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Tourism Leakage of Accommodation in Bali I Gusti Ayu Oka Suryawardani

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Tourism Leakage of Accommodation in Bali I Gusti Ayu Oka Suryawardani Tourism leakage of accommodation in Bali I Gusti Ayu Oka Suryawardani To cite this version: I Gusti Ayu Oka Suryawardani. Tourism leakage of accommodation in Bali. Business administration. Université Panthéon-Sorbonne - Paris I, 2015. English. NNT : 2015PA010071. tel-02453449 HAL Id: tel-02453449 https://tel.archives-ouvertes.fr/tel-02453449 Submitted on 23 Jan 2020 HAL is a multi-disciplinary open access L’archive ouverte pluridisciplinaire HAL, est archive for the deposit and dissemination of sci- destinée au dépôt et à la diffusion de documents entific research documents, whether they are pub- scientifiques de niveau recherche, publiés ou non, lished or not. The documents may come from émanant des établissements d’enseignement et de teaching and research institutions in France or recherche français ou étrangers, des laboratoires abroad, or from public or private research centers. publics ou privés. DISSERTATION TOURISM LEAKAGE FROM THE ACCOMMODATION IN BALI I GUSTI AYU OKA SURYAWARDANI INDONESIAN-FRENCH DOUBLE DOCTORATE DEGREE IN TOURISM UDAYANA UNIVERSITY, DENPASAR UNIVERSITÉ PARIS 1 PANTHÉON - SORBONNE 2015 DECLARATION OF ORIGINALITY The work presented in this dissertation is, to the best of my knowledge and belief, original except as acknowledgement in the text. I hereby declare that I have not submitted this material either in whole or in part of a degree at this University or any other institution Denpasar, April 29, 2015 I Gusti Ayu Oka Suryawardani i ABSTRACT TOURISM LEAKAGE OF ACCOMMODATION IN BALI Tourism has become the leading economic sector in Bali Province of Indonesia. However, the economic impacts of tourism have not been convinced to be fully beneficial for Balinese community. One of the reasons is tourism leakage that occurs when the industry imports both products and services to support tourism industry in Bali. So far, the amount of tourism leakage in Bali has not been calculated yet. Therefore, there is a need to ascertain the current amount of leakage in Bali tourism. The objectives of the study are: (i) to calculate the amount of tourism leakage from accommodation sector in Bali at micro (industrial) level; (ii) to calculate the amount of tourism leakage from accommodation sector in Bali at macro (regional) level; (iii) to evaluate the impacts of government subsidies and import reduction by accommodation sector on tourism leakage, job opportunity and income distribution; (iv) to evaluate the perception and preference of foreign tourists on imported and local products as well as the willingness of foreign tourists to spend their money to benefit of Balinese people; (v) to evaluate the points of view of hotel managers related to imported and local products as well as their willingness in reducing the use of imported product and (vi) to develop strategie in minimizing tourism leakage in accommodation in Bali. Research was designed through quantitative and qualitative approaches. Data was collected by using survey method at four main tourist destinations in Bali, namely: Kuta, Nusa Dua, Sanur and Ubud. There were 79 hotels selected based upon probability proportional to size sampling method which consists of three clusters namely 1,2,3 Star-rated, 4&5 Star-rated either chain and non-chain and Non Star-rated hotels. The number of respondents was 600 foreign tourists were selected as respondents. Calculation of tourism leakage on micro analysis was undertaken by using a method developed by Unluonen, et. al. (2011), meanwhile, on macro analysis was carried out by using a method proposed by Thorbecke (1988) which was based on the Social Accounting Matrix (SAM) of Bali 2010. Perception and preference of foreign tourists on imported and local products were analyzed by using JMP program, meanwhile, Interpretative Structural Modelling (ISM) was undertaken to develope strategies. The results show that based on the micro analysis, the highest tourism leakage of accommodation sector in Bali is at 4&5 Star-rated chain hotels (51.0 %), followed by 4&5 Star- rated non-chain hotels (22.7 %), 1,2&3 Star-rated hotels (12.0 %), Non-star rated hotels (8.8 %), and with the average leakage of 18.8 %. Based on macro analysis, tourism leakage of accommodation sector in Bali are as follow: (i) Leakage of Non Star-rated hotels is 2.0 %; (ii) Leakage of 1,2&3 Star-rated hotels is 15.7 %; (iii) Leakage of 4&5 Star-rated non-chain hotels is 7.1 %, (iv) Leakage of 4&5 Star-rated chain hotels is 55.3%; and (v) Average leakage of all types of accommodation is 19.5%. Foreign tourists significantly look for local products and are willing to spend their money for Balinese people. Hotel managers are willing to use local product as long as local products are available to substitute the imported products. Strategies for minimization tourism leakage are optimizing the potential of local products, develop agriculture and livestock; reduce the use of imported products for tourists, improve quality of local products and human resources, empower community, urge government to develop and implement supporting policies in minimizing tourism leakage, establish policy on restriction of foreign investment on accommodation in Bali, improve the role of Ministry of Foreign Affairs, Ministry of Industry, Ministry of Trade and Ministry of Tourism and Creative Economy. 