Building back better tourism sector post-COVID-19 pandemic in Indonesia: input-output and simulation analysis

Abstract

ABSTRACT This study, by employing an input-output and simulation analysis, aims to examine policies to build back better the tourism sector's post-COVID-19 pandemic by taking Indonesia as a case study. The result confirms that to build back a better tourism sector in the post-COVID-19 pandemic, the government of Indonesia needs to maintain the supply of domestic inputs used as the primary source of intermediate inputs in the tourism sector and other sectors related to the tourism sector. The simulation analysis indicated that the worst effect of the COVID-19 pandemic on the tourism industry occurred in output reduction compared with the value-added and labor income losses. However, the government needs close collaboration with the private sector and other wide-range tourism stakeholders in determining tourism policies post-COVID-19 pandemic, apart from the importance of evidence-based policy research. This study contributes to international comparative policy research in the tourism field post-COVID-19 pandemic.