Responsibility of stakeholdcrs in Minimizing Leakage of Tourism Industry (A Case of Accommodation in Balir lndonesia).
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DAFTARISII
I
HALAMAN JI]DI]L
lll
KATA PENGANTAR
SUSIINAI\ ACARA
DAFTARISI
Michel Picard
Blinese ldentity: from Kebalian to Aieg BaIi
1-3
Vdronique Mondou andNi Made Rai Erawati
Changes in Air Travel in Southeas Asia:the Emergence
of Low-Cosf
,l-5
tridias-
Sylvine Pickel-Chevalier and Asep Parantika
Bati, in The Confluence of The Domestic and Western
Tourism Spaces and Tourst Practices Shared?
Glr
Philippe Violier
t2-16
The Tount SPace in Indonesia
I Gede Made Karma
The Integrated Resenation Information systems of Travel
AgencY ComPanY-
I Ketut Gde Juli Suarbawaand M. Yusuf
Gambelan as cultural Products in support Tourism Industrl
in Bali
M. Yusuf and Made Anom Santiana
Health and Safety Aspects on Agritourism in
Indonesia
t7-26
27-34
3$41
Gst. Ayu Vida Mastrika Giri, Kadek Cahya Dewi, and
Ni G.A.P. Harry SaPtarini
Music Reccomendation Based On Rhythm Pattern
Using Self Organizing Map for Music Selections in
42-52
Restauranfs
A.A.Harmini, Ni Nyoman Triyuni, and I.A'K'Werdika Damayanti
Enclaved Tourism: An Accurate Alternative in Tonrism
Management (Study At Nusa Lembongan, Klungkung
Regency, Bali Province)
53-60
Proceeding Tourism in Indonesia
rvii
Ardika" D'
Kristinayanti, lY.S.' Mahaputr*, G.' Sudiajene' L' ang
fyp":.."tpttoiory of Archifecture Regarding
#;"gy
in
Tourism Development
sdiEhd -..-
Lilik Sudiajeng
Made Mudhin4 Wayan Suparta' and Ma{g Sudiarsa
of Tuksd Badung to Develop Flood
Integrated-Ma"agement
CoJttof System and Tourist Destination through Macro
Ergonomics SHIP APProach
Parwita'
I Gst Agung Istri Mas Pertiwi, I Gst' Lanang Made
I Gst Ayu P-utu Dewi Paramita, and I Made Tapayasa
Water
Technical Study of The Penet River Utilization for
Tourism Activities-Nyoman MastianiNadra, I Ketut Sadia, and Solihin
Ciim" And Security Systems AtVilla Indnstries In Badung
Regency, Bali
61-7t
72-79
8{t-86
vt-93
-.-.._-
I Putu Astawa and I WaYan Wirga
Ubud Gets The Customers an Ethnomethodolog5r
Approach
I Ketut Sutama,I Ketut Sardiana and I Gede Mudana
Practised by
Spiritual Tourismin Bali: How lt's Understood and
Tourism Stakeholders
Ni Nyoman Triyrni, I Wayan Jendra and Ni Ketut Bagiastuti
The rt.eadincss of Bali as Spiritual Tourism Destination
I Gusti Made Wendri, Ni Putu Somawati and I Nyoman Kanca
Gunung Kawi, Tirta Empul, and Goa 9?jttt Temple
Spiritual
ComplJxes as Potential Attractions for New-Ager
Tourism
I Ketut Widana and Ni Wayan Sadiyani
Bali
Contribution of Transitllotel to the Improvement of
Tourism
94-103
10+112
1r3-119
120-r30
131-137
Kt. Wiwin Andayani, I Wayan Aryaand Lilik Sudialeng
The Impact Of Tourism On Ground Water Levels
138-r48
MichelPicard
Cultural Tourism and Touristic Culture Revisited
149-l5l
Sylvine Pickel Chevalierand Asep Parantika
Th" Iodoo"sian TouristPractices of The Beach' Befween
Transfer an Invention (Case Study of The Beach of Bali'
Yogyakarta, Jakarta and Manado)
xvlii Proceeding Tourism in lndonesia
------
152-155
I Nyoman Darma Putra
Localizing the Global and Globalizing the Local: opportunities
and Challenges in Bali Island Tourism l)evelopmelf
tsGr64
I Nyoman Sunarta
Local Community Participation in The Development of
-Ecological Tourism in West Bali National Park
t6rl72
I Komang Gde Bendesa
Turmoil Beneath The Surface: The Economic Side of
Bali Tourism
173-180
I Gede Sutarya
Astrology Tourism: From Commodification to A Local Cultural
- -- ---APPreciation --.._.-.
180-188
Jaya Pramono
IssuesrProcess, and Benefits of Environmental management
at The Star Rated Hotel in Bali
189-203
t
NararyaNarottamu
Spiriiual Tourism: Case Study of Foreigners Participation in the
Pitrayajfia Ceremony in Pekraman Muncan Village, Selat'
Karangasem, Bali
2A+2$
Agung Suryawan Wiranatha and I Gusti Ayu Oka Suryawardani
Responsibility of stakeholdcrs in Minimizing Leakage of Tourism
Industry (A Case of Accommodation in Balir lndonesia)
2tL2l9
Putu Dana Pariawan Salain and I Putu EkaNila. Kencana
The Relationship Between Tourist's Perception and Quality
Destination (Case Study in Sanur, Bali)
of
I Gusti Bagus Rai Utama and Ni Made EkaMahadewi
The Contradiction of Managing Tourism Objects Based on Culture
220-239
and Its Heritage
240-248
Ni Gusti Ayu Dewi Paramita Arisandi
The Power of film in Creating a Positive Destination Image
to Induce the Influx of tourist
249-254
I Nyoman Madiun
Hotel School Students as Consultants: (An Approach to
Training in Small llotels which may be Applied in Bali)
25s-259
I Wayan Suardana
Evaluation of Sustainable Development of Tourism in Bali -------
260-272
Proceeding Tourism in
Indontsiu \r\
I
I Wayan
I Nyoman Sudiarta, I Nyoman Astina I Made Patera and
Suardana
Cruise Tourism: Creating Job Opportunity for
The Balinese People
273-281
Adrian Vickers
The Image of Ba
282-285
Ni Made Ernawati
Australia
School of Business, Edith Cowan University, Western
Producer.marketorientationofcommunitybasedtourism(cBT)
products for sustainable tourism: A case study in Bali' Indonesia
28G291
Harold Richins, Ph.D. Dean and Professor' John Hull' Ph'D'
An Evaluation of Pro-Poor Tourism Case Intewentions in
Communities in Southeast Asia: Developing an Adapted
Typology
Adrian Vickers
The Image of Indonesia Adrian Vickers
Sidhi Turker
Voluntourism
296-299
As An Alternative Tourism In
Supporting
Sustainable Tourlsm Development In Bali
Ni Luh Putu Agustini KartaA Gusti Kade
292-295
300-306
Sutawab,
I Ketut Putra Suarthanac
Challengs and Barriers; Community Based Tourism In Trunyan
Village, Kintamani (A Study on the Village of Trunyan)-----
301-317
Saroha Manullang
Tourist Appraiiat On Service Quality Ngurah Rai' Bali
International AirPortPutu SaroyiniPiartrini, Faculty of Economics and Business'
University of UdaYana
al
Relationship Among Individual Religiosity, Motiv atio n' Spi ritu
Tourism
Spiritual
Toward
Health Experiences And Attitude
Yoga
Case study of those who were involved in meditation and
class
xx
----
ProceedingToarism in Indonesia
318-324
325-335
RaSPONSIBILITYoFSTAKEHOLDERSINMINIMIZING
LEAKAGE OF TOURISM INDUSTRY
(A Case of Accommodation in Bali,Indonesia)
Agung Suryawan Wiranatha", I Gusti Ayu Oka Suryawardanib
aDoctorateProgtaminTourism,{JdryanaUnitersity,Denpasar-Indonesia
E-mail : bal itru\(Atahoo. com
bstudent at Doctorate Program in Toudsrtr, udayana university, Denpasar-Indonesia
E-mail : gungdani@gnail. com
STRACT
Prwince of Indonesia
Tourism has become the leading economic sector in Bali
be fully beneficial for
to
not been cotwinced
However, the economic i*locts of rouriim have
that acanrs when the industry
Balinese community. one'of the-reasons is tourism leakage
in Bali' This study was
industry
tourism
i*porr, both prdtcts and services to support
leakage' and to
tourism
minimizing
in
rale
undertaken to examine lourism stakeholders'
the tourism
minimizing
in
stakeholders
the
by
i"outop strateg) that c; be implemented
Modelling
Structural
Interpretative
uccommodation.sectorleakage in Bali, p*ti"oiorty ot
wos
survql
.^ uni"rtoken ti gain the stakeholders' perceptioq meanwhile
iiMr'
'undirtaken
to collect information ftom hoteliers'
the tourism
touris* stakeholders are willing to participate in minimizing
general,
In
as long as
sectors,
accommodalion
in the
leakage fi, reducing the import components used
local
severul
ure
There
ptoducX.
local prodttcts are ayailabte to suistitute the importgd
and
processed
mostly
products,
foods
imported
the
ir"i.,i"tt can be used to substitute stakeholderS,
local
cowume
ta
willing
also
are
lowists
horticultural pro&rcts. Similar to the
tieir stay in Bal!. lt il.susse:ted that several important strategies that gan
;;;;"-;;;d*t"g
'ii i*pt"*"w"i by involving stakeholderi. The irwotvement of stakeholders in the strategic
au'oteness,
pi""ii"S pro"^i through participatory apyroach gives better understanding
in
Bali'
'and
sector
resf,insibility to *iiiii"n towism leaiage of accommodation
Keywords
T o u r isttt, Le a knge, A c c ommo dsti on,
S ts k eh
ol d er' Putticipato ry'
restaurants) have increased from
touris,
driving
Bali's
mostly
economy has been developed
through tourism, it has resulted in
changing in economic sectors of Bali
Province from agricultural sector to
service sector- The contribution of
development of Bali Province. As
i?ffi:fbTf:f#'T:'.'":1""',*
6l-2lYo in 1969 to
216 Proceeding Tourism in Indonesia
9.52%n
:fltll'itlf1,f,T.1L?;tY:Hllihti:
handicraft
*iffffffijtr"$,a,:tH*"fi,";
rorce in the economic
dramatically from
ali
l6'84%in20l2 while the conhibution of
service sector (trade, hotels, and
l.INTRODUCTION
1.1 Background
Bari is one or popurar worrd
B
industry,-etc.) has nuctuated
H','*"ifitr:r?'"i#;t"if
fii?ltfi:
En"n though the contribution of
agricultural sector has decreased,
it still
his a crucial role in Bali's economy, as
sowce ofjobs and income, raw materials
industry, and foreign exchange
*rningr, aJ und tourist athactions [3]
for
andtai
of stay, it seems that
tourism in Bali will keep being promising
Tourism in Bali has been developed
significantly. The number of direct
arrivals of foreign visitors to Bali
increased dramatically from 23,340
visitors in 1970 to reach 3.278.598
visitors in 2013 [5]. However, &erewere
several downturns in number of foreign
and ttre length
visitors visiting Bali due to Bali bombings
on l2th October 2002 and in lst October
2005. The Bali bombs had the greatest
impact on number of foreign visitors to
Tourism stimulates development of other
sectors which has implications on
Bali than other crisis in the history of
tourism in Bali t6l. Efforts were
undertaken by the gov€mm€nt to
convince foreign visitors to vhitBali after
the Bali bombing tragedy, it was resulted
in gradual increases of foreign visitor
direct arrivals since year 2007. During
the period of2007 up to 2013, the average
growth rate of direct arrivals of foreign
visitors to Bali was 14.9 % per year [5].
