Does Shadow Economy and Informality Exist in Local Tourism?

Conceptual Review About Tourism in Gorontalo City

DOI

10.2991/aebmr.k.220128.013How to use a DOI?

Keywords

Shadow; Economy; Informality; Local; Tourism; Gorontalo

Abstract

The local tourism industry increases the formal sector and informal and its labor and presents the symptoms of the shadow economy. Shadow economy practices include: 1) use of uneducated and unskilled workers who legally or illegally profit from tourism; 2) irresponsible use of natural resources and the environment that affects the quality of destinations and damages the development of the tourism industry base; 3) unilaterally determining the prices of tourism goods and services that are sold or rented at an unreasonable price rate; and 4) bad behavior that ignores safety and security aspects of tourism. This paper aims to identify the existence and characteristics of the shadow economy in local tourism. Using qualitative approach where labels, categories and tourist sentiments towards the research focus are obtained from digital platforms and then validated by interviews and FGDs. The research concludes that the shadow economy existed in local tourism in Gorontalo City. Types of informality and the shadow economy are boat taxis, diving equipment rental, fresh-seafood sellers, motorcycle taxis, car rentals, homestays, individual parking services, tour guides, restaurants and retailers. This study confirms that social restrictions due to the COVID-19 pandemic have caused the activities of the informal sector and the shadow economy in local tourism to be identified. Many have collapsed due to the closure of tourism industry activities and depend on the government’s cash and food assistance. Coordination, protection and empowerment after the COVID-19 pandemic from all tourism stakeholders is an alternative solution.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Herwin Mopangga
AU  - Ghozali Maski
AU  - Multifiah
AU  - Dias Satria
PY  - 2022
DA  - 2022/01/28
TI  - Does Shadow Economy and Informality Exist in Local Tourism?
BT  - Proceedings of the Brawijaya International Conference on Economics, Business and Finance 2021 (BICEBF 2021)
PB  - Atlantis Press
SP  - 88
EP  - 98
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220128.013
DO  - 10.2991/aebmr.k.220128.013
ID  - Mopangga2022
ER  -