The Influence of Hotel Taxes and Entertainment Taxes toward
District Own Source Revenue in Bandung City
Deden Edwar Yokeu Bernardin and Iwan Sofyan
University of Bina Sarana Informatika Bandung, Indonesia
Keywords: Hotel taxes, Entertainment taxes, District Own Source Revenue.
Abstract: The aim of study is to know the influence of hotel taxes and entertainment taxes toward District Own
Source Revenue of Bandung City both partially and simultaneously, with using descriptive verification
methods. Sample used in this study is using realized budget report as much as seven years from 2010 until
2016 by using multiple regression analysis. This study result shows that the influence of hotel taxes
towards District Own Source Revenue has influence significantly or directly proportional with positive
value. The influence of entertainment taxes towards District Own Source Revenue has influence not
significantly with negative value, it means if entertainment taxes is getting increased or decreased, it not
leads with the same changing with its District Own Source Revenue. While the influence of hotel taxes
and entertainment taxes toward District Own Source Revenue togetherness has significant and compared
influence, with the level of influence result obtained is 100 percentage with positive value, this case shows
that the local tax in form of hotel taxes and entertainment taxes during 2010 until 2016 give a great
contribution in improving District Own Source Revenue of Bandung City from year to year.
1 INTRODUCTION
As long as with the development era, region, or
country, of the economic growth and so many
entertainment places, like mall, cinema, recreation
place, and others. In particular of entertainment at
night, the big cities must be served by entertainment
activities. It is common, industry or business of night
entertainment is more developed rapidly in big cities.
Entertainment places such as karaoke, night club,
discotheque, massage parlors, spa, and others are
growing well. One of the reasons is benefit potential
of this business is great benefit; the growth of night
entertainment business is more crowded visited by
domestic and tourist. The increasing number of
domestic and foreigner tourist make local tax
revenue, especially for hotel will be more improved
(Sari, 2014).
There is vulnerable things to reduce the revenue
of those taxes is caused the lack of tax paying
awareness because it is not felt when they paid tax, as
stated in the research of paradigm change of local tax
research that states “local tax paradigm change shall
increasingly influence the taxpayers to obediently
fulfill their obligation of paying local tax since they
may directly enjoy the benefit of their tax”, (Ismail,
2011).
District Own Source Revenue is the revenue
which sources of local revenue, it needs to be
increased continuously in order to bear some of
required expenses that is needed to government’s
administration and development activities which is
every year improved so independence of regional
autonomy is wide, real and responsible (Darise,
2007). The source of District Own Source Revenue is
a local financial resource that is excavated from
within the territory of the region concerned in order
to bear some shopping expense that is needed in
government and development administration.
Based on (Indonesia Government, 2009) Law No.
28 of 2009 on Local Taxes and Retribution, we know
that local tax and retribution tax are one of the
important local revenue sources in order to finance
the implementation of local government.
Nevertheless according (Aamir et al., 2011)
explained that fiscal policies can be very different and
the more the indirect taxes in country, the more will
be increasing gap between rich and poor and thus the
more will be the exploitation of labor class. Even in
china according (Wang, 2003) mentioned that The
current system of fiscal decentralization in China has
Bernardin, D. and Sofyan, I.
The Influence of Hotel Taxes and Entertainment Taxes toward District Own Source Revenue in Bandung City.
In Proceedings of the 1st International Conference on Islamic Economics, Business, and Philanthropy (ICIEBP 2017) - Transforming Islamic Economy and Societies, pages 67-72
ISBN: 978-989-758-315-5
Copyright © 2018 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved
67

a number of serious problems. Whereas it has clearly
assigned revenues between the central government
and provincial governments, the current system does
not provide clear expenditure assignments for almost
all levels of governments.
Local tax is one of District Own Source Revenue
from all of local government’s revenue source that is
used to finance the development in the region that
aims to finance and advance region area with the
policy on tax revenue optimalization, in which
everyone must pay tax in accordance with their
obligations, as the research result by (Fjeldstad and
Semboja, 2011) who stated that a consequence of
much dissatisfaction with the results of centralised
economic planning, reformers have turned to
decentralisation to break the grip of central
government and induce broader participation in
democratic governance. According to (Abuyamin,
2012), local tax is compulsory contributions to areas
owed by individual or an entity that isforcing based
on law; with not to get direct reward and it is used to
district’s needs greatly for the welfare of people.