As a world-class tourist destination, Bali
is supported by the availability ofvarious
tourism facilities within the rcgion- There
were 2,212 units accommodation with
total of 46,025 rooms registered in Bali in
20 12. These included I 56 units star-rated
hotel (20,269 rooms), 1,031 units ofNon
star-rated hotels (21,114 rooms), and
1,025 unit homestays (4,642 rooms).
However,
Bali Hotel and
Restaurant
Association (PHRI Bali) accounted 3,346
units accommodation (62;407 rooms) in
Bali in 2011, that was consisted of 165
units star-rated hotel (22,161 rooms),
,371 units of Non star-rated hotels
(28,585 rooms). 1,760 unit homestays
(9 ,282 rooms), | 5 condotels (l,793
I
roonrs)- and i5 units rental house (586
rooms). lt could be more accommodation
available in Bali than the above numbers
as many- nrore accommodations
unregistered or operate illegally in Bali in
year 20 | 3. In addition. the average tourist
expenditure and length of stay had also
increased. The average expendifire of
foreign rourisr per person per day
increased from IJSS 13790 in 2fi)9 to
tjSS I 58 87 in 201 I The length ofstayof
loreign tourist-s also extended from 8,75
da,vs in 2009 to 9.27 days in 20ll [5].
Regarding the growth of number of
iourists. thc averase tourist expenditure,
as a source of household income for
Balinese inhabitanu, conffibute to the
national exchange rate as well as inrease
the number
of job oppornrnities.
increasing business and job opportunities.
Income earned from visitors will become
a source for local income. The amount of
local income generated per unit ofvisitor
expenditwe will become multiplier for
regional's economy through backrnard
and forward linkages [7]. Even though
tourism brings about development for
Bali's economy for many yeani, hocrcver,
the
economic impacts
of
tourism
development has not been convinced to be
fully beneficial for Balinese communigr
[8] and [9]. One ofthe reasons could be
tourism leakagc that occurs when the
industy imports both consumption and
resources to support tourism industry in
Bali. In eonomic terms, leakage is
defiped as losscs from the national
income flow which have been generated
during the tansition from
the
local/national consumption income cycle
to the spending chain [0] and [ll].
Imports of consumption and resources to
support tourism industry are the major a
leakage that limits the positive impact of
expenditure on a destination
[2]. In Bali,
tourism facilities such as
big
big travel agents
have been mostly owned by investors
from outside ' Bali (national 0r
intemational investors). In these cases,
tle economic benefits of tourism is likely
to go mainly outside Bali or other
accommodations and
countries,
with a small
proportion
trickling down to the local Balinese
community [8]. The amount of import
leakage of intemational standard hotels in
Bali was estimated about 407o (based
upon Nusa Dua hoject) and the import
leakage of small oconomy standard hotels
n 1977 ll3l.
Meanwhile. aresearch on tourism leakage
was assumed about 20%
based on micro analysis of
accommodation sector in Bali found that
ProceedingTourism in Indonesia 217
Much of the income &om
tourism leakage of accommodation sector
in Bali in year 20l2werc 8.87o at nonstar
rated hotJb, l2-0Yn at 1,2&3 star-rated
hotels, 22.7 % at 4&5 star-rated non-chain
hotels, and 5 1 .0% ?t 4&5 star-rated chain
hotels. The average leakage ofall types
hotels was I 8.8%'hnpublished" [14]'
of
The amount of tourism leakage from
accommodation sector in Bali is
considerably higlr particularly at 4&5
star-rated hotels. Regarding the above
issues, there is a need to undertake any
effo*s to reduce tourism leakage of
accommodation in Bali therefore the
economic benefits of tourism in Bali can
Balinese
community' This study was undertaken to
examine ihe responsibility of tourism
stakeholders . in minimizing tourism
leakage, and to develop stratery that c1n
be implemented by the stakeholders in
minimizing the tourism leakage in Bali,
particularly on accornmodation sector'
This study involved obtaining perceptions
and points ofview of hoteliers on how to
minimize tourism leakage. The results of
this research are expected to be useful and
give better understanding, awareness'
iesponsibility and gaining positive
."rponr"t from government and
stakeholders to imProve economlc
impacts of tourism in order to achieve
sustainable tourism in Bali-
Minimizing Leakage for
Optimizing Benefits
Leakage
is one
causes
of unbalanced
."ono*i" distributions and limit
the
positive impacts of tourists' expenditures
on a destination [15]. According to
UNEP, there are two main waYs of
leakage, namelY imPort leakage and
export leakage. Import leakage occws^
when tourists demand standards of
equipment. food. and other products
cannot be supplied by the host country,
especially
in
less-developed countrtes'
218 Proceeding Tourism in
trndonesia
overseas
hotels take their profits back
to their
counfry of origin [16]- Furthernore'
causes of leakage are namely: (i) import
goods and services for consumption or
Lvestment in tourism; (ii) payments for
foreign tour operators and agencies; (iii)
payment to foreigrers for management
and royalties; (iv) profits which
"ror""t
are paid to foreign stakeholders; (v)
interist paid for external credits in the
tourism lector; (vi) exchange costs for
tourism investnent; (vii) advertising in
international marketing and promotion
expenditures; (viii) commissions paid to
foieign banks, credit cards and for agency
used by tourists; (ix) savings of foreign
employees; (x) education abroad and
uaining costs of tourism employees; (xi)
saving-'of employers, employees, and
entrepreneurs; and (xii) taxes paid to
There are also
as the physical
such
leakages,
govemment.
Iituitibl"'
[l?]-
towism, the dePletion or
a country's in&astucture'
of
destruction
environments and
habitats,
nahrral
effects
of
as well as cultural heritage have
a leakage effect on tourism receipts [18]'
historical
The average import-related leakage for
most developing countries was befween
40% and 50% ofgross tourism earnings
for small economies, and benrreen l07o
and 20% for most advanced and
diversified economies [16]' Meanwhile,
2. LITERATURE REVIEW
2.1
ixport leakage arises when
investors who finance the resorts and
1.2 Research Objective
be gained oPtimallY bY
tourist
expenditures leaves the country ag{n t9
pay for these imporb. On the other hand,
UN\I/TO estimated that on average of
55% ofgross tourism revenue received by
developing countries leaks out' but in
some cases, leakage has reached as high
as 90Vo I I 9]. Leakage tends to be hig[est
when the local destination economy is
weak and lack of the quantity and quality
of inputs required by the tourism industry
t20]. The amount of leakage depends
largely on how the tourist receipts are re-
spent within the economy' The more
riceipts re-spent within the
local
so that the smaller the leakage
""ooooty,
and the higher the multiplier will be' ln
the case of developing countries at their
initial stage of tourism development,
financial, struchrral and operational
supports from foreign countries are
importanL Therefore, tourism leakage is
thus unavoidable I l].
Reduce leakage is important in order to
increase economic benefits of tourism in
a destination. To
optimize economic
of tourism,
leakage should be
benefits
minimized [21]. Leakage can be
minimized by developing stronger links
between tourism and ottrer sectors in the
local economy. Moreover, govemment
policy needs to
strengthening
the
concentrate on
economic linkages
between tourism and agriculhre to
support import substitution [20]. A study
by Lacher and Nepal found that by using
precise sfategy based on the authenticity
of a
destination, therefore economic
be reduced, improve
economic development, balance
leakage can
in all
sectors and improve
in tourism
development I22l.ln addition, it should
be focused in usingmore local employees
distribution
community participation
to
reduce leakage. Even thouglr the
capability
of local
employees in
developing countries are generally low in
terms of education, work experiences and
the ability in communicate, therefore,
have experiences in development of
tourism [24]. Thc above defmition
presents a very broad rmderstanding of a
stakeholders and it allows almost anyone
to be considered a stakeholders [26] and
[2?]. Narrowing the above definition has
been made by Clar*son by stating that
stakeholders are risk-bearers, "without the
element of risk there is no stake". He
devided stakeholden into two groups,
namely: (i) primary stakeholders, who are
essential to ttre survival and wellbeing of
the organization and who have or claim
ownership rights or interests in a
corporation and its activities, either for
or future; and (ii)
secondary
organization
the
stakeholden, with whom
present
interacts
but are not involve in
lhe
transaction with organisation and who are
not essential to the suruival of fte
organization [28].
3. RESEARCH METHODS
3.1
Research Location' Period and
Respondent
This study involved two types ofresearch,
nainely research in gaining points ofview
ofhotel managers on tourism leakage, and
on gaining the stakeholden'
points of view on responsibility of
stakeholden in minimizing tourism
research
tourism industry use educated employees
for special position in management [23].
leakage. The research in gaining points of
view of hotel managers on tourism
leakage was undertaken at four main
2.2 Stakeholders' Participation
tourism destinations in Bali Province, i.e.
Kuta, Nusa Dua, Sanur and Ubud during
Stakeholder is defined as "Any group or
individual who can afect or is afected by
the achievemenl of the organization's
objectives" 124f. Stakeholders can be
individual, groups or organizations which
influence decision making processes,
develop strategies to facilitate the
implementation of the results of decision,
understand the policy context and
to
th€ feasibiliry of furure policy
directions [25J. Regarding t]re above
assess
definition- stakeholders ilr tourism consist
of tourists- government. community,
owners of tlre accommodations or
services in tourisnr industries. association
in tourism industries and experts who
period of April to June 2013. Three
clusters ofhotels were chosen, namely: (i)
Non-star rated hotels; (ii) 1,2&3 Starrated hotels; and (iii) 4&5 Star-rated
hotels. Seventy nine of hotel managers
were interviewed regarding their points of
view on imported and local producb used
in their hotel. They represented of l8% of
all hotels in these area. Meanwhile, the
research on gaining the stakeholders'
points of view on responsibility of
stakeholders in minimizing tourism
leakage was undertaken by interviewing 9
experts dwing period
October
2013.
of
Sepember to
Experts were selected
purposively who understand the strategt
Proceeding Tourism in Indonesia 219
been done, however, many things need to
be addressed --.". Demand for local fruits
has increased not only to fulfill demand
(4) Program Constraints, (5) Possible
Changes in the prosaln, and (6)
Involvement of Agencies in the poliry.
for tourists, but also for making offering
by Balinese community. In other hand,
Each element consists
there was insufficient supply tc fuifill the
demand. So that, imported fruits cannot
be avoided. He realized that to minimize
cooperation between
government, industry and farmer is
(Personal
needed
Communication, 4th April 20 l3). Sweral
efforts have been undertaken bY
leakage,
crucially
of Bali province to protect
and develop local products especially
local fruits. Empowerment of local
products has been undertaken by Bali
government
of
sub-element
which has contexhral relationships among
each other
in
accordance
to
the
minimization sfiatery for tourism leakage
in accommodation sector in Bali. In this
par! among the above elements, an
example ofthe results of ISM is presented
for'?rogram Needs".
of
Program Needs for
of tornism leakage from
accommodation sector in Bali consists of
Element
minimization
I
0 sub-elements, namelSl:
l.
2.
3.
Qualifiedhumanresources (El)
Good management in agribusiness,
livestoclg fisheries and handicraft
industry (E2)
Participation of farmers, cattlemen,
Ketut Wija, one of key Bali Government's
offrcials said that this regulation requires
involvement oftourism industy and other
related industy to give chance for local
producls to be promoted to and served for
tourists. It was realised that the quality of
local products was lower than imported
products. So that, some efforts have been
improve the quantity,
undertaken
quality and continuity of local products.
He also revealed that local comrnunity
4.
fishermen and craflsmen (83)
Qualrty, quantigr, continuity of local
should participate
in developing fruit
farms in Bali that can produce fruits
similar to imported fruits [45]. The
tourism sector could also be enhanced
through stronger linkages with regional
handicraft producers and artisans.
