Mediating Labor Absorption towards Economic Growth in the Tourism Area of Lombok Island

Abstract

The poor quality of labor causes low productivity and competitiveness. The objective of this study was to mediate the effect of labor absorption on economic growth in the tourism area of Lombok island. This study used the total population of the Lombok island community in three popular destinations to date among others are Senggigi Beach, Kuta Beach Lombok, and Gili Trawangan Beach with a total of 275.267 respondents. This study used random sampling because the total population is more than 100 respondents. The sampling techniques used Taro Yamane or Slovin method (Priyono, 2016). There is a total sample of 100 respondents that are proportionally distributed in the tourism area of Lombok island. The research instrument is in the form of questionnaires with 5-point Likert scale questions to know the response of the respondents. The data collection method was direct observations, interviews, questionnaires, and documentation. Data analysis used SEM-PLS version 3.0.

The result found that direct or indirect effects in mediating labor absorption towards economic growth in the tourism area of Lombok island are great. Other results showed a strong indicator in each variable that affects labor absorption towards economic growth in the tourism area of Lombok island namely having the skills and fair business competition.