THE FACTORS THAT INFLUENCING WILLINGNESS TO PAY THE VISITORS OF PANGANDARAN BEACH USING CONTINGENT VALUATION METHOD (CVM)

FAKTOR- FAKTOR YANG MEMPENGARUHI WILLINGNESS TO PAY PENGUNJUNG OBJEK WISATA PANTAI PANGANDARAN MENGGUNAKAN CONTINGENT VALUATION METHOD (CVM)

UNDERGRADUATE THESIS

Written by:

SINDI SITI FATIMAH ZAHROH 20130430006

FACULTY OF ECONOMICS AND BUSINESS

INTERNATIONAL PROGRAM FOR ISLAMIC ECONOMICS AND FINANCE (IPIEF)

UNIVERSITAS MUHAMMADIYAH YOGYAKARTA 2017

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FAKTOR- FAKTOR YANG MEMPENGARUHI WILLINGNESS TO PAY PENGUNJUNG OBJEK WISATA PANTAI PANGANDARAN MENGGUNAKAN CONTINGENT VALUATION METHOD (CVM)

UNDERGRADUATE THESIS

Written By:

SINDI SITI FATIMAH ZAHROH 20130430006

FACULTY OF ECONOMICS AND BUSINESS

INTERNATIONAL PROGRAM FOR ISLAMIC ECONOMICS AND FINANCE (IPIEF)

UNIVERSITAS MUHAMMADIYAH YOGYAKARTA 2017

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USING CONTINGENT VALUATION METHOD (CVM)

FAKTOR- FAKTOR YANG MEMPENGARUHI WILLINGNESS TO PAY PENGUNJUNG OBJEK WISATA PANTAI PANGANDARAN MENGGUNAKAN CONTINGENT VALUATION METHOD (CVM)

UNDERGRADUATE THESIS

In partial fulfillment for the requirement for the degree of Bachelor of Economics (Sarjana Ekonomi) at International Program for Islamic Economics and Finance

(IPIEF), Economics Department

Written By:

SINDI SITI FATIMAH ZAHROH 20130430006

FACULTY OF ECONOMICS AND BUSINESS

INTERNATIONAL PROGRAM FOR ISLAMIC ECONOMICS AND FINANCE (IPIEF)

UNIVERSITAS MUHAMMADIYAH YOGYAKART 2017

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FAKTOR- FAKTOR YANG MEMPENGARUHI WILLINGNESS TO PAY PENGUNJUNG OBJEK WISATA PANTAI PANGANDARAN MENGGUNAKAN CONTINGENT VALUATION METHOD (CVM)

Written By:

SINDI SITI FATIMAH ZAHROH 20130430006

May, 4th 2017 Agreed by:

Supervisor 1: Supervisor 2:

Diah Setyawati Dewanti, SE., M.Sc NIK: 143 066

Dyah Titis Kusuma Wardani, SE., MIDEc NIK: 143 102

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FAKTOR- FAKTOR YANG MEMPENGARUHI WILLINGNESS TO PAY PENGUNJUNG OBJEK WISATA PANTAI PANGANDARAN MENGGUNAKAN CONTINGENT VALUATION METHOD (CVM)

Written By:

SINDI SITI FATIMAH ZAHROH 20130430006

This Undergraduate thesis has been revised and validated before the Examination Committee of the International Program for Islamic Economics and Finance

(IPIEF), Department of Economics, Faculty of Economics and Business, University of Muhammadiyah Yogyakarta

Date: May, 4th 2017 The Examination Committee:

Dr. Endah Saptutyningsih, SE,Msi Chief, Examiner

Diah Setyawati Dewanti, SE., M.Sc. Yuli Utami, S.Ag, M.Ec.

Co-Examiner Co-Examiner

Approved by,

Dean of Faculty of Economics and Business University of Muhammadiyah Yogyakarta

Dr. Nano Prawoto, SE., M.Si NIK. 143.016

v Student Number : 20130430006

I hereby declare that this undergraduate thesis entitled “The Factors that Influencing willingness to pay the visitors of Pangandaran Beach using Contingent Valuation Method (CVM)” does not consists of any content that ever being proposed for any degree in order university, ideas of any research and publication of others, in exception all quotes and ideas which are purposedly taken are considered as the research references and listed in the reference list. Therefore, if any violation of intellectual right is found in this study, I agree to accept any relevant academic consequences.

Yogyakarta, May, 4th 2017

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“Allah akan menaikkan orang-orang yang beriman dari kamu dan orang-orang

yang berilmu dengan beberapa derajat”

(Q.S Al Mujahadah : 11)

“Sesungguhnya Shalatku, Ibadahku, hidupku dan matiku hanyalah untuk Allah

SWT, tiada sekutu baginya.

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This Undergraduate thesis I dedicate to my beloved parents, my sister and brother and to all of people that I loved

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mempengaruhi kesediaan membayar (Willingness To Pay) pengunjung obyek wisata Pantai Pangandaran. Penelitian ini menggunakan data primer dengan jumlah responden sebanyak 100 responden yang dilakukan secara acak atau random sampling. Willingness To Pay dapat diperkirakan dengan menggunakan pendekatan Contingent Valuation Method (CVM). Alat analisis pada penelitian ini menggunakan regresi linier berganda pada SPSS 16.

Hasil analisis penelitian menunjukan variable usia berpengaruh positif dan signifikan terhadap Willingness To Pay (WTP), variable pendidikan terakhir berpengaruh positif dan tidak signifikan terhadap Willingness To Pay (WTP), variable tingkat pendapatan berpengaruh positif dan signifikan terhadap Willingness To Pay (WTP), variabel biaya rekreasi berpengaruh positif dan signifikan terhadap Willingness To Pay (WTP) dan frekuensi kunjungan berpengaruh positif dan signifikan terhadap Willingness To Pay (WTP) pengunjung obyek wisata Pantai Pangandaran.

.

Kata kunci: Willingness To Pay (WTP); Contingent Valuation Method (CVM); Multiple Regression Model.

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inf Pangandaran Beach. This researchused primary data observedf 100 of respondentsconductedrandom sampling method. Furthermore, Wilingness to pay (WTP) predicted by Contignent Valuation Method (CVM) approach. In addition, this researchemployed Multiple Regression Model on SPSS16 as data analysis program.

The result of this research shows that age variable has positive and significant effect on willingness to pay (WTP), income level variable has positive and significant effect on willingness to pay (WTP), recreation fee has positive and significant effect on willingness to pay (WTP) and visit frequency has positive and significant effect on willingness to pay (WTP) of visitors in Pangandaran Beach.

Keyword: Willingness To Pay (WTP);Contignent Valuation Method (CVM); Multiple Regression Model.

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and salutation always be to the Prophet Muhammad peace be upon him altogether with his accompanies.

After the establishment of this study on “Analysis of Willingness To Pay For The Enviromental Improvement of Way Kambas National Park : Contingent Valuation Method (CVM)” the author gives special appreciation to the parties in supporting the accomplishment of this study. In particularly they are:

1. The respectable Dr. Nano Prawoto, SE.,M.Si., as Dean of Economics Faculty. 2. The respectable Alm. Dr. Masyhudi Muqorobin, SE.,Akt., M.Ec., as Director

of International Program for Islamic Economics and Finance UMY.

3. I would like to thank to my supervisors, Diah Styawati Dewanti, SE,.M.Sc and Dyah Titis Kusuma Wardani, SE., MIDEc for the continuous support of my undergraduate thesis, for the patience, motivation, enthusiasm, immense knowledge, and the guidance helping me in all the time of my thesis and writing it..

4. Dear all IPIEF lectures and IPIEF staff: Dr. Wahdi Yudhi, Diah S Dewanti, M.Sc., Yuli Utami, M.Ec., Dr. Firman Pribadi, Dr. Jaka Sriyana, Dr. Abdul Hakim, Mr. Hudiyanto, Ayif Faturahman, M.Si, Dr. Endah Saptutiningsih, Dr. Lilies Setiartiti, Hendrianto, M.Ec, Anggi Rahajeng, M.Ec, Mr. Umar, MA, Mr. Sahlan, Mrs. Linda Kusumastuti, SE and Mrs. Novi Diah, MM.

5. A special feeling of gratitude to my beloved parents; Mamah and Bapak (alm). Thank you so much for endless love, prayers and encouragement, trust, and all the things you have done to me since I was a little girl until I can finish my undergraduate studies.

