KOMODO NATIONAL PARK AND LABUAN BAJO (FLORES) BASELINE DEMAND & SUPPLY, MARKET DEMAND FORECASTS, AND INVESTMENT NEEDS
MARKET ANALYSIS AND DEMAND ASSESSMENTS TO SUPPORT THE DEVELOPMENT OF INTEGRATED TOURISM DESTINATIONS ACROSS INDONESIA
WORLD BANK SELECTION # 1223583 (2016-2017)
ACKNOWLEDGMENTS
PREPARED BY:
FOR:
WITH SUPPORT FROM:
This work is a product of external contributions supervised by The World Bank. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. This publication has been funded by the Kingdom of the Netherlands, the Australian Government through the Department of Foreign Affairs and Trade and the Swiss Confederation through the Swiss State Secretariat for Economic Affairs (SECO). The views expressed in this publication are the author’s alone and are not necessarily the views of the Kingdom of the Netherlands, Australian Government and the Swiss Confederation.
TABLE OF CONTENTS
INTRODUCTION ...... 1 BASELINE DEMAND & SUPPLY ...... 5 1. DESTINATION CHARACTERISTICS ...... 6 1.1 GEOGRAPHY...... 6 1.2 CLIMATE ...... 7 1.3 NATURAL AND CULTURAL RESOURCES ...... 7 2. DESTINATION DEFINITION ...... 9 2.1 KEY ATTRACTIONS & TOURISM AREAS ...... 9 2.2 CONCLUSION ON ATTRACTIONS ...... 12 3. VISITOR ARRIVALS & DEMOGRAPHICS ...... 13 3.1 LEVEL OF CURRENT DEMAND ...... 13 3.2 ORIGIN OF VISITORS ...... 15 3.3 AVERAGE LENGTH OF STAY (alos) AT COMMERCIAL ACCOMMODATIONs ...... 16 3.4 SEASONALITY OF VISITS ...... 17 3.5 MARKET SEGMENTATION BY BOOKING METHOD ...... 18 3.6 AWARENESS AND IMAGE OF THE DESTINATION AMONG INTERNATIONAL MARKETS ...... 19 3.7 TOURISM PROMOTION / DESTINATION MARKETING ...... 21 3.8 CONCLUSIONS ON VISITOR ARRIVALS & DEMOGRAPHICS ...... 23 4. ACCESSIBILITY HIGHLIgHtS ...... 24 4.1 EXISTING MODE OF TRAVEL AND VISITORS’ MOVEMENT ...... 24 5. HOTELS & LODGING OPTIONS (AMENITIES) ...... 26 5.1 VOLUME OF ROOMS & PERFORMANCE: KABUPATEN MANGGARAI barat ...... 26 5.2 ESTIMATED PERFORMANCE BASED ON INTERVIEWS ...... 29 5.3 HOTEL FACILITIES ...... 29 5.4 CONCLUSIONS ON EXISTING HOTEL SUPPLY ...... 31 6. SME: SUPPORTING TOURISM INFRASTRUCTURE (AMENITIES) ...... 32 6.1 INDEPENDENT FOOD & BEVERAGE ...... 32 6.2 TRAVEL AGENCIES ...... 33 6.3 GUIDES ...... 33 6.4 OTHER SERVICE PROVIDERS ...... 33 6.5 CONCLUSIONS ON SMES SUPPORTING TOURISM ACTIVITIES...... 34 7. INVESTMENT ANALYSIS ...... 35 7.1 DIRECT INVESTMENT ...... 35 7.2 KEY PLAYERS / INVESTORS ...... 36 7.3 INVESTMENT SENTIMENT: DOMESTIC & FOREIGN INVESTORS ...... 37 8. SKILLS ASSESSMENT ...... 40 8.1 TRAINING SCHOOLS ...... 40 8.2 WHAT SKILLS EXIST (gleaned from interviews)? ...... 40 DESTINATION SWOT & VISION ...... 42 9. DESTINATION SWOT ...... 43 9.1 STRENGTHS...... 43 9.2 WEAKNESSES ...... 43 9.3 OPPORTUNITIES ...... 44 9.4 THREATS...... 45 10. RECOMMENDED DESTINATION VISION ...... 46 10.1 PRODUCTS AND ACCOMMODATION TO BE DEVELOPED ...... 46 10.2 UNIQUE SELLING POINTS ...... 46
MARKET DEMAND FORECASTS ...... 47 11. FUTURE MARKET DEMAND ANALYSIS ...... 48 11.1 FORECAST OF VISITOR ARRIVALS ...... 48 11.2 IMPACT ON GUEST NIGHTS AND EXPENDITURE ...... 50 INVESTMENT NEEDS ...... 51 12. AMENITIES: KEY RECOMMENDATIONS ...... 52 12.1 KNOWN PIPELINE DEVELOPMENT ...... 52 12.2 POTENTIAL ACCOMMODATION GAPS ...... 53 12.3 FORECASTING FUTURE SUPPLY NEEDS ...... 53 13. STAFF REQUIRED & SKILLS NEEDED ...... 55 13.1 ACCOMMODATION STAFF REQUIRED ...... 55 13.2 WHAT SKILLS ARE NEEDED? ...... 55 13.3 ACCOMMODATION STAFF REQUIRED ...... 56 13.4 ADDITIONAL MANGGARAI Barat DESTINATION STAFF REQUIRED ...... 58 14. TRANSPORT INFRASTRUCTURE BASELINE & NEEDS ...... 60 BASELINE ...... 60 14.1 ROAD TRANSPORT ...... 60 14.2 AIR TRANSPORT ...... 64 14.3 WATER TRANSPORT ...... 67 TRANSPORT INFRASTRUCTURE INVESTMENT NEEDS ...... 70 14.4 FUTURE MODE OF TRAVEL ...... 70 14.5 ROAD TRANSPORT NEEDS ...... 72 14.6 AIR TRANSPORT NEEDS ...... 74 14.7 SEA TRANSPORT NEEDS ...... 75 15. BASIC CAPACITY INFRASTRUCTURE (AMENITIES) ...... 77 BASELINE ...... 77 15.1 BACKGROUND FOR PHYSICAL INFRASTRUCTURE ASSESSMENT ...... 77 15.2 WATER SUPPLY ...... 77 15.3 WASTEWATER AND SANITATION ...... 81 15.4 DRAINAGE ...... 83 15.5 SOLID WASTE INFRASTRUCTURE ...... 84 15.6 POWER SUPPLY ...... 86 15.7 TELECOMMUNICATION INFRASTRUCTURE ...... 87 15.8 SUMMARY OF EXISTING BASIC INFRASTRUCTURE ...... 88 BASIC CAPACITY INFRASTRUCTURE INVESTMENT NEEDS ...... 91 15.9 FORECAST POPULATION & VISITOR ARRIVALS ...... 91 15.10 WATER SUPPLY ...... 91 15.11 WASTEWATER AND SANITATION ...... 96 15.12 DRAINAGE ...... 97 15.13 SOLID WASTE INFRASTRUCTURE ...... 97 15.14 POWER SUPPLY ...... 100 15.15 TELECOMMUNICATION INFRASTRUCTURE...... 103 KEY RECOMMENDATIONS ...... 104 16. WHAT WILL TRIGGER INVESTMENT? ...... 105 16.1 RECOMMENDATIONS ON DESTINATION ENHANCEMENTS ...... 105 16.2 LEGAL & REGULATORY ENVIRONMENT ENHANCEMENTS...... 106 16.3 SME DEVELOPMENT INTERVENTIONS ...... 106 16.4 KEY RECOMMENDATIONS FOR TRANSPORT INFRASTRUCTURE INVESTMENT 109 16.5 KEY RECOMMENDATIONS FOR BASIC INFRASTRUCTURE INVESTMENTS...... 109 16.6 RECOMMENDATIONS FOR SPATIAL PLANS ...... 110
APPENDIX 1: SOURCES OF INFORMATION USED ...... 115 APPENDIX II: SUPPORTING DATA FOR TRANSPORT ANALYSIS ...... 117 APPENDIX III: MARKET-LEADING HOTELS ...... 118 APPENDIX IV: ROAD CAPACITY ASSESSMENT ...... 124
TABLE OF FIGURES
FIGURE 1: LOCATION OF 10 PRIORITY TOURISM DESTINATIONS IN INDONESIA ...... 2 FIGURE 2: MAP OF KABUPATEN MANGGARAI BARAT ...... 6 FIGURE 3: MONTHLY TEMPURATURE AND RAINFALL, KABUPATEN MANGGARAI BARAT, 2015 ...... 7 FIGURE 4: MAP OF KEY ATTRACTIONS IN FLORES ...... 9 FIGURE 5: COMMERCIAL AIR TRAFFIC & PASSENGER MOVEMENT AT KOMODO AIRPORT ... 13 FIGURE 6: ARRIVALS OF INTERNATIONAL & DOMESTIC VISITORS TO KNP, 2010 – 2015 ...... 14 FIGURE 7: SEASONALITY OF INTERNATIONAL AND DOMESTIC VISITORS KNP, 2015 ...... 17 FIGURE 8: BREAKDOWN OF FOREIGN VISITORS TO KNP, 2015 ...... 16 FIGURE 9: ACTIVITIES AND PRODUCTS ASSOCIATED WITH LABUAN BAJO ON TRIPADVISOR WEBSITE ...... 20 FIGURE 10: CAUSES OF SATISFACTION AND DISSATISFACTION, ACCORDING TO TRIPADVISOR ...... 20 FIGURE 11: PLACES ASSOCIATED WITH LABUAN BAJO IN PACKAGES OFFERED BY TOUR OPERATORS INTERVIEWED...... 21 FIGURE 12: LABUAN BAJO TOURISM DESTINATION AND VISITOR’S MOVEMENT ...... 25 FIGURE 13: ACCOMMODATION AND ROOM CAPACITIY, MANGGARAI BARAT, 2010 – 2015 .... 27 FIGURE 14: MANGGARAI BARAT, ROOM NIGHT SUPPLY AND DEMAND, 2010 – 2015 ...... 27 FIGURE 15: MANGGARAI BARAT, ROOM OCCUPANCY, 2011 – 2015 ...... 28 FIGURE 16: FOREIGN & DOMESTIC DIRECT INVESTMENT TO MANGGARAI BARAT HOTELS & RESTAURANTS, 2011 – 2016 YTD JUNE (USD)...... 35 FIGURE 17: FORECAST OF VISITOR ARRIVALS TO LABUAN BAJO, 2015 – 2041 ...... 49 FIGURE 18: FORECAST OF VISITOR GUEST NIGHTS AND EXPENDITURE IN LABUAN BAJO, 2015 – 2041 ...... 50 FIGURE 19: LE PIRATE ...... 52 FIGURE 20: NUMBER OF ROOMS REQUIRED, 2015 – 2041 ...... 54 FIGURE 21: ESTIMATED NUMBER OF STAFF BY HOTEL CATEGORY ...... 58 FIGURE 22: EXISTING ROAD CONDITION AT KABUPATEN MANGGARAI BARAT ...... 60 FIGURE 23: EXISTING ROAD LENGTH AND PAVEMENT IN OTHER KABUPATEN ...... 61 FIGURE 24: MAIN ROADS CONNECTING KEY ATTRACTIONS AREA ...... 62 FIGURE 25: NUMBER OF REGISTERED VEHICLES IN MANGGARAI BARAT ...... 63 FIGURE 26: KOMODO AIRPORT MAP ...... 64 FIGURE 27: KOMODO AIRPORT FACILITIES ...... 65 FIGURE 28: EXISTING GAPS IN AIRPORT FACILITIES AT KOMODO AIRPORT ...... 65 FIGURE 29: KOMODO AIRPORT MASTER PLAN ...... 66 FIGURE 30: LABUAN BAJO PORT FACILITIES ...... 67 FIGURE 31: LABUAN BAJO PORT FACILITIES ...... 69 FIGURE 32: SURVEY OF TRANSPORT MODAL SPLIT ...... 70 FIGURE 33: FUTURE SCENARIO OF TRANSPORT MODAL SPLIT ...... 71 FIGURE 34: ESTIMATE OF TOURISM PASSENGERS BY TRANSPORT MODES IN 2021 ...... 71 FIGURE 35: ESTIMATE OF TOURISM PASSENGERS BY TRANSPORT MODES IN 2041 ...... 72 FIGURE 36: NUMBER OF VEHICLES IN PAST AND FUTURE ...... 72
