The effect of urban tourism on an urban economy (the case of Malang Municipality)

Abstract

As the economy of cities grew at unprecedented rate, urbanites’ changing perceptions of the way they see urban space – the city as an entertainment machine – creates a challenge that becomes the background for this study. Malang urbanized area is chosen as the unit of observation due to its potentials as the site for urban tourism development. New tourism icons and economic activities continue to emerge which begs the question as to why such things exist in Malang. Primary and secondary data are garnered through field observation, in-depth interview and from government policy related to tourism development. Mixed method is employed to reveal the effects of tourism sector development on the economic growth of the city. The findings indicate strong correlation between the two; however, cautionary note should be taken as there are many external factors beyond tourism sector development which affect the economic growth of Malang urban area during the observed period. Culinary activities create direct impact as seen through the increase of locally-owned revenues while thematic neighbourhood tourism development affects the local economy and informal sector.