FROM SPATIAL POLICY TO ECONOMIC PERFORMANCE: UNVEILING THE MACROECONOMIC IMPACTS OF SUSTAINABLE TOURISM DEVELOPMENT IN SELAYAR ISLANDS, INDONESIA

Abstract

This study investigates the linkage between spatial policy and regional economic performance by examining the macroeconomic impacts of sustainable tourism development in the Selayar Islands, Indonesia. Designated as a strategic tourism area in the Provincial Spatial Plan and proposed as a Tourism Special Economic Zone, the Selayar Islands provide a relevant small-island context to assess how tourism-oriented spatial policies translate into measurable economic outcomes. The study aims to analyze the contribution of the tourism sector to regional economic structure and its implications for local welfare. A comprehensive quantitative approach is employed using multiple analytical techniques. Sectoral contribution analysis is applied to measure the share of tourism-related sectors in the Gross Regional Domestic Product (GRDP) of Selayar. Location Quotient (LQ) analysis is used to identify the competitive position and specialization of the tourism sector within the regional economy. In addition, a historical trend analysis of poverty rates over the past 5–10 years is conducted to evaluate welfare dynamics associated with tourism development. Regional income disparity is further assessed using the Williamson Index to determine whether tourism growth promotes balanced regional development or exacerbates economic inequality. The findings are expected to provide empirical evidence on the nexus between spatial planning, sustainable tourism development, and macroeconomic performance in a small island region. This study contributes to the literature on tourism-led regional development and offers policy-relevant insights for designing more inclusive and sustainable tourism strategies in island economies.