FIGURE 37: TRAFFIC VOLUME ESTIMATION IN 2021 ...... 73 FIGURE 38: TRAFFIC VOLUME ESTIMATION IN 2041 ...... 73 FIGURE 39: TRAFFIC VOLUME ESTIMATION IN 2021 AND 2041 (ADT) ...... 73 FIGURE 40: KOMODO AIRPORT – INFRASTRUCTURE NEEDS ...... 75 FIGURE 41: LABUAN BAJO TOURISM DESTINATION AND KEY ATTRACTIONS ...... 77 FIGURE 42: CAPACITY OF PDAM WATER SOURCES IN LABUAN BAJO ...... 78 FIGURE 43: LOCATION OF WATER SOURCE AND WATER RESERVOIR AT LABUAN BAKO ..... 78 FIGURE 44: CAPACITY OF WATER RESERVOIRS AT LABUAN BAJO ...... 79 FIGURE 45: EXISTING COVERAGE OF PDAM WATER SUPPLY ...... 80 FIGURE 46: EXISTING COVERAGE OF STBM STANDARD SANITATION ...... 82 FIGURE 47: FLOOD DISASTER RISK INDEX MAP ...... 83 FIGURE 48: PROCEDURE OF SOLID WASTE COLLECTION AND DISPOSAL ...... 84 FIGURE 49: LOCATION OF TPS AND TPA IN LABUAN BAJO ...... 85 FIGURE 50: EXISTING COVERAGE OF POWER SUPPLY NETWORK ...... 86 FIGURE 51: EXISTING AND PROPOSED POWER PLANTS IN MANGGARAI BARAT ...... 87 FIGURE 52: TELECOM TOWERS IN MANGGARAI BARAT ...... 88 FIGURE 53: SUMMARY OF EXISTING BASIC INFRASTRUCTURE ASSESSMENT ...... 88 FIGURE 54: FORECAST OF POPULATION ...... 91 FIGURE 55: FORECAST OF COMMERCIAL ROOMS REQUIRED...... 91 FIGURE 56: WATER DEMAND PROJECTIONS (L/S) ...... 93 FIGURE 57: ESTIMATED WATER DEMAND RATIO ...... 94 FIGURE 58: WATER CONSUMPTION RATE ...... 94 FIGURE 59: SEWAGE GENERATION PROJECTION (L/S) * ...... 96 FIGURE 60: ESTIMATED SEWAGE GENERATION RATIO ...... 96 FIGURE 61: SOLID WASTE GENERATION PROJECTINO (L/DAY) ...... 98 FIGURE 62: ESTIMATED SOLID WASTE GENERATION RATIO ...... 98 FIGURE 63: RATE OF SOLID WASTE GENERATION ...... 98 FIGURE 64: POWER DEMAND PROJECTION (MWH) ...... 100 FIGURE 65: ESIMATED POWER DEMAND RATIO ...... 100 FIGURE 66: POWER CONSUMPTION RATE ...... 102 FIGURE 67: RTRW MANGGARAI BARAT REGENCY MASTER PLAN 2010 ...... 112 FIGURE 68: KMP PROPOSED ZONING ...... 113 FIGURE 69: GAPS IN SPATIAL PLANNING FRAMEWORK, LABUAN BAJO ...... 113 FIGURE 70: SINGLE RUNWAY OCCUPANCY TIME ...... 117 FIGURE 71: JAYAKARTA KOMODO FLORES ...... 118 FIGURE 72: BINTANG FLORES ...... 119 FIGURE 73: LA PRIMA ...... 120 FIGURE 74: KOMODO DIVE RESORT ...... 121 FIGURE 75: SERAYA HOTEL ...... 122 FIGURE 76: ANGEL RESORT ...... 123 FIGURE 77: FLOWCHART OF VISITOR TRAFFIC VOLUME ESTIMATION ...... 125 KOMODO NATIONAL PARK AND LABUAN BAJO: MARKET ANALYSIS AND DEMAND ASSESSMENT: SELECTION # 1223583
INTRODUCTION
The Government of Indonesia in the National Medium-Term Development Plan (Rencana Pembangunan Jangka Menengah Nasional, RPJMN) 2015 to 2019, has set a number of objectives to increase the role of tourism in the Indonesian economy. Between 2015 and 2019, its goals together with the Ministry of Tourism’s goals are to increase:
• international visitors from 9 million to 20 million p.a.;
• domestic visits from 250 million to 275 million p.a.;
• the tourism contribution to GDP from 4 percent to 8 percent p.a.;
• tourism foreign exchange revenues from IDR120 trillion to IDR240 trillion p.a.;
• Indonesia’s Travel and Tourism Competitiveness Index ranking from 70th to 30th place; and
• tourism sector employment from 11 million to 13 million workers.
To achieve these goals President Joko Widodo urged his cabinet in late 2015 to accelerate the development of 10 priority tourism destinations (Figure 1):
• Borobudur (Jogjakarta, Solo, Semarang: Central Java)
• Mandalika (Lombok)
• Bromo, Tengger, Semeru (East Java)
• Labuan Bajo/Komodo National Park (Flores)
• Wakatobi (South East Sulawesi)
• Pulau Seribu / Kota Tua (DKI Jakarta)
• Morotai (North Maluku)
• Tanjung Lesung (Banten)
• Tanjung Kelayang (Bangka Belitung)
The 3 destinations in bold are considered high priority destinations with additional effort being expended to encourage and develop tourism.
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The World Bank has been requested by the Government of Indonesia to support, through financing, advisory support, and analytics, the Government’s efforts to accelerate tourism development in the 10 priority destinations. As part of this support, in August 2016 the World Bank engaged Horwath HTL (HHTL) and Surbana Jurong to conduct a market analysis and demand assessment for the 10 priority destinations, with a focus on Lake Toba, Lombok and Borobudur.
FIGURE 1: LOCATION OF 10 PRIORITY TOURISM DESTINATIONS IN INDONESIA
Source: Google Maps, Surbana Jurong
The key objective of the Assessment is to assist the Government of Indonesia in identifying and prioritising infrastructure, skill and SME development, planning and other tourism-related expenditures to accelerate the development of the 10 priority tourism destinations thereby helping to achieve the arrivals and economic goals as listed above. The scope comprises of (1) market demand and supply analysis, plus investment analysis and (2) demand assessment (projections) and investment needs (including infrastructure).
To this end, the following key tasks were undertaken:
Task 1: Understanding governmental decentralization & its effect on decision making plus preliminary information gathering. Task 2: Collection and analysis of the government’s statistical data. Task 3: Survey of international and domestic tourism stakeholders for collection of public and private sector information. Task 4: Survey of tour-operators in selected key markets. Task 5: Secondary research on tourism supply and demand. Task 6: Analysis of the image of Indonesia and the 10 priority destinations. Task 7: Future market demand analysis.
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Task 8: Investment and infrastructure needs assessment. Task 9: SMEs and skills assessment and needs.
Appendix I contains a list of interviews undertaken with both the public and private sectors to gather primary research that was used to supplement secondary research. The list includes the number of interviews, the organisation (where appropriate), the location and the dates.
This Report is part of a series of reports:
• report for Indonesia, country level;
• reports for the 3 high priority destinations (Borobudur, Lake Toba, Lombok); and,
• reports for the 7 other priority destinations (Bromo/Tengger/Semeru, Labuan Bajo/Komodo National Park, Wakatobi, Pulau Seribu/Kota Tua, Morotai, Tanjung Lesung and Tanjung Kelayang). These reports only provide rough estimates and are more basic that the ones for the 3 high priority destinations. Good practice in terms of forecasting could not always be applied, and instead, for instance, assumptions based on supply pipeline and constraints were used.
Assessment of the Destination and Key Tourism Areas
The 3As terminology (Attraction, Amenities and Accessibility) can help explain how the supply and demand analysis and needs assessment was carried out for the destination with respect to the destination boundary and the key tourism areas.
• Attractions: attractions specifically focused on engaging and drawing visitors to the destination. The destination is defined by its attractions and their ability to draw visitors. Within the destination boundary, (existing and future) clusters of attractions with potential for tourism development and propensity to generate overnight stays and revenue and/or (existing and future) key accommodation areas are identified and henceforth called “key tourism areas”.
• Accessibility: methods of reaching the destination via the main gateways (external accessibility) plus transport links between gateways, attractions and key accommodation areas all of which support the destination (internal accessibility). For external accessibility, the focus is on the gateway hubs (such as airports and ports). For internal accessibility, the Report assesses the transport infrastructure; the existing, the gaps and the required transportation network that facilitates accessibility within the destination.
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• Amenities: support the destination and the attractions such as hotels, restaurants and entertainment facilities together with basic services infrastructure. Within the destination boundary, and generally within the key tourism areas, the Report assesses:
- the existing basic services infrastructure capacity (water supply, power supply, telecommunication, waste water and waste management, etc.);
- identifies any basic services infrastructure capacity gaps;
- analyses demand and supply of existing attractions and amenities;
- provides projections for future attractions and amenities; and
- provides an assessment of infrastructure needs of the destination to ensure success of the attractions and amenities. In some cases, when amenities within the destination boundary have a direct effect on the attractiveness of the key tourism areas, the scope of the baseline and investment needs of basic services infrastructure is conducted beyond the key tourism areas.