Building synergies with such producers
Program
among the sub-elements
Needs by using ISM method resulted in
could enable them to become significant
suppliers of interior desigl elements, such
Driver Power @P) and Dependence (D),
government through "Regulation of Bali
312012 regarding
Government
No.
Empowermenl Protection and
Development of Small-scale Industry".
to
as handicrafu, paintings, and other
furniture. This will be able to reduce
leakage significantly [aa] and [a6].
products (S4)
Substihr0e products (85)
5.
6.
.
7.
8.
9-
10.
Good quality of seed, livestock and
rawmaterials @Q
Funding for invesfrnent @7)
Business Partnership (88)
Government's role @9)
Coordination between stakeholders
(810)
Analysis of the contextual relationships
of
reachability maffix (RM) as shown in
table 2. Based on the RM in table 2, the
key sub-element of Program Needs for
minimization of tourism leakage is
Government's role @9). According to
this sub-element Government's role (E9)
located
fourttr mne
is
at the
(Independent), and other three subelements, namely: Good quality of seed,
livestock andraw materials @6); Quality,
4.2 Results of Interpretative Structural
Modelling (ISM)
As mentioned in the research method tlrat
minimization
of
tourism leakage in
accommodation sector in Bali consists of
six elements, namely: (l) Program Goals,
(2) Program Needs, (3) Atrected Sectors,
quantity, continuity of local products
@4); and Substitute products @5) are
located at the second zone (Dependent),
as shown in figure l. However, there are
6 other sub-elements located at the third
zone (Linkagel namely: Qualified human
resources (El); Good management in
agribusiness, livestoclg fisheries and
Proceeding Tburism in lnilonesia 223
for minimization of tourism leakage on
accommodation sector in Bali. The
experts were representatives of tourism
stakeholders in Bali, namelY: Bali
Tourism Government official (l), tourism
industry (3), communlty (l), professional
(2), and academia (2).
3.2 Dat'a AnalYsis
Qualitative analysis was carried out
rigarding gaining points of view of
hotel's managers on reasons in choosing
imported produc8, points ofview on local
ptoducts, as well as willingness the
irotel's managers in reducing imported
products and giving the priority on local
products. Meanwhile, Interpretative
Structural Modeling (ISM) was
undertaken to analyse responsibility of
stakeholders
in
minimizing tourism
leakage. ISM is an interactive learning
process which involving
Table
I: Elements
inter-
relationship between variables through
the use of experts' ideag opinion and
experience based on brain storming
management techniques in developing the
contextual relationstrip among the
variables. For this pu{pose, experts
should be well conversant with the
problem under consideration [29]- In this
research, six elements were used to
develop strtegy in minimization of
tourism leakage in accommodation in
Bali. The six elements are as follow: (i)
Program goals (G), (ii) Program needs
(|0, (iir) Affected community (T)' (iv)
Program constains (C)' (v) Possible
changes in the prognm (M), and (vi)
Involvement of agencies in the policy (A)'
Each element consists
of
sub-elements
which has contextual relationship each
other in accordance with minimization
program
for
tourism leakage in
Bali (refer to
accommodation sector in
table l).
and contextual relalionship between elements in minimaing lourism
leakageon accommodation seclor in Bali
Elements
Contextual RelationshiP
l.
Program goals (Gi)
Gi contribute in achieving
2.
Program needs (Nr)
Ni supports\
3. Affected
4.
sectors (T;)
Program constrains (Ci)
5. Possible changes in the program (Mi)
6. lnvolvement of agencies in policy (Ai)
ij = t,2,3... (ii s lo)
Ti its role influenccs
Q
T.;
Ci causes Cj
M1 results in
Mj
Ai its role supPorts A;
Source: modified from [30].
relationship beween rwo
and j). Each alphabet has
direction
element on each element through brain
storming procels with the experts. In
conducting ISM research, experts gave
meaning as outlined below:
assessment of
contextual relationship between each sub
their opinion regarding the level of
contextual relationship between subelements by filling matrix of the
contextual relationship with the alphabet
as follow: V, A, X or O. The following
four symbols are used to denote the
22A
of
Initial process begins with
Pro ceeding Tourism
in Indonesia
factors
(i
the relation from factor i to
factor j (factor i will influence factor
V for
i)
A for
the relation from factor
j
factor i (factor i will be influenced
factor
ir>
b-v-
j).
X for both direction relations (factors
iand
j will
influence each other)
0
for no relation between the factors
(baniem i andj are unrelated).
hotels. Perception and attitude influence
people's behavior [33], [34] and [35].
Based on the contextual relationships, the
SSIM (Stuctural Self-Interaction Matrix)
[31]. Computer
program "Ever Vision Software, dDSS
Ver. 1.0.01, developed by Roni Wijaya
was used in analysing the ISM model.
was developed [29] and
Tlrc results suggest that accommodation
managers should change their habits in
order to reduce current tourism leakage
from accommodation sector, eventhough,
a slight different point of view was given
by non-star rated hotels, because non-star
little imported
of views of
4. RESULTS AND DISCUSSION
rated hotels used very
4.1 Points of View of llotel Managers
and Willingness in Reducing Tourism
hotel manag€rs in reducing tourism
leakage, most of hotel managers are
willing to reduce the use of imported
products and give the priority to local
products as long as there are local
products and/or substitute for imported
products that can fulfill the qualtty
Leakage
The results show that most of hotel
managers from star-rated chain hotels said
that imported food and beverages have
higher quality than local food and
beverages, such as imported meat, dairy
products and alcoholic beverages. They
also firmly explained that star-rated chain
hotels need high quality of imported food,
alcoholic beverages, utensils and other
fulfill the quality
standard of chain hotels. Hov/ever,
foreign tourists significant$ looked for
equipment in order to
products. Regarding point
standard requirements. However, the
recent situation in Bali shows that supply
of most local foods do not fulfill the
quallty standard requirement in terms of
quality, quantity and continuity of the
products. Although tourism leakage could
local of Balinese producB, namely:
fisheries products, " fruits, vegetables,
not be avoided, however it could be
reduced or minimized. Thcre is
opportunity in reducing tourism leakage
thr6ugh reducing the use of imported
room decoration, furniture, building style,
and Balinese architecture'tnpublished"
products. The government policy should
enoourage the development of befier
[32]. Points ofview ofhotel managers on
the importance of imported products have
qualrty of agricultural products, inctuding
fruits, livestock and wines in Bali. Some
firnding techniques should be proposed to
assist local producers.
not met the tourists' need on
tocal
products. The managertendsto behave by
giving too much respect to the quality of
imported products in comparison to the
Furthermore, the reasons
leakage
in
for
tourism
local products- Therefore, they prefer to
surrounding tourism
destinations are multifaceted. Some of
the main reasons are the lack of local
of hotels' managers toward
tourists' need lead to incorrect decision
and actions. Such behavior of hotel
managers brought about dependence on
ownership, local employment, and local
capital, as well as inability to link tourism
to the local economy. Local ownership is
crucial to be developed as the owners of
major tourism businesses. This will keep
a majority ofthe profits in the destination
region. In addition, tourism leakage can
be reduce by employing more locals and
buying more locally produced goods as
well as creating strong linkages to local
serye imported products to foreign
tourists. This incorrect perception and
attitude
imported products
demand. This led
leakage
in Bali.
to fulfill
tourists'
increase tourism
Regarding different
to
perception between hotel managers and
foreign tourist who visited Bali, there is a
need to encourage hotel managers to
change their perception and attitude in
order to change their behavior, especially
for them who work in the Star-rated chain
industries [36], I37l and 1381.
Unfornrnately, local entrepreneurs
frequently lack of capital, education and
experience [39]. As a result, foreign
Proceeding Tourism in lndonesia 221
by the
die
outsiders who own the firms-
{Personal Communication, l2th
Made Suryawan
as
(a
Professional in
tourism) said:
local entrepreneurs typically do nothave
the experience or education to market
" ...
products to foreigners, and their ability to
educate themselves is often limited [40].
industry and communities are urgently
proper education, exPeriences
ianguage skills. Therefore, large chain
firms frequently import more skilled
labour from urban areas to fill these
and
positions [41] and [a2]. Many studies
found that the majority of locals worked
as unskilled labour and earned fewer
wage, while expatriates we re employed
in management positions and eamedvery
high wages [37].
industry and local economy. Tourist
destinations that do not promote high
multipliers and high levcl of linkages will
not produce substantial economic
development. So that, linkages between
tourism industry and local economy are
very important which lead to increase the
multiplier effects IS], [43] and [44]. It is
crucial to increase the amount of locally
produced goods which can increase
multiplier effect- To maximize the
of
tourism,
it
is
and
gov€rnment'
needed. They must understand in depfit
about leakage, must se€ that we can get
more income by reducing leakage .-."- He
also said that there is a crucial need to
improve the quality of human resources
through better education.
He
also
emphasized that hotel association need to
Resource
irnprove
Development (HRD) division at each
hotel by working together to enhance
the Human
quality of human resources. Moreover,
hoteliers and government need to work
together to create and improve the quality
oftourism products, especially food and
requires such
beverage- This
improvement the quality
Another important aspect in reducing
leakage is linkages ..between tourism
economic impact
Integrated eommunication
coordination between
Local employment will also have a strong
effect on reducing tourism leakage [23].
However, local residents are often not
ideally suited for the jobs as they lack of
of agriculnral
products and livestock,
as well
as
increasing the supply of local wines and
liquors. There is also a need to
create
substih*e products for imported products
in order to firlfill tourist's demand. He
f,rmly said that government should
to produce agriculhral
products that meet the tourists' need
(Personal Communication, 30th April
20l3).
support farmers
Government also play an importantrole in
minimizing tourism leakage. However,
Head of Bali Governnrent Tourism
connections
Office, Ida Bagus Kade Subhiksu, said
that there is no regulation regarding
between tourism and local businesses
import restrictions of goods, such as food,
suggested that region should attempt to
increase the amount of
rather than depend on imported goods and
services [9]. Bagus Sudibya as one of
the representatives of tourism indusfy in
Bali supported the finding of the above
statement. He revealed that synergy
between tourism and agriculture is
crucially needed to keep tourism in Bali
sustained. He said:
" ... Tourism and agriculture cannot be
separated. It relates each other. Tourism
without agriculture will be paralyzed,
222
.."
May 2013).
Another person from tourism industry,
Management and marketing may also be
a major problem for local ownership
will
whereas agriculture without tourism
investors will dominate the owner of large
tourism firms, therefore profits are kept
Proceeding Tourism in Indonesia
beverages, furniture and other items.
Government of Bali Province has only
appealed to hot€liers to optimize the use
of local products such as fiuits and
vegetables. Problenr has emerged, that
the availabiliry of tropical fiuits cantrot
fulfill the demand due to seasonal itr
nature- He said " .-.We lose the
oppomrniry to suPPlY foods and
beverages to tourists due to inappropriate
quality ofthe local products. Efforts have
been done, however, many things need to
be addressed --.". Demand for local fruits
has increased not only to fulfill demand
(4) Program Constraints, (5) Possible
Changes in the prosaln, and (6)
Involvement of Agencies in the poliry.
for tourists, but also for making offering
by Balinese community. In other hand,
Each element consists
there was insufficient supply tc fuifill the
demand. So that, imported fruits cannot
be avoided. He realized that to minimize
cooperation between
government, industry and farmer is
(Personal
needed
Communication, 4th April 20 l3). Sweral
efforts have been undertaken bY
leakage,
crucially
of Bali province to protect
and develop local products especially
local fruits. Empowerment of local
products has been undertaken by Bali
government
of
sub-element
which has contexhral relationships among
each other
in
accordance
to
the
minimization sfiatery for tourism leakage
in accommodation sector in Bali. In this
par! among the above elements, an
example ofthe results of ISM is presented
for'?rogram Needs".
of
Program Needs for
of tornism leakage from
accommodation sector in Bali consists of
Element
minimization
I
0 sub-elements, namelSl:
l.
