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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?]-

of

towism, the dePletion or
a country's in&astucture'
of
destruction
environments and
habitats,
nahrral

effects

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,

have experiences in development of
tourism [24]. Thc above defmition
presents a very broad rmderstanding of a
stakeholders and it allows almost anyone

importanL Therefore, tourism leakage is
thus unavoidable I l].

to be considered a stakeholders [26] and

financial, struchrral and operational
supports from foreign countries are

Reduce leakage is important in order to
increase economic benefits of tourism in

a destination. To

optimize economic

benefits

leakage should be

of tourism,

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,

[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

government through "Regulation of Bali
312012 regarding
Government

No.

Empowermenl Protection and
Development of Small-scale Industry".

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

to

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.

Qualifiedhumanresources (El)
Good management in agribusiness,
livestoclg fisheries and handicraft
industry (E2)
Participation of farmers, cattlemen,

3.

fishermen and craflsmen (83)
Qualrty, quantigr, continuity of local

4.

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

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),

should participate

as handicrafu, paintings, and other
furniture. This will be able to reduce
leakage significantly [aa] and [a6].

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].

assessment of
contextual relationship between each sub

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:

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

local of Balinese producB, namely:
fisheries products, " fruits, vegetables,

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

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

whereas agriculture without tourism

investors will dominate the owner of large
tourism firms, therefore profits are kept

by the

die

outsiders who own the firms-

Made Suryawan

as

(a

Professional in

local entrepreneurs typically do nothave

tourism) said:

the experience or education to market

" ...

products to foreigners, and their ability to
educate themselves is often limited [40].

coordination between

industry and communities are urgently

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

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

economic impact

Integrated eommunication

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

He also
emphasized that hotel association need to
Resource
irnprove
Development (HRD) division at each
hotel by working together to enhance

through better education.

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

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

will

{Personal Communication, l2th

May 2013).
Another person from tourism industry,

Management and marketing may also be

a major problem for local ownership

.."

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

government through "Regulation of Bali
312012 regarding
Government

No.

Empowermenl Protection and
Development of Small-scale Industry".

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

to

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.

Qualifiedhumanresources (El)
Good management in agribusiness,
livestoclg fisheries and handicraft
industry (E2)
Participation of farmers, cattlemen,

3.

fishermen and craflsmen (83)
Qualrty, quantigr, continuity of local

4.

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

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),

should participate

as handicrafu, paintings, and other
furniture. This will be able to reduce
leakage significantly [aa] and [a6].

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
E9

E10

lllllll
1019

E3 E4
NlO DP

be

to

for minimization of tourism leakage

E5

E6

E7

I

111
l9
01100
02

I

I

0

01110
03
tlll1
l9

l0
lllllll
llll0
I
I

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

-l
r-*-Et

LEVEL2

l----

LEVEL3

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 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

(independent) are: Community leade4

Community organization;

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

of

local

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

partnership

utilized in order to increase and equalize
income distribution amongst community.
Involvement of Asencies: the key subelements (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

employees.

oftourism leakage.

ements (independent) are: Intcrnational
trade policy and Foreign currencies
fluctuation. The most dependent subel ement is Lack of availability and quality

4.3 Responsibility of Stakeholders in
Minimization of Tourism Leakage at

Program Constraints: the key sub'
el

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

-l
r-*-Et

LEVEL2

l----

LEVEL3

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 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

(independent) are: Community leade4

Community organization;

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

of

local

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

partnership

utilized in order to increase and equalize
income distribution amongst community.
Involvement of Asencies: the key subelements (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

employees.

oftourism leakage.

ements (independent) are: Intcrnational
trade policy and Foreign currencies
fluctuation. The most dependent subel ement is Lack of availability and quality

4.3 Responsibility of Stakeholders in
Minimization of Tourism Leakage at

Program Constraints: the key sub'
el

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 Indon