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BASELINE DEMAND & SUPPLY
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1. DESTINATION CHARACTERISTICS
1.1 GEOGRAPHY Covering the westernmost area of Flores, Kabupaten Manggarai Barat (West Manggarai) is one of 8 Kabupaten on Flores Island in the Province of Nusa Tenggara Timur (NTT, East Nusa Tenggara). The area boasts breath-taking nature on land and under water including jungles, caves, lakes, waterfalls, unique beaches and stunning marine life. Kabupaten Manggarai Barat is subdivided into 7 Kecamatan including Kecamatan Komodo.1
Kabupaten Manggarai Barat covers an area of 9,450 square kilometres although a large percentage is undeveloped.
Located on the far west cost of the Kabupaten Manggarai Barat, Labuan Bajo is a small fishing town and the regional capital. Transportation to the town, by land, sea and air continues to improve as it is the gateway to the Komodo National Park (KNP), home of the famous Komodo dragons and unique marine life. KNP was declared a World Heritage Site by UNESCO in 1991, and drives tourism development to Kabupaten Manggarai Barat and much of Flores Island.
FIGURE 2: MAP OF KABUPATEN MANGGARAI BARAT
Source: Google Maps.
1 In Indonesia, subnational governance includes four levels: (1) province/Provinci, (2) city/Kota and Kabupaten/Kabupaten, (3) sub-district/Kecamatan or district/Distrik, and (4) urban community/Kelurahan or village/Desa.
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1.2 CLIMATE Kabupaten Manggarai Barat has a typical monsoon climate, also known as the tropical wet climate. The region receives moderate amounts of rainfall, with a dry season from April to September and a rainy season from October to March. The average temperature in Kabupaten Manggarai Barat does not fluctuate much throughout the year, ranging from 20 to 35 degrees Celsius during the relatively hot months, and 19 to 32 degrees Celsius during cooler months.
FIGURE 3: MONTHLY TEMPURATURE AND RAINFALL, KABUPATEN MANGGARAI BARAT, 2015 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 23– 22– 21– 22– 20– 19– 20– 19– 20– 21– 21– 21– Temp0C 33 33 32 33 33 32 32 32 32 32 35 36 Rainfall 143 139 197 158 49 10 9 14 1 14 28 85 mm3
Source: BMKG Manggarai Barat, Komodo Station.
1.3 NATURAL AND CULTURAL RESOURCES
Kabupaten Manggarai Barat has rich natural resources with impressive marine life, rare animal species, and beautiful natural scenery. The flora and fauna, especially aquatic ones, have always been vital natural resources for the local communities. The area also features great cultural amenities and diversity.
1.3.1 NATURAL RESOURCES – GEOLOGICAL RESOURCES Within the boundaries of Kabupaten Manggarai Barat, there are 162 islands, of which only 17 are inhabited. There are numerous clear-water pristine beaches. These include black, white, and even pink sand beaches, blue pebble beaches, and beaches with mountains or jungle in the background. Beside the three main islands of Flores, Rinca, and Komodo, there are several smaller secluded islands such as Kanawa, Seraya Kecil, and Bidadari, with white sandy beaches and turquoise water. The islands of the national park are of volcanic origin, generally rugged, characterized by rounded hills, with altitudes up to 735 metres.
1.3.2 CULTURAL RESOURCES The uniqueness of Kabupaten Manggarai Barat lies in its wealth of cultures, languages, and history. Inland areas are settled by the indigenous Manggarai ethnic group. A central theme of Manggaraian culture is the unity of the village, the house, and the fields. This is most visibly expressed in the unique way they plant their rice fields in a circular shape and divide it into segments.
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During the colonial period, the Portuguese introduced Christianity, which has become the dominant religion on the island. However, ancient traditions and rituals are still very much alive and have been interwoven into Christianity.
The majority of people along the coast are from the Bajo, Bugis, and Bima ethnic groups, who work as fishermen. The remainder consist of merchants, entrepreneurs, craftsmen, and government employees. Within the boundaries of KNP, there are 3 villages occupied by several ethnic groups or tribes. The villages are inhabited by people from tribes of Komodo, Bima, Manggarai, and Bajo.
While Bahasa Indonesia is the main spoken language in the region, Bahasa Manggarai is widely spoken among the indigenous people. Bajo, Bugis, Bima, and other indigenous languages are spoken among different social groups along the coast and small islands of Manggarai Barat.
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2. DESTINATION DEFINITION
The following section provides an assessment of the existing and potential key attractions that define the destination and the destination boundary.
The 2 key attractions that we have identified that will drive tourism to Flores are the KNP and the town of Labuan Bajo, both within Kecamatan Komodo and Kabupaten Manggarai Barat (the defined Destination Boundary). These sites can be seen in Figure 4 with the red outline indicating Kabupaten Manggarai Barat:
FIGURE 4: MAP OF KEY ATTRACTIONS IN FLORES
Source: Horwath HTL and Google Map.
2.1 KEY ATTRACTIONS & TOURISM AREAS 2.1.1 KOMODO NATIONAL PARK The Komodo Biosphere Reserve was accepted under the UNESCO Man and Biosphere Programme in 1977, and Komodo National Park (KNP) was created in 1980 and declared a World Heritage Site by UNESCO in 1991. When KNP was voted as one of the New 7 Wonders of Nature in 2011, this lesser-known region of eastern Indonesia saw tourism interest grow significantly.
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Natural Resources – Ecological Resources
The KNP is one of the world's richest and most diverse marine environments (included in the Coral Triangle2), home to over 260 species of coral, as well as mangroves, seagrass beds, seamounts, and semi-enclosed bays. Large marine fauna found in KNP include more than 1,000 species of fish, 10 species of dolphins, 7 species of whales, as well as numerous species of sharks, manta rays and turtles.
The terrestrial fauna is not as diverse in comparison to the marine fauna. The number of terrestrial animal species found in the Park is not high. Still, Komodo Island and Rinca Island are two of only a few islands where the famed Komodo dragons can be found. This unusually large species of lizard, which can reach up to 3 metres in length and weigh over 70 kilograms, has made Komodo and Rinca Islands popular attractions for tourism in recent years. Protected under Indonesian law, the Komodo dragon population is relatively stable with around 2,000 to 2,500 animals in the park.
Other than the Komodo dragon, several terrestrial snake species, lizards, and other reptiles can be found on the islands. Mammals include the Timor deer—the main prey of the Komodo dragon—, horses, water buffalo, wild boar, and the endemic Rinca rat. Over 150 species of birds have been identified in KNP, many of which are migratory and more representative of Australasian than Asiatic species. Distinctive species include orange-foot scrubbing fowl, yellow-crested cockatoos, imperial pigeons, and white-breasted sea eagles.
The most popular tourism activity within the KNP is to hire a boat and island hop, visiting:
• Beaches: there are numerous clear-water pristine beaches;
• Dive Sites: KNP offers divers (and snorkelers) an overwhelming variety of marine life. As part of the Coral Triangle it is the richest concentration of marine life in the world. Divers can jump in the water almost anywhere in and around KNP and enjoy rich coral and marine ecosystems; • Manta Point within the KNP to see the manta rays; • Pink beach on Padar Island, has a pinkish hue due to the infusion of red skeletal pieces from the pipe-organ coral; • The Komodo Dragons on Rinca and Komodo Islands; and
2 “The Coral Triangle is a marine area located in the western Pacific Ocean. It includes the waters of Indonesia, Malaysia, the Philippines, Papua New Guinea, Timor Leste and Solomon Islands. Named for its staggering number of corals (nearly 600 different species of reef-building corals alone), the region nurtures six of the world’s seven marine turtle species and more than 2000 species of reef fish.” https://www.worldwildlife.org/places/coral-triangle
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• Kalong Island at sunset to watch the many thousands of Sunda Flying Foxes flying from the island to the mainland. Accommodation is limited to a few island resorts, live-aboards and to the accommodations in Labuan Bajo (more below).
2.1.2 LABUAN BAJO Labuan Bajo is developing into the commercial hub for the KNP, with improving accessibility (air and sea), accommodation options (discussed below) and supporting tourism infrastructure (travel agents, tour operators, etc.).
2.1.3 OTHER AREAS OF INTEREST WITHIN THE DESTINATION BOUNDARY • Batu Cermin Limestone Cave: cave in the dark stone hills on the outskirts of Labuan Bajo. The cave takes its name, which means “Mirror Rock,” from the unique way sunlight reflects off the limestone walls in the main chamber. • Cunca Wulang Canyon: located 30 kilometres east of Labuan Bajo and nestled in a tropical rainforest setting, is one of Flores' most striking spots for outdoor activities. Impressive waterfalls cascade into fresh-water pools and lead into a series of smaller waterfalls and rivers a few kilometres downstream. • Mount Mbeliling: the highest mountain in the Manggarai Barat region, rising to 1,239 metres above sea level. The Mbeliling Forest spans over an area of 15,000 hectares, and is the habitat of numerous endemic plant species and birds. There are 27 villages surrounding Mount Mbeliling, providing adventure-seekers various access points to climb the mountain. • Cunca Rami Waterfall: an hour and a half outside of Labuan Bajo. The road to get to Cunca Rami is very scenic and the hike takes about an hour to an hour and a half and cuts through jungle teeming with different flora and fauna such as birds and monkeys. • There is a growing emphasis on developing eco community tourism in the region, including:
- Tado Village: Located 44 kilometres east of Labuan Bajo, Tado Village is one of few tribes that still preserve their culture and Manggaraian traditions. The world- famous unique spider web rice fields are located not far from the village.
- Melo Village: Situated beside Mount Mbeliling, Melo Village offers a range of village-based tourism activities where visitors can watch exciting cultural art performances such as the ‘Ndundu Dake’ dance and the well-known Caci performances. The village is run as a cultural cooperative known as Compang To’e and is a popular place to experience the distinct Manggaraian culture.
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2.2 CONCLUSION ON ATTRACTIONS Within the destination boundary, KNP has the highest potential for tourism development as well as a propensity to generate overnight stays and revenue. It is known not only for the Komodo dragons, but also for its rich and diverse marine life.
Meanwhile, as the main gateway to the National Park, Labuan Bajo has also become an important tourism hub with the increase in accommodation and ease of access to other areas of interest.
However, the destination still lacks the infrastructure and hospitality establishments to handle the growing number of travellers, as well as lacking essential medical services for emergencies. The general lack of public safety standard, food hygiene, and environmental protection regulations are key issues that must be tackled for the destination to effectively compete against other established destinations in the region.
Other areas that can be developed to attract more tourist arrivals to the greater Flores region include: adventure excursions, historical and cultural tourism. Beside the attractions listed in the previous sections, other areas of interest outside the destination boundary include:
• Kelimutu National Park in Kabupaten Ende is famous for Mount Kelimutu, which has the three coloured lakes (blue, green, and brown) at its summit and attracts visitors mostly at sunrise.