Same with another region in Indonesia, big cities
are one of autonomous regions. Big cities that are rich
in the number of District Own Source Revenue, one
of them from five star hotel with its facilities and
many of entertainment places like mall, cinemas,
discotheque, karaoke, night club, billiard places and
other with is supported by the provision of parking
area; it makes tourist to get holiday or get trip both
domestic and foreigner tourist. More touristswho visit
in Bandung City will be improved towards District
Own Source Revenue, particularly from hotel taxes,
entertainment taxes and parking taxes sector.
From both of local taxes explained above, hotel
taxes and entertainment taxes are part of local taxes
that is managed by local government with its
potention more developed as long as it is more
attention of supporting components like the
improvement of facilities and infrastructure. Bandung
City is tourism city as one of activities that can boost
the development in the whole life. So Bandung City
can accept District Own Source Revenue more than
hotel taxes, entertainment taxes and parking taxes
sector (Djamal, 2012).
Based on Regional Regulation of Bandung City
No. 20 of 2011 on Local Tax, next it called tax is
mandatory contribution to owed areas by individual
or entities that is forcing depends on law with no
direct rewards and it is used to district’s needs greatly
for the welfare of people, (Government City Of
Bandung, 2011).
From explanations and pheneomenon above, it
can be seen the number of donation from tax
collection in order to add the revenue of a region. And
also in this case Bandung City itself becomes one of
busiest city in Indonesia with becoming one of
destination both domestic and foreign tourist, that
always tries to give satisfaction to all tourist with the
beauty of city and its culinary. So from those cases,
this study will focus on the influence of hotel taxes
and entertainment taxes toward District Own Source
Revenue of Bandung City.
1.1 Research Questions
With the condition of Bandung that becomes one of
tourism city and it is encouraged by more revenues
from tax sector, so hotel taxes and entertainment taxes
become attractive to be known its ability in
supporting district own source revenue, it depends on
background of study that becomes problems in this
study is as follows:
1. Is there influence of Hotel Taxes partially
towards District Own Source Revenue in
Bandung City?
2. Is there influence of Entertainment Taxes
partially towards District Own Source Revenue
in Bandung City?
3. How much of Hotel Taxes and Entertainment
Taxes influence simultaneously toward District
Own Source Revenue in Bandung City?
1.2 The Aims of the Study
The various kinds of intention that are expected from
this research goals which is possible to add the
existing knowledge is:
1. To know The Influence of Hotel Taxes towards
District Own Source Revenue in Bandung City.
2. To know The Influence of Entertainment Taxes
towards District Own Source Revenue in
Bandung City.
3. To know how much Influence of Hotel Taxes and
Entertainment Taxes Revenue toward District
Own Source Revenue in Bandung City.
2 LITERATURE REVIEW
2.1 Definition of Hotel Taxes and
Entertainment Taxes
2.1.1 Hotel Taxes
According to (Abuyamin, 2012), hotel taxes are
service taxes provided by hotel, while the meaning of
hotel is lodging service provider or resting place
ICIEBP 2017 - 1st International Conference on Islamic Economics, Business and Philanthropy
68

included to other related services with a fee paid, that
covers motel, inns, tourism houses, guesthouses and
etc, and also boarding house with number of rooms is
more than 10 (ten).
2.1.2 Entertainment Taxes
According to (Abuyamin, 2012), entertainment taxes
are tax on entertainment, while the meaning of
entertainment is all of exhibition types, performances,
games and or crowded that is enjoyed by a fee paid.
While according to (Siahan, 2005), entertainment
taxes are tax on entertainment. Besides that
entertainment taxes can be defined as local charges
for entertainment.
2.2 District Own Source Revenue
Based on PSAP Number 1 about financial statement
defines “revenue is all receipts of State or Local
Public Cash Accountthat adds equity of current funds
in a period of relevant fiscal year that becomes
government’s right and it is not paid back by
government”. State or Local Public Cash Account is
local money storage account which is determined by
governors or regents or mayors to collect all of local
receipts and pay of all regional expenditure to
determining bank (Halim and Khusufi, 2012).
According to (Purnomo, 2009), District Own
Source Revenue is local revenue that sources from
local taxes, result of local retribution, result of
separated regional wealth management, and others
legitimate regional revenue, Local Government to
mark local autonomy implementation depends on
local potention as realization of decentralization.
District Own Source Revenue (PAD) is revenue
which local revenue source itself need to be improved
in order to bear some of required expense to
government administration and development activity
that improved annually so independence of regional
autonomy is wide, real, and can be responsible
(Darise, 2007).
2.3 Research Framework
Figure 1: Research Framework.