6. I also thanks to my beloved brothers and sister Aris and Rena for their support, understanding and good wishes whenever I needed

7. The deepest thanks to all my colleagues, friends, and to some people that I cannot mention their names one by one who took part in making this thesis real.

8. For my boarding school Husnul Khotimah and my beloved frends ALUMNI16HK thank you for giving me a precious moments and friendship. 9. My classmates IPIEF 2013. Thank you for everything my brothers and sisters

from another family. My friends who assisted and accompanied me with the work discussed in this paper.

10. My friends from Economic studies 2013.

Yogyakarta, May, 4th 2017

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SUPERVISORS AGREEMENT PAGE ... iii

AUTHORIZATION PAGE ... iv

DECLARATION ... v

MOTTO PAGE ... vi

TRIBUTE PAGE ... vii

INTISARI ... viii

ABSTRACT ... ix

ACKNOWLEDGEMENT ... x

CONTENTS ... xii

LIST OF TABLE ... xv

LIST OF FIGURE ... xvi

CHAPTER I INTRODUCTION ... 1

A. Background ... 1

B. Limitation of Research Problem ... 11

C. Formulation of Problem ... 11

D. Research Objectives ... 12

E. Reserach Benefit ... 13

CHAPTER II LITERATURE REVIEW ... 14

A. Theory ... 14

1. The Meaning of Tourism ... 14

2. Kind of Tourism ... 16

3. Element of Tourism ... 18

4. Forms of Tourism ... 19

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9. Local Revenue ... 35

B. Previous Research ... 38

C. Hypothesis ... 44

D. Research Framework ... 45

CHAPTER III RESEARCH METHODOLOGY ... 46

A. Objective of Research ... 46

B. Data Types ... 46

C. Technique of Sampling ... 46

D. Technique of Collecting Data ... 48

E. Variables Definition Operational Research ... 49

F. Data Analysis Method ... 50

G. Research Model ... 51

H. Clasical Assumption Test ... 52

1. Multicollinearity Test ... 52

2. Heteroskedasticity Test ... 53

3. Normality Test ... 53

I. Hypothesis Test ... 54

1. Parameter Individual Test (t test statistic) ... 54

2. Significance Simultaneous Test (F Test) ... 55

3. Coefficient Determination (R2) ... 56

CHAPTER IV OVERVIEW ... 57

A. The Characteristic of Pangandaran Beach Tourism ... 57

B. Respondents Characteristic of Pangandaran Beach ... 60

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1. Multicollinearity Test ... 75

2. Heteroskedasticity Test ... 77

3. Normality Test ... 79

C. The Regression Estimation Result... 80

D. T Test (Variable Interpretation) ... 81

1. Age Variable ... 81

2. Income Level ... 82

3. Recreation Fee ... 83

4. Visit Frequency ... 84

E. F Test ... 85

F. R2 Test (Determination Coefficient) ... 86

G. Discussion ... 86

CHAPTER IV CONCLUSION AND SUGGESTION ... 94

A. Conclusion ... 94

B. Suggestion ... 95

REFERENCES ... 97 APPENDIX

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Table 4.2.Respondent of Pangandaran Beach Based on Age ... 61

Table 4.3.Respondent of Pangandaran Beach Based on Last Education ... 62

Table 4.4.Respondent of Pangandaran Beach Based on Job ... 63

Table 4.5.Respondent of Pangandaran Beach Based on Income Level ... 63

Table 4.6.Respondent of Pangandaran Beach Based on Recreation Fee ... 65

Table 4.7.Respondent of Pangandaran Beach Based on Visit Frequency ... 66

Table 5.1.Variable Statistics Description ... 68

Table 5.2.The Value of Tolerance and VIF ... 76

Table 5.3.Glejser Test ... 78

Table 5.4.Normality Test ... 80

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Figure 1.1. The Amount of Visitors in Pangandran District Tourism ... 7

Figure 2.1. Total Economic Value ... 25

Figure 4.1.Pangandaran District Map ... 58

Figure 4.2.Perception of Enviromental Condition ... 67

Figure 4.3.Respondent Perception About Cleanless of Environmental ... 69

Figure 5.1.Scatterplot ... 77

Pangandaran Beach. This researchused primary data observedf 100 of respondentsconductedrandom sampling method. Furthermore, Wilingness to pay (WTP) predicted by Contignent Valuation Method (CVM) approach. In addition, this researchemployed Multiple Regression Model on SPSS16 as data analysis program.

The result of this research shows that age variable has positive and significant effect on willingness to pay (WTP), income level variable has positive and significant effect on willingness to pay (WTP), recreation fee has positive and significant effect on willingness to pay (WTP) and visit frequency has positive and significant effect on willingness to pay (WTP) of visitors in Pangandaran Beach.

Keyword: Willingness To Pay (WTP);Contignent Valuation Method (CVM); Multiple Regression Model.

1 A. Background

One of the aims of economic development is to provide welfare for all Indonesian people. Tourism in Indonesia has been considered important because of the tourism sector could reduce unemployment and also became one of the driving engine of the economy. Tourism sector has trickle-down effect to another sector such as craft industry, food, hospitality, travel agencies so that it can surely afford create jobs and increase income (Rahardjo, 2002). Law No. 9 of 1990 on Tourism, explain construction tourism as part of national development has the objective, among others widen and spread evenly business opportunities, employment and welfare. Thus, development in the field of tourism has an impact to increase the income which could improve the community welfare.

Indonesia is one of an archipelago country that has a wide range of beauty, both of land and sea are attractive to be enjoyed. In every area of Indonesia has a typical characteristic that is exhibited, such as performing arts or cultural diversity. Because of the characteristic that possessed in every area so it creates some attractive tourist spot to visit. For example Bali, Bali is one of famous tourist spot in Indonesia Bali is popular foreign tourist destination, which contribute revenue to the district.

Another tourist spot that popular in Indonesia especially West Java Province is Pangandaran Beach, Pangandaran beach have so many tourist attraction they are Pasir Putih Beach, Green Canyon and cultural art festival such as Jaipong. Another tourist attraction in Indonesia is Gili Island that located in Lombok West Nusa Tenggara Province. The Gili is popular for scuba diving and snorkeling but also for relaxing, swimming and partying.

Tourism can be defined as a journey from one place to the other place that is temporary, which is usually carried out those people who want to refresh their mind after the hard work and spent the time with their family to recreation. The one reason why people traveled religious impulse, such as recreation to some religious places to explore the science of religion.The other reason why people traveled is to doing sport activity or just watch some sport event (Spillane in Maryam 2011).

Tourism development in some region brings many benefits to the local community, such as communities can establish economic enterprises around tourism. In terms of government, tourism activities can support economic growth and tourism activity can also provide income of the area that came from the tax, parking fees, tickets, and can bring in foreign exchange from the tourist that visited. The other benefit of tourism is increasing productivity and income of household in tourism area, they can build some business such as Hotel and homestay. Tourism is the fastest growing industry in the world (WTO, 2000).

Selviana (2012), the United Nations resolution had been said that tourism as a basic and desirable human activity deserving of the praise and encouragement of all people and government. Tourism can be defined as an activity that has multiple dimensions of the circuit a development process.

Development of the tourism sector concerning on social, cultural, economic and political (Spilalne, 1994). This is in line with contained in Law No. 10 of 2009 on tourism which states that the implementation of tourism intended to increase national revenue in order to improve the welfare of the country, expand and flatten business opportunities and jobs, spur regional development, introduce and utilize objects and tourist attraction in Indonesia as well as fostering a sense of patriotism and relationship between nations. Tourism also gives foreign exchange to the country that is cames from the arrivals visitor that visited so it will increase the national income of country.

According to Baskoro (2013), the construction can be used as a means to create awareness of national identity and diversity. Develop and improve existing tourism sector in each region is a part of development. Efforts to foster development in the tourism sector should be supported by adequate resources and good management. Element of natural resources related to the development of tourism is an important thing in the development of tourism.

The impact of tourism on economic sectors according to the WTO in Selviana (2012) tourism provides the following benefits, they are: (I) Increasing the local product of agriculture, so the development of tourism and agricultural development will open up a golden opportunity for farmers to promote the crops. Tourism encourages farmers to innovate, learn new techniques in food production and also spurred food management those will encourage farmers to have self-sufficient. (II) Accelerating the development of location or land that is less productive, such as the construction of tourism facilities in the area or dryland greening so it can be economically valuable and more useful. (III) Stimulate interest and demand for exotic products and typical for a region or country, usually for the area that opened for tourism purposes, there must be a seed that is relied upon, such as crafting unique, exotic scenery, and others. If the demand of the product is increase it will inflict exports and that phenomena will create the development of region economy and also the country. (IV) Increasing the number and demand for fishery and marine products. Tourist who visit frequently use fishery products, thus increasing the demand for fish on fishermen and I will increase their income. (V) Encourages the development of the region and the creation of new economic zones. (VI) Avoid concentration of people and spread economic activity. (VII) The deployment of infrastructure in remote regions. (VIII) Management of resource management as a source of revenue for local authorities.

