Study of Economic Sector Linkages for Economic Development Based on Local Excellence in the Super Priority Tourism Destination Area of Lake Toba

Supported by the Coordinating Ministry for Human Development and Culture of the Republic of Indonesia (KemenkoPMK) and the Friedrich Ebert Stiftung (FES).

This report is one of the results of three studies conducted on “"Study of Regional Cooperation Development based on Local Superior Potential in Supporting National Economic Recovery from the Impact of the COVID-19 Pandemic in North Sumatra Province."

In the National Medium Term Development Plan document or RPJMN for 2020 to 2024, one of the development agendas set by the government is to strengthen economic resilience for quality growth. One form of implementation of this agenda is strengthening the tourism sector because the tourism sector is considered capable of being a quality growth driving sector.

However, in 2020, along with the onset of COVID-19, all tourism sectors experienced a decline as a result of restrictions on community activities. As a result, the economy of a number of tourist attractions declined quite sharply. Likewise, North Sumatra Province experienced an economic decline of -1.07 percent. Sectors related to tourism in North Sumatra Province, such as the accommodation and food and drink provision sector as well as other sectors such as transportation and warehousing, experienced contraction.

To help the economic recovery of North Sumatra, steps are needed to increase the effectiveness of tourism programs. One of them is increasing the effectiveness of the DPSP program. In order to support increasing the effectiveness of the DPSP program, it is necessary to study the linkages between sectors.

This study analyzes the linkages between these sectors to see which sectors are capable of producing effects multiplier to the economy as a whole, especially the tourism sector. Apart from interactions between economic sectors, there are also economic relations between provinces that influence the economic progress of a province. There are economic effects that occur in other provinces if there is a policy change in a province.

The full study report can be accessed at the following link:LP-20230603-02-Study of Economic Sector Linkages for Economic Development Based on Local Excellence in the Super Priority Tourism Destination Area of Lake Toba