7 Ps of marketing mix on service: product, price, place, promotion, people, process and physical evidence need to be implemented in order to support sustainable tourism in Bali Key words: tourism income, tourism leakage, accommodation sector, Bali. ii SUMMARY Tourism has been a driving force of economic development in Bali Province and has become the leading economic sector in Bali’s economy. However, the economic impact of tourism development has not been convinced to be fully beneficial for Balinese community. There is a phenomenon that tourists’ expenditures have not been totally become tourism income of Bali’s economy due to some incomes leak out the destination, called tourism leakage, in the form of payment for imported products and services, payment of wages for foreign employees, and profit transfer to foreign owners. Leakage could be defined as losses from the national income flows which have been generated during the transition from the local/national consumption income cycle to the spending chain (Bull, 1991). So that, there is a need to ascertain the current amount of leakage on accommodation occurred in Bali tourism. The objectives of the study are: (i) to calculate the amount of tourism leakage from accommodation sector in Bali at micro (industrial) level; (ii) to calculate the amount of tourism leakage from accommodation sector in Bali at macro (regional) level; (iii) to evaluate the impacts of government subsidies and import reduction by accommodation sector on tourism leakage, job opportunity and income distribution; (iv) to evaluate the perception and preference of foreign tourists on imported and local products as well as the willingness of foreign tourists to spend their money to benefit of Balinese people; (v) to evaluate the points of view of hotel managers related to imported and local products as well as their willingness in reducing the use of imported products and giving the priority iii on local products; and (vi) to develop a strategy in minimizing tourism leakage in accommodation sector in Bali. Research is designed through quantitative and qualitative approaches. Quantitative analysis was undertaken in order: (i) to calculate tourism leakage by using micro and macro analysis; (i) to calculate tourism leakage by using micro and macro analysis (ii) to analyze perception and preference of foreign tourists on imported and local products; and (iii) to assess the willingness of foreign tourists to spend their money for the benefit of Balinese people. Calculation of tourism leakage through micro analysis was undertaken at industrial level (hotels), meanwhile macro analysis was undertaken to calculate tourism leakage at macro (regional) level. Qualitative analysis was undertaken in order: (i) to evaluate hotel managers’ points of view regarding the use of imported and local products, and their willingness in reducing imported products; and (ii) to develop strategy in minimizing tourism leakage based on Interpretative Structural Modeling (ISM). Calculation of tourism leakage on micro analysis was undertaken by using a method that was developed by Unluonen et. al. (2011). Data were collected by a survey at four main tourist destinations in Bali, namely: Kuta, Nusa Dua, Sanur and Ubud. There were 79 hotels selected as sampling hotels. Sampling was undertaken based upon a probability proportional to size sampling method. Three clusters of accommodation were chosen, namely: (i) 1,2&3 Star-rated hotels; (ii) 4&5 Star-rated chain hotels, and 4&5 Star-rated non-chain hotels; and (iii) Non- star rated hotels. Meanwhile, calculation of tourism leakage on macro analysis was undertaken by using a method proposed by Thorbecke (1988). Calculation iv was based on the Social Accounting Matrix (SAM) Bali 2010 and other related data. Perception and preference of foreign tourists on imported and local products as well as assessment of the willingness of foreign tourists to spend their money for the benefit of Balinese people were analyzed by using JMP (John’s Macintosh Project), a software program from SAS Company. Moreover, analysis of significance of variables is supported by Likert scale on seven scale categories. The results show that: 1) Based on the micro analysis, tourism leakage of accommodation sector in Bali are as follow: (i) Leakage of Non-star rated hotels is 8.8 %; (ii) Leakage of 1,2&3 Star-rated hotels is 12.0 %; (iii) Leakage of 4&5 Star-rated non-chain hotels is 22.7 %; (iv) Leakage of 4&5 Star-rated chain hotels is 51.0 %; and (v) Average leakage of all types of accommodation is 18.8 %. 2) Based on macro analysis, tourism leakage of accommodation sector in Bali are as follow: (i) Leakage of Non-star-rated hotels is 2.0 %; (ii) Leakage of 1,2&3 Star-rated hotels is 15.7 %; (iii) Leakage of 4&5 Star-rated non-chain hotels is 7.1 %; (iv) Leakage of 4&5 Star-rated chain hotels is 55.3%; and (v) Average leakage of all types of accommodation is 19.5%.
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