In the side of social sector the benefits of tourism according to the WTO in selviana (2012), they are: (I) the differentiation of social structure life positively are (a) the transition and transformation of labor from the agricultural sector to the services sector, including tourism, (b) modernization of agricultural sector, (c) the development of the craft industry, (d) a decrease in the gap between the level of revenue, (e) equality of educational opportunities among social stratification. (II) modernization of the family gets a new status of women in traditional peasant family. If women obtain and have the opportunity to work in the field of tourism, it will encourage other families to change perspective. They will be honored women. (III) expand the horizons and perspectives of the community to the outside world, in the presence of tourists in some sites will change the attitude and outlook of the local society. Society is no longer negative prejudice against tourists who come before knows well.

Tourism has provided a sizeable foreign exchange for the country. Indonesia as the largest archipelago country in the world with 17,508 islands or called as a maritime country, because the growth of tourism in Indonesia is always on top of economic growth so Indonesia has realized the importance of the tourism sector Indonesian economic development. Since 1978, the government will continue to increase tourism in Indonesia. This is based on TAP MPR No. IV / MPR / 1978, that tourism needs to be upgraded and expanded to increase foreign exchange, increase employment and introduce the culture.

Coaching and development of travel is done by taking into account the preservation of cultural and national identity. For that we need to take steps and arrangements and target based on integrated policy, among other areas of promotion, provision of facilities and the quality and continuity of service.

Based on Indonesian Statistics on the international arrivals to Indonesia in 2011 reached 7.6 million it generated foreign exchange earnings of US$ 8.55 billion or it is increased 12.51% compared year 2010, while in 2010 the total arrivals is 7.00 million with foreign exchange earnings is 7.60 billion.

Pangandaran is one of the tourism destination owned by West Java, especially in the district administration of Pangandaran. The capital of Pangandaran district is Parigi. In the north side, the district borders with district of Ciamis and Banjar City. In the east side, Pangandaran borders with Cilacap regency. In the south side, Pangandaran district borders with Indian Ocean. And in the west side, Pangandaran district borders with Tasimalaya city. Pangandaran is a division of Ciamis district.

Pangandaran has potential of economic in tourism sector. Some of the featured attractions in the county is already well known by foreign tourists, among other attractions are Pangandaran beach, Batukaras beach, Madasari beach, Batuhiu beach, nature reserves and tourist Penanjung Taneuh vinegar or better known as the green canyon.

Based on national spatial context on the National Spatial Plan (RTRWN) or in Indonesia is Rencana Tata Ruang Wilayah Nasional, in PP no 47 year 1997 on RTRWN, Pangandaran and surrounding area is one of the leading areas of tourism in West Java. In West Java Governor Regulation No. 48 Year 2006 on Regional Tourism Development Master Plan (RIPPDA) West Java Province, stated that the Pangandaran Beach Recreation Area is one of nine Area Tourism seed in West Java. As well as in West Java Perda No. 22 Year 2010 concerning RTRWP West Java in 2009, Pangandaran area designated as a strategic area of the province.

Pangandaran as one of the tourist sites is quite advanced with provided various complete facilities so it makes the tourists comfortable. Pangandaran also provide a considerable contribution to local revenue in 2012, Pangandaran beach give revenue to the district as IDR 2.380.237.000. However the rate may not correspond with the government target which IDR 2.750.000.000 per year. Although Pangandaran beach has not achieve target, but the numbers that received from the tourism sector could able to increase revenue.

Source: Departement of Tourism, Industry and SMEs of Pangandaran

FIGURE 1.1

The Amount of Visitors in Pangandaran District Tourism

From the graph above show that the visitors of Pangandaran Beach tourist object has more visitors than other tourist object. This graph shows that Pangandaran Beach has uniqueness and beauty that can increase the interest of visitors so they are more prefer to visit Pangandaran Beach. From the data above show that the vistors of Pangandaran beach decrease in year 2014 with amount of visitors 952.095 but in year 2015 the visitors of Pangandaran Beach increase with amount 1.838.646.

The number of visitors who visit can affect environmental conditions, if visitor not aware condition of environment, if the numbers of visitors keep

2013 2014 2015

increase the environmental conditions will be under threat and hygiene is not maintained.

This was shown by the number of garbage around the coast of Pangandaran, the visitors littering regardless of the surrounding environment. The other problem that faced are many facilities have not been maintained well and some facilities have not been met.

For the maintenance improvement of fiber quality in Pangandaran beach and environmental quality improvements that maintained continuity of society should have a stake in preserving the coastal environment, and it requires a fund. Levies imposed on visitors is used for operational funds and used to improve the quality of the environment and development of Pangandaran Beach.

This study was conducted to determine how the visitor's ability to pay in order to improve environmental quality of Pangandaran Beach using Contingent valuation model (CVM). Contingent Valuation Model (CVM) is one of a methodology based on a survey in order to determine and estimate the magnitude of public appraisal of goods and services as well as comfort. Another objective of the Contingent Valuation Model (CVM) is to determine the willingness to pay (willingness to pay) of the community and a desire (willingness to accept). This technique is based on the assumption of ownership rights, therefore, if the individual does not have rights of good and service that produced by natural

resources, so the relevant measurements is the maximum willingness to pay to obtain goods and services.

Conversely, if the individual has that natural resources, so the relevant measurements is the most minimal desire to receive compensation for lost or damaged of natural resources that he had (Garrod and Willis, 1999, in Nugroho, 2012). Contingent valuation method (CVM) can used as (1) estimate the willingness to pay of individuals to change the quality of travel; (2) be able to assess the trip with a lot of tourist destinations; (3) be able to assess the pleasure of using environment both users and non-users of natural resources; (4) items whose value is too low can be assessed by this method (Mitchell and Carson, 1989; Lee et al, 1998, in Nugroho, 2012).

According Sasmi (2016), using the contingent valuation method (CVM), last education, age, income level, and vocation fee variable influence willingness to pay (WTP) of the vistors of Goa Cemara Beach tourism object. The previous study that used the same method, showed that last education, age, invome level, and vocation fee variable influence willingness to pay (WTP) in the preservation of Goa Cemara Beach.

According to (Saptutyningsih 2012) in study to identify the highest air pollution areas and to estimate household marginal Willingness To Pay (WTP) for air quality improvement. The result from kringing technique indicates that six

sub districts in Yogyakarta City and one sub district in Gunungkidul have highest concertation of particle polution (PM10). The result hedonic price method conclude that by adopting a two stage estimation procedure an increase 1% increase in the level of PM10 reduced property price in the study area by 0.32%. marginal implicit price for reducing PM10 is IDR 957.900,00. The household are willing to pay an additional amountof 1.34 percent for a reduction in PM10 by 1%.

In order to develop tourism in district of Pangandaran Beach, need cooperation between the government, communities and institutions. The tourism development is important to maintain the beauty of Pangandaran Beach and also to increase the number of tourist that visit to Pangandaran Beach. So that the author took the title "Factors that Influence Willingness To Pay Visitors of Pangandaran Beach Tourism Using Contingent Valuation Model".

B. Limitation of Research Problem

In order to conduct the research which is consistent with the objectives, hence the writer sets the following restriction:

1. The research is done only in Pangandaran district, especially in the object of Pangandaran beach.

2. The dependent variable of this research is willingness to pay and the independent variable in this research are the visitor of Pangandaran beach, travel cost, age, the level of income, education and visit frequency.

3. This research uses Contingent Valuation Method (CVM) and regression analysis in the research process. CVM has a major drawback, namely the emergence of bias, bias may result from wrong strategy and study design. Thus, it is expected to further research can use different methods so that research results can be compared with previous studies.

4. This study is not using binding game or dicotomous choice.

C. Formulation of Problem

In this research, the writer has some formulation of problems, they are: 1. How to measure the size willingness to pay visitors of Pangandaran Beach. 2. Will age influence visitors willingness to pay in Pangandaran Beach?

