MODEL OF TOURISM SECTOR PERFORMANCE IMPROVEMENT BASED ON APPLIED TECHNOLOGY INNOVATION

Abstract

Tourism is one of the largest sectors in the world economy. Improving the tourism sector's performance is one of the priority programs for national development of the government of the Republic of Indonesia to encourage the country's foreign exchange earnings. The lack of various applied technology innovations in digital marketing strategies is a problem that can impact the performance of the tourism business, in particular in the digital era of the industry today. The aim of this study is to develop a model of tourism sector performance improvement based on applied technology innovation. In this quantitative research method, an empirical survey uses questionnaires distributed online and sample data collection using a purposive random sampling technique. Valid data is processed using smartPLS software. The empirical analysis was carried out to test the model and hypothesis in this study. The main results of this study reveal that applied technological innovation significantly mediates the influence of digital marketing strategies on the performance of the tourismsector in Indonesia. Furthermore, other results reveal that applied technological innovation also has the potential to moderate or strengthen the influence of digital marketing strategies to improve Indonesia's tourism sector's performance. The results of this model contribute to supporting the national program of the Indonesian government to improve the performance of the tourism business in Indonesia based on applied technology innovation in digital marketing strategies.