11th DOIS Research Seminar: Dr. Oscar Tiku (Sustainable Society Design Center, U Tokyo)


Date & Time: July 27 2023 15:00-16:00
Venue: Lecture Room

 

Speaker:Dr. Oscar Tiku (Sustainable Society Design Center, The University of Tokyo, Project Researcher)
Title: Who benefits from tourism growth in the rural destination? A case study in West Papua Province, Indonesia

 

Abstract

Tourism is essential for promoting the rural economy, yet to what extent and how is it distributed? Taking a case study in West Papua Province, Indonesia, tourism’s contribution to the regional economy and distribution of the benefits were estimated using a Social Accounting Matrix framework. Meanwhile, opportunities and prevalent gaps between locals and tourism growth were also qualitatively explored. In 2018, tourism contributed about IDR 4.65 trillion (± USD 326.66 million) to the West Papuan economy, with exceptional impacts observed on production, including but not limited to capital factor, livestock, wholesale and retail (excluding cars and motorbikes) and food services. Multiplier decomposition highlights the tourism industry’s significant impact on production and households, particularly paid office, sales and service workers in urban areas and high-income households. Nevertheless, the extent of the impact of the tourism industry on households is smaller at lower household income levels. The food service industry has the most significant impact on low-income households in rural areas. Hence, investing in and promoting local food services can be a powerful strategy to improve the incomes of poor families in West Papua Province and consequently reduce poverty, yet should be carried out carefully to prevent leakages.