3. Will education level influence visitors willingness to pay in Pangandaran Beach?

4. Will level of income influence visitors willingness to pay in Pangandaran Beach?

5. Will recreation fee influence visitors willingness to pay in Pangandaran Beach?

6. Will visit frequency influence visitors willingness to pay in Pangandaran Beach?

D. Research Objectives

Based on the introduction and problem statement, the objectives of the research are:

1. To know the size of willingness to pay a visitors Pangandaran Beach tourism 2. To know the influence of age on the willingness to pay a visitor of

Pangandaran Beach.

3. To know the influence of last education on willingness to pay a visitor of Pangandaran Beach.

4. To know the influence on the income level of willingness to pay a visitor of Pangandaran Beach.

5. To know the influence of the recreation fee to the willingness to pay a visitor of Pangandaran Beach.

6. To know the influence of the frequency of visit to the willingness to pay a visitor of Pangandaran Beach.

E. Research Benefit 1. Theoretical benefit.

a. For researcher

To increase knowledge and insight and apply knowledge that gained in college with the condition of environment.

This research is hopefully useful as reference material for research studies related to the willingness to pay (WTP) visitor of Pangandaran beach or related about willingness to pay.

2. Practical Benefits. a. For government

This research is expected to be material information for the government and as consideration for government to take development planning on tourism of Pangandaran beach.

A. Theory

1. The Meaning of Tourism.

Tourism is came from Sansakerta language that is “pari” means smooth, the means of word smooth is had a high manners and “tourism” is a

visit or a trip to see, hear, and enjoyed, and learn something. So the meaning of tourism is something that presents visit that had a manners and virtuous.

Based on Law Number 10 Year 2009 in Kartika (2010) about tourism, tourism is a wide range of tourist activities and supported a variety of facilities and services provided by communities, businesses, governments, and local governments. Based on tourist motivation and attractions of the region so travel destination tourism activities can be divided into two major groups, they are bulk tourism and special interest tourism. If the first type of tourism is more emphasized on the aspect of pleasure, then the emphasis on the second type is for experience and knowledge aspects.

A trip is considered as sightseeing trips if they meet three they are temporary, voluntary not imposed, and it does not work that are generating wage or pay (Spilane, 1985).

creation, art, history of the nation and place natural or condition that would have appeal to tourist. While the natural attraction that are the attraction from the tourist appeal of natural beauty and resources and enviromental system.

Definition of tourism according to the WTO (World Tourism Organization) in Pitana (2009) are the various activities performed by people who travel to stay out of the ordinary environment and not more than one consecutive year for pleasure, business and other purposes.

There are important factors in terms of tourism that must be met in a definition of tourism. The factors that mean according Yoeti (1995) in Selviana (2012), are :

1) The trip is done temporary.

2) The trip was carried from one place to another place.

3) the journey must should always be associated with recreation. 4) A person who made the journey does not aim to make a living or

make something to work in a place that she or he visited and the porpose of recreation is as consumers.

the type of tourism can be classified as follows: a. Pleasure Tourism

This form of tourism is done by people who leave their homes to tour, looking for a new fresh air, to calm nervous tension, to see something new, enjoy the beauty of nature and to know the history of the local people. This type of tourism involves many elements gratification levels based on the character and nature that different. b. Recreation Tourism

This kind of tourism is done by people who want to take advantage of his day of rest, to recover the physical and spiritual freshness and want to refresh physical fatigue and they stay as long as possible for the enjoyment of the necessary (such as, in the beach or in the mountains).

c. Cultural Tourism

Cultural Tourism is usually characterized by a series of motivations, such as the desire to learn the centers of teaching and research, to learn the customs, institutions, and ordinances of life of a region or to visit historical monuments and others.

her or his self for many kinds of sports. This type of tourism is conducted in the presence of major sporting events like the Olympic Games, World Cup, and others.Where these events not only attract the athlete but also the audience.

e. Business Tourism

This type of tourism is a trip for something that related to the job or position that does not give the tourists a choice selection of destinations and travel time.

f. Convention Tourism

Conventions are often attended by hundreds and even thousands of participants who usually stay a few days in the city or the host country.

Mappi (2001: 30-33) in Ermayanti (2012), the object of tourism is devided into three catagories, they are:

a. Natural attractions, for example: sea, beaches, mountains, lakes, rivers, fauna, flora, nature reserves, protected areas, and others. b. Cultural attractions, for example: traditional music, traditional

clothing, ceremonies of birth, traditional dances, marriage customs, traditional ceremonies, historic buildings, cultural heritage, historical

entertainment (comedy, magic or acrobatics), recreation parks, shopping centers and others.

3. Element of Tourism.

They are five element of industry tourism that are important (James.J.Spilanne,1987) they are :

a. Attractions

Attraction can be classified into two parts, they are site attraction and event attraction. Site Attractions is a permanent attraction and the location is permanent that is the tourist places in tourist destinations such as the zoo, museum and palace. While the event is attractions that are temporary, and location can be changed and moved as easily as fairs, festivals, or performing arts area.

b. Facilities

Facilities tend to be oriented on the appeal at a location because the facility must close from tourism location. During his or her stay in the tourist areas, tourists need a place to sleep, food and drink. Therefore, it is necessary lodging facilities and support industry (souvenir shop, laundry, guide, local festivals and others).

development of infrastructure. d. Transportations

Advances in the field of transport is very important in supporting the growth of tourism, because it determines the distance and time of journey some travel, transportation either by land, air and sea transport.

e. Hospitality

Tourists who were there in tourist areas require assurance of security especially for foreign travelers who require an overview of destinations that they will visit.

4. Forms of Tourism.

Based on Pendit (1999) forms of tourism are classified into five catagories, they are:

a. Based on the origin of tourists

If tourists come from domestic tourists means that only moved temporarily within the territory of his own country for traveling is called domestic tourists. Meanwhile, if the tourists come from abroad its called international tourists.

active tourism.

While the journey of a citizen to abroad will negatively affect the country's balance of foreign payments and its called passive tourism.

c. Based on Period

The arrival of tourists in a region or country are also calculated according to the length of stay in the area or the country that concerned. This raises a term that called the short-term tourists and long-term tourists.

d. Based on The Amount of Tourists

This form of tourism is distinguished by the number of tourists who come, whether tourists come alone or with a group. So it is appears the term that called single tourism and group tourism.

e. Based on instruments measuring used

Tourism is divided into air tourism, marine tourism, tourist train and car, depending on travelers using any vehicle.

5. Benefits of Tourism.

Tourism give a positive impact on development sectors, they are: a. Economy side

b. Maintenance and Utilization of the Environment Side

Development of tourism if developed properly and efficiently and see the effects on the environment so it will make the environment or local tourism good or environmentally friendly. Because tourists who visit the area want the new atmosphere and clean and healthy environment. Conversely, tourism development that has less organized and not efficient will destroying the environment. If it happens, it will have an impact to tourists who want to visit these tourist areas.

c. Cultural Side

One of the factors that tourists visited some area of tourism is to explore or admire the art and culture of the areas visited and satisfy curiosity.

d. Expanding job competence

The tourism industry is the industry that are labor intensive. When a series of labor in the industry it is supporting tourism industry such as souvenir stores, hotels, handicrafts and so on, then the amount of labor that is absorbed more and more.

the horizon of personal views on values of other life, fiber absorption of new knowledge.

f. Supporting the improvement of health and work performance

Perceived busyness of everyday can lead boredom, of course it raises the desire crave a new atmosphere, a new environment even if only for a while. Because people want regardless of saturation.

6. Concept Willingness To Pay.

Willingness to pay is a method to measure how much the price of losses incurred due by population, but we can not directly determine the market price (Suparmoko 2008 in Damar 2015). Willingness to pay is the maximum amount that are willing to be paid by someone to obtain good quality services.

Environmental economic assessment is to obtain the benefits and costs of an activity that is impacting on the environment. The benefit is an incredible word which economists provides technical sense. When the quality of the environment is good so the people can take a benefit, otherwise when the environment becomes worse in quality so the value or benefits will be reduced (Arimurtty, 2015 in Sasmi 2016).

defined to measure the marginal benefit from consumer (Fembriantyerry P in Prasetyo 2012).

The consumer surplus is the difference between the amount paid by the buyer for the product and willingness to pay. Consumer surplus arises because consumers received more than they paid and this bonus is rooted in the law of diminishing marginal utility. The emergence of consumer surplus it is because of consumers pay for each unit based on the value of the last unit. The consumer surplus reflects the benefits because they could buy all the units of goods at the same low price level. In simple terms the consumer surplus can be measured as an area located between the demand and the price line (Samuelson and Nordhaus in Prihadi, 2015).

