Challenges of Industry 4.0 in Indonesia: Case Study of the TourismHospitality Sector

Abstract

This research analyzes the relationship between five variables related to the challenges of industry 4.0 in Indonesia, namely internet users, number of rooms, number of guests, tourist visits, and work participation. Secondary data from the World Bank and UNWTO is used for the period 2000-2022. The vector autoregression (VAR) model is used to test the relationship between variables without distinguishing between endogenous and exogenous variables. The research results show that the relationships between variables are complex and dynamic over time. Internet users have a negative effect on work participation, tourist visits and number of guests, while the number of rooms has a positive effect on internet users and work participation. The number of guests and tourist visits have a positive effect on each other, but have a negative effect on internet users. Each variable is also influenced by the condition of the variable itself in the previous period.