2.
3.
Qualifiedhumanresources (El)
Good management in agribusiness,
livestoclg fisheries and handicraft
industry (E2)
Participation of farmers, cattlemen,
Ketut Wija, one of key Bali Government's
offrcials said that this regulation requires
involvement oftourism industy and other
related industy to give chance for local
producls to be promoted to and served for
tourists. It was realised that the quality of
local products was lower than imported
products. So that, some efforts have been
improve the quantity,
undertaken
quality and continuity of local products.
He also revealed that local comrnunity
4.
fishermen and craflsmen (83)
Qualrty, quantigr, continuity of local
should participate
in developing fruit
farms in Bali that can produce fruits
similar to imported fruits [45]. The
tourism sector could also be enhanced
through stronger linkages with regional
handicraft producers and artisans.
Building synergies with such producers
Program
among the sub-elements
Needs by using ISM method resulted in
could enable them to become significant
suppliers of interior desigl elements, such
Driver Power @P) and Dependence (D),
government through "Regulation of Bali
312012 regarding
Government
No.
Empowermenl Protection and
Development of Small-scale Industry".
to
as handicrafu, paintings, and other
furniture. This will be able to reduce
leakage significantly [aa] and [a6].
products (S4)
Substihr0e products (85)
5.
6.
.
7.
8.
9-
10.
Good quality of seed, livestock and
rawmaterials @Q
Funding for invesfrnent @7)
Business Partnership (88)
Government's role @9)
Coordination between stakeholders
(810)
Analysis of the contextual relationships
of
reachability maffix (RM) as shown in
table 2. Based on the RM in table 2, the
key sub-element of Program Needs for
minimization of tourism leakage is
Government's role @9). According to
this sub-element Government's role (E9)
located
fourttr mne
is
at the
(Independent), and other three subelements, namely: Good quality of seed,
livestock andraw materials @6); Quality,
4.2 Results of Interpretative Structural
Modelling (ISM)
As mentioned in the research method tlrat
minimization
of
tourism leakage in
accommodation sector in Bali consists of
six elements, namely: (l) Program Goals,
(2) Program Needs, (3) Atrected Sectors,
quantity, continuity of local products
@4); and Substitute products @5) are
located at the second zone (Dependent),
as shown in figure l. However, there are
6 other sub-elements located at the third
zone (Linkagel namely: Qualified human
resources (El); Good management in
agribusiness, livestoclg fisheries and
Proceeding Tburism in lnilonesia 223
handicraft industy (82); Participation
of
farmers, cattlemen, fishermen and
craffsmen (83); Funding for inveslnent
(87); Business Parfitership (88); and
Coordination between stakeholders
(E10). This finding states that the sub-
element of Govenrment's role will have a
major driver power for Program Needs in
order to minimize tourism leakage from
accommodation sector in Bali. Therefore,
given
the
focus should
Government's role.
Table 2: Reachability matrix of Program Needs
No. El E'2
ET E9
El 1111111
r019
E2 1l11ll
l0l9
E3 ll
10
8400
00
85000010
0001
E600
00
E7
EStl
lllllll
1019
lllllll
llll0
E10
I
I
to
for minimization of tourism leakage
E5
E6
E7
I
111
l9
01100
02
I
I
0
01110
03
tlll1
l9
l0
E9
E3 E4
NlO DP
be
llllll
019
D7779
717
t0
8
'1
Et,EZFr, E ,E&[1O
lZntc2l
Figure
224
l:
Pro ceeding
Relationships between driver power (DP) and dependence (D) of sub-elements
Program Needs for minimizatim of tourism leakage
Tourism in Inilonesia
of
level have strong influences to the lower
level sub-elements. In this case, the subelement E9 has strong influence to ofher
subelements El,82, E3,EA,E5, E6, E7,
E8, andElO.
Furthermore, the structural hierarchy of
all sub-elements of Program Needs for
minimization of tourism leakage is
presented in figure 2. Based on this
figure, the sub-elements at the higlrcst
LEVEL I
E5
i
LEVEL2
-l
r-*-Et
LEVEL3
l----
E6-----l
a
EI E? E3 E? E8 EIO
LE1/EL{
l--
LE1'EL5
t
E
---l
Figure 2: Structural hierarchy of zub-elements of Program Needs for minimization
tourism leakage
of
of local products. This finding means that
The results of the other elements are
summarized as follows:
the constraints on intemational
Prograni Goals: the key sub-elements
that have strong influences to oher
of
local products; To develop agrioiltme,
elements are: To optimize the potential
livestock, fisheries and handicraft
industry; To empower community; To
reduse the use of imported prnducts for
tourists; and To increase export of local
products. Therefore, focus in Progrun
Goals is given to these key subelements
in order to minimize towism leakage.
Affected Sectors: the key sub-elements
trade
policy, and foreigr currencies fluchration
should be worked out in order to improve
the availability and quality of local
products.
Po$sible Chanses: the key sub-elements
(independent) are Policy on restriction of
foreigrr invesunenl and Public-private
parErership on invesfinent. The most
dcpendent sub+lement is to increase and
equalize income distribution. In this case,
policy on restriction of foreigrt
investrnent, and Public-Private
on invesfinent should be
(independent) are: Community leade4
partnership
Community organization;
utilized in order to increase and equalize
income distribution amongst community.
Involvement of Asencies: the key sub-
and
Government. Therefore, focus in
Affected Sectors is given to lhese key
sub-elements in order to minimize
tourism leakage. The most dependent
sub-elements are fisheries industries, and
Local employees. This finding means that
Community leader,
Community
organization. and Government strould
work together to develop agriculture,
animal husbandry, and fisheries
industries, and.
to improve
local
employees.
elements (independent) are: the Ministry
of Foreign Affairs, and the Minisny of
Tourism and Creative Economy. Focus in
Involvement of Agencies is given to the
Ministry of Foreign Affairs and the
Ministry of Tourisrn and Creative
Economy in order to minimize tourism
leakage. These two agencies influence
other agencies involved in minimization
oftourism leakage.
Program Constraints: the key sub'
ements (independent) are: Intcrnational
trade policy and Foreign currencies
fluctuation. The most dependent subel ement is Lack of availability and quality
el
4.3 Responsibility of Stakeholders in
Minimization of Tourism Leakage at
Accommodation Sector
Proceeding Tourism in Indonesia 225
level have strong influences to the lower
level sub-elements. In this case, the subelement E9 has strong influence to ofher
subelements El,82, E3,EA,E5, E6, E7,
E8, andElO.
Furthermore, the structural hierarchy of
all sub-elements of Program Needs for
minimization of tourism leakage is
presented in figure 2. Based on this
figure, the sub-elements at the higlrcst
LEVEL I
E5
i
LEVEL2
-l
r-*-Et
LEVEL3
l----
E6-----l
a
EI E? E3 E? E8 EIO
LE1/EL{
l--
LE1'EL5
t
E
---l
Figure 2: Structural hierarchy of zub-elements of Program Needs for minimization
tourism leakage
of
of local products. This finding means that
The results of the other elements are
summarized as follows:
the constraints on intemational
Prograni Goals: the key sub-elements
that have strong influences to oher
of
local products; To develop agrioiltme,
elements are: To optimize the potential
livestock, fisheries and handicraft
industry; To empower community; To
reduse the use of imported prnducts for
tourists; and To increase export of local
products. Therefore, focus in Progrun
Goals is given to these key subelements
in order to minimize towism leakage.
Affected Sectors: the key sub-elements
trade
policy, and foreigr currencies fluchration
should be worked out in order to improve
the availability and quality of local
products.
Po$sible Chanses: the key sub-elements
(independent) are Policy on restriction of
foreigrr invesunenl and Public-private
parErership on invesfinent. The most
dcpendent sub+lement is to increase and
equalize income distribution. In this case,
policy on restriction of foreigrt
investrnent, and Public-Private
on invesfinent should be
(independent) are: Community leade4
partnership
Community organization;
utilized in order to increase and equalize
income distribution amongst community.
Involvement of Asencies: the key sub-
and
Government. Therefore, focus in
Affected Sectors is given to lhese key
sub-elements in order to minimize
tourism leakage. The most dependent
sub-elements are fisheries industries, and
Local employees. This finding means that
Community leader,
Community
organization. and Government strould
work together to develop agriculture,
animal husbandry, and fisheries
industries, and.
to improve
local
employees.
elements (independent) are: the Ministry
of Foreign Affairs, and the Minisny of
Tourism and Creative Economy. Focus in
Involvement of Agencies is given to the
Ministry of Foreign Affairs and the
Ministry of Tourisrn and Creative
Economy in order to minimize tourism
leakage. These two agencies influence
other agencies involved in minimization
oftourism leakage.
Program Constraints: the key sub'
ements (independent) are: Intcrnational
trade policy and Foreign currencies
fluctuation. The most dependent subel ement is Lack of availability and quality
el
4.3 Responsibility of Stakeholders in
Minimization of Tourism Leakage at
Accommodation Sector
Proceeding Tourism in Indonesia 225
Efforts in minimization of
imported Products and
tourism
leakage can be undertaken based upon the
sub-elements of every elemer$s
reiulted by the ISM, as mentioned above'
key
community oryanization, communitY
leaders, and the cental governrnent such
as Ministry of Foreigrr Affair as well as
These efforts can be developed into some
strategies, as follows:
The Minisbry of Tourism and Creative
Economy are reallY imPortant'
Community leaders and communifY
organization have crucial role in
irogram goals: (i) to optimize the
potential of local products, (it) T"
(l)
develoP agriculture,
livestock,
fisheries and handicraft industry,
to
emPower communitY,
(iii)
(iv)
encouraging the develoPment -of
agriculture and handicraft indushies
through emPowerment of local
to
reduce the use of imported products
for tourists, and (v) to increase export
of local Products.
(2) Program needs: (i) to
(3)
EmPowerment of local
be gained also through
can
communi$r
involvement of provincial or local
government. The roles of government are
communitY.
imProve
government's role in every stratery
ielated to minimize tourism leakage'
Affected sectors: (i) to involve
important in restriction on
development of new accommodation,
international trade poticy as well as in
ilso really
in communitY
(iD to emPower
communitY leaders
€mpowefinenq
communitY organization
supporting public andprivate partnership
on investment. Furthdrmore, the Central
Government of Indonesia through the
MinistrY of Tourism and Creative
in
developing agriculhue, livestock'
fisheriis and handicraft industry, and
(iii) to wge government to develoP
and implement supporting policies in
Economy has a major role in promoting
Program constraints: (i) to establish
International Trade Policy that gives
tourism. However, the Ministry of
Foreigp Atrairs can also play a crucial
role in encouraging more quality of
increase export oflocal products, and
the foreign currencies
the
order to minimize leakage'
(4)
''
prioritY to reduce imPort and t9
(ii) to stabilize
fluctuation bY
(5)
foreign
employees. To optimize these efforts, the
roles ofprovincial and local govemments,
GovernmentPossible changes:
Indonesian
(i) to
policY on restriction
establish
of
foreign
investment on accommodation sector
in Bali, and (ii) to lacilitate public-
private partnership on investment in
tourism'
(6) Involvement of agcncies: (i) to^
imProve the role
of MinistrY of
Foreign Affairs and Ministry of
Towism and Creative EconomY in
promoting Bali tourism worldwide
and to encourage towists to consume
local Producs in PrioritY.
