Abstract
This study investigates the effects of toll road development on tourism growth in the traversed area, using a case study in the Jakarta and Bandung region the largest urban area in Indonesia. In doing so, firstly, we carried out a statistical analysis on the data of economic indicators and regional tourism travel trends. Lastly, we estimated an ordinal logit model on leisure trip frequency via a toll road based on a household survey among 1,188 respondents who live in the proximity of toll gates. Our analysis showed that there is a correlation between the development of toll roads and the increased tourism activities in the area traversed by the toll roads. This finding is supported by the estimation results of the ordinal logit model that the closer the residential location of a respondent to a toll gate, the respondent would be more frequent to travel via a toll road. Despite the benefit that comes with toll roads, this study also highlights that its development should address its equity implications, which is the distribution of benefits across different segments of income.
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