Batam City is one of the cities flanked by three countries in Asia, this is a capital to increase the level of tourist visits to the City of Batam. This can be seen from Batam City's economic growth rate. Batam's Gross Regional Domestic Product increased by 10 percent in 2010. This was supported by an increase in the number of tourist visits, the number of hotel occupancy. This paper uses secondary data from 2006-2018. The method used is 2SLS (Two- Stage Leas Square) by identifying simultaneous equations. Data processing using the computer program SAT.EST version 6.12. The Tourism Sector is very important as a source of foreign exchange-earners for Batam City. This tourism sector has good potential to create job opportunities and business opportunities as well as to increase and even the income of the people and the region. Gross Regional Domestic Product greatly influences the Number of Tourist Visits, this can be seen by increasing the Number of Tourist Visits by 10, it will encourage an increase in the Gross Regional Domestic Product of the Tourism Sector by 19.91 units per year. The number of hotel dwellings increased by 10 units, will increase the number of tourist visits by 75894 units per year. Increasing the number of tourist destinations increased by 10 units, will increase the number of tourist visits by 20864 units, increasing the number of hotel rooms by 10 units will increase the number of tourist visits by 267 units, increasing the number of stays by 10 units will increase the number of tourist visits by 12420 units. If the Government carries out policies by adding tourist Destinations by 20 percent, it will directly impact the increase in Batam's Gross Regional Domestic Product by 2.44 percent, increase tourist visits to Batam by 1.7 percent, and If the Government conducts policies by increasing the number of hotels by 20 percent, will have a direct impact on increasing Batam's Gross Regional Domestic Product by 1.86 percent, and increasing the number of tourist visits to the city of Batam by 20 percent in the long run.
Volume 12 | Issue 3
Pages: 692-699
DOI: 10.5373/JARDCS/V12I3/20201935