2.4 Hypothesis
A. There is significant influence between Hotel
Taxes revenue towards District Own Source
Revenue in Bandung City.
B. There is significant influence between
Entertainment Taxes revenue towards District
Own Source Revenue in Bandung City.
C. There is significant influence between Hotel
Taxes and Entertainment Taxes revenue toward
District Own Source Revenue in Bandung City.
3 RESEARCH METHODS
In this study the writer used descriptive and
verification method byusing quantitative approach.
Data used in this study was secondary data. Data
collection technique used was observation method
and literature review. Population used in this study
was Statement of Budget Realization of Bandung
City.Sample used in this study Statement of Budget
Realization of Bandung City at 2010-2016. Data
analysis technique used according to (Sugiyono,
2014) was: (1) Classic Assumption Test; (2)
Correlation Test; (4) Coefficient Determination with
multiple regression technique used SPSS Software.
X₁
Hotel
Taxes
Y
District
Own
Source
Revenue
X
2
Entertain
ment
Taxes
The Influence of Hotel Taxes and Entertainment Taxes toward District Own Source Revenue in Bandung City
69

4 FINDING RESULTS
4.1 Research Finding
4.1.1 Descriptive Analysis
In conducting research about the influence of hotel
taxes and entertainment taxes toward District Own
Source Revenue in Bandung City period of 2010-
2016, this study obtains data from Local Revenue
Officeor at Tax Office of Bandung City for exactly,
with the details of data per year as follows:
Table 1: Variable Data of 2010 – 2016.
Year
Hotel
Taxes
Entertainm
ent Taxes
District Own
Source
Revenue
2010
87,914,702,
426
25,327,230
,006
441,863,068,2
94
2011
112,007,25
9,932
31,223,414
,896
833,254,175,2
88
2012
142,732,31
7,105
34,553,186
,144
1,005,583,424,
429
2013
177,490,30
3,830
37,767,188
,531
1,442,775,238,
323
2014
204,152,06
2,826
40,730,151
,211
1,716,057,298,
378
2015
215,285,36
1,236
50,449,101
,884
1,859,694,643,
505
2016
274,748,55
0,679
69,816,433
,368
2,152,755,704,
962
Source: Servive Tax Office of Bandung City.
Value changing or nominal on varibles of hotel
taxes, entertainment taxes and District Own Source
Revenue from year to year as on Table 1 data, it can
be concluded the condition is always improved from
year to year over the past seven years.
4.1.2 Verificative Analaysis
In conducting research about the influence of hotel
taxes and entertainment taxes toward District Own
Source Revenue in Bandung City period of 2010-
2016, the writer uses Classical Assumption Test,
Correlation Coefficient Test, Coefficient
Determination Test, Multiple Regression Test,
validity and reliability test, and also hypothesis test.
Those testing are done with using SPSS Software and
to be more detail will be discussed as follows:
A. Classical Assumption Test
Before conducting hypothesis test uses multiple
regression analysis, there are some assumptions that
must be fulfilled in order to conclusion of those
multiple regression analysis are not bias. They are
normality test, heteroscedasticity test, autocorrelation
test, Multicollinearity test.
Table 2: Classical Assumption Test or BLUE Test.
Nu
Test
Result
Description
1
Normality
Normal
1,000; 0,843;
0,997
2
Heteroscedast
icity
Unheterosceda
sticity
irregular
3
Autocorrelati
on
Unautocorrelat
ion
DW: 2982
4
Multicollinear
ity
Unmulticolline
arity
Tolerance
0,100-VIF
9,961
B. Correlation Coefficient Test
Correlation analysis aims to measure association
power (correlation) is linier among two variables.
This correlation does not show functional correlation.
In other words, correlation analysis does not differ
between dependent variable and independent
variable.
1. Correlation Coefficient of Hotel Taxes,
Entertainment Taxes and District Own Source
Revenue can be seen as follows:
Table 3: Partial Correlation Coefficient of Hotel Taxes,
Entertainment Taxes and District Own Source Revenue.
Hotel
Taxes
Entertain
ment
Taxes
District Own
Source Revenue
Hotel
Taxes
1
.948
**
.986
**
Entertain
ment
Taxes
.948
**
1
.901
**
District
Own
Source
Revenue
.986
**
.901
**
1
Source: SPSS Processing Result.
ICIEBP 2017 - 1st International Conference on Islamic Economics, Business and Philanthropy
70

C. Coefficient of Determination
Table 4: Multiple Correlation Coefficient Analysis and
Coefficient Determination.