7. Economic Valuation.

Most of the economic value associated with the tourism service is what economists call non-market value. There are no formal markets for such things as recreation opportunities, clean air, and wildlife habitat so

there are no clear “prices” for these goods as there are for market goods

like clothing and cars. Economists must measure the value of non-market goods using techniques which do not rely on market prices. This can be

non-market values are also called stated preference because these techniques involve directly asking survey respondents about their willingness to pay or their preferred alternative such as contingent valuation method. CVM is a method whereby survey respondents are asked to indicate their willingness to pay for a non-market good like a recreation experience or passive use values such as existence value, option value or bequest value (Haefele, et al., 2012).

Economic value is a measure of what the maximum amount an individual is willing to forego in other goods and services in order to obtain some good, service, or state of the world. This measure of welfare is formally expressed in a concept called Willingness to Pay (WTP). A common difficulty in understanding economic valuation is distinguishing between what something is valued by individuals and what its economic value really is (Lipton, et al. 1995).

According to Lipton (1995), the characteristics of Economic Value as follows:

c. Typically, money is used as a unit of account.

d. To determine values for society as a whole, values are aggregated from individual values.

Total economic value, the most common and most appropriate framework for aggregating the value of ecosystem goods and services (including non-market goods and services) is total economic value (TEV). This approach does not necessarily assess the total value of an ecosystem, but rather allows changes to be calculated for all values (use and no-use values) as sociated with one or several ecosystem functions. TEV can be assessed as willingness to pat (WTP) or willingness to accept (WTA) payment. WTP is a more common method, as more tools for estimating economic value are relevant to this approach (Horowitz 2002).

FIGURE2.1 Total Economic Value

Direct use value refers to the value derived from the direct use or interaction with ecosystem-based provisioning services, for example food and water, and some cultural services for example is recreation. Indirect use value refers to the value derived from regulating services for example is climate control, waste assimilation, water quality, and supporting services for the example is nutrient cycling. Option value refers to the value derived from the option to make use of a resource in the future. Non-use (also referred to as

“passive use” values) are derived from benefits associated with a resource or ecosystem-based service. These values include existence

generation; and altruism value, which is derived from giving something to somebody else. There is a great deal of debate regarding the validity and accuracy of non-use values, but few economists would deny their existence (Cummings 1995); (Johansson 1992); (Loomis, et al. 2000).

Economic valuation of environmental goods and services arise from increased demand for environmental goods and services due to a decrease in the availability of resources and the natural environment from time to time.

Economic valuation related to specific analytical methods to obtain a quantitative value of goods and services produced by natural resources and the environment both based on the market value and non-market value.

Economic valuation is defined as an attempt to provide a quantitative value of goods and services produced by natural resources and the environment, as well as the market value and non-market value. Economic assessment of economic resources is an economic tools that uses standard valuation techniques to estimate the monetary value of goods and services supplied by a natural resource. The

an appreciating and public awareness of the environment Fauzi (2005). Economic valuation method estimates the economy of a nature tourism based on ratings given to each individual or society to the costs incurred to visit a natural tourism, whether it’s an opportunity cost and direct cost incurred such as transportation, accommodation, consumption and others. These valuation techniques were attempted in this research to estimate the economic value of Pangandaran Beach, West Java.

8. Contingent Valuation Method (CVM).

In general, economic valuation of resources techniques that are not marketable (non-market valuation) can be classified into two groups. The first group is a valuation technique that relies on implicit price where the willingness to pay (WTP) is revealed through the developed model. This technique is often referred as revealed WTP. Some technique that included in this first group is the Travel Cost Method and Hedonic Pricing. Travel Cost Method is commonly used to analyze the demand for tourist facilities. By knowing the pattern of costs incurred by the visitors who came to some tpurism attractions, it can obtained the

can affect a property's value. A simple example is the price of land in a district or region can decrease because the land in that area is prone to flooding or landslides.

The second group is a valuation technique that is based on a survey in which the willingness to pay or WTP is obtained directly from respondents, which the respondents directly expressed orally or in writing. The popular technique is Contignent Valuation Method technique and dichotomous.

a) Concept Contingent valuation Method

Contingent Valuation Method (CVM) is a method of that use survey technique to ask people about the value or the price that they give for commodities that do not have market such as environmental goods (Yakin, 1997 in Annisa Merryana, 2009). CVM is used direct approach that basically asking the community how much Willingness to Pay (WTP) for additional benefits or how much Willingness to Accept (WTA) as compensation for environmental damage to the goods. In this study, in this research the approach is used is

techniques through simulations and games. Second, the survey technique.

In economics knowledge, the willingness to pay (WTP) is the maximum amount that someone would be willing to pay, sacrifice or exchange to receive good or to avoid something undesirable, such as pollution. This term is in contrast with willingness to accept payment (WTA), which is the minimum number of individuals are willing to accept and deliver the goods or to accept something undesirable (Turner et al, 1994 in Sasmi, 2016).

b) Advantages and disadvantages Contingent Valuation Method According to Hanley and Spash in Prihadi, 2015, the advantages possessed by CVM approach in estimating the economic value of an environment are as follows:

1. Can be applied forced in all conditions and has two important things are often the only technique for estimating the benefits and can be applied to a variety of environmental policy context.

assessment, CVM has ability to estimate the value of non-users, with CVM, someone might be able to measure the utility from environmental users, even though it is not use directly.

4. Although the CVM technique need competent analysis, but the result of studies is not difficult to be analyzed and not difficult to elaborated or explain.

And the weaknesses by using CVM technique is the emergence of bias in data collection. Bias in the CVM according to Hanley and Spash in Amanda, S. (2009) are as follows:

1. Bias strategic because of respondent relatively gave a small value of WTP because the reason that there were other respondents who would pay for efforts to improve environmental quality at higher prices can occur. Alternative to reduce this bias strategy is through the explanation that everyone would pay the average bid value or emphasis hypothetical nature of the treatment. This will encourage respondent to give correct value of WTP.

respondents. a. of survey.

3. Bias that related to the condition of the obligation of respondents (Mental Account Bias) this bias is related to decision-making step process of an individual in deciding how big the income, wealth, and the time that can be spent on specific environmental objects within a certain time period.

4. Hypothetical market error occurs when the facts are asked to respondents in a hypothetical market make the responses of respondents different from the concept that.

c) The Stage Study of Contingent Valuation Method

There are several stages in the application of CVM analysis according to Hanley and Spash in Amanda, s. (2009), they are:

1. Make Hypothetical Market

The initial stage in the running CVM is create hypothetical market and questions about the value of environmental goods or services. The hypothetical market

environment. In the hypothetical market must describe how the mechanism of payments made. Scenario activity must be clearly outlined in the questionnaire so respondents can understand about environment and community's involvement in the plan. Moreover, in the questionnaire also need to explain the changes that would occur if there is a public desire to pay.

2. Obtain the deals value of WTP

In determining the value of supply, they’re several methods to determine the value of supply, those are:

(a) Bidding Game, that is bargaining method

(b) Open-Ended Question, that is open question method (c) Close-Ended Question, that is close question

(d) Payment Card, a payment method as determining the value.

(e) Referendum, the referendum, this method is use some payment suggested to respondents. When the questionnaire is completed made, than do a sampling. This can be done through face-to-face, interviews, with

goods is quite difficult, related to time constraints. An interview by letter quite often do but has a bias in the form of no response (non-response bias) or a low response rate (low response rates). Interviews using trained staff allows for more detail questions and answers but there is possibility of bias that made by official.

3. Estimate value of WTP

After the data of WTP collected, the next stage is determining middle value (median) and the average (mean) of the WTP. The median value is used when the range value supply is far away, for example from 30 respondents, 29 respondents have a value of deals IDR.15000 but there is one respondent that has a deal value IDR.1.000.000, if the calculation of the deals value using average, then the value will be higher than actual, because of that so use middle value because not affected by a large range of deals. The median value deals is always smaller than the average value of deals.