• Wae Rebo village, is the famous Manggarai’s traditional village. Its main characteristics are unique houses, that are tall and conical in shape and are completely covered in lontar thatch from its rooftop down to the ground. Going forward, the success of the destination will be dependent on good flight connectivity, easier land and sea travel, as well as improved facilities, attractions, activities, and services.
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3. VISITOR ARRIVALS & DEMOGRAPHICS
This chapter presents a high-level demand assessment of Labuan Bajo based on a thorough review of available data, reports, and analysis on the tourism sector for Indonesia, and is complemented by interviews with tour-operators and local stakeholders (see Appendix I).
3.1 LEVEL OF CURRENT DEMAND 3.1.1 Air Traffic & Passenger Movement at Komodo Airport Komodo Airport is the major domestic gateway airport for Labuan Bajo, bringing in visitors to Kabupaten Manggarai Barat as well as other regions in eastern Flores. The role of Komodo Airport is significant, with increasing number of passengers handled. Domestically, it provides access to isolated parts of the Flores Island that are inaccessible by other modes of transport.
Between 2011 and 2015, the number of passengers and aircraft arrivals increased by a compound annual growth rate (CAGR) of 20% and 18% respectively. The significant growth in arrivals is driven by growing awareness of the destination domestically and globally.
The airport recorded a significant growth in passenger arrivals following the runway extension mid-2013. The improved connectivity has contributed to unlock the potential for increased tourism demand in a location as remote as Flores. Figure 5 shows the growth in passengers at Komodo Airport.
FIGURE 5: COMMERCIAL AIR TRAFFIC & PASSENGER MOVEMENT AT KOMODO AIRPORT 2011 2012 2013 2014 2015 Passengers Arrivals 54,601 56,108 80,357 106,200 112,022 Departures 58,336 58,621 85,147 114,678 114,032 Transit 17,904 14,308 22,393 65,728 33,052 Total 130,841 129,037 187,897 286,606 259,106 Aircraft Arrivals 906 907 1,165 1,572 1,743 Departures 906 907 1,165 1,572 1,743 Total 1,812 1,814 2,330 3,144 3,486
Source: UPBU Labuan Bajo Airport
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3.1.2 VISITORS TO KOMODO NATIONAL PARKS (KNP) As KNP is the primary tourism demand generator for the Kabupaten Manggarai Barat, the number of visits to KNP is used through this report to evaluate the historical and potential tourism development for the destination. Meanwhile, the statistics from Komodo Airport reflects current demand (tourist, VFR, government, etc.) for not only Kabupaten Manggarai Barat but other regions of Flores. Furthermore, the information from KNP is arguably the most accurate and updated as the visitors recorded were based on tickets sold.
In 2015, the KNP recorded a total of 61,257 visitors, increasing at a CAGR of 8.3% over the past 5 years. For the same period, international visitors increased at a CAGR of 3.5% and domestic visitors at 40.5% off a very small base.
Currently, tourism demand for KNP is dominated by international visitors, contributing up to 74% of total demand in 2015. Since KNP was declared a World Heritage Site by UNESCO, it has fast become a popular and “must visit site” for many international visitors. Furthermore, most of the visitors were foreign tourists as the high transport costs to this remote location are less affordable for local visitors. That said, the demand from domestic travellers has been rising significantly for the past 5 years.
In 2015, international visitor arrivals reached more than 45,000, while domestic arrivals were approximately 16,000 (Figure 6).
FIGURE 6: ARRIVALS OF INTERNATIONAL & DOMESTIC VISITORS TO KNP, 2010 – 2015 70000 60000 50000 40000 30000
20000 Visitor Arrivals Visitor 10000 0 2010 2011 2012 2013 2014 2015 Foreign Domestic
Source: Kabupaten Manggarai Barat Tourism Office
The period from 2010 to 2012 saw a decline in foreign tourism arrivals, before it bounced back in 2013. The decline is believed to be based on a couple of factors:
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• Reduction in global publicity of the Komodo National Park following the removal of PT Putri Naga Komodo3’s permit to manage the KNP; and
• Severe weather issues, particularly in 2012 when the ports, servicing daytrips to the KNP were closed.
3.2 ORIGIN OF VISITORS 3.2.1 FOREIGN VISITORS KNP is a predominantly international tourism destination, with international visitors contributing up to 74% of total demand in 2015 (Figure 7).
• Long-haul visitors (Europe, USA, and Australia), represent the major source of demand, particularly for resorts and star-rated hotels within the KNP. These guests will tend to use Labuan Bajo as a transit point where they will spend the first or last night of their trip. • There is also a growing demand from backpackers who prefer to stay at homestays in Labuan Bajo or liveaboards to save on their accommodation expenses and for the unique experience of both. • Visitors are attracted by the natural scenery, tranquillity, and beautiful diving sites. Their most popular activities are diving and snorkelling, in combination with a visit to see the Komodo dragon. • Asian visitors are almost absent from the destination, which is due to the lack of awareness of the destination and the limited air connectivity (which restricts short-stay visitors). According to local hoteliers, it is also due to the lack of star-rated hotels, shopping malls, souvenir shops, etc. (particularly affecting visitors from Southeast Asia and China).
3 In 1995, the government gave a single 30-year tourism concession license to PT Putri Naga Komodo, a non-for-profit tourism destination management company to provide technical expertise and support to science-based management initiatives within KNP. The company was a joint partnership majority owned by The Nature Conservancy (60%) and PT. Jaythasha Putrindo (40%), a private tourism company of Malaysia-born hotel businessman Feisol Hashim. The deal collapsed in 2010, when PT Putri Naga Komodo’s permit was revoked.
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FIGURE 7: BREAKDOWN OF FOREIGN VISITORS TO KNP, 2015
Other Australia 15% 20%
Netherland 14%
USA 19% France 15% Germany 17%
Source: Kabupaten Manggarai Barat Tourism Office.
3.2.2 DOMESTIC VISITORS Domestic visitors represented a small proportion of visitors to KNP in 2015 (around 26%).
• As seen in Figure 6, the number of domestic visitors has significantly increased over the last 5 years at a CAGR of 40.5%. • The majority of domestic visitors come from Bali, Jakarta, Lombok, and Sumbawa.
• Domestic visitors are predominantly middle to upper middle class urban residents who go to KNP for the weekend. They are attracted by the Komodo dragon, natural scenery, and beautiful beaches.
• The leisure segment contributes to the bulk of domestic demand while there is limited demand from corporate and government segments. • The most popular activities for domestic visitors are visiting Komodo Island and/or Rinca to see the Komodo dragons and hiking on Padar Island. Limited time is spent on diving.
3.3 AVERAGE LENGTH OF STAY (ALOS) AT COMMERCIAL ACCOMMODATIONS
Based on the ALOS at commercial accommodation within the KNP, the majority of visitors visit the KNP for one or two days, with some extending due to their diving programmes. Visitors mostly stay in Labuan Bajo or on live-aboard boats in the KNP.
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Foreign visitors who travel longer distances to reach Labuan Bajo stay longer (up to 5 or 7 nights for European an Americans) than regional guests (Australian and SE Asian generally stay an average of 3 to 4 nights)
Domestic guests stay an average of 2.8 nights. The length of stay also varies between hotels in Labuan Bajo and resorts on remote islands. For hotels in Labuan Bajo, ALOS ranges between 1 and 2 nights, as they are mainly used as transit hotels where travellers spend their first or last night. Meanwhile, guests spend between 3 and 5 nights at the resorts, due to the length of travelling time and the imposition of 3-night minimum stay requirement on bookings at some resorts.
3.4 SEASONALITY OF VISITS The seasonality of tourism in Labuan Bajo depends on the climate and diving season. Overall, during the rainy season from October to March, tourism demand, especially demand from divers, is lower than the other months of the year. Due to elevated sea levels during the rainy season, some inland attractions can be heavily affected and become harder to access.
Figure 8 illustrates the monthly arrivals of international and domestic visitors to KNP in 2015:
FIGURE 8: SEASONALITY OF INTERNATIONAL AND DOMESTIC VISITORS KNP, 2015
8000 7000 6000 5000 4000 3000 2000
1000 Number of visits toKNP 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Domestic visitors Foreign visitors
Source: Kabupaten Manggarai Barat Tourism Office.
Domestic and international visitors have slightly different travel patterns.
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• August is the most popular month for international visitors to KNP, as it is both European summer with longer holiday periods and Australian winter with respite sought in the tropics. While Christmas, New Year, and Easter are generally peak months for international visitors to most South East Asian destinations, the KNP experiences a decline in visitors between December and March due to the monsoon season. Many resorts are also closed during these months due to weather restrictions on activities available for guests. • The seasonality fluctuation is less pronounced amongst domestic visitors; however, numbers also decline during the monsoon season.
3.5 MARKET SEGMENTATION BY BOOKING METHOD The majority of travellers book their trip via travel agents with wholesale-based contract rates. This will likely continue in the short to medium-term for the following reasons:
• The logistical challenges involved in getting to and from the resorts/islands imply that package tours will continue to be preferable to avoid inconvenience; • Higher-yielding travellers prefer to have third parties manage their travel schedule;
• Scheduling boat transfers remains unreliable and unpredictable, while chartered private boats can be very expensive; • Guests are generally unable to book homestays or community-based village lodges directly; • Many local destination management companies (DMCs) and international travel agents have been able to market the destination by providing one-stop services for guests by arranging their accommodation, transportation and activities under one package; and • Lack of hotels managed by international chains that can leverage their strong distribution and reservation systems.
Direct free independent travellers (FIT) represent a secondary source of demand, and book directly with the resorts or via online travel agencies such as Traveloka or Agoda. The proportion of direct FIT demand is increasing as more travellers, particularly from the domestic market and Asian markets including expats living in Asia, opt to arrange their own holidays. Nevertheless, the percentage of FIT bookings will still be curbed by the logistical challenges associated with getting to the islands.
Owing to the remoteness and lack of supporting infrastructure, business-related demand (corporate and government officials) is minimal. Only hotels in Labuan Bajo capture this segment.
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3.6 AWARENESS AND IMAGE OF THE DESTINATION AMONG INTERNATIONAL MARKETS While the awareness of Komodo Island is very high among international travellers and tourism trade professionals internationally, the town of Labuan Bajo benefits from a lesser, but still rather strong awareness internationally, both among tourism trade professionals and the general public potentially travelling to Indonesia.
HIGH AWARENESS OF THE DESTINATION AMONG INTERNATIONAL TOURISM TRADE PROFESSIONALS All tour operators and travel agents interviewed in the framework of the study had heard about Komodo, but less than a half had heard about Labuan Bajo. The destination benefits from an extremely high awareness in international markets, except in Malaysia.
Generally speaking, interviewed travel trade professionals associate Labuan Bajo with Flores Island, and moreover with KNP, while Rinca Island is also mentioned. Incoming agencies, tour operators and tour guides alike stressed the importance of KNP for the reputation of the destination: Labuan Bajo is mainly considered to be a getaway for the KNP.
