: 10.3390/su15031948.

[8] O. A. Ayodele, A. Chang-Richards, and V. Gonzalez, ‘Factors affecting workforce turnover in the construction sector: A systematic review’, Journal of construction engineering and management, vol. 146, no. 2, p. 03119010, 2020.

[9] M. Ali, C.-H. Puah, A. Ali, S. A. Raza, and N. Ayob, ‘Green intellectual capital, green HRM and green social identity toward sustainable environment: a new integrated framework for Islamic banks’, International Journal of Manpower, vol. 43, no. 3, pp. 614–638, Jan. 2021, doi: 10.1108/IJM-04-2020-0185.

[10] N. N. W. Naraswari, A. Manan, and E. Agustiani, ‘The Effect of Gross Regional Domestic Product (GRDP), Investment, Population, and Inflation on Regional Original Revenue (PAD) of Nusa Tenggara Barat Province (NTB) in 2010-2022’, Socio-Economic and Humanistic Aspects for Township and Industry, vol. 1, no. 4, Art. no. 4, 2023, doi: 10.59535/sehati.v1i4.194.

[11] N. Salsabila, A. Daeng, A. B. Singandaru, and N. D. Poudel, ‘The Influence of Quality Work of Life, Workload, Work Stress, Lifestyle and Environment on the Productivity of the Millennial Workforce in Mataram City’, International Journal of Management Science, vol. 2, no. 1, Art. no. 1, Feb. 2024, doi: 10.59535/ijms.v2i1.223.

[12] D. Wadley, ‘Technology, capital substitution and labor dynamics: global workforce disruption in the 21st century?’, Futures, vol. 132, p. 102802, Sep. 2021, doi: 10.1016/j.futures.2021.102802.

[13] K. Appelt, ‘Keynes’ Theory of the Interest Rate: A Critical Approach’, Theory, Methodology, Practice, vol. 12, no. 01, pp. 3–8, 2016.

[14] S. Mareeva, ‘Socio-economic inequalities in modern Russia and their perception by the population’, The Journal of Chinese Sociology, vol. 7, no. 1, p. 10, Jul. 2020, doi: 10.1186/s40711-020-00124-9.

[15] S. Chen and D. Zhang, ‘Impact of air pollution on labor productivity: Evidence from prison factory data’, China Economic Quarterly International, vol. 1, no. 2, pp. 148–159, 2021.

[16] A. Maulana, C. Utami, and Y. Suryana, ‘An Implementation Review of The Program of Complete Systematic Land Registration In Indonesia’, Kolaborasi : Jurnal Administrasi Publik, vol. 8, no. 1, Art. no. 1, Apr. 2022, doi: 10.26618/kjap.v8i1.7184.

[17] S. Ahmadpour Kermani, S. Salari, and P. Ghasemi Nejad Almani, ‘Comparison of antifungal and cytotoxicity activities of titanium dioxide and zinc oxide nanoparticles with amphotericin B against different Candida species: In vitro evaluation’, Journal of Clinical Laboratory Analysis, vol. 35, no. 1, p. e23577, 2021, doi: 10.1002/jcla.23577.

[18] A. Jariyah, S. Maryam, T. Handayani, and F. Eshetu, ‘Analysis of Factors Affecting the Decision of Laborers from Lombok Utara Regency to Become Indonesian Migrant Workers Abroad’, Socio-Economic and Humanistic Aspects for Township and Industry, vol. 1, no. 3, Art. no. 3, Dec. 2023, doi: 10.59535/sehati.v1i3.148.

[19] N. D. Manik, ‘The Effect of Regional Original Income (PAD), Balancing Funds, Capital Expenditures and Labor on Economic Growth in the Districts/Cities of Riau Province’, Journal of Economic Education, vol. 12, no. 1, Art. no. 1, Sep. 2023, doi: 10.15294/jeec.v12i1.74063.

[20] N. R. Castro, G. S. de C. Barros, A. N. Almeida, L. Gilio, and A. C. de P. Morais, ‘The Brazilian agribusiness labor market: measurement, characterization and analysis of income differentials’, Rev. Econ. Sociol. Rural, vol. 58, p. e192298, Apr. 2020, doi: 10.1590/1806-9479.2020.192298.