EWTP = Where :

EWTP = Average Estimate Wi = The value of WTP to-i N = Total Respondents

I = Respondents to-I that willing to pay

(==1,2,…n)

9. Local Revenue.

Local revenue is all revenue received by the region from sources within its own territory which are levied according to local regulations in accordance with the prevailing laws and regulations (Halim, 2004: 96). Local revenue sector plays a very important role, because through this sector can be seen how far a region can finance government activities and regional development. Source of local revenue, are:

Increased Local Revenue must be done by the local government in order to be able to finance its own needs, so the dependence of local government to the central government is reduced and eventually the region

a. Local tax

According to Law No. 28 of 2009, Regional Tax, hereinafter referred to as Tax, is a compulsory contribution to the Region owed by an individual or a coercive body under the Act, without obtaining direct remuneration and used for the purposes of the Region for the greatest possible prosperity people. Based on Law 28/2009, district / city taxes are divided into the following, Hotel Taxes, Restaurant Taxes, Entertainment Taxes, Advertising Taxes, Street Illumination Taxes, Non-Metallic and Rock Mineral Taxes, Parking Taxes, Ground Water Tax, Swallow's Nest Tax , Land and Rural Land and Urban Tax, and Tax on Land and Building Rights Acquisition. As with most taxes, local taxes have a dual role: As a source of regional income (budegtary), As a regulator (regulatory).

b. Levy Area

The central government re-issued regulations on Regional Taxes and Levies, through Law No. 28 of 2009. With this Law revoked Law No. 18 of 1997, as amended by Law No. 34 of 2000. The application of new taxes and retribusi One side provides local benefits with new sources of

2009 as a whole there are 30 types of user charges that can be collected by regions that are grouped into 3 classes of levies, namely general service levies, business service fees, and certain licensing fees.

Public Service Levies are services provided or provided by the local government for the purpose of interest and general benefit and can be enjoyed by individuals or entities.

Business Service Levies shall be local levies as payment for business services specifically provided and / or provided by the local government for the benefit of individuals or bodies.

Certain Licensing Levies are regional levies as payment for the granting of certain licenses specially granted by local governments for the benefit of individuals or bodies.

c. The result of separated property management of the property

The result of the management of separated property of the region is the regional revenue derived from the separated area wealth management. Law No. 33 of 2004 classifies types of regional wealth management results that are disaggregated, broken down according to the income object which includes the share of return on capital participation of a

d. Other Original Regional Original Revenue

Law Number 33 Year 2004 describes the Original Regional Original Revenue, provided for budgeting of regional revenue not included in the type of tax and the result of separated regional wealth management. This revenue is also a regional revenue derived from others belonging to the local government. Law number 33 of 2004 classifies that included in the original revenues of legitimate areas include ;The proceeds from the sale of regional assets are not separated. Current account service. Interest income. Profit is the rupiah exchange rate against foreign currency.

Commissions, deductions, or other forms as a result of the sale, procurement of goods or services by the government

B. Literature Review

This previous study include studies that have been conducted by other researcher in the form of regular studies, thesis and journal this existing research has underpinned the writer in the preparation of the thesis, while the previous research as follows:

Contingent Valuation Method Approach”. The purpose of this research is to analyze the influence of level of income, age, education and cost of vocation on Willingness to Pay the visitor of Goa Cemara beach. This research is use primary data that spread to 146 respondents with random sampling technique. The Willingness to Pay is predicted by Contingent Valuation Method (CVM) in Goa Cemara beach. Based on the result of this research found that age is positive influence and has a significant on Willingness to Pay (WTP), the education variable is negative influence and significant on Willingness to Pay, and level of income variable is positive influence and significant on Willingness to Pay (WTP).

The research that has been done by El-Bekay andMoukrim (2013)

with the title “An economic Assessment of the Ramsar Site of Massa (Morocco) with trevel cost and contingent valuation method” .As the only protected area in the whole south west of Morocco, the Souss Massa National Park (SMNP) is characterized by a remarkable biodiversity, with more than 300 plants species, 250 bird species, 20 mammal species and also by the high diversity of its ecosystems, such as the Aragniaspinosa forest, steppes, dunes and coastal wetlands. This park can play a leading role in the region by enhancing its ecotourism potential and therefore contributing to its economic development. We intended to demonstrate in this study, by estimating the

the contingent valuation method and travel cost method were applied. The results from 480 surveys, conducted during 2010, showed that the consumer surplus per person per visit is estimated at DH 490,196 ($US 65.36) and the willingness to pay per visitor is about DH 46,523 ($US 6.20). According to this economic valuation, any future local development must take into account, the opportunity that EOM offers as a recreational site, with high eco tourism potential.

The research that has been done by Dewi (2016) with the title “The Analysis of willingness to Pay (WTP) the Community of Special Region of

Yogyakarta on Gembira Loka Zoo Tourism”. The purpose of this research is

to measure the value of Willingness to pay ticket of entrance Gembira Loka Zoo and factors that influence willingness to pay. This study analyzed by Contingent Valuation Method (CVM), this study is use primary data by giving questionnaires to 114 repondents, sampling was done by purposive sampling. The tool analysis is using SPSS 16. The result of this research showed that the age variable has no effect on willingness to pay, the income level has affect on willingness to pay, the education variable has affect on willingness to pay, and the distance variable has affect on willingness to pay. The value of Willingness to pay IDR 19.614, with a total value is IDR 2.236.000.

Dieng Tourist Attraction of Wonosobo Regency and Banjarnegara Regency A

Case Study of Kaliasa Archeological Museum Contingent valuation Method”.

This research aims to discover whether gender, frequency of visits, length of visits, length of education, age and icome influence willingness to pay in the effort to improve environment qualiy of tourist attraction of Kaliasa Archeological Museum in Wonosoboand banjarnegara Regency. This research used primary data with interview method of 77 respondents. The calculation of the fees that visitor were willing to pay for environment quality improvement of kaliasa Archeological Museum was conducted using Contingent valuation Method approach. Multiple regression model was used to analyze the research. The result of this research showed that gender, frequency of visits, length of visits, length of education, age and income are influence willingness to pay in the effort of improvement environment quality of tourist attractions of Kaliasa archeological Museum in Wonosobo and Banjarnegara Regency.

The research that was conducted by Suja et.al.,(2007) with the title “ The Economic Value of The Lake Buyan-Tamblingan Area as A Place Interest Bali An Enviromental Economic Study”. Research was conducted at Buyan-Tamblingan lake natural tourism area in Sukasada sub-district,Buleleng regency, Bali, from January to May 2007. Objective of this research are: 1) To

Buyan- Tamblingan lake area. The research use traveling cost (TC) approach to estimate of economic value (UV),willingness to pay (WTP) to measure of non use value, and descriptive-qualitatif method to analyze of Buyan-Tamblingan lake area Management,. Accidental and purposive sampling method used. The Research showed that mean of traveling cost is IDR 4.867.469. The mean of nominal willingness to pay per visit per year or non use value is IDR 5.368.317.000. The sum of use value (UV) and non use value (NUV) said total economic value (TEV) is IDR 10.535.787.050. The approach to manage Buyan-Tamblingan Lake properly as a place of interest, have been conducted between Governmental. Private sector tourism entrepreneurs and local customary village.The management of tourism area needs to be improved so that the area will still be in good condition to achieve sustainable development.

The research that has been done by Nuva and Samsudin (2009) about

“Willigness To Pay Towards the Conservation Ecotourism Resources at Gunung Gede Pangrango National park, West Java, Indonesia”. The objective of this study are to determine the visitors willingness to pay for conservation of the resources at Gunung Gede Pangrango National Park (TNGP), and to determine the satisfaction of visitors towards the use of the ecotourism

show that most visitors are satisfied with the ecotourism resources in TNGP, many of the visitors have come to TNGP more than once. In order to sustain the benefits derived from the resources at the park, the visitors agree that various organization involved must cooperate to conserve and protect the ecotourism resources. The economic benefit of conservation of the ecotourism

resources at TNGP was measured using the visitors’ WTP for higher entrance fee to the park. A logit regression model was used to determine visitors’ willingness to pay. The results indicate that income, gender (male) and residential (urban) were the significant factors that influencing the visitors’ WTP for the entrance fee to TNGP. The mean WTP is found to be IDR 7629.77 per visit. It is estimated that in 2004 the benefits of conservation of the ecotourism resources in TNGP amounts to IDR 452 million.

The research that has been done by Bal and Mohanthy (2014) about

“Determination of Willingness to Pay for Entrance Fee to national Park: An Emphirical Investigation”. This paper examine the determinants og

willingness to pay (WTP) of Bhitarakanika National Park (BNP), Odisha in India. Primary data has been collected from the visitors through survey method. This research used multiple regression model to determine the WTP for the entrance fee at BNP. This research showed that income, age, day spent,

raise the park revenue of BNP.