Regarding the above strategies, therefore
all stakeholders will have their own
responsibility. Tourism leakage on
accommodation sector in Bali can be
minimised through optimizing the use
of
local products and reduction in using
226 Proceeding Tourism in Indonesia
foreign tourists in visiting Indoneisa
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ITBS-Universiry of Angers, Uduyuno llniversity,
Ssli $tste Polyteehnic, $uhid lnstitute Jakqrta
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DAFTARISII
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HALAMAN JI]DI]L
lll
KATA PENGANTAR
SUSIINAI\ ACARA
DAFTARISI
Michel Picard
Blinese ldentity: from Kebalian to Aieg BaIi
1-3
Vdronique Mondou andNi Made Rai Erawati
Changes in Air Travel in Southeas Asia:the Emergence
of Low-Cosf
,l-5
tridias-
Sylvine Pickel-Chevalier and Asep Parantika
Bati, in The Confluence of The Domestic and Western
Tourism Spaces and Tourst Practices Shared?
Glr
Philippe Violier
t2-16
The Tount SPace in Indonesia
I Gede Made Karma
The Integrated Resenation Information systems of Travel
AgencY ComPanY-
I Ketut Gde Juli Suarbawaand M. Yusuf
Gambelan as cultural Products in support Tourism Industrl
in Bali
M. Yusuf and Made Anom Santiana
Health and Safety Aspects on Agritourism in
Indonesia
t7-26
27-34
3$41
Gst. Ayu Vida Mastrika Giri, Kadek Cahya Dewi, and
Ni G.A.P. Harry SaPtarini
Music Reccomendation Based On Rhythm Pattern
Using Self Organizing Map for Music Selections in
42-52
Restauranfs
A.A.Harmini, Ni Nyoman Triyuni, and I.A'K'Werdika Damayanti
Enclaved Tourism: An Accurate Alternative in Tonrism
Management (Study At Nusa Lembongan, Klungkung
Regency, Bali Province)
53-60
Proceeding Tourism in Indonesia
rvii
Ardika" D'
Kristinayanti, lY.S.' Mahaputr*, G.' Sudiajene' L' ang
fyp":.."tpttoiory of Archifecture Regarding
#;"gy
in
Tourism Development
sdiEhd -..-
Lilik Sudiajeng
Made Mudhin4 Wayan Suparta' and Ma{g Sudiarsa
of Tuksd Badung to Develop Flood
Integrated-Ma"agement
CoJttof System and Tourist Destination through Macro
Ergonomics SHIP APProach
Parwita'
I Gst Agung Istri Mas Pertiwi, I Gst' Lanang Made
I Gst Ayu P-utu Dewi Paramita, and I Made Tapayasa
Water
Technical Study of The Penet River Utilization for
Tourism Activities-Nyoman MastianiNadra, I Ketut Sadia, and Solihin
Ciim" And Security Systems AtVilla Indnstries In Badung
Regency, Bali
61-7t
72-79
8{t-86
vt-93
-.-.._-
I Putu Astawa and I WaYan Wirga
Ubud Gets The Customers an Ethnomethodolog5r
Approach
I Ketut Sutama,I Ketut Sardiana and I Gede Mudana
Practised by
Spiritual Tourismin Bali: How lt's Understood and
Tourism Stakeholders
Ni Nyoman Triyrni, I Wayan Jendra and Ni Ketut Bagiastuti
The rt.eadincss of Bali as Spiritual Tourism Destination
I Gusti Made Wendri, Ni Putu Somawati and I Nyoman Kanca
Gunung Kawi, Tirta Empul, and Goa 9?jttt Temple
Spiritual
ComplJxes as Potential Attractions for New-Ager
Tourism
I Ketut Widana and Ni Wayan Sadiyani
Bali
Contribution of Transitllotel to the Improvement of
Tourism
94-103
10+112
1r3-119
120-r30
131-137
Kt. Wiwin Andayani, I Wayan Aryaand Lilik Sudialeng
The Impact Of Tourism On Ground Water Levels
138-r48
MichelPicard
Cultural Tourism and Touristic Culture Revisited
149-l5l
Sylvine Pickel Chevalierand Asep Parantika
Th" Iodoo"sian TouristPractices of The Beach' Befween
Transfer an Invention (Case Study of The Beach of Bali'
Yogyakarta, Jakarta and Manado)
xvlii Proceeding Tourism in lndonesia
------
152-155
I Nyoman Darma Putra
Localizing the Global and Globalizing the Local: opportunities
and Challenges in Bali Island Tourism l)evelopmelf
tsGr64
I Nyoman Sunarta
Local Community Participation in The Development of
-Ecological Tourism in West Bali National Park
t6rl72
I Komang Gde Bendesa
Turmoil Beneath The Surface: The Economic Side of
Bali Tourism
173-180
I Gede Sutarya
Astrology Tourism: From Commodification to A Local Cultural
- -- ---APPreciation --.._.-.
180-188
Jaya Pramono
IssuesrProcess, and Benefits of Environmental management
at The Star Rated Hotel in Bali
189-203
t
NararyaNarottamu
Spiriiual Tourism: Case Study of Foreigners Participation in the
Pitrayajfia Ceremony in Pekraman Muncan Village, Selat'
Karangasem, Bali
2A+2$
Agung Suryawan Wiranatha and I Gusti Ayu Oka Suryawardani
Responsibility of stakeholdcrs in Minimizing Leakage of Tourism
Industry (A Case of Accommodation in Balir lndonesia)
2tL2l9
Putu Dana Pariawan Salain and I Putu EkaNila. Kencana
The Relationship Between Tourist's Perception and Quality
Destination (Case Study in Sanur, Bali)
of
I Gusti Bagus Rai Utama and Ni Made EkaMahadewi
The Contradiction of Managing Tourism Objects Based on Culture
220-239
and Its Heritage
240-248
Ni Gusti Ayu Dewi Paramita Arisandi
The Power of film in Creating a Positive Destination Image
to Induce the Influx of tourist
249-254
I Nyoman Madiun
Hotel School Students as Consultants: (An Approach to
Training in Small llotels which may be Applied in Bali)
25s-259
I Wayan Suardana
Evaluation of Sustainable Development of Tourism in Bali -------
260-272
Proceeding Tourism in
Indontsiu \r\
I
I Wayan
I Nyoman Sudiarta, I Nyoman Astina I Made Patera and
Suardana
Cruise Tourism: Creating Job Opportunity for
The Balinese People
273-281
Adrian Vickers
The Image of Ba
282-285
Ni Made Ernawati
Australia
School of Business, Edith Cowan University, Western
Producer.marketorientationofcommunitybasedtourism(cBT)
products for sustainable tourism: A case study in Bali' Indonesia
28G291
Harold Richins, Ph.D. Dean and Professor' John Hull' Ph'D'
An Evaluation of Pro-Poor Tourism Case Intewentions in
Communities in Southeast Asia: Developing an Adapted
Typology
Adrian Vickers
The Image of Indonesia Adrian Vickers
Sidhi Turker
Voluntourism
296-299
As An Alternative Tourism In
Supporting
Sustainable Tourlsm Development In Bali
Ni Luh Putu Agustini KartaA Gusti Kade
292-295
300-306
Sutawab,
I Ketut Putra Suarthanac
Challengs and Barriers; Community Based Tourism In Trunyan
Village, Kintamani (A Study on the Village of Trunyan)-----
301-317
Saroha Manullang
Tourist Appraiiat On Service Quality Ngurah Rai' Bali
International AirPortPutu SaroyiniPiartrini, Faculty of Economics and Business'
University of UdaYana
al
Relationship Among Individual Religiosity, Motiv atio n' Spi ritu
Tourism
Spiritual
Toward
Health Experiences And Attitude
Yoga
Case study of those who were involved in meditation and
class
xx
----
ProceedingToarism in Indonesia
318-324
325-335
RaSPONSIBILITYoFSTAKEHOLDERSINMINIMIZING
LEAKAGE OF TOURISM INDUSTRY
(A Case of Accommodation in Bali,Indonesia)
Agung Suryawan Wiranatha", I Gusti Ayu Oka Suryawardanib
aDoctorateProgtaminTourism,{JdryanaUnitersity,Denpasar-Indonesia
E-mail : bal itru\(Atahoo. com
bstudent at Doctorate Program in Toudsrtr, udayana university, Denpasar-Indonesia
E-mail : gungdani@gnail. com
STRACT
Prwince of Indonesia
Tourism has become the leading economic sector in Bali
be fully beneficial for
to
not been cotwinced
However, the economic i*locts of rouriim have
that acanrs when the industry
Balinese community. one'of the-reasons is tourism leakage
in Bali' This study was
industry
tourism
i*porr, both prdtcts and services to support
leakage' and to
tourism
minimizing
in
rale
undertaken to examine lourism stakeholders'
the tourism
minimizing
in
stakeholders
the
by
i"outop strateg) that c; be implemented
Modelling
Structural
Interpretative
uccommodation.sectorleakage in Bali, p*ti"oiorty ot
wos
survql
.^ uni"rtoken ti gain the stakeholders' perceptioq meanwhile
iiMr'
'undirtaken
to collect information ftom hoteliers'
the tourism
touris* stakeholders are willing to participate in minimizing
general,
In
as long as
sectors,
accommodalion
in the
leakage fi, reducing the import components used
local
severul
ure
There
ptoducX.
local prodttcts are ayailabte to suistitute the importgd
and
processed
mostly
products,
foods
imported
the
ir"i.,i"tt can be used to substitute stakeholderS,
local
cowume
ta
willing
also
are
lowists
horticultural pro&rcts. Similar to the
tieir stay in Bal!. lt il.susse:ted that several important strategies that gan
;;;;"-;;;d*t"g
'ii i*pt"*"w"i by involving stakeholderi. The irwotvement of stakeholders in the strategic
au'oteness,
pi""ii"S pro"^i through participatory apyroach gives better understanding
in
Bali'
'and
sector
resf,insibility to *iiiii"n towism leaiage of accommodation
Keywords
T o u r isttt, Le a knge, A c c ommo dsti on,
S ts k eh
ol d er' Putticipato ry'
restaurants) have increased from
touris,
driving
Bali's
mostly
economy has been developed
through tourism, it has resulted in
changing in economic sectors of Bali
Province from agricultural sector to
service sector- The contribution of
development of Bali Province. As
i?ffi:fbTf:f#'T:'.'":1""',*
6l-2lYo in 1969 to
216 Proceeding Tourism in Indonesia
9.52%n
:fltll'itlf1,f,T.1L?;tY:Hllihti:
handicraft
*iffffffijtr"$,a,:tH*"fi,";
rorce in the economic
dramatically from
ali
l6'84%in20l2 while the conhibution of
service sector (trade, hotels, and
l.INTRODUCTION
1.1 Background
Bari is one or popurar worrd
B
industry,-etc.) has nuctuated
H','*"ifitr:r?'"i#;t"if
fii?ltfi:
En"n though the contribution of
agricultural sector has decreased,
it still
his a crucial role in Bali's economy, as
sowce ofjobs and income, raw materials
industry, and foreign exchange
*rningr, aJ und tourist athactions [3]
for
andtai
of stay, it seems that
tourism in Bali will keep being promising
Tourism in Bali has been developed
significantly. The number of direct
arrivals of foreign visitors to Bali
increased dramatically from 23,340
visitors in 1970 to reach 3.278.598
visitors in 2013 [5]. However, &erewere
several downturns in number of foreign
and ttre length
visitors visiting Bali due to Bali bombings
on l2th October 2002 and in lst October
2005. The Bali bombs had the greatest
impact on number of foreign visitors to
Tourism stimulates development of other
sectors which has implications on
Bali than other crisis in the history of
tourism in Bali t6l. Efforts were
undertaken by the gov€mm€nt to
convince foreign visitors to vhitBali after
the Bali bombing tragedy, it was resulted
in gradual increases of foreign visitor
direct arrivals since year 2007. During
the period of2007 up to 2013, the average
growth rate of direct arrivals of foreign
visitors to Bali was 14.9 % per year [5].