[21] A. Wijaya, J. Kasuma, T. Tasenţe, and D. C. Darma, ‘Labor force and economic growth based on demographic pressures, happiness, and human development’:, Journal of Eastern European and Central Asian Research (JEECAR), vol. 8, no. 1, Art. no. 1, Mar. 2021, doi: 10.15549/jeecar.v8i1.571.

[22] R. Kotagodahetti et al., ‘Liquefied natural gas exports from Canada to China: An analysis of internationally transferred mitigation outcomes (ITMO)’, Journal of Cleaner Production, vol. 347, p. 131291, May 2022, doi: 10.1016/j.jclepro.2022.131291.

[23] D. Chairunnisa, ‘Pengaruh Good Corporate Governance dan Asimetri Informasi terhadap Cost of Equity Capital’, 2014, Accessed: Sep. 07, 2023. [Online]. Available: https://repository.unej.ac.id/xmlui/handle/123456789/63967

[24] W. J. Thukia, G. L. Wanjiru, and M. K. Agengo, ‘Towards sustainable tourism development: Understanding key proponents’, International Journal of Research in Business and Social Science (2147- 4478), vol. 11, no. 9, Art. no. 9, Dec. 2022, doi: 10.20525/ijrbs.v11i9.2222.

[25] W. Thukia, E. Munyiri, and S. Maingi, ‘Prospects of Cost Leadership Strategy for Tourism Performance: Are Cost-Reduction Techniques a Solution?’, Journal of Hospitality and Tourism Management, vol. 6, pp. 32–45, Oct. 2023, doi: 10.53819/81018102t4194.

[26] N. Hakimi et al., ‘Integration Of Computer-Supported Collaborative Learning In Online Medical Skills Training: Perspectives From Women’s Online University’, International Journal of Teaching and Learning, vol. 2, no. 3, Art. no. 3, Feb. 2024, Accessed: Feb. 27, 2024. [Online]. Available: https://injotel.org/index.php/12/article/view/100

[27] Z. Baloğlu and S. Dilek, ‘Environmental and productivity perceptions affecting the Female Labor Force Participation Rate’, BÜİİBFD, vol. 14, no. 28, Art. no. 28, Nov. 2023, doi: 10.47129/bartiniibf.1374492.

[28] P. C. Patel, ‘Out of the frying pan into the fire: displaced workers’ vocational skill specificity, self-employment, and income’, Small Bus Econ, Jan. 2024, doi: 10.1007/s11187-023-00856-1.

[29] M. Abduvaliev and R. Bustillo, ‘Impact of remittances on economic growth and poverty reduction amongst CIS countries’, Post-Communist Economies, vol. 32, no. 4, pp. 525–546, May 2020, doi: 10.1080/14631377.2019.1678094.

[30] M. A. S. S. Darodjatun, Zaenudin, and B. Prambudi, ‘The Influence of HDI on the Unemployment Level in DKI Jakarta’, Journal of Research in Business, Economics, and Education, vol. 3, no. 2, Art. no. 2, 2021, Accessed: Aug. 08, 2024. [Online]. Available: https://e-journal.stiekusumanegara.ac.id/index.php/jrbee/article/view/233

[31] W. J. Thukia, ‘Differentiation strategies and tourism performance interplay’, International Journal of Research in Business and Social Science (2147- 4478), vol. 11, no. 10, Art. no. 10, Dec. 2022, doi: 10.20525/ijrbs.v11i10.2100.

[32] M. Azizurrohman, U. Martayadi, M. Najmudin, F. Fathurrahim, and I. W. Bratayasa, ‘Tourism Industry and Community Readiness: A Case Study of the Mandalika Special Economic Zone (KEK)’, Journal of Economics Research and Social Sciences, vol. 7, no. 1, Art. no. 1, Feb. 2023, doi: 10.18196/jerss.v7i1.13652.