Just over one third of the interviewed operators offered packages which included KNP: (0/6 in China, 1/3 in France, 0/4 in Malaysia, 3/5 in UK, 3/7 in Singapore, 4/4 in Germany, 0/5 in Japan and 5/7 in Australia).
Commercialization of the destination is increasing among select international markets due to (1) the proximity to Lombok and Bali, (2) the awareness of KNP and (3) the development of cruises around Flores.
FAIR AWARENESS AMONG THE GENERAL PUBLIC AT INTERNATIONAL LEVEL Many occurrences and opinions about “Labuan Bajo” as a tourism destination may be found in the English language in user-generated content websites. For instance, Labuan Bajo (including the KNP) accounts for 15,942 reviews on TripAdvisor website (consulted as of October 2016, in all available languages).
THE GATEWAY FOR KNP A review of the content written about Labuan Bajo on the internet (excluding official websites in charge of the promotion of tourism in Indonesia) offer the image of an agreeable fishing town well situated at the western end of Flores in East Nusa Tenggara. Presented as the gateway for KNP, with Labuan Bajo airport named “Komodo Airport”.
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Activities and products associated with the destination on TripAdvisor are primarily scuba and snorkelling, nature & wildlife tours, boat tours and water sports, cultural tours, beaches and hiking. However, while several islands off shore are covered by reviews, the only attraction located in the town of Labuan Bajo which attracts reviews is the fish market (Figure 9).
FIGURE 9: ACTIVITIES AND PRODUCTS ASSOCIATED WITH LABUAN BAJO ON TRIPADVISOR WEBSITE Places/attractions associated Topics/activities/products
with the destination associated with the destination Kanawa Island Loh Liang National Park Kalong (Flying Foxes) Island Indonesians: Beaches and wildlife Labuan Bajo Batu Cermin Cave Internationals: beaches, snorkelling and Cunca Wulang Waterfall diving, wildlife Padar Island Fish market Komodo Island Rinca Island Cruises Komodo Pink beach, Padar Island Dive National Park Manta Point Komodo observation tours Kalong Island Marine observation tours Dive sites
Source: Analysis of TripAdvisor Website by Horwath HTL in all available languages, 27/10/2016. HTL www.tripadvisor.com/Tourism-
g1777483-Labuan_Bajo_Flores_East_Nusa_Tenggara-Vacations.html
The destination and identified attractions and activities generally enjoy extremely positive reviews from users. Poor transportation conditions and the lack of cleanliness of beaches are the main causes of dissatisfaction, as summarized in Figure 10.
FIGURE 10: CAUSES OF SATISFACTION AND DISSATISFACTION, ACCORDING TO TRIPADVISOR Topics of satisfaction Topics of dissatisfaction Diving places Komodo National Park and closeness of Lack of information about access and Labuan Bajo to the National Park transportation Spectacular scenery Cleanliness of beaches Marine life and fauna
Source: Analysis of TripAdvisor Website by Horwath HTL in all available languages, 27/10/2016. HTL www.tripadvisor.com/Tourism-
g1777483-Labuan_Bajo_Flores_East_Nusa_Tenggara-Vacations.html
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While tour operators generally consider the accommodation and tour offerings in KNP to be satisfactory, they stress the lack of quality accommodations in the park as the main obstacles for the inclusion of Labuan Bajo in tour packages (Figure 11). Interviewed tour operators in international markets consider the town of Labuan Bajo a compulsory step to begin a cruise or to reach KNP or Rinca Island, but not a stand-alone destination due to relatively poor, yet not necessarily cheaper, visitor infrastructure.
FIGURE 11: PLACES ASSOCIATED WITH LABUAN BAJO IN PACKAGES OFFERED BY TOUR OPERATORS INTERVIEWED Country Destination associated Australia Sanur, Ende, Riung, Wae Rebo China Tour packages sold do not include the destination Denpasar, Sanur, Ubud, Candidasa, Lovina, Komodo France Java, Sulawasi, Bali (long stay) Cruise: Lombok, Flores Rinca, Bidadari islands Germany Rinca, Kolong islands, Komodo, Pink Beach, Angel Island, Bidadari South of Bali, Rinca Island, Bali, Ubud Japan Tour packages sold do not include the destination Malaysia Tour packages sold do not include the destination Singapore Komodo, Ende, Bajawa, Denpasar Bali, Rinca or Komodo UK Sailing trip: Sorong, Pulau Gam, Pulau Yanggelo, Wayag Island, Alyui Islands, Kabui Straits Source: Analysis of packages offered by tour operators interviewed by Horwath HTL (qualitative sample of 41 tour-operators)
3.7 TOURISM PROMOTION / DESTINATION MARKETING Currently there is a lack of support from the Local Tourism Management Organizations (TMOs), in promoting the destination, which is one of the main challenges for the tourism industry and local development. General collaboration from government officials towards the industry is minimal, plans exist on paper, but are not being practiced. For example: while many financial incentives for starting tourism-related business are being promoted by central government, the regional government officers have no clear information and guidelines regarding these incentives. Furthermore, although Labuan Bajo has been selected as one of the top priority destinations by the administration in Jakarta, government involvement is not visible to the public, which leads to dissatisfaction and a lack of trust towards government officials.
Planning and coordination by the tourism industry in Labuan Bajo seems weak. For instance: the Association of Indonesian Hotels and Restaurants (PHRI) chapter in Manggarai Barat developed a road map 2015 – 2018 business plan which included a vision, mission, strategic program, and work plan; however, little has been implemented.
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Most of the tourism promotion is prepared by the Destination Management Organisation Regional Flores or Flores DMO4, the regional representative for tourism management, marketing, and development activities for the destination. The management of the local Visitor Information Centre has been taken over by Flores DMO (central government funded) as the TMOs did not operate the office well.
The WISATA program funded by the Swiss State Secretariat for Economic Affairs (SECO) started in 2009 covering the island of Flores. WISATA is carried out in close cooperation with the Indonesian Ministry of Tourism. The main goal of the program is to contribute to economic development through sustainable tourism; which creates employment and income to improve the livelihood of the local population5.
List of other tourism promotional activities/tourism events:
• Presence on most social medial channels (Facebook, Twitter, and Instagram).
• Improvement of Flores Tourism Website, with mobile compatibility. • Flores Advertisement 2016 (brochure, e-newsletter, website, city maps). • Flores DMO supported a familiarization trip hosted by Ministry of Tourism as a post- event of Bali & Beyond Tourism Fair (BBTF) 2016. • Flores DMO was interviewed by TTG Media Singapore, TTG Poland, and local TV media station (Berita Satu Online TV).
• Participated in ITB Berlin 2016, Komodo Travel Market, ASITA Fam Trip 2016, BBTF 2016, PATA Mart, and ITB Asia Singapore. • Tour de Flores 2016.
4 The DMO was established in August 2011 with a regulation constituted by the Directorate General of Destinations Development (Ministry of Tourism and the Economy Creative), in accordance with the Regulation of the Minister of Tourism Republic of Indonesia No.50/Permen/2011 of the National Tourism Development Master Plan (RIPPARNAS) starting from year of 2010 to 2025. 5 More details can be found at: http://florestourism.com/about-us/
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3.8 CONCLUSIONS ON VISITOR ARRIVALS & DEMOGRAPHICS The total number of visitors to KNP exceeded 61,000 in 2015, increasing at a CAGR of 8.3% over the past 5 years. Tourism demand is predominantly international in origin, representing up to 74% of total demand in 2015, with mainly long-haul travellers from Europe, the US, and Australia. These long-haul travellers tend to have longer average length of stay in KNP, ranging between 5 and 7 nights, than domestic visitors. They prefer to stay in high-end resorts within the KNP, and only use Labuan Bajo as a transit point. Meanwhile, domestic visitors make up a very small proportion of visitors, and tend to stay in guesthouses and homestays located in Labuan Bajo.
Due to the lack of awareness of the destination and the weak air connectivity with the hubs of Jakarta and Bali, the destination is largely unknown for the Asian market. Furthermore, there is currently a lack of branded hotels, and supporting facilities (F&B, shops, essential medical services for emergencies, etc.) which also deter Asian travellers from the destination.
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4. ACCESSIBILITY HIGHLIGHTS
Komodo Airport is the main gateway airport for Labuan Bajo. Almost 100% of visitors arrive by air. The Island is internationally accessed primarily via Denpasar International Airport, Bali—though daily flights from Jakarta began in 2016 with air links to Komodo Airport. The number of flights between Labuan Bajo and Bali is 42 per week. Currently there are no available international flights serving the Komodo Airport. Fewer visitors arrive by cruise ships with KNP recording only 42 cruise visits in 2015. The Island is also accessed by the Labuan Bajo Port, mainly for transporting regional passengers and goods. The visitors use this port for chartered boat services to access KNP.
4.1 EXISTING MODE OF TRAVEL AND VISITORS’ MOVEMENT Assessment of current market share of visitors and their mode of arrival indicates the possible visitors’ movement within the tourism destination.
• As per market study, tourism demand for KNP is dominated by international travellers, contributing up to 74 percent of total demand in 2015. In 2015, international visitors were more than 45,000, while domestic arrivals were approximately 16,000.
• The demand from domestic travellers has been rising significantly for the past 5 years, growing at a CAAG rate of 40.5 percent.
The majority of visitors to and from Labuan Bajo travel by air and Komodo Airport is the main Gateway airport for Labuan Bajo. Hence, the connectivity from airport to the places of accommodation is important. Further to this, the internal road connectivity in Labuan Bajo and the sea connectivity between Labuan Bajo and the National Park are important.
The visitor distribution for Labuan Bajo is illustrated in Figure 12 below:
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FIGURE 12: LABUAN BAJO TOURISM DESTINATION AND VISITOR’S MOVEMENT
Source: Google Maps, HHTL, Surbana Jurong
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5. HOTELS & LODGING OPTIONS (AMENITIES)
5.1 VOLUME OF ROOMS & PERFORMANCE: KABUPATEN MANGGARAI BARAT As defined above the key attractions and accommodation areas are within Kabupaten Manggarai Barat. The following section will discuss the accommodation options within this Kabupaten using numbers published by the government and more specifically Labuan Bajo (Kecamatan Komodo) based on interviews undertaken. As Kabupaten Manggarai Barat is dominated by hotels in Labuan Bajo it is used as an approximation of the destination’s hotel market performance.
• At the end of 2015, Kabupaten Manggarai Barat had a total of 994 hotel rooms (of which 707 were star-rated rooms) spread across 60-registered accommodation establishments. • Between 2010 and 2015, the hotel room supply in the Kabupaten increased at a compound annual growth rate (CAGR) of 12%. • While the supply of rooms in classified hotels has doubled over this period, the market continues to be dominated by small non-star-rated properties, representing 90% of all hotels at the destination (quick development, low investment, lower risk). The investment risk associated with a new destination and the high investment costs and operational expenses for hotels/resorts on remote islands has not enticed many investors to date. • Most of the star-rated resorts/hotels are relatively new and well-maintained. Figure 13 to Figure 15 show the accommodation, room capacity, and occupancy in Manggarai Barat between 2010 /2011 and 2015:
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FIGURE 13: ACCOMMODATION AND ROOM CAPACITIY, MANGGARAI BARAT, 2010 – 2015
Source: Kabupaten Manggarai Barat Tourism Office.