As a world-class tourist destination, Bali
is supported by the availability ofvarious
tourism facilities within the rcgion- There
were 2,212 units accommodation with
total of 46,025 rooms registered in Bali in
20 12. These included I 56 units star-rated
hotel (20,269 rooms), 1,031 units ofNon
star-rated hotels (21,114 rooms), and
1,025 unit homestays (4,642 rooms).
However,
Bali Hotel and
Restaurant
Association (PHRI Bali) accounted 3,346
units accommodation (62;407 rooms) in
Bali in 2011, that was consisted of 165
units star-rated hotel (22,161 rooms),
,371 units of Non star-rated hotels
(28,585 rooms). 1,760 unit homestays
(9 ,282 rooms), | 5 condotels (l,793
I
roonrs)- and i5 units rental house (586
rooms). lt could be more accommodation
available in Bali than the above numbers
as many- nrore accommodations
unregistered or operate illegally in Bali in
year 20 | 3. In addition. the average tourist
expenditure and length of stay had also
increased. The average expendifire of
foreign rourisr per person per day
increased from IJSS 13790 in 2fi)9 to
tjSS I 58 87 in 201 I The length ofstayof
loreign tourist-s also extended from 8,75
da,vs in 2009 to 9.27 days in 20ll [5].
Regarding the growth of number of
iourists. thc averase tourist expenditure,
as a source of household income for
Balinese inhabitanu, conffibute to the
national exchange rate as well as inrease
the number
of job oppornrnities.
increasing business and job opportunities.
Income earned from visitors will become
a source for local income. The amount of
local income generated per unit ofvisitor
expenditwe will become multiplier for
regional's economy through backrnard
and forward linkages [7]. Even though
tourism brings about development for
Bali's economy for many yeani, hocrcver,
the
economic impacts
of
tourism
development has not been convinced to be
fully beneficial for Balinese communigr
[8] and [9]. One ofthe reasons could be
tourism leakagc that occurs when the
industy imports both consumption and
resources to support tourism industry in
Bali. In eonomic terms, leakage is
defiped as losscs from the national
income flow which have been generated
during the tansition from
the
local/national consumption income cycle
to the spending chain [0] and [ll].
Imports of consumption and resources to
support tourism industry are the major a
leakage that limits the positive impact of
expenditure on a destination
[2]. In Bali,
tourism facilities such as
big
big travel agents
have been mostly owned by investors
from outside ' Bali (national 0r
intemational investors). In these cases,
tle economic benefits of tourism is likely
to go mainly outside Bali or other
accommodations and
countries,
with a small
proportion
trickling down to the local Balinese
community [8]. The amount of import
leakage of intemational standard hotels in
Bali was estimated about 407o (based
upon Nusa Dua hoject) and the import
leakage of small oconomy standard hotels
n 1977 ll3l.
Meanwhile. aresearch on tourism leakage
was assumed about 20%
based on micro analysis of
accommodation sector in Bali found that
ProceedingTourism in Indonesia 217
Much of the income &om
tourism leakage of accommodation sector
in Bali in year 20l2werc 8.87o at nonstar
rated hotJb, l2-0Yn at 1,2&3 star-rated
hotels, 22.7 % at 4&5 star-rated non-chain
hotels, and 5 1 .0% ?t 4&5 star-rated chain
hotels. The average leakage ofall types
hotels was I 8.8%'hnpublished" [14]'
of
The amount of tourism leakage from
accommodation sector in Bali is
considerably higlr particularly at 4&5
star-rated hotels. Regarding the above
issues, there is a need to undertake any
effo*s to reduce tourism leakage of
accommodation in Bali therefore the
economic benefits of tourism in Bali can
Balinese
community' This study was undertaken to
examine ihe responsibility of tourism
stakeholders . in minimizing tourism
leakage, and to develop stratery that c1n
be implemented by the stakeholders in
minimizing the tourism leakage in Bali,
particularly on accornmodation sector'
This study involved obtaining perceptions
and points ofview of hoteliers on how to
minimize tourism leakage. The results of
this research are expected to be useful and
give better understanding, awareness'
iesponsibility and gaining positive
."rponr"t from government and
stakeholders to imProve economlc
impacts of tourism in order to achieve
sustainable tourism in Bali-
Minimizing Leakage for
Optimizing Benefits
Leakage
is one
causes
of unbalanced
."ono*i" distributions and limit
the
positive impacts of tourists' expenditures
on a destination [15]. According to
UNEP, there are two main waYs of
leakage, namelY imPort leakage and
export leakage. Import leakage occws^
when tourists demand standards of
equipment. food. and other products
cannot be supplied by the host country,
especially
in
less-developed countrtes'
218 Proceeding Tourism in
trndonesia
overseas
hotels take their profits back
to their
counfry of origin [16]- Furthernore'
causes of leakage are namely: (i) import
goods and services for consumption or
Lvestment in tourism; (ii) payments for
foreign tour operators and agencies; (iii)
payment to foreigrers for management
and royalties; (iv) profits which
"ror""t
are paid to foreign stakeholders; (v)
interist paid for external credits in the
tourism lector; (vi) exchange costs for
tourism investnent; (vii) advertising in
international marketing and promotion
expenditures; (viii) commissions paid to
foieign banks, credit cards and for agency
used by tourists; (ix) savings of foreign
employees; (x) education abroad and
uaining costs of tourism employees; (xi)
saving-'of employers, employees, and
entrepreneurs; and (xii) taxes paid to
There are also
as the physical
such
leakages,
govemment.
Iituitibl"'
[l?]-
towism, the dePletion or
a country's in&astucture'
of
destruction
environments and
habitats,
nahrral
effects
of
as well as cultural heritage have
a leakage effect on tourism receipts [18]'
historical
The average import-related leakage for
most developing countries was befween
40% and 50% ofgross tourism earnings
for small economies, and benrreen l07o
and 20% for most advanced and
diversified economies [16]' Meanwhile,
2. LITERATURE REVIEW
2.1
ixport leakage arises when
investors who finance the resorts and
1.2 Research Objective
be gained oPtimallY bY
tourist
expenditures leaves the country ag{n t9
pay for these imporb. On the other hand,
UN\I/TO estimated that on average of
55% ofgross tourism revenue received by
developing countries leaks out' but in
some cases, leakage has reached as high
as 90Vo I I 9]. Leakage tends to be hig[est
when the local destination economy is
weak and lack of the quantity and quality
of inputs required by the tourism industry
t20]. The amount of leakage depends
largely on how the tourist receipts are re-
spent within the economy' The more
riceipts re-spent within the
local
so that the smaller the leakage
""ooooty,
and the higher the multiplier will be' ln
the case of developing countries at their
initial stage of tourism development,
financial, struchrral and operational
supports from foreign countries are
importanL Therefore, tourism leakage is
thus unavoidable I l].
Reduce leakage is important in order to
increase economic benefits of tourism in
a destination. To
optimize economic
of tourism,
leakage should be
benefits
minimized [21]. Leakage can be
minimized by developing stronger links
between tourism and ottrer sectors in the
local economy. Moreover, govemment
policy needs to
strengthening
the
concentrate on
economic linkages
between tourism and agriculhre to
support import substitution [20]. A study
by Lacher and Nepal found that by using
precise sfategy based on the authenticity
of a
destination, therefore economic
be reduced, improve
economic development, balance
leakage can
in all
sectors and improve
in tourism
development I22l.ln addition, it should
be focused in usingmore local employees
distribution
community participation
to
reduce leakage. Even thouglr the
capability
of local
employees in
developing countries are generally low in
terms of education, work experiences and
the ability in communicate, therefore,
have experiences in development of
tourism [24]. Thc above defmition
presents a very broad rmderstanding of a
stakeholders and it allows almost anyone
to be considered a stakeholders [26] and
[2?]. Narrowing the above definition has
been made by Clar*son by stating that
stakeholders are risk-bearers, "without the
element of risk there is no stake". He
devided stakeholden into two groups,
namely: (i) primary stakeholders, who are
essential to ttre survival and wellbeing of
the organization and who have or claim
ownership rights or interests in a
corporation and its activities, either for
or future; and (ii)
secondary
organization
the
stakeholden, with whom
present
interacts
but are not involve in
lhe
transaction with organisation and who are
not essential to the suruival of fte
organization [28].
3. RESEARCH METHODS
3.1
Research Location' Period and
Respondent
This study involved two types ofresearch,
nainely research in gaining points ofview
ofhotel managers on tourism leakage, and
on gaining the stakeholden'
points of view on responsibility of
stakeholden in minimizing tourism
research
tourism industry use educated employees
for special position in management [23].
leakage. The research in gaining points of
view of hotel managers on tourism
leakage was undertaken at four main
2.2 Stakeholders' Participation
tourism destinations in Bali Province, i.e.
Kuta, Nusa Dua, Sanur and Ubud during
Stakeholder is defined as "Any group or
individual who can afect or is afected by
the achievemenl of the organization's
objectives" 124f. Stakeholders can be
individual, groups or organizations which
influence decision making processes,
develop strategies to facilitate the
implementation of the results of decision,
understand the policy context and
to
th€ feasibiliry of furure policy
directions [25J. Regarding t]re above
assess
definition- stakeholders ilr tourism consist
of tourists- government. community,
owners of tlre accommodations or
services in tourisnr industries. association
in tourism industries and experts who
period of April to June 2013. Three
clusters ofhotels were chosen, namely: (i)
Non-star rated hotels; (ii) 1,2&3 Starrated hotels; and (iii) 4&5 Star-rated
hotels. Seventy nine of hotel managers
were interviewed regarding their points of
view on imported and local producb used
in their hotel. They represented of l8% of
all hotels in these area. Meanwhile, the
research on gaining the stakeholders'
points of view on responsibility of
stakeholders in minimizing tourism
leakage was undertaken by interviewing 9
experts dwing period
October
2013.
of
Sepember to
Experts were selected
purposively who understand the strategt
Proceeding Tourism in Indonesia 219
been done, however, many things need to
be addressed --.". Demand for local fruits
has increased not only to fulfill demand
(4) Program Constraints, (5) Possible
Changes in the prosaln, and (6)
Involvement of Agencies in the poliry.
for tourists, but also for making offering
by Balinese community. In other hand,
Each element consists
there was insufficient supply tc fuifill the
demand. So that, imported fruits cannot
be avoided. He realized that to minimize
cooperation between
government, industry and farmer is
(Personal
needed
Communication, 4th April 20 l3). Sweral
efforts have been undertaken bY
leakage,
crucially
of Bali province to protect
and develop local products especially
local fruits. Empowerment of local
products has been undertaken by Bali
government
of
sub-element
which has contexhral relationships among
each other
in
accordance
to
the
minimization sfiatery for tourism leakage
in accommodation sector in Bali. In this
par! among the above elements, an
example ofthe results of ISM is presented
for'?rogram Needs".
of
Program Needs for
of tornism leakage from
accommodation sector in Bali consists of
Element
minimization
I
0 sub-elements, namelSl:
l.
2.
3.
Qualifiedhumanresources (El)
Good management in agribusiness,
livestoclg fisheries and handicraft
industry (E2)
Participation of farmers, cattlemen,
Ketut Wija, one of key Bali Government's
offrcials said that this regulation requires
involvement oftourism industy and other
related industy to give chance for local
producls to be promoted to and served for
tourists. It was realised that the quality of
local products was lower than imported
products. So that, some efforts have been
improve the quantity,
undertaken
quality and continuity of local products.
He also revealed that local comrnunity
4.
fishermen and craflsmen (83)
Qualrty, quantigr, continuity of local
should participate
in developing fruit
farms in Bali that can produce fruits
similar to imported fruits [45]. The
tourism sector could also be enhanced
through stronger linkages with regional
handicraft producers and artisans.