The research that has been done by Kartika (2014) with title “The Factors that Influence Willingness to pay of Keraton Yogyakarta Visitors For Heritage

Tourist Object Preservation in Yogyakarta “. The purpose of this research to

analyze the impact of level of income, age, education, the number of dependent child, cost of recreation, and visit frequency on willingness to pay (WTP) visitors of keraton Yogyakarta. This research is use primary data with interview method to 150 respondents of vistors keraton Yogyakarta which selected randomly. Willingness to pay is predicted by Contingent Valuation Method (CVM). Based on the result of analysis showed that level of income, is positive influence and significant on WTP, cost of recreation is positive influence on WTP and visi frequency is positive influence and significant on WTP. While age is negative influence and significant on WTP.

The Research that has been done by Majid (2008) with the title “ Analysis Willingness To Pay the visitors of Situ Babakan Tourism for improvement

environmental in Central Jakarta “ in her study said that the factors that influencing the size of Willingness To Pay are level of income, recreation fee and frequency of visit. Willingness To Pay (WTP) value that can be used as a benchmark in situ babakan levy fund is IDR 2104.65 per person. By

1. Age has positive and significant impact on Willingness To Pay (WTP) of Pangandaran Beach visitors.

2. Income level has positive and significant impact on Willingness To Pay (WTP) of Pangandaran Beach visitors.

3. Education has positive and significant impact on Willingness To Pay (WTP) of Pangandaran Beach visitors.

4. Recreation fee has positive and significant impact on Willingness To Pay (WTP) of Pangandaran Beach visitors.

5. Visit frequency of visits has positive and significant impact on Willingness To Pay (WTP) of Pangandaran Beach visitors.

D. Research Framework

(+) (+) (+) (+) (+) Age

Visit frequency Income level

Education

Recreation fee

A. Objective of Research

Objective of this research is the visitors of Pangandaran Beach. This study is conducted in Pangandaran District, West Java province. This ressearch is began from Deecember 2016 until January 2017

B. Data Types

The types of data that use in this research is: 1. Primary data.

Primary data is called the original data or the new data. Data that obtained or collected directly by the researcher is also called primary data. Primary datain this study obtainby spreading the questionnaire directly to each individual visitors of Pangandaran beach.

C. Technique of Sampling

The samples that used in this research object is using random sampling method. Random sampling method is a method of sampling that gives equal opportunity for each element or member of the population to be elected as a random sample. The advantage of this sampling method is easy sample selection, sample selection unit is only one kind, misclassification can be

Because the number of visitors Pangandaran is not yet known at this year of research, then the expected number of visitors during the year of research using adaptive expectation with regards the number of tourists who visited in 2015 is the same as 2015 (Khariere, 2014). The number of tourists who visited Pangandaran beach in 2015.Determination of the sample using the formula Slovin sought in Sari, 2015, namely:

Where:

n = Number of samples to be studied

N = Number of visitors in Pangandaran year 2014

e = per cent leeway carefully situations due to lack of sampling error is still tolerated (set at 10%).

respondents that used amounted 100 respondents as a minimum number of respondents.

D. Technique of Collecting Data 1. Questionnaire.

A written statement that is used to obtain information to respondents in terms of reporting about the person or the things that the key knew is called questionnaire (Arikunto, 2006). While according to Sugiyono (2008) a questionnaire is a technique of collecting data conducted by giving a set of questions or a written statement for respondent to answer. 2. Documentation.

Documentation means search Finding and collecting existing data, whether in books, magazines and newspapers, the Department of Tourism and Culture, BPS or data available on the Internet and other sources that related to this research.

3. Literature study.

One of way to get information or data with reading some literature or journal that related with the problem that are being sought.

questionnaire between the writer and the respondents. E. Variable Definition Operational Research

In this research use two variables, the dependent and independent variables. The dependent variables in this research is Willingness To Pay, while the independent variables in this research are: age, income level,education level, recreation fee and visit frequency.

1. Dependent variable.

Based on Aryani (2013) in Sasmi (2016) Willingness to pay is the individual's willingness to pay for something or environmental conditions assessment of natural resources and natural services in order to improve environmental quality. In WTP calculated how far the ability of individuals or communities in the aggregate to pay or spend money in order to improve environmental conditions to suit the desired conditions. 2. Independent variable.

a. Age

Age means the the time that measure the presence of object or a living creature. In this research means the age the visitors of Pangandaran Beach.

has been achieved by visitors of Pangandaran Beach. In this research the length of education measured from primary school level and by the size of the normal time for education.

c. Income Level

The level of income in this research means the amount of income in a month that received by tourist or respondents that worked and has income In this research the level of income for students is determined by the amount of pocket money that received per month.

d. Recreation Fee

Cost of vocation expenses incurred on the costs of the visitor, which includes transportation costs, parking fees, entrance fees, the cost of consumption, documentation fees, and other costs. The cost of travel in this research is the overall cost incurred travelers in Pangandaran beach.

e. Visit Frequency

The frequency of visits is how often travelers visiting tourist sites or how many times tourists ever visited tourist site in the year.

also can measure the value of an item that does not exist in the market. This method can determine the maximum level of willingness to pay and simply provide clear information about the items to beneficiaries.

The primary data is using SPSS16 softwere with multiple regressionmodelin order to know the factors thats influencing the willingness to pay the visitors of Pangandaran Beach.

G. Research Model

To analyze Willingness To Pay (WTP) of visitors on Pangandaran Beach can be formulated as follows:

WTP = f (Age, Edu, Inc, BR,Fis)

Then the function is expressed in the form of WTP relationship with Age, Edu, Inc, Br and Fk then:

WTP = β0 + β1Age + β2Edu + β3Inc + β4BR + β5Fis + e Where:

WTP = Willingness to Pay β0 = intercept

β1, …., β4 = regression coefficient Age = Age

E = Error Term H. Classical Assumption Test

1. Multicollinearity Test.

Multicollinearity test was conducted to test whether the regression model found any correlation between the independent variables. Otherwise there is a problem multicollinearity, if there is a correlation. A good regression model should not happen correlation between independent variables. How to detect there is multicollinearity or not in the regression model are:

a. R2 is quite high (0,7-0,1), but the t-test for each regression coefficient was not significant.

b. The high of R2 is a sufficient condition, but not a necessary condition for the multicollinearity. Because in a low R2 < 0,5 can also occur multicollinearity.

c. Regressing variable independent X with another independent variable, then its R2 calculated by using F test;

If F* > F table its mean Ho is rejected, and there is a multicollinearity. If F* < F table its mean Ho is accepted, and there is no multicollinearity.

than 10 VIF then there is no multicollinearity problem. 2. Heteroskedasticity Test.

Heteroskedasticity test aims to test whether the regression model occurred inequality residual variance from one observation to another observation. If the variance of the residuals of the observations to other observations is remains, it is called homoskedasticity and if the variance of the residuals of the observations to other observations different is called heteroskedasticity. A good regression model is that has homokedasticity or did not happend heteroskedasticity.

How to detect the presence or absence of heteroskedasticity is using glejser test. General principle decision whether there is or not heteroskedasticity is see significant value after glejser test, if the significant value > 0.05, this data can be said homoskedasticity or not exposed heteroskedasticity, and vice versa if the significance value <0.05 then the data is exposed heteroskedasticity (Sari, 2015).

3. Normality Test.

Normality test on the regression model was used to test whether the residual value is normally distributed or not. A good regression model is one that has residual value that is normally distributed.

diagonal line, the regression model has been normal and proper to be used to predict the independent variable and vice versa. (Ghozali, 2016).

Another way is by using normality test One Sample Kolmogorov Smirnov test. The test criteria are as follows: (Priyatno, 2013).

If the value Significance (2-tailed Sig Asym) > 0.05, then the normal distribution of data.

If the value Significance (2-tailed Sig Asym) < 0.05, then the data are not normally distributed.

I. Hypothesis Test

1. Parameter Individual Test (t test statistic).

Based on Ghozali (2011) in Sasmi (2016) said that the t test statistic basically shows how far the influenceexplanatory variable / independent variable individually explain variation of dependent variable. In this test we assume the other variables in a constant.

t test is using Hypothesis as follows: H0 : βi = β

no effect on the variable Xi to variable Y. If the value of t is greater than t table, then H0 is rejected. This shows that the independent variables significantly influence to the dependent variable. Coefficient t formulated as follows:

thitung= while:

βi = Free Coefficient Ke-i β = Hypothesis Value is Zero

Sb = The standard deviation of the independent variable to-i 2. Significance Simultaneous Test (F Test).

