The Effects of Development Strategy and Regional Competitiveness on Investment of Marine-Tourism Industry in East Belitung Regency

Abstract

Increased investment in the region is one of the important instruments in achieving sustainable regional economic development to the welfare of society. The investment value of East Belitung province until 2013 in the fourth quarter increased in the amount of18% or Rp. 462,807,663,854 which was also in line with the growth of projects and labors unless the marine and tourism sector. Based on preliminary observation, this diversity is probably caused by low development strategy and competitiveness whereas Beltim economic development vision is: "Creating East Belitung as the Regional Industry with Agriculture, Marine and Fisheries, and Integrated Economic Democracy-Based on Bangka Belitung Archipelago". The method used was descriptive-verificative with verification analysis tool by Structural Equation Modeling (SEM) through variants structure-based approach or Partial Least Square Path Modeling. The number of respondents was 48 people consisting of four elements, namely local government offices, business people, BUMD directors, and academic personnel. The results show that there is a positive and significant effect of the development strategy and contribution of regional competitiveness for Marine-Tourism industry investment. The role of development strategy and regional competitiveness is significantly to improve the industry investment of Marine-Tourism. Regional competitiveness variable causes greater effect than development strategy. Therefore, East Belitung regency should improve its competitiveness as soon as possible either institutional, political and socio-cultural security, regional economics, labor and physical infrastructure.

DOI: 10.5901/mjss.2015.v6n5s5p189