Building synergies with such producers
Program
among the sub-elements
Needs by using ISM method resulted in
could enable them to become significant
suppliers of interior desigl elements, such
Driver Power @P) and Dependence (D),
government through "Regulation of Bali
312012 regarding
Government
No.
Empowermenl Protection and
Development of Small-scale Industry".
to
as handicrafu, paintings, and other
furniture. This will be able to reduce
leakage significantly [aa] and [a6].
products (S4)
Substihr0e products (85)
5.
6.
.
7.
8.
9-
10.
Good quality of seed, livestock and
rawmaterials @Q
Funding for invesfrnent @7)
Business Partnership (88)
Government's role @9)
Coordination between stakeholders
(810)
Analysis of the contextual relationships
of
reachability maffix (RM) as shown in
table 2. Based on the RM in table 2, the
key sub-element of Program Needs for
minimization of tourism leakage is
Government's role @9). According to
this sub-element Government's role (E9)
located
fourttr mne
is
at the
(Independent), and other three subelements, namely: Good quality of seed,
livestock andraw materials @6); Quality,
4.2 Results of Interpretative Structural
Modelling (ISM)
As mentioned in the research method tlrat
minimization
of
tourism leakage in
accommodation sector in Bali consists of
six elements, namely: (l) Program Goals,
(2) Program Needs, (3) Atrected Sectors,
quantity, continuity of local products
@4); and Substitute products @5) are
located at the second zone (Dependent),
as shown in figure l. However, there are
6 other sub-elements located at the third
zone (Linkagel namely: Qualified human
resources (El); Good management in
agribusiness, livestoclg fisheries and
Proceeding Tburism in lnilonesia 223
for minimization of tourism leakage on
accommodation sector in Bali. The
experts were representatives of tourism
stakeholders in Bali, namelY: Bali
Tourism Government official (l), tourism
industry (3), communlty (l), professional
(2), and academia (2).
3.2 Dat'a AnalYsis
Qualitative analysis was carried out
rigarding gaining points of view of
hotel's managers on reasons in choosing
imported produc8, points ofview on local
ptoducts, as well as willingness the
irotel's managers in reducing imported
products and giving the priority on local
products. Meanwhile, Interpretative
Structural Modeling (ISM) was
undertaken to analyse responsibility of
stakeholders
in
minimizing tourism
leakage. ISM is an interactive learning
process which involving
Table
I: Elements
inter-
relationship between variables through
the use of experts' ideag opinion and
experience based on brain storming
management techniques in developing the
contextual relationstrip among the
variables. For this pu{pose, experts
should be well conversant with the
problem under consideration [29]- In this
research, six elements were used to
develop strtegy in minimization of
tourism leakage in accommodation in
Bali. The six elements are as follow: (i)
Program goals (G), (ii) Program needs
(|0, (iir) Affected community (T)' (iv)
Program constains (C)' (v) Possible
changes in the prognm (M), and (vi)
Involvement of agencies in the policy (A)'
Each element consists
of
sub-elements
which has contextual relationship each
other in accordance with minimization
program
for
tourism leakage in
Bali (refer to
accommodation sector in
table l).
and contextual relalionship between elements in minimaing lourism
leakageon accommodation seclor in Bali
Elements
Contextual RelationshiP
l.
Program goals (Gi)
Gi contribute in achieving
2.
Program needs (Nr)
Ni supports\
3. Affected
4.
sectors (T;)
Program constrains (Ci)
5. Possible changes in the program (Mi)
6. lnvolvement of agencies in policy (Ai)
ij = t,2,3... (ii s lo)
Ti its role influenccs
Q
T.;
Ci causes Cj
M1 results in
Mj
Ai its role supPorts A;
Source: modified from [30].
relationship beween rwo
and j). Each alphabet has
direction
element on each element through brain
storming procels with the experts. In
conducting ISM research, experts gave
meaning as outlined below:
assessment of
contextual relationship between each sub
their opinion regarding the level of
contextual relationship between subelements by filling matrix of the
contextual relationship with the alphabet
as follow: V, A, X or O. The following
four symbols are used to denote the
22A
of
Initial process begins with
Pro ceeding Tourism
in Indonesia
factors
(i
the relation from factor i to
factor j (factor i will influence factor
V for
i)
A for
the relation from factor
j
factor i (factor i will be influenced
factor
ir>
b-v-
j).
X for both direction relations (factors
iand
j will
influence each other)
0
for no relation between the factors
(baniem i andj are unrelated).
hotels. Perception and attitude influence
people's behavior [33], [34] and [35].
Based on the contextual relationships, the
SSIM (Stuctural Self-Interaction Matrix)
[31]. Computer
program "Ever Vision Software, dDSS
Ver. 1.0.01, developed by Roni Wijaya
was used in analysing the ISM model.
was developed [29] and
Tlrc results suggest that accommodation
managers should change their habits in
order to reduce current tourism leakage
from accommodation sector, eventhough,
a slight different point of view was given
by non-star rated hotels, because non-star
little imported
of views of
4. RESULTS AND DISCUSSION
rated hotels used very
4.1 Points of View of llotel Managers
and Willingness in Reducing Tourism
hotel manag€rs in reducing tourism
leakage, most of hotel managers are
willing to reduce the use of imported
products and give the priority to local
products as long as there are local
products and/or substitute for imported
products that can fulfill the qualtty
Leakage
The results show that most of hotel
managers from star-rated chain hotels said
that imported food and beverages have
higher quality than local food and
beverages, such as imported meat, dairy
products and alcoholic beverages. They
also firmly explained that star-rated chain
hotels need high quality of imported food,
alcoholic beverages, utensils and other
fulfill the quality
standard of chain hotels. Hov/ever,
foreign tourists significant$ looked for
equipment in order to
products. Regarding point
standard requirements. However, the
recent situation in Bali shows that supply
of most local foods do not fulfill the
quallty standard requirement in terms of
quality, quantity and continuity of the
products. Although tourism leakage could
local of Balinese producB, namely:
fisheries products, " fruits, vegetables,
not be avoided, however it could be
reduced or minimized. Thcre is
opportunity in reducing tourism leakage
thr6ugh reducing the use of imported
room decoration, furniture, building style,
and Balinese architecture'tnpublished"
products. The government policy should
enoourage the development of befier
[32]. Points ofview ofhotel managers on
the importance of imported products have
qualrty of agricultural products, inctuding
fruits, livestock and wines in Bali. Some
firnding techniques should be proposed to
assist local producers.
not met the tourists' need on
tocal
products. The managertendsto behave by
giving too much respect to the quality of
imported products in comparison to the
Furthermore, the reasons
leakage
in
for
tourism
local products- Therefore, they prefer to
surrounding tourism
destinations are multifaceted. Some of
the main reasons are the lack of local
of hotels' managers toward
tourists' need lead to incorrect decision
and actions. Such behavior of hotel
managers brought about dependence on
ownership, local employment, and local
capital, as well as inability to link tourism
to the local economy. Local ownership is
crucial to be developed as the owners of
major tourism businesses. This will keep
a majority ofthe profits in the destination
region. In addition, tourism leakage can
be reduce by employing more locals and
buying more locally produced goods as
well as creating strong linkages to local
serye imported products to foreign
tourists. This incorrect perception and
attitude
imported products
demand. This led
leakage
in Bali.
to fulfill
tourists'
increase tourism
Regarding different
to
perception between hotel managers and
foreign tourist who visited Bali, there is a
need to encourage hotel managers to
change their perception and attitude in
order to change their behavior, especially
for them who work in the Star-rated chain
industries [36], I37l and 1381.
Unfornrnately, local entrepreneurs
frequently lack of capital, education and
experience [39]. As a result, foreign
Proceeding Tourism in lndonesia 221
by the
die
outsiders who own the firms-
{Personal Communication, l2th
Made Suryawan
as
(a
Professional in
tourism) said:
local entrepreneurs typically do nothave
the experience or education to market
" ...
products to foreigners, and their ability to
educate themselves is often limited [40].
industry and communities are urgently
proper education, exPeriences
ianguage skills. Therefore, large chain
firms frequently import more skilled
labour from urban areas to fill these
and
positions [41] and [a2]. Many studies
found that the majority of locals worked
as unskilled labour and earned fewer
wage, while expatriates we re employed
in management positions and eamedvery
high wages [37].
industry and local economy. Tourist
destinations that do not promote high
multipliers and high levcl of linkages will
not produce substantial economic
development. So that, linkages between
tourism industry and local economy are
very important which lead to increase the
multiplier effects IS], [43] and [44]. It is
crucial to increase the amount of locally
produced goods which can increase
multiplier effect- To maximize the
of
tourism,
it
is
and
gov€rnment'
needed. They must understand in depfit
about leakage, must se€ that we can get
more income by reducing leakage .-."- He
also said that there is a crucial need to
improve the quality of human resources
through better education.
He
also
emphasized that hotel association need to
Resource
irnprove
Development (HRD) division at each
hotel by working together to enhance
the Human
quality of human resources. Moreover,
hoteliers and government need to work
together to create and improve the quality
oftourism products, especially food and
requires such
beverage- This
improvement the quality
Another important aspect in reducing
leakage is linkages ..between tourism
economic impact
Integrated eommunication
coordination between
Local employment will also have a strong
effect on reducing tourism leakage [23].
However, local residents are often not
ideally suited for the jobs as they lack of
of agriculnral
products and livestock,
as well
as
increasing the supply of local wines and
liquors. There is also a need to
create
substih*e products for imported products
in order to firlfill tourist's demand. He
f,rmly said that government should
to produce agriculhral
products that meet the tourists' need
(Personal Communication, 30th April
20l3).
support farmers
Government also play an importantrole in
minimizing tourism leakage. However,
Head of Bali Governnrent Tourism
connections
Office, Ida Bagus Kade Subhiksu, said
that there is no regulation regarding
between tourism and local businesses
import restrictions of goods, such as food,
suggested that region should attempt to
increase the amount of
rather than depend on imported goods and
services [9]. Bagus Sudibya as one of
the representatives of tourism indusfy in
Bali supported the finding of the above
statement. He revealed that synergy
between tourism and agriculture is
crucially needed to keep tourism in Bali
sustained. He said:
" ... Tourism and agriculture cannot be
separated. It relates each other. Tourism
without agriculture will be paralyzed,
222
.."
May 2013).
Another person from tourism industry,
Management and marketing may also be
a major problem for local ownership
will
whereas agriculture without tourism
investors will dominate the owner of large
tourism firms, therefore profits are kept
Proceeding Tourism in Indonesia
beverages, furniture and other items.
Government of Bali Province has only
appealed to hot€liers to optimize the use
of local products such as fiuits and
vegetables. Problenr has emerged, that
the availabiliry of tropical fiuits cantrot
fulfill the demand due to seasonal itr
nature- He said " .-.We lose the
oppomrniry to suPPlY foods and
beverages to tourists due to inappropriate
quality ofthe local products. Efforts have
been done, however, many things need to
be addressed --.". Demand for local fruits
has increased not only to fulfill demand
(4) Program Constraints, (5) Possible
Changes in the prosaln, and (6)
Involvement of Agencies in the poliry.
for tourists, but also for making offering
by Balinese community. In other hand,
Each element consists
there was insufficient supply tc fuifill the
demand. So that, imported fruits cannot
be avoided. He realized that to minimize
cooperation between
government, industry and farmer is
(Personal
needed
Communication, 4th April 20 l3). Sweral
efforts have been undertaken bY
leakage,
crucially
of Bali province to protect
and develop local products especially
local fruits. Empowerment of local
products has been undertaken by Bali
government
of
sub-element
which has contexhral relationships among
each other
in
accordance
to
the
minimization sfiatery for tourism leakage
in accommodation sector in Bali. In this
par! among the above elements, an
example ofthe results of ISM is presented
for'?rogram Needs".
of
Program Needs for
of tornism leakage from
accommodation sector in Bali consists of
Element
minimization
I
0 sub-elements, namelSl:
l.