FIGURE 14: MANGGARAI BARAT, ROOM NIGHT SUPPLY AND DEMAND, 2010 – 2015
Source: Kabupaten Manggarai Barat Tourism Office.
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FIGURE 15: MANGGARAI BARAT, ROOM OCCUPANCY, 2011 – 2015
Source: Kabupaten Manggarai Barat Tourism Office.
• Between 2011 and 2015, the total room night demand grew at a CAGR of 13%, slightly stronger compared to the supply growth for the same period.
• Despite increases in arrivals and room night demand, occupancy at non-star rated hotels has not improved much since 2011 and in 2015, still under 20%. • On the other hand, occupancy at star-rated hotels doubled since 2011 to between 40% and 45% in 2014 and 2015—thus almost all the growth in demand over this period was absorbed by star-rated hotels. Based on historical performance, it appears that the star- rated accommodation has induced much of its room night demand by offering good quality product, good service, and/or unique concept that has drawn overnight stays that would not have otherwise been attracted to the destination. • Demand is significantly lower during the raining season, particularly for resorts on remote islands. Several hotels mentioned that income earned in the high season was also their livelihood during the low season, and some expressed that in the low season it was sometimes quite difficult to get by. Some resorts, such as Komodo Dive Resort, only operate during high season due to (1) low demand during rainy season and (2) high operating costs.
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5.2 ESTIMATED PERFORMANCE BASED ON INTERVIEWS The following performance insights were gleaned from interviews with hotel managers of resorts within KNP, star-rated and non-star rated hotels in Labuan Bajo.
• Resorts (star-rated hotels): Most of the resorts are on private islands with private beaches and star-rated. These resorts are particularly popular among international guests and high-spending domestic travellers, allowing them to command higher rates compared to those on the main island. The achieved ADR is ranging from IDR 800,000 to IDR 1,000,000. Due to their remote locations, the resorts’ occupancy levels are much lower during rainy seasons. As a result, the overall occupancy rates are estimated at approximately 25% to 30%. • Mainland star-rated hotels: have consistently outperformed non-star-rated hotels in terms of occupancy, and the gap has been widening over the years. The estimated occupancy rate of these hotels is around 30% to 40%. Star-rated hotels generally achieved higher average daily rates (ADR) compared to non-star-rated hotels, with estimated ADR from IDR 500,00 to IDR 700,000.
• Non-star-rated hotels: Non-star rated hotels’ ADR are estimated at IDR 200,000 to IDR 300,000 per room.
5.3 HOTEL FACILITIES
• Resorts (star-rated hotels): The majority of resorts are small sized, with a room count between 10 and 25 guestrooms. Given their remote locations with lack of supporting infrastructure, most the resorts provide a restaurant cum bar and very limited on-property facilities. Resorts tend to have small indoor rooms, with air-conditioning limited to the bedroom area only. Bathrooms are mostly large semi-outdoor designs and are not air-conditioned. The resorts are typically operated 100% on electric generators. All resorts provide guests boat transfer to Labuan Bajo, Rinca, and Komodo Islands, with some also operating their own diving cruises and/or liveaboards. • Mainland star-rated hotels: Hotels in Labuan Bajo have much larger inventory compared to resorts on remote islands, with an average room count between 60 and 90. They are full-service hotels with all-day dining and bar facilities, meeting rooms, and leisure facilities such as a swimming pool and gym. Some hotels (mainly those with private beach access) also provide boat transfers for island-hopping or diving cruises. • Mainland non-star-rated hotels: these hotels are generally small with fewer than 15 guestrooms. Most hotels only have a restaurant that serves breakfast and dinner, and very limited or no supporting facilities.
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• Alternative lodgings: In Kabupaten Manggarai Barat, there has been an increase in alternative accommodations such as homestays in Labuan Bajo, liveaboards in the KNP, and village lodges.
- Homestays: as the region’s popularity grows, there is an increasing number of family-run homestays, particularly in Labuan Bajo. Located a few minutes’ walk from the town centre, they provide basic accommodation, with limited or no other facilities and an average room count of between 2 and 5 rooms. - Liveaboards: with the popularity of diving, there is a growing number of liveaboard operators in the KNP. Typically, each boat provides between 4 and 6 sleeping cabins, with shared toilets. While many of these cruises are independently operated, some existing hotels/resorts operate their own liveaboards to increase length of stay and compete more effectively (e.g. Le Pirate and Plataran offer both mainland and liveaboard options so that they do not lose room nights to other liveaboard operators). - Village lodges: Tado and Melo Villages practice community-based ecotourism that offer travellers the opportunity to stay in traditional houses and experience traditional culture. Further details of a few market leader hotels are included in Appendix III.
5.3.1 FOOD & BEVERAGE • In general, star-rated hotels and resorts have an all-day dining restaurant offering multi-cuisine options. Due to expensive operational costs and a small average room count, hotels do not offer a second dining option.
• All hotels offer either a separate bar or bar-cum-restaurant. This provides guests, particularly those who stay in the remote islands, with a place to relax when other recreational activities are no longer available.
• Given the lack of alternative local food offerings, together with the inaccessibility between the islands, many resorts offer half-board or full-board packages. • Due to the lack of quality suppliers in the region, the restaurants’ menus are simple and relatively limited. Aside from a few locally sourced ingredients, such as fish, much of the restaurants’ ingredients are shipped directly from Bali. • Most non-star-rated hotels in Labuan Bajo feature an all-day dining restaurant. Some only provide breakfast, while the other meals of the day are offered on request. • Homestays offer mainly home cooked Indonesian dishes.
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5.3.2 MEETING SPACE • Resorts offer limited or no meeting space given the limited demand for meetings space in remote locations. • Hotels located in Labuan Bajo offer some meeting rooms to capture government demand. The hotels feature a range of small to medium sized meeting rooms that would accommodate between 50 and 80 people, with the exception of Jayakarta’s meeting room, which can accommodate up to 200. 5.3.3 OTHER FACILITIES • While fitness centres, swimming pools, and spas are common to hotels in Labuan Bajo, not all resorts in remote location offer these facilities. • The resorts/hotels do not offer kids’ club facilities. In the absence of purpose-built facilities for children, there are typically baby-sitting services and organised activities for children such as art and craft, or outdoor activities.
5.4 CONCLUSIONS ON EXISTING HOTEL SUPPLY
Compared to the hotel market in Labuan Bajo, the resorts within KNP are much more popular amongst foreign visitors thanks to good quality service and products. Furthermore, given their isolated location, these resorts are also attractive to guests who are looking for an exclusive, private sanctuary. However, due to challenging accessibility and a lack of supporting infrastructure on these remote islands, the resort market is much smaller in scale compared to Labuan Bajo’s hotel market. Most of these resorts also close during the monsoon season, leading to low overall annual occupancy.
While star-rated hotels (both resorts and hotels in Labuan Bajo) induced much of their own demand and have seen significant growth the past 5 years, these properties have yet to reach their full capacity due to: (1) lack of destination awareness, (2) lack of supporting infrastructure and facilities, (3) limited air connectivity and (4) strong seasonality with weak performance during the wet season.
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6. SME: SUPPORTING TOURISM INFRASTRUCTURE (AMENITIES)
6.1 INDEPENDENT FOOD & BEVERAGE Labuan Bajo has witnessed rapid growth with many new restaurants popping up in the past five years. However, although there are more restaurants than before, it does not appear to be recorded by the Badan Pusat Statistik (BPS), nor the Dinas Pariwisata Kabupaten Manggarai Barat.
Below are different food and beverage options available in Labuan Bajo:
• Street Stalls: there are many street stalls along the main streets, which mainly offer local delicacies. The fish market on Jalan Soekarno Hatta is one of the most popular spots for visitors, particularly international visitors.
• Restaurants and Bars: There are several restaurants and bars in the town centre. Most of the popular restaurants are owned and managed by expatriates. Below are some examples of popular F&B outlets in Labuan Bajo:
- Made in Italy: is one of the market leaders in Labuan Bajo. It is a refurbished shrimp boat that houses a fine-dining restaurant with capacity of 10 guests. It features a seven-course degustation menu matched with champagne.
- The Lounge: is the classic Labuan Bajo restaurant lounge, built on the steep hill in the heart of town. - Paradise Bar: located on the hill and offers stunning sunset views. The restaurant/bar offers live music by local bands, as well as a DJ. Whilst hotels and restaurants buy some supplies of food at the local markets, ingredients are insufficient for most hotels and restaurants that import from surrounding islands including Bali, Sumbawa, and Java. While the prices are relatively low at the local food stalls, many top- tier restaurants and bars in Labuan Bajo import the majority of their ingredients, leading to relatively high prices.
Beside four villages located within the park, there is still little in terms of tourism infrastructure inside the KNP. Loh Liang and Loh Buaya, the tourism villages on Komodo Island and Rinca Island respectively, provide basic accommodation and food only. Being maintained and operated by staff of the national park authority, the facilities in these villages are in poor condition, and food in the attached restaurants are limited to a handful of menu items.
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6.2 TRAVEL AGENCIES Given the diverse tourism attractions available in Kabupaten Manggarai Barat, travel agents offer various adventure tours. The streets of Labuan Bajo are lined with travel agents and dive shops offering day and overnight trips to the hundred islands that lie offshore. Options include:
• Accommodation, transportation, and diving excursions under one package are generally the most common product being offered; • Excursions around KNP; • Liveaboard trips touring the KNP;
• Adventure tours including trekking/cycling to Mt. Mbeliling, Batu Cermin Limestone Cave, and Cunca Wulan Canyon; and • Inland excursions to discover volcanoes, traditional villages, and ethnic groups like the Manggarai people.
6.3 GUIDES • Each travel agency has 3 or 4 guides. Freelance tour guides are employed during peak season to meet increased demand. • Guides have good knowledge of the fauna and flora in the region. • Guides have relatively good understanding of the cultural and historical heritage of Kabupaten Manggarai Barat. • The park authority generally provides guides, who are trained in conservation and wildlife monitoring, and have basic English language skills.
6.4 OTHER SERVICE PROVIDERS • Providers of transportation: cars, bikes and boat rentals. • Diving courses and water sports operators.
• Laundry services. • Hawkers from Komodo village sell woodcarvings and other handicrafts from stalls set up near the boat landing.