[33] L. Altinay, H. Song, M. Madanoglu, and X. L. Wang, ‘The influence of customer-to-customer interactions on elderly consumers’ satisfaction and social well-being’, International Journal of Hospitality Management, vol. 78, pp. 223–233, Apr. 2019, doi: 10.1016/j.ijhm.2018.09.005.

[34] R. Ladhari and M. Michaud, ‘eWOM effects on hotel booking intentions, attitudes, trust, and website perceptions’, International Journal of Hospitality Management, vol. 46, pp. 36–45, 2015.

[35] D. M. Ikasari and E. R. Lestari, ‘Analysis of fast food restaurant competition based on consumer perception using multidimensional scaling (MDS) (case study in Malang City, East Java, Indonesia)’, IOP Conf. Ser.: Earth Environ. Sci., vol. 230, no. 1, p. 012060, Feb. 2019, doi: 10.1088/1755-1315/230/1/012060.

[36] A. Namin, ‘Revisiting customers’ perception of service quality in fast food restaurants’, Journal of Retailing and Consumer Services, vol. 34, pp. 70–81, Jan. 2017, doi: 10.1016/j.jretconser.2016.09.008.

[37] S. M. C. Loureiro, N. Stylos, and V. Bellou, ‘Destination atmospheric cues as key influencers of tourists’ word-of-mouth communication: tourist visitation at two Mediterranean capital cities’, Tourism Recreation Research, vol. 46, no. 1, pp. 85–108, Jan. 2021, doi: 10.1080/02508281.2020.1782695.

[38] A. B. A. Billa and I. Rois, ‘development of halal tourism at the tourist destination of Aik Nyet, Buwun Sejati Village, West Lombok Regency’, Jurnal Konstanta, vol. 2, no. 1, pp. 213–227, 2023.

[39] R. E. Caraka et al., ‘Connectivity, sport events, and tourism development of Mandalika’s special economic zone: A perspective from big data cognitive analytics’, Cogent Business & Management, vol. 10, no. 1, p. 2183565, Dec. 2023, doi: 10.1080/23311975.2023.2183565.

[40] A. A. G. N. J. Agung, ‘Management Model of Traditional Village-based Tourism Objects in the Perspective of Tourism Law’, presented at the 2nd International Conference on Business Law and Local Wisdom in Tourism (ICBLT 2021), Atlantis Press, Dec. 2021, pp. 21–25. doi: 10.2991/assehr.k.211203.005.

[41] S. van Oosterom, T. Allen, M. Battley, and S. Bickerton, ‘An objective comparison of common vacuum assisted resin infusion processes’, Composites Part A: Applied Science and Manufacturing, vol. 125, no. March, p. 105528, 2019, doi: 10.1016/j.compositesa.2019.105528.

[42] H. Zhang, Y. Wu, and D. Buhalis, ‘A model of perceived image, memorable tourism experiences and revisit intention’, Journal of destination marketing & management, vol. 8, pp. 326–336, 2018.

[43] F. A. Al-Bourini, N. M. Aljawarneh, M. F. Almaaitah, S. Altahat, Z. S. Alomari, and M. Y. Sokiyna, ‘The Role of E-Word of Mouth in the Relationship between Online Destination Image, E-satisfaction, E-Trust & E-Service Quality for International Tourists Perception’, Journal of Information Technology Management, vol. 13, no. Special Issue: Big Data Analytics and Management in Internet of Things, pp. 92–110, May 2021, doi: 10.22059/jitm.2021.80756.

[44] Q. Ye, H. Li, Z. Wang, and R. Law, ‘The influence of hotel price on perceived service quality and value in e-tourism: An empirical investigation based on online traveler reviews’, Journal of Hospitality & Tourism Research, vol. 38, no. 1, pp. 23–39, 2014.

[45] Z. Abidin, R. M. Prabantarikso, R. A. Wardhani, and E. Endri, ‘Analysis of Bank Efficiency Between Conventional Banks and Regional Development Banks in Indonesia’, The Journal of Asian Finance, Economics and Business, vol. 8, no. 1, pp. 741–750, 2021, doi: 10.13106/jafeb.2021.vol8.no1.741.

