The Impact of Tourism Tax to Sustainable Development in Indonesia Helene Elisabeth Simon
Faculty of Economics and Business, Universitas Airlangga, Indonesia
Abstract
Tourism tax has emerged as a pivotal policy tool in Indonesia^s pursuit of sustainable development. As one of the world^s most popular tourist destinations, Indonesia faces the dual challenge of managing tourism growth while ensuring environmental conservation and socio-economic equity. The imposition of tourism taxes aims to generate revenue that can be reinvested into local communities and environmental protection initiatives. This approach aligns with sustainable development goals by balancing economic benefits with ecological and social responsibility. The revenue collected from tourism taxes supports infrastructure improvements, conservation projects, and community-based programs, thereby fostering a more sustainable tourism industry. However, the effectiveness of these taxes in achieving sustainable development depends on their design, implementation, and the extent to which they are integrated into broader policy frameworks. This study investigates the impact of tourism tax on sustainable development in Indonesia, a country renowned for its rich cultural and natural assets. By analyzing recent policy implementations and their outcomes, the research delves into how tourism tax revenues are utilized to promote environmental conservation, community welfare, and infrastructural advancements. The study employs a mixed-methods approach, combining quantitative analysis of revenue data with qualitative assessments from local stakeholders and policymakers. This research provides insights into how targeted taxation can support sustainable development and offers recommendations for refining tourism tax strategies in Indonesia.
Keywords: Tourism, Tourism tax, Tourist tax, Environmental conservation, Sustainable development