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6.5 CONCLUSIONS ON SMES SUPPORTING TOURISM ACTIVITIES Most of the supporting facilities including hotels, restaurants, and dive operators are concentrated in Labuan Bajo. With the most popular activities being diving and snorkelling, in combination with a visit to Komodo National Park, the number of dive operators and liveaboards in Labuan Bajo has rapidly increased over the last five years. However, a hyperbaric chamber is still missing with the closest being in Lombok and Bali. Beside four villages located within the park, there is still little in terms of tourism infrastructure and that which exists is in poor condition.
While tourism has a considerable impact on the regional economy, many tourists arrive on pre-organised packages and some arrive by cruise ship (only 42 cruise visits recorded in 2015 as mentioned in Chapter 4), and thus spend comparatively little in the actual locality. As a result, most tourism revenue has thus far been generated outside of the local economy, by tour and cruise ship operators in Lombok, Bali, Java, and abroad. If the destination is to develop in the future, the number, variety, and quality of SMEs must be developed and enhanced further to meet increasing tourism needs.
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7. INVESTMENT ANALYSIS
7.1 DIRECT INVESTMENT 7.1.1 FOREIGN & DOMESTIC DIRECT INVESTMENT Figure 16 illustrates the realized direct investment for the tourism related sector including hotels, restaurants, and other supporting services in Kabupaten Manggarai Barat. According to the investment statistics on hotels and restaurants in Manggarai Barat, the total investment value to the Kabupaten grew at a compound annual growth rate (CAGR) of 52% between 2011 and 2015. The investment to the region has witnessed some fluctuations in the past 5 years, with the peak in 2014 at USD 840,000. Poor data collection is blamed for the significant drop shown in 2013.
As of first half 2016, the region received a total investment of approximately USD 299,000.
FIGURE 16: FOREIGN & DOMESTIC DIRECT INVESTMENT TO MANGGARAI BARAT HOTELS, RESTAURANTS & OTHERS, 2011 – 2016 YTD JUNE (USD)
Source: BPMPPT Mabar & BKPM NTT (Badan Penanaman Modal dan Pelayanan Perijinan Terpadu Manggarai Barat)
We have been unable to ascertain how the increases in realised FDI and DDI investment amounts in 2012, 2014 and 2015 in Figure 16 correspond with the increases in hotels/rooms as per Figure 13.
7.1.2 ASSET CLASSES & SCALE (EXISTING & PIPELINE) Currently, investment in Labuan Bajo remains small- and medium-scale, mainly for accommodation (hotels, guesthouses), restaurants, and transportation facilities (boats, cars). Both domestic and foreign investors continue to be cautious in investing in the region. The current major investors in the region are:
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• PT Pudjiadi Prestige (Jayakarta Flores); • PT. Mekar Dunia Wisata (Bintang Flores); • PT. Wiratara Prima (La Prima);
• Santini group (Luwansa Hotel); • Komodo Dive Resort; • Seraya Resort; and
• Angel Resort. Labuan Bajo is expected to be the most active town in term of investment in comparison to other areas of Manggarai Barat. Non-star-rated hotels and restaurants are expected to increase in the next coming years to accommodate growing visitor arrivals to the region due to the fact that they require lower investment, can be developed faster, and entail less risk. While demand for liveaboards is still much lower compared to the traditional accommodation, there is a growing demand for this type of accommodation as it provides accessibility to remote locations, less-visited sites. Meanwhile, due to the high investment costs and operational expenses (not for lack of potential demand growth), resort development will grow slowly in the next coming years.
7.2 KEY PLAYERS / INVESTORS Current investments in Labuan Bajo remain small to medium scale due to the lack of supporting facilities and high entry barriers. Many international and domestic investors expressed interest in the destination; however, there is no presence of large investors or investment funds due to the lack of transparency in the systems and complicated bureaucratic processes (such as: lengthy process of starting a new business, unclear financial incentives, overlapping rules regarding tax, permits, and fees, etc.). Meanwhile, lack of financial resources, skills, and knowledge of the tourism industry limit the local community’s involvement in the tourism sector.
Currently the main investors are local investors or small partnerships between foreign and domestic investors, including:
• Local investors (companies) – investing in hotels and other accommodations facilities such as: PT Pudjiadi Prestige (owner of Jayakarta Flores), PT. Mekar Dunia Wisata. (Bintang Flores), PT. Wiratara Prima (La Prima), and Santini group (Luwansa resort).
• Foreign investors (companies) – investing in small-scale eco-resorts such as: Komodo Dive Resort, Seraya Resort, Angel Island, and Kanawa. • Foreign investors (individual) – investing in restaurants / tour operators in Labuan Bajo: Made in Italy, Le Pirate, and Flores Cycling Tours.
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• Local communities on the inhabited islands who turn their houses into non-star-rated hotels, homestays, or other supporting facilities such as restaurants, convenience stores, bike rental, water sports, etc. They both invest and operate these facilities.
7.3 INVESTMENT SENTIMENT: DOMESTIC & FOREIGN INVESTORS 7.3.1 FOREIGN INVESTORS INTERVIEWED6 The limited comments obtained from foreign investors canvassed on Labuan Bajo / KNP concerned the following:
• The destination lacks the fundamentals: accessibility, connectivity and basic infrastructure; • the rewards of investing in such a remote location did not outweigh the risks vis-à-vis other regional locations; • lack of internationally branded hotels and demand; • land vendors require family consensus prior to change of ownership approval and this can take long periods of time;7 and • the need for improved regulations / communications between subnational and central government. Some investment interviewees complained that having local, provincial, and central governments imposing their own licenses and taxes creates complexity and duplication and, therefore, legal uncertainty. This is especially related to the regulation of both agencies (the National Park Authority and the district government of Kabupaten Manggarai Barat) applying a fee for visitors and tourism businesses, tourism activity fee, and business permit simultaneously. For example: Visitors to the park must pay both a National Park Entrance Fee and a Manggarai Barat ‘tourism’ fee (which is paid at all tourism gates at areas of interest in Kabupaten Manggarai Barat, such as the KNP or Istana Ular).
6 Investment sentiment gleaned from interviews with 25 potential and existing foreign investors from Australia, China, Japan, Malaysia, and Singapore. The questions were designed to better understand their thoughts on pros and cons of SEZs, the tourism investment climate in Indonesia, the future of tourism investment and possible investment opportunities in KNP and Labuan Bajo.
7 Due to the lack of transparency and guarantees, particularly on land ownership or land usage extension, investors do not have confidence in investing large amounts of capital in Manggarai Barat.
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7.3.2 DOMESTIC INVESTORS INTERVIEWED8 Domestic investors were well-versed on the prospects for KNP / Labuan Bajo. One of them already has an operational resort in Labuan Bajo, and another a branch of their travel agency conglomerate.
Comments were as follows:
• The destination is attractive for the following key reasons: - Increasing air travel connectivity, with rumours of Cathay Pacific / Dragonair adding a route in the near future; - Nature: the Komodo Dragon is unique; it is pristine and beautiful; beautiful as in ancient times;
- High quality PR and social media by the local and central governments; - Potentially attractive for a broad segment of visitor types; and - The cruise / yacht market has enormous potential.
• There has been no government support for investment and business. Promises of basic infrastructure improvements have not been fulfilled. • Securing supplies is difficult for firms, as the majority of materials/ingredients must be transported from Bali. • There is no waste treatment process which is problematic for continued development. 7.3.3 WHERE IS THE DESTINATION ON THE INVESTMENT CYCLE? Investment started increasing when the destination was voted as one of the New 7 Wonders of Nature in 2011, however it is still at the development stage of the investment cycle. There are several challenges that hinder the growth of investment in Labuan Bajo, including:
• Lack of supporting facilities and infrastructure. Currently many businesses face high overhead expenses due to poor electricity/power plant infrastructure, poor water facilities (no water desalination plant on certain islands), high telecommunication costs, etc.
8 Investment sentiment gleaned from interviews with 9 existing Indonesian tourism investors. The investors chosen had interests in various tourism assets including hotels, restaurants, ground transportation and travel agencies. The questions were aimed at gathering their thoughts on the pros and cons of SEZs, the tourism investment climate in Indonesia, the future of tourism investment and possible investment in KNP and Labuan Bajo.
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• Lack of willingness amongst locals to work in the industry is another limiting factor. This lack of community initiative could be explained by a lack of awareness among locals about ecotourism and by the fact that most individuals feel as though tourism benefits are not being felt within their communities. • The different status between foreign investors with leasehold interests and local investors with freehold interests, is a disincentive when investing in the long term, as some projects may only reach maturity after 20 years, and some land leases (i.e. 20-30 years) do not allow for maximum enjoyment after maturity due to the land lease expiring (which is typical across Indonesia). 7.3.4 WHICH ASSET CLASS IS PREFERRED? Investment in Labuan Bajo remains small and medium scale given high entry barriers and other issues mentioned above that continue to dampen investors’ confidence towards the region. Currently, there is more interest in investing in small-scale accommodation, restaurants and cruises in Labuan Bajo.
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8. SKILLS ASSESSMENT
8.1 TRAINING SCHOOLS • Hospitality Business Coaching Program (HoCo) is a hospitality-coaching program managed by Swisscontact WISATA, to support small local hotels and guesthouses to become more competitive, enhance guest satisfaction, and learn the benefits of being environmentally friendly. During 2015, the program approach, process, and training materials were developed, and a first pilot was conducted in Labuan Bajo.
• Trainings by Flores DMO9: to ensure sustainability and build local capacity, the Flores DMO trains local training service providers, a pool of local resource trainers to informally train the local tourism businesses. Jayakarta Hotel in Labuan Bajo has been a major player in providing a venue for training programs. • SMKs: a partnership between the three SMKs (vocational high schools) in Flores (SMKN 1 Labuan Bajo, SMK Swakarsa Ruten, and SMK St. Thomas Maumere) with two SMKs in Bali (SMKN 3 Denpasar and SMK Pariwisata Harapan) has been established. All targeted SMKs in Flores have formed a development team for local contents of their curriculum. Further, the Ministry of Education designated SMKN 1 Labuan Bajo as a model school for other SMKs in the region.
• Flores Homestay Network (FHN) is run by the Eco Flores Foundation 10 an accommodation community based initiative that provides local communities with knowledge and guidance on how best to run local homestays. This support is offered through workshops, conferences, and the assistance of professional volunteers.
8.2 WHAT SKILLS EXIST (GLEANED FROM INTERVIEWS)?
• There is currently a lack of skills available to service the tourism sector. - It is very difficult to find local workers that have computer or English skills, so they often need to be hired from outside of Flores.
9 The DMO was established in August 2011 with a regulation constituted by the Directorate General of Destinations Development (Ministry of Tourism and the Economy Creative), in accordance with the Regulation of the Minister of Tourism Republic of Indonesia No.50/Permen/2011 of the National Tourism Development Master Plan (RIPPARNAS) starting from year of 2010 to 2025.
10 http://www.ecoflores.org/en/top/home/
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- There is a lack of business management skills, knowledge of the tourism industry, and how to meet its needs and demands. The standard of service in many of the hotels is low, which makes it hard to command increased room rates.
