situation, not an exact recording of it. Perception, in short is a very complex cognitive process that yields a unique picture of the world, a picture that may be
quite different from reality Luthans 1998. To put other words, perception is how we select; organize; interpret; and retrieve information from the environment.
Through perception, people process information inputs into decisions and actions. The quality or accuracy of a person’s perceptions therefore, has a major
impact on the quality of their decisions or actions in a given situation. People respond to situations in terms of their perceptions, and the perceptions can be long
standing Wood 2001. Our perceptions depend on our values, needs, interests, past experiences, and
a variety of other factors. Because each person is unique in this regard, we can not always predict an individual’s perception and subsequent behavior in any
particular situation. We can say with reasonable certainty that people will behave in ways that are consistent with their values, attitudes, and perceptions Mc Afee
1987.
3. Stakeholder
Stakeholders are defined as individuals or organizations that stand to gain or lose from the success or failure of a system Boutelle 2004. Stakeholders are
people who have an interest, claim, or stake in an organization in what it does, and in how well it performs.
Person ,
group , or organization that has direct or indirect
stake in an organization because it can affect or be affected by the
organizations actions
, objectives
, and policies
Jones 2007. In the last thirty years, the term stakeholder has come to have a specialized meaning in discussions of business
management and corporate governance. The term of the actual word stakeholder first appeared in the management literature in an internal memorandum at the
Stanford Research Institute in 1963 Stenberg 1997. Thus, the stakeholder concept was originally defined as those groups without whose support the
organization would cease to exist. A stakeholder in an organization is by definition any group or individual who can affect or is affected by the
achievement of the organizations objectives Freemen 1984 in Stenberg 1997. This more inclusive sense of stakeholder has been widely adopted, as has the view
that organizations should be conducted for the benefit of all their stakeholders. Stakeholder doctrines have become a staple of management theory and
conventional business ethics, and the subject of extensive academic examination Stenberg 1997. Stakeholders are people who will be affected by an endeavor and
can influence it but who are not directly involved with doing the work. By those definitions, stakeholders are those who are impacted by or have an impact on the
project, their perspectives need to be taken into account in order for a project to be successful Boutelle 2004.
The application of the stakeholder theory in the public sector literature seems to be in accordance with the wave of New Public Management. This body
of theory aims to introduce business-based ideas to the public sector. In this vein, the stakeholder theory can be seen as an approach by which public decision-
makers scan their environments in search of opportunities and threats Osborne Gaebler 1993 in Gomes 2006. In the context of governmental sector, especially
the local governments, stakeholders are those who have stakes in the local
government as any person, group, or organization that can place a claim on an organization’s attention, resources, or output or is affected by that output Gomes
2006. Looking at the concepts presented above, one can infer that the stakeholder
theory embeds two distinct approaches: the organization focusing on its stakeholders in order to propose suitable managerial techniques, and the manner a
stakeholder approaches the organization claiming hisher rights. Whilst one side of the coin seems to be related to how an organization behaves when dealing with
its stakeholders, the other side seems to be related to how a stakeholder holds the organization accountable to himselfherself. It is clearly a bilateral type of
relationship Gomes 2006. Stakeholder theory is managerial term in that it reflects and directs how managers operate rather than primarily addressing
management theorists and economists. This encourages managers to articulate the shared sense of the value they create, and what brings its core stakeholders
together. This pushes managers to articulate how they want to do business— specifically, what kinds of relationships they want and need to create with their
stakeholders to deliver on their purpose. Today’s economic realities underscore the fundamental reality we suggest is at the core of Stakeholder theory: Economic
value is created by people who voluntarily come together and cooperate to improve everyone’s circumstance. Managers must develop relationships, inspire
their stakeholders, and create communities where everyone strives to give their best to deliver the value the firm promises Freemen et al. 2004
Related to the local government’s financial report, in the name of accountability medium, the stakeholders are those parties using the financial
reports. It means that each party who has stakes in the local government needed the financial report for various interests and power. Mahmudi 2007 explains
about local government’s stakeholders as follow: tax payers; creditors; investors; public in common; civil servants; local business representatives; legislative
members; electorates; oversight bodies; rating agencies’ central government; other local governments; international institutions; and NGO.
Next, concerning with the matter of a local government owned tourist site’s management and sustainability that has become an important topic and concept in
relation to tourism planning and development to be successful, stakeholders must be involved in the process Byrd 2007. For tourism development to be successful,
it must be planned and managed in a sustainable manner. One main key to the success and implementation of sustainable tourism development in a community
is the support of stakeholders such as citizens, entrepreneurs, and community leaders. Timur and Getz 2008 added that the management and implementation
of sustainable tourism requires the involvement of many partners, and that this collaboration between diverse stakeholders ranging from the public sector such as
government bodies such as city planners, transportation department, etc., the private sector such as tourism and hospitality firms, and the local residents. The
stakeholder framework allows a wider range of actors to be considered and blended into tourism policy, and therefore has significant benefits for
sustainability. Many sustainable development situations, including tourism
development, are characterized by a complex web of interests and trade-offs between interacting sets of diverse stakeholders. Murphy Murphy 2004 in
Tomsett 2008 have identified four groups of stakeholders in the tourism community: customers, industry, residents, and government. The concept of
including all stakeholders extends to the media, politicians, environmental groups, the general community, and all levels of government, investors, suppliers,
pressure groups, competitors, trade unions, professional associations and even academics. After all, what is most evident is that if a person or group has an
interest in the activities of an organization they can be regarded as stakeholders. Tomsett 2008.
In addition, Riege and Lindsay 2006 explained that in public policy, stakeholders may include any person or organization whose interest may be
positively or negatively affected. This includes government organizations and private businesses of all sizes, local authorities, the general community, other
interested parties such as voluntary and community organizations, disadvantaged groups, indigenous groups, and people of non-native language speaking
background. Every public service involves a wide range of relationships between policy makers and its stakeholders, and enhanced partnerships with those
stakeholders potentially provides a cost-effective way of obtaining good or better quality knowledge in an increasingly resource-constrained environment.
4. Asset valuation- heritage asset
