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

Listiyana Listiyana (Program Studi Manajemen, Sekolah Tinggi Ilmu Ekonomi Walisongo, Indonesia)
Serkan Dilek (Faculty of Economics and Administrative Sciences, Kastamonu University Economics, Kastamonu, Turkiye)
Douglas Chiguvi (Faculty of Commerce, Department of Entrepreneurship, BA ISAGO University, Gaborone, Botswana, Zimbabwe)
Mlamli Diko (Department of African Languages, University of South Africa (UNISA), Pretoria, South Africa)

Indonesian Development Economics and Localities
Vol. 1 No. 1 (2025): January-June

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.