According Ghozali (2011) in Sasmi (2016) said that the F test statistic basically indicate whether all of the independent variable or free variables that are included in the model have influence the dependent variable / bonded. H0 hypothesis that will be tested is whether all of the parameters in the model is equal to zero, or:

H0: b1 = b2 = ………… = bk = 0

Its mean, whether if all the independent variables are not significant to explanation the dependent variables. The alternative is hypothesis (Ha), not all

explanatory on the dependent variables.

To test this hypothesis is using F statistic with criteria decisions as follows:

a. Quick look: when the value F is greater than 4, H0 can be rejected at 5% confidence level. In other words, we accept the alternative hypothesis, which states that all independent variables simultaneously and significantly affect the dependent variable.

b. Comparing the results value of F value calculation with F table, when F value more greater than F table its mean H0 is rejected and Ha is accepted.

3. Coefficient Determination (R2).

R2 value is between 0 and 1 (0 ≤ R2 ≤ 1). If R2 is 1 means that the regression line explain 100% the variation of dependent variable. However, if R2 = 0, its mean that the regression line does not indicate the slightest variation in the dependent variable. Therefore, a model is good if the coefficient of determination is one.

The coefficient of determination is to know how much percentage of the independent variables on the dependent variable in a percentage form.

A. The Characteristic Of Pangandaran Beach Tourism 1. Geographical Conditions.

Pangandaran District is one of the districts in West Java province, located on the island of Java. Its capital is Parigi. Pangandaran District geographically located at coordinates 108 20 'to 108 40' east longitude and 70 40 '20 "up to 7 40'20" south latitude. The total area of Pangandaran District is 168.509 ha with sea an area is 67 340 ha. Pangandaran Regency has a length of sea 91 Km coast. Pangandaran district boundaries are:

a. North side : Ciamis district b. South side : Indian ocean

c. West side : Tasikmalaya district d. East side : Cilacap district

2. Pangandaran Beach History.

Initially, Pangandaran beach area inhabited by indigenous peoples that’s they majority population is Sundanese ethnic. After many fishermen from other regions, especially from the region of Central Java, they stopped and finally settled in Pangandaran, so people in these areas are blend into heterogeneous.

Pananjung village Pangandaran at first opened and occupied by the fishermen of the tribe of Sundanese. They prefer Pangandaran, because Pangandaran have a small ocean waves which can help facilitate them to find fish. In Pangandaran there are a land that juts into the sea and now called Nature Reserves or Forest Preserve, Cape obstruct these big waves to get to the beach. Here was the fishermen make the place to store boats

The words Pangandaran came from two words, Pangan which means "food" and Daran which means entrants. So to the second word is put together into Pangandaran which means the food source of migrants. But the village elders gave earlier Pangandaran as Penanjung village as well as the region has a Tanjung and there are also sacred places.

At first Pananjung is one of the central royal contemporaries Pangauban Galuh kingdom centered in Putrapinggan XIV century AD. After the advent of the kingdom Pajajaranin Pakuan Bogor, king Name Perabu Anggalarang one of which still descendants Perabu Haur Kuning, the first King of Galuh Pagauban empire, however Pananjung very unfortunate kingdom is destroyed attacked by the pirates (Bajo) because of the royal party was not willing to sell the produce to them, Because at that time the situation of the people in Pananjung being in a state of crop failure (drought).

In 1922 the Dutch colonial times by the president Priangan Y. Everen Pananjung used as new park at the time of releasing one tail bull, three cows and several deer. Because Pananjung particularly a diversity of wildlife and rare plant species, for the continuity of habitat then in 1934

3. Potential and Management of Pangandaran Beach Attractions.

Tourism Potential Pangandaran Beach Pangandaran Beach is one of the attractions in the district of Pangandaran, even Pangandaran Beach is also a mainstay attractions of West Java province, a lot of potential that needs to be developed in addition to the beach to be developed as historical tourism, cultural tourism, marine tourism, travel water, and natural park that visitors can see the animals protected and rare plants.

B. Respondents Characteristic of Pangandaran Beach

Respondents in this research are the visitors who were in the location of Pangandaran Beach. In this research, the sampling method is used random sampling technique. Primary data were collected starting in December 2017 to January 2017. The number of respondents that taken in this research are 100 respondents, and the characteristics of the respondents in this research can be explained as follows:

Multicoloniearity Test

Heteroscedasticity Test

Coefficientsa

Model

Unstandardized Coefficients

Standardi zed Coefficien

ts

T Sig.

Collinearity Statistics

B Std. Error Beta Tolerance VIF

1 (Constant) -12897.978 6668.543 -1.934 .056

Age (X1) 541.319 121.549 .393 4.453 .000 .717 1.395

Education (X2) 228.016 517.340 .035 .441 .660 .860 1.163

Income Level (X3) .001 .000 .242 2.610 .011 .647 1.546

The total of vacation fee

(X4) .019 .009 .176 2.010 .047 .725 1.379

Visit frequency (X5) 2223.403 722.497 .236 3.077 .003 .948 1.055

Coefficientsa

Unstandardized Coefficients

Standardized Coefficients

T Sig.

B Std. Error Beta

2140.671 3180.983 .673 .503

113.776 57.981 .219 1.962 .053

-202.075 246.778 -.084 -.819 .415

.000 .000 .143 1.215 .227

.006 .004 .160 1.437 .154

347.170 344.640 .098 1.007 .316

a. Dependent Variable: ABS_RES

NPar Tests (Uji Normalitas Residual)

One-Sample Kolmogorov-Smirnov Test

Unstandardized Residual

N 100

Normal Parametersa Mean .0000000

Std. Deviation 1.09731914E4

Most Extreme Differences Absolute .091

Positive .089

Negative -.091

Kolmogorov-Smirnov Z .909

Asymp. Sig. (2-tailed) .381

Correlations

WTP (Y) Age (X1) Education (X2)

Income Level (X3)

The total of vacation fee (X4) Visit frequency (X5) Pearson Correlation

WTP (Y) _{1.000 .585 .167 .510 .325 .253}

Age (X1) .585 1.000 .112 .510 .194 .130

Education (X2) .167 .112 1.000 .129 .369 -.040 Income Level (X3) .510 .510 .129 1.000 .394 -.025 The total of vacation fee

(X4) .325 .194 .369 .394 1.000 -.152

Visit frequency (X5) .253 .130 -.040 -.025 -.152 1.000 Sig. (1-tailed) WTP (Y) _{. .000 .049 .000 .000 .006}

Age (X1) .000 . .133 .000 .027 .098

Education (X2) .049 .133 . .100 .000 .346

Income Level (X3) .000 .000 .100 . .000 .402 The total of vacation fee

(X4) .000 .027 .000 .000 . .066

Visit frequency (X5) .006 .098 .346 .402 .066 .

N WTP (Y) _{100 100 100 100 100 100}

Age (X1) 100 100 100 100 100 100

Education (X2) 100 100 100 100 100 100

Income Level (X3) 100 100 100 100 100 100

The total of vacation fee

(X4) 100 100 100 100 100 100

Coefficientsa

Model

Unstandardized Coefficients

Standardized Coefficients

t Sig.

Collinearity Statistics

B Std. Error Beta Tolerance VIF

1 (Constant) _{-12897.978 6668.543 -1.934 .056}

Age (X1) 541.319 121.549 .393 4.453 .000 .717 1.395

Education (X2) 228.016 517.340 .035 .441 .660 .860 1.163 Income Level (X3) .001 .000 .242 2.610 .011 .647 1.546 The total of vacation fee (X4) .019 .009 .176 2.010 .047 .725 1.379 Visit frequency (X5) 2223.403 722.497 .236 3.077 .003 .948 1.055

2 (Constant) -10574.634 4066.998 -2.600 .011

Age (X1) 544.508 120.818 .395 4.507 .000 .719 1.390

Income Level (X3) .001 .000 .240 2.604 .011 .648 1.543 The total of vacation fee (X4) .020 .009 .190 2.317 .023 .825 1.213 Visit frequency (X5) 2225.870 719.405 .236 3.094 .003 .948 1.054 a. Dependent Variable: WTP (Y)

Excluded Variablesb

Model Beta In t Sig. Partial Correlation

Collinearity Statistics

Tolerance VIF

Minimum Tolerance

2 Education (X2) .035a .441 .660 .045 .860 1.163 .647

a. Predictors in the Model: (Constant), Visit frequency (X5), Income Level (X3), The total of vacation fee (X4), Age (X1)