iarjbmIARJBMIARJBM2708-514710.47310/iarjbm.2020.v01i02.011Does Tourism Sector Matter for Promoting Economic Growth?MasturaSariT.ZulhamEddyGunawanMaster Student in Economics, Faculty of Economics and Business, Universitas Syiah Kuala, IndonesiaAssociate Professor, Faculty of Economics and Business, Universitas Syiah Kuala, IndonesiaAssistant Professor, Faculty of Economics and Business, Universitas Syiah Kuala, IndonesiaIn the last few decades, the tourism sector has been viewed as one of the leading industry, contributing to promoting economic growth globally. Tourism activities create demands either for consumption or investment, which in return, improve production and services and consequently, economic growth. This study empirically explores and analyses the impact of the tourism sector on the economic growth of the Banda Aceh City, Indonesia over the period from 1998 to 2017. Using the multiple regression analysis, this study specifically examines the influences of the number of foreign and domestic tourists, the number of tourism objects, and hotels' occupancy rate on economic growth. The study documented that all investigated variables positively and significantly contributed to regional economic growth. These findings suggest that to attract more tourists internationally and domestically, the availability of tourism objects and hotels should be made attractive, accessible, and comfortable. This, in turns, enhances the contribution of the tourism sector to economic growth.