Locally-generated revenue or Pendapatan Asli Daerah (PAD) is a key indicator of local government fiscal independence and a primary funding source for regional development. This study analyzes the impact of the tourism sector on PAD in the former Barlingmascakeb region from 2014 to 2023. The tourism sector is considered a strategic asset to support sustainable regional financing. The study uses secondary data from BPS and Bappeda Central Java Province. The independent variables are the number of domestic tourists, tourist attractions, hotels, and restaurants. Panel data regression is applied with time series data from 2014 to 2023 and cross-sections including Banjarnegara, Purbalingga, Banyumas, Cilacap, and Kebumen Regencies. Results show that domestic tourists, tourist attractions, and hotels significantly and positively influence PAD both simultaneously and partially. However, the number of restaurants does not show a significant effect. The findings suggest that local governments should enhance tourism infrastructure, promote destinations, improve tax management on hotels and restaurants, and simplify business licensing to maximize the tourism sector’s contribution to PAD and regional welfare.
Rona et al. (Thu,) studied this question.
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