The Influence of Retribution, Domestic Tourist Trips Number, Hotel Occupancy Rates, and the Percentage of Poor Population on the Local Own-Source Revenue (Lor) of South Sumatra

Farida Nur Azizah ()
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Farida Nur Azizah: Semarang State University, Development Economics

A chapter in Proceedings of the Palembang Tourism Forum Volume 2 2025 (PTF-2025), 2025, pp 48-59 from Springer

Abstract: Abstract This study aims to analyze the impact of tourism on Local Own-source Revenue (LOR) in South Sumatra. The multiple linear regression method was used to study the impact of tourism variables represented by the number of domestic tourists, occupancy rates of star-rated and non-star-rated hotels, and retribution Local Own-source Revenue (LOR) compensation on LOR. In addition, the proportion of poor population was added as control variables. The analysis results show that all independent variables have a significant impact on Local Own-source Revenue (LOR) at the same time, with an F statistic of 163.257 and a significance of 0.000. Among them, retribution Local Own-source Revenue (LOR), the number of domestic tourists, and the occupancy rate of star-rated hotels have a significant positive impact on LOR, while the occupancy rate of non-star-rated hotels and the proportion of poor population have a negative impact. The regression model also meets all classical hypothesis tests, indicating that it is an effective and reliable model. This study proposes some strategies to improve the quality and management of tourism in a sustainable way to support the growth of Local Own-source Revenue (LOR) in South Sumatra.

Keywords: Tourism; Local Own-source Revenue (LOR); retribution; domestic tourists; hotels; poor population (search for similar items in EconPapers)
Date: 2025
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DOI: 10.2991/978-94-6463-912-4_6

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