Model Summary
b
Mod
el
R
R
Square
Adjusted
R Square
Std. Error
of the
Estimate
1
.992
a
.984
.975
9.60264E+
10
a. Predictors: (Constant), Entertainment Taxes, Hotel
Taxes
b. Dependent Variable: District Own Source Revenue
Source: SPSS Processing Result.
D. Hypothesis Test
1. Result of Multiple Regression Analysis
Table 5: Multiple Regression Result.
Coefficients
a
Model
Unstandardized
Coefficients
Standar
dized
Coeffici
ents
t
Si
g.
B
Std.
Error
Beta
1
(Constan
t)
-
2.230
E+11
1.157
E+11
-
1.927
E+00
.12
6
Hotel
Taxes
12.399
1.917
1.305
6.469
.00
3
Entertai
nment
Taxes
-
1.395
E+01
8.368
-
3.363E-
01
-
1.667
E+00
.17
1
a. Dependent Variable: District Own Source Revenue
Source: SPSS 20 Processing Result.
To be able knowing whether there is influence of
each independent variable which is hotel taxes (X1)
and entertainment taxes (X2) toward District Own
Source Revenue in Bandung City both partially and
simultaneously. Based on data analysis of Table IV.5
can be formulated multiple linear regression equation
as follows:
Y = - 222970062758,122 +12,399 (X1) + (-13,949
(X2))
Where:
Y = District Own Source Revenue
X1 = Hotel Taxes
X2 = Entertainment Taxes
Those analyses of multiple regression equation
are explained as follows:
a. The value of positive Constant is assumed that
without added variables of hotel taxes and
entertainment taxes so the value of District Own
Source Revenue will get improved or the
improvement is about -222970062758,122.
b. If X1 (hotel taxes) gets improvement is about 1
(value) with the assumption of entertainment
taxes is assumed to be constant so District Own
Source Revenue will be improved is about
12,399.
a. If X2 (entertainment taxes) gets improvement is
about 1 (value) with the assumption of hotel
taxes are assumed to be constant so District Own
Source Revenue will be improved or changed is
about -13.949.
c. If X1 is 0 and X2 is 0 also, so the value of
District Own Source Revenue is the same with
constant value. It means that District Own
Source Revenue is influenced by another factor
outside of independent variable.
2. Testing Result Partially & Simultaneously
Table 6: Partial Test (t Test).
Coefficients
a
Model
Unstandardized
Coefficients
Standar
dized
Coeffic
ients
t
Sig.
B
Std.
Error
Beta
1
(Consta
nt)
-
2.230
E+11
1.157
E+11
-
1.927
E+00
.126
Hotel
Taxes
12.39
9
1.917
1.305
6.469
.003
Entertai
nment
Taxes
-
1.395
E+01
8.368
-
3.363E-
01
-
1.667
E+00
.171
a. Dependent Variable: District Own Source Revenue
Source: SPSS Processing Result.
Table 7: Simultaneously Test.
ANOVA
b
Model
Sum of
Squares
df
Me
an
Squ
are
F
Sig.
1
Regres
sion
2.220E+2
4
2
1.1
10E
+24
120
.39
2
.00
0
a
Residu
al
3.688E+2
2
4
9.2
21E
+21
Total
2.257E+2
4
6
a. Predictors: (Constant), Entertainment Taxes, Hotel Taxes
b. Dependent Variable: District Own Source Revenue
Source: SPSS Processing Result.
The Influence of Hotel Taxes and Entertainment Taxes toward District Own Source Revenue in Bandung City
71

5 CONCLUSION
In Bandung City tend to get improved contionously
from year to year. Its improving is not allowed with
consistent improvement, it means improvement’s
percentage is not Based on research finding and
discussion of research variable about the influence of
hotel taxes and entertainment taxes toward District
Own Source Revenue in Bandung City, so it can be
concluded as follows: (a) Influence of hotel taxes
towards District Own Source Revenue has influence
significantly or directly proportional with positive
value. From those results, it describes that when hotel
taxes gets improved so District Own Source Revenue
will get improved too. (b) Entertainment taxes have
negative impact and it is not significant toward
District Own Source Revenue, it means that if
entertainment taxes are improved so District Own
Source Revenue is not improved directly, it can be
constant or decresed. (c) Based on research about how
magnitude of hotel taxes and entertainment taxes
toward District Own Source Revenue simultaneously
influence significantly with positive side. Those
simultaneously impact mark that the impact given by
hotel and entertainment taxes must be done
togetherness to provide impact towards the changing
of District Own Source Revenue.
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