[46] A. A. Abdullah, M. D. Awang, and N. Abdullah, ‘Islamic Tourism: The Characteristics, Concept and Principles’, KnE Social Sciences, pp. 196–215, Jul. 2020, doi: 10.18502/kss.v4i9.7326.

[47] D. Chiguvi, ‘Effectiveness of traditional and digital advertising platforms for the marketing of tourism’, International Journal of Research in Business and Social Science (2147- 4478), vol. 11, no. 10, Art. no. 10, Dec. 2022, doi: 10.20525/ijrbs.v11i10.2141.

[48] M. H. Juliansyah, S. Satarudin, and G. A. Arini, ‘The Effect of the Tourism Sector on Labor Absorption in Sumbawa Regency’, English and Tourism Studies, vol. 2, no. 1, Art. no. 1, May 2024, doi: 10.59535/ets.v2i1.248.

[49] I. Rezaeinejad and A. Khaniwadekar, ‘The role of Eco-tourism in sustainable development: case study eco-tourism challenges in Iran’, E3S Web Conf., vol. 311, p. 02004, 2021, doi: 10.1051/e3sconf/202131102004.

[50] H. Rasool, S. Maqbool, and Md. Tarique, ‘The relationship between tourism and economic growth among BRICS countries: a panel cointegration analysis’, Futur Bus J, vol. 7, no. 1, p. 1, Jan. 2021, doi: 10.1186/s43093-020-00048-3.

[51] T. Gomes and A. Blake, ‘Tourism As A Driver for Promoting Gender Equality and Participation of Women in the Labour Market? A Case Study of The Domestic Tourism Industry in Cox’s Bazar, Bangladesh’, JOHTI, vol. 2, no. 2, Art. no. 2, Dec. 2020, Accessed: Aug. 10, 2024. [Online]. Available: https://dergipark.org.tr/en/pub/johti/issue/58847/785515

[52] A. Zunaidi, N. Nofirman, J. Juliana, and R. N. Wurarah, ‘The Impact of The Development of Cultural Tourism On The Cultural, Economic, and Social Aspects of Local Communities’, Dinar: Jurnal Ekonomi dan Keuangan Islam, vol. 9, no. 2, Art. no. 2, Aug. 2022, doi: 10.21107/dinar.v9i2.14233.

[53] H. E. Silva and F. M. A. Henriques, ‘The impact of tourism on the conservation and IAQ of cultural heritage: The case of the Monastery of Jerónimos (Portugal)’, Building and Environment, vol. 190, p. 107536, Mar. 2021, doi: 10.1016/j.buildenv.2020.107536.

[54] M. Battour, M. Salaheldeen, and K. Mady, ‘Halal tourism: exploring innovative marketing opportunities for entrepreneurs’, Journal of Islamic Marketing, vol. 13, no. 4, pp. 887–897, Jan. 2021, doi: 10.1108/JIMA-06-2020-0191.

[55] R. J. González-García, G. Mártínez-Rico, F. Bañuls-Lapuerta, and F. Calabuig, ‘Residents’ Perception of the Impact of Sports Tourism on Sustainable Social Development’, Sustainability, vol. 14, no. 3, Art. no. 3, Jan. 2022, doi: 10.3390/su14031232.

[56] T. Wijijayanti, Y. Agustina, A. Winarno, L. Istanti, and B. Dharma, ‘Rural Tourism: A Local Economic Development’, Australasian Accounting, Business and Finance Journal, vol. 14, no. 1, pp. 5–13, Feb. 2020, doi: 10.14453/aabfj.v14i1.2.

[57] S. K. Deb, S. Md. Nafi, and M. Valeri, ‘Promoting tourism business through digital marketing in the new normal era: a sustainable approach’, European Journal of Innovation Management, vol. 27, no. 3, pp. 775–799, Jan. 2022, doi: 10.1108/EJIM-04-2022-0218.

Downloads

Published

2025-02-05

Issue

Section

Review Article

Similar Articles

21-30 of 33

You may also start an advanced similarity search for this article.