2.
3.
Qualifiedhumanresources (El)
Good management in agribusiness,
livestoclg fisheries and handicraft
industry (E2)
Participation of farmers, cattlemen,
Ketut Wija, one of key Bali Government's
offrcials said that this regulation requires
involvement oftourism industy and other
related industy to give chance for local
producls to be promoted to and served for
tourists. It was realised that the quality of
local products was lower than imported
products. So that, some efforts have been
improve the quantity,
undertaken
quality and continuity of local products.
He also revealed that local comrnunity
4.
fishermen and craflsmen (83)
Qualrty, quantigr, continuity of local
should participate
in developing fruit
farms in Bali that can produce fruits
similar to imported fruits [45]. The
tourism sector could also be enhanced
through stronger linkages with regional
handicraft producers and artisans.
Building synergies with such producers
Program
among the sub-elements
Needs by using ISM method resulted in
could enable them to become significant
suppliers of interior desigl elements, such
Driver Power @P) and Dependence (D),
government through "Regulation of Bali
312012 regarding
Government
No.
Empowermenl Protection and
Development of Small-scale Industry".
to
as handicrafu, paintings, and other
furniture. This will be able to reduce
leakage significantly [aa] and [a6].
products (S4)
Substihr0e products (85)
5.
6.
.
7.
8.
9-
10.
Good quality of seed, livestock and
rawmaterials @Q
Funding for invesfrnent @7)
Business Partnership (88)
Government's role @9)
Coordination between stakeholders
(810)
Analysis of the contextual relationships
of
reachability maffix (RM) as shown in
table 2. Based on the RM in table 2, the
key sub-element of Program Needs for
minimization of tourism leakage is
Government's role @9). According to
this sub-element Government's role (E9)
located
fourttr mne
is
at the
(Independent), and other three subelements, namely: Good quality of seed,
livestock andraw materials @6); Quality,
4.2 Results of Interpretative Structural
Modelling (ISM)
As mentioned in the research method tlrat
minimization
of
tourism leakage in
accommodation sector in Bali consists of
six elements, namely: (l) Program Goals,
(2) Program Needs, (3) Atrected Sectors,
quantity, continuity of local products
@4); and Substitute products @5) are
located at the second zone (Dependent),
as shown in figure l. However, there are
6 other sub-elements located at the third
zone (Linkagel namely: Qualified human
resources (El); Good management in
agribusiness, livestoclg fisheries and
Proceeding Tburism in lnilonesia 223
handicraft industy (82); Participation
of
farmers, cattlemen, fishermen and
craffsmen (83); Funding for inveslnent
(87); Business Parfitership (88); and
Coordination between stakeholders
(E10). This finding states that the sub-
element of Govenrment's role will have a
major driver power for Program Needs in
order to minimize tourism leakage from
accommodation sector in Bali. Therefore,
given
the
focus should
Government's role.
Table 2: Reachability matrix of Program Needs
No. El E'2
ET E9
El 1111111
r019
E2 1l11ll
l0l9
E3 ll
10
8400
00
85000010
0001
E600
00
E7
EStl
lllllll
1019
lllllll
llll0
E10
I
I
to
for minimization of tourism leakage
E5
E6
E7
I
111
l9
01100
02
I
I
0
01110
03
tlll1
l9
l0
E9
E3 E4
NlO DP
be
llllll
019
D7779
717
t0
8
'1
Et,EZFr, E ,E&[1O
lZntc2l
Figure
224
l:
Pro ceeding
Relationships between driver power (DP) and dependence (D) of sub-elements
Program Needs for minimizatim of tourism leakage
Tourism in Inilonesia
of
level have strong influences to the lower
level sub-elements. In this case, the subelement E9 has strong influence to ofher
subelements El,82, E3,EA,E5, E6, E7,
E8, andElO.
Furthermore, the structural hierarchy of
all sub-elements of Program Needs for
minimization of tourism leakage is
presented in figure 2. Based on this
figure, the sub-elements at the higlrcst
LEVEL I
E5
i
LEVEL2
-l
r-*-Et
LEVEL3
l----
E6-----l
a
EI E? E3 E? E8 EIO
LE1/EL{
l--
LE1'EL5
t
E
---l
Figure 2: Structural hierarchy of zub-elements of Program Needs for minimization
tourism leakage
of
of local products. This finding means that
The results of the other elements are
summarized as follows:
the constraints on intemational
Prograni Goals: the key sub-elements
that have strong influences to oher
of
local products; To develop agrioiltme,
elements are: To optimize the potential
livestock, fisheries and handicraft
industry; To empower community; To
reduse the use of imported prnducts for
tourists; and To increase export of local
products. Therefore, focus in Progrun
Goals is given to these key subelements
in order to minimize towism leakage.
Affected Sectors: the key sub-elements
trade
policy, and foreigr currencies fluchration
should be worked out in order to improve
the availability and quality of local
products.
Po$sible Chanses: the key sub-elements
(independent) are Policy on restriction of
foreigrr invesunenl and Public-private
parErership on invesfinent. The most
dcpendent sub+lement is to increase and
equalize income distribution. In this case,
policy on restriction of foreigrt
investrnent, and Public-Private
on invesfinent should be
(independent) are: Community leade4
partnership
Community organization;
utilized in order to increase and equalize
income distribution amongst community.
Involvement of Asencies: the key sub-
and
Government. Therefore, focus in
Affected Sectors is given to lhese key
sub-elements in order to minimize
tourism leakage. The most dependent
sub-elements are fisheries industries, and
Local employees. This finding means that
Community leader,
Community
organization. and Government strould
work together to develop agriculture,
animal husbandry, and fisheries
industries, and.
to improve
local
employees.
elements (independent) are: the Ministry
of Foreign Affairs, and the Minisny of
Tourism and Creative Economy. Focus in
Involvement of Agencies is given to the
Ministry of Foreign Affairs and the
Ministry of Tourisrn and Creative
Economy in order to minimize tourism
leakage. These two agencies influence
other agencies involved in minimization
oftourism leakage.
Program Constraints: the key sub'
ements (independent) are: Intcrnational
trade policy and Foreign currencies
fluctuation. The most dependent subel ement is Lack of availability and quality
el
4.3 Responsibility of Stakeholders in
Minimization of Tourism Leakage at
Accommodation Sector
Proceeding Tourism in Indonesia 225
level have strong influences to the lower
level sub-elements. In this case, the subelement E9 has strong influence to ofher
subelements El,82, E3,EA,E5, E6, E7,
E8, andElO.
Furthermore, the structural hierarchy of
all sub-elements of Program Needs for
minimization of tourism leakage is
presented in figure 2. Based on this
figure, the sub-elements at the higlrcst
LEVEL I
E5
i
LEVEL2
-l
r-*-Et
LEVEL3
l----
E6-----l
a
EI E? E3 E? E8 EIO
LE1/EL{
l--
LE1'EL5
t
E
---l
Figure 2: Structural hierarchy of zub-elements of Program Needs for minimization
tourism leakage
of
of local products. This finding means that
The results of the other elements are
summarized as follows:
the constraints on intemational
Prograni Goals: the key sub-elements
that have strong influences to oher
of
local products; To develop agrioiltme,
elements are: To optimize the potential
livestock, fisheries and handicraft
industry; To empower community; To
reduse the use of imported prnducts for
tourists; and To increase export of local
products. Therefore, focus in Progrun
Goals is given to these key subelements
in order to minimize towism leakage.
Affected Sectors: the key sub-elements
trade
policy, and foreigr currencies fluchration
should be worked out in order to improve
the availability and quality of local
products.
Po$sible Chanses: the key sub-elements
(independent) are Policy on restriction of
foreigrr invesunenl and Public-private
parErership on invesfinent. The most
dcpendent sub+lement is to increase and
equalize income distribution. In this case,
policy on restriction of foreigrt
investrnent, and Public-Private
on invesfinent should be
(independent) are: Community leade4
partnership
Community organization;
utilized in order to increase and equalize
income distribution amongst community.
Involvement of Asencies: the key sub-
and
Government. Therefore, focus in
Affected Sectors is given to lhese key
sub-elements in order to minimize
tourism leakage. The most dependent
sub-elements are fisheries industries, and
Local employees. This finding means that
Community leader,
Community
organization. and Government strould
work together to develop agriculture,
animal husbandry, and fisheries
industries, and.
to improve
local
employees.
elements (independent) are: the Ministry
of Foreign Affairs, and the Minisny of
Tourism and Creative Economy. Focus in
Involvement of Agencies is given to the
Ministry of Foreign Affairs and the
Ministry of Tourisrn and Creative
Economy in order to minimize tourism
leakage. These two agencies influence
other agencies involved in minimization
oftourism leakage.
Program Constraints: the key sub'
ements (independent) are: Intcrnational
trade policy and Foreign currencies
fluctuation. The most dependent subel ement is Lack of availability and quality
el
4.3 Responsibility of Stakeholders in
Minimization of Tourism Leakage at
Accommodation Sector
Proceeding Tourism in Indonesia 225
Efforts in minimization of
imported Products and
tourism
leakage can be undertaken based upon the
sub-elements of every elemer$s
reiulted by the ISM, as mentioned above'
key
community oryanization, communitY
leaders, and the cental governrnent such
as Ministry of Foreigrr Affair as well as
These efforts can be developed into some
strategies, as follows:
The Minisbry of Tourism and Creative
Economy are reallY imPortant'
Community leaders and communifY
organization have crucial role in
irogram goals: (i) to optimize the
potential of local products, (it) T"
(l)
develoP agriculture,
livestock,
fisheries and handicraft industry,
to
emPower communitY,
(iii)
(iv)
encouraging the develoPment -of
agriculture and handicraft indushies
through emPowerment of local
to
reduce the use of imported products
for tourists, and (v) to increase export
of local Products.
(2) Program needs: (i) to
(3)
EmPowerment of local
be gained also through
can
communi$r
involvement of provincial or local
government. The roles of government are
communitY.
imProve
government's role in every stratery
ielated to minimize tourism leakage'
Affected sectors: (i) to involve
important in restriction on
development of new accommodation,
international trade poticy as well as in
ilso really
in communitY
(iD to emPower
communitY leaders
€mpowefinenq
communitY organization
supporting public andprivate partnership
on investment. Furthdrmore, the Central
Government of Indonesia through the
MinistrY of Tourism and Creative
in
developing agriculhue, livestock'
fisheriis and handicraft industry, and
(iii) to wge government to develoP
and implement supporting policies in
Economy has a major role in promoting
Program constraints: (i) to establish
International Trade Policy that gives
tourism. However, the Ministry of
Foreigp Atrairs can also play a crucial
role in encouraging more quality of
increase export oflocal products, and
the foreign currencies
the
order to minimize leakage'
(4)
''
prioritY to reduce imPort and t9
(ii) to stabilize
fluctuation bY
(5)
foreign
employees. To optimize these efforts, the
roles ofprovincial and local govemments,
GovernmentPossible changes:
Indonesian
(i) to
policY on restriction
establish
of
foreign
investment on accommodation sector
in Bali, and (ii) to lacilitate public-
private partnership on investment in
tourism'
(6) Involvement of agcncies: (i) to^
imProve the role
of MinistrY of
Foreign Affairs and Ministry of
Towism and Creative EconomY in
promoting Bali tourism worldwide
and to encourage towists to consume
local Producs in PrioritY.
Regarding the above strategies, therefore
all stakeholders will have their own
responsibility. Tourism leakage on
accommodation sector in Bali can be
minimised through optimizing the use
of
local products and reduction in using
226 Proceeding Tourism in Indonesia
foreign tourists in visiting Indoneisa