• There is a severe lack of trained local dive staff in the region. A large majority of dive professionals are expatriates, and dive businesses were predominantly foreign-owned. Other key barriers to local employment were cost of training and lack of course material in the local language. • Although education facilities (elementary schools) are present in the villages in KNP, the percentage of people with education is very low. This is because children are required to help parents earn a living at sea. Meanwhile, the community of Labuan Bajo is more advanced than other communities in the area, as the town has education facilities from kindergarten to senior high school.
• Educating local people takes a long time, particularly when it comes to English language skills. Workers cannot simply be imported, however, because finding skilled staff from outside of the region is also challenging as they are usually not interested in working and living in remote rural areas. • Given the high demand during dry seasons, some of the hotels and restaurants mentioned that it is common to hire day workers for 2 to 3 months during the high seasons. These employees often lack knowledge and skills to provide quality service and earn commensurately low salaries.
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DESTINATION SWOT & VISION
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9. DESTINATION SWOT
9.1 STRENGTHS • Labuan Bajo is a strategic location, being the gateway to KNP. • Komodo Island and Rinca Island are two of the few Indonesian islands where the famed Komodo dragons can be found. • KNP is a famous World Heritage site and one of the new 7 Wonders of Nature. • Diverse tourism attractions including: pristine beaches with white sand and clear water, rich and dense marine life, adventure trekking/cycling, historical sites, and interesting cultural events year-round. • Rich natural resources and marine biodiversity provide an excellent environment for diving and eco-tourism. There are several world-class diving spots within the KNP and outside the park. • Diverse lodging facilities including hotels, luxurious resorts, hostels, cruises, etc., that accommodate various types of travellers. Good supporting facilities: F&B (restaurants, bars, local food market, etc.), travel agents, and dive masters. • The nature is unspoilt and well preserved.
• Newly opened international-standard hospital.
9.2 WEAKNESSES • No international flights; travelling to Labuan Bajo continues to be dependent on flights from Denpasar or Jakarta. • Transportation options between islands are limited and can be expensive. • Remoteness of Labuan Bajo and the KNP.
• As activities in the KNP are largely water based, seasonality has an effect on tourism levels. • Limited public transportation from Labuan Bajo to the eastern parts of Flores.
• Not enough marketing to promote the destination and potential travellers do not have sufficient travel information about Labuan Bajo. • Limited or no access to clean water and electricity, particularly on the remote islands.
• Lack of a sewage management plan, waste is not being processed and dumped in the ocean.
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• Lack of community awareness of the importance of protecting the environment and preserving the natural habitat. Local community has very limited experience in managing tourism.
• Limited quality suppliers for food and beverage, and guest supplies, the majority of which are shipped from Bali. • It is very difficult to find local workers that have good computer or English skills, so they often need to be hired from outside of Flores. • Supporting infrastructure (stable power supply and fresh water supply) is still inefficient and requires improvements to respond to the increase in visitor arrivals to the region. Power: while some parts of the main islands still cannot support sufficient power for air- conditioners and occasional power cuts due to bad weather, most of the resorts on remote islands are powered by generators. Water: typically drinking water is transported from Labuan Bajo.
9.3 OPPORTUNITIES • Manggarai Barat has preserved its natural beauty to give travellers an untouched, natural experience, yet the overall state of local tourism attractions is still immature and has opportunities to be further developed. • Growing popularity of the destination amongst travellers domestically, regionally and internationally. • The government is planning to upgrade the runway at Labuan Bajo to accommodate larger planes and potentially upgrade it to an international airport. Garuda has recently launched new direct flights from Jakarta to Labuan Bajo, which will facilitate more international and domestic demand to the region. • Opportunities to combine maritime and land-based tourism have not yet been exploited.
• Growing interest for cycling adventure tours in Flores. Flores Cycling Tours has recently developed 6 cycling maps comprising 4 cycling routes for different types of bikers. • Growing support from the regional government in promoting Labuan Bajo as a cruise ship harbour (42 cruise visits were recorded in 2015). • Manggarai Barat is also expected to see improvement in airport infrastructure to promote tourism. • The WISATA program, funded by the Swiss State Secretariat for Economic Affairs, continues to support the economic development of the region through sustainable tourism, employment creation, and improvement of the local population’s livelihoods.
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9.4 THREATS • The increase in visitor numbers without proper destination management and capacity planning will threaten the local environment.
• The demand for developing land for tourism purposes could cut into the Komodo dragons’ already limited habitat. • Solid waste is one of the most visible environmental threats to Labuan Bajo. The amount of waste generated may exceed the capacity of available landfills, which would result in uncontained open dumps. • Destructive fishing practices such as dynamite, cyanide, and compressor fishing severely threaten the Park's marine resources by destroying both the habitats and the resource itself. • Pollution inputs, ranging from raw sewage to chemicals, are increasing and may pose a major threat in the future.
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10. RECOMMENDED DESTINATION VISION
Kabupaten Manggarai Barat is an unspoilt paradise that should be developed into a world- class environmentally sustainable destination, focusing on its unique beautiful scenery, marine biodiversity, which offers world-class diving, snorkelling, and the unique Komodo dragons. KNP may learn from many successful developments around the world, such as: Galapagos National Park in Ecuador – a World Heritage Site and home to unique species.
Ecotourism should be the cornerstone of the destination development, which may be (1) nature-base adventure tourism, and/or (2) community-based programmes providing cultural experiences to tourists.
10.1 PRODUCTS AND ACCOMMODATION TO BE DEVELOPED
The destination should keep on developing organically, avoiding mass tourism, and maintaining the integrity of the natural ecosystems both in the areas of KNP and on the mainland around Labuan Bajo.
The activities in the National Park are constrained by its sensitive ecosystem, therefore diving, nature tours, and sailing should be developed in a sustainable way.
The harbour amenities should be developed to attract and welcome visitors (food stalls, restaurant, etc.) together with limited high end, low impact cruise ships.
Eco-resorts with limited capacity should keep on being developed close to the National Park, especially on the islands close to the city, whereas Labuan Bajo will develop into a busy, animated site for accommodations.
10.2 UNIQUE SELLING POINTS The destination’s Unique Selling Points are the diving spots and the possibility to observe the famous Komodo dragons.
Labuan Bajo and KNP is not a standalone destination, but is rather destined to be integrated into a circuit paired with Bali and/or Lombok, or, for repeat visitors, with the rest of Flores Island.
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MARKET DEMAND FORECASTS
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11. FUTURE MARKET DEMAND ANALYSIS
This section provides high-level projections for the scale, origin, and characteristics of future visitor demand to Labuan Bajo (Kabupaten Manggarai Barat and KNP in particular), based on the above positioning and the following quantitative approach.
The quantitative approaches focus on identifying a level of increased demand in terms of total visitor arrivals, visitor nights, and visitor expenditures. The steps are:
1. Assess and analyse potential market demand for Kabupaten Manggarai Barat and KNP in particular to define the most prospective market segments (based on the segment’s ability to generate value for the destination in a sustainable manner), building on the baseline supply and demand analysis; 2. Define different demand scenarios based on the conditions required for the development of the destination; and 3. Provide quantitative forecasts of future demand from source markets depending on the scenarios.
The next sections of the Report use this assessment of future demand to identify opportunities for the development of the destination (accommodation, transportation, leisure activities, etc.) in terms of scale, location, and timing, and to assess public investment needs (transport and basic services and infrastructure).
11.1 FORECAST OF VISITOR ARRIVALS 11.1.1 INTERNATIONAL VISITORS The forecast of foreign demand has been established by considering trends at the national level in Indonesia and because of the assumed limits to accommodation capacity growth constrained by its sensitive ecosystem.11
11 Two other hypothesis have been considered but not adopted :
• A past trend approach, based on 5 years of available data (as tourism data collected before that is unreliable and not representative of the destination’s tourism growth potential) cannot be applied, because the average growth of 8.3% is influenced by recently improved airport infrastructure (refer to chapter 15.2 on air transport) and is thus of limited use to predict future trends; and
• Another hypothesis is that international visitor demand to Labuan Bajo will follow the future Lombok trend as developed in the Lombok destination report. This is believed possible considering that both destinations share similar characteristics in terms of attractions, source market, travellers’ behaviour, proximity to Bali, etc. This hypothesis has not been used for the forecast because the expected tourism increase in Lombok will be mostly generated by mass tourism in southern Lombok, which has a very different profile from Komodo ecological tourism.
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• In the short term, the increase in the number of foreign visitors is assumed to be in line with national-level growth projections (6.4% compared with 6.5% at national level). This assumption is based on the assumption that Labuan Bajo is not and will not become a standalone destination but rather a side trip from other destinations, particularly Bali and Lombok. In the short term, the accessibility and the level of infrastructure will be an obstacle to rapid development of the flow of arrivals to Labuan Bajo, despite the increasing attractiveness of the destination.
• From 2022 we anticipate a sharp increase in visitors (CAGR 8.0% compared with 4.3%) due to the improvement of accessibility and the development of accommodation capacity (400 additional rooms). • In the medium term (2026 – 2041), visitor growth experience is expected to be more moderate (2.6%), as the destination develops organically, with some small eco-resorts developed close in the National Park, and Labuan Bajo developing into a busier accommodation hub for the KNP. The total number of additional rooms is forecast to be around 1,000 between 2026 and 2041. The improvement of harbour amenities will also attract limited high end, low impact cruise ships. 11.1.2 DOMESTIC VISITORS Despite the significant growth of domestic visitors over the past 5 years, we do not expect this segment to grow as fast as the foreign visitor segment. For the domestic market, the destination will share similar visitor trends to Lombok when it gains more awareness.
The quantitative expression of these assumptions in presented in Figure 17.
FIGURE 17: FORECAST OF VISITOR ARRIVALS TO LABUAN BAJO, 2015 – 2041 Number of arrivals CAGR in % 2016- 2022- 2027- 2015 2021 2026 2041 2021 2026 2041
Domestic visitors 15,885 17,200 18,900 23,100 1.3% 1.9% 1.3%
Foreign visitors 45,372 66,000 97,200 142,300 6.4% 8.0% 2.6%
Total 61,257 83,200 116,100 165,400 5.2% 6.9% 2.4%
Source: Horwath HTL
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11.2 IMPACT ON GUEST NIGHTS AND EXPENDITURE Figure 18 presents the projected number of guest nights in accommodations and overall expenditure in Labuan Bajo: • Based on an assumption of an average length of stay of 2.8 nights for domestic visitors and 3.5 nights for foreign visits in 2015, up to 4 nights in 2021 and the years after, Labuan Bajo should host 633,600 guest nights in 2041 (compared with 203,400 in 2015, and the share of foreign guest nights should reach (88%)12.
• Total visitors should spend an estimated USD 99.5 million in 2041 (USD 38.2 million in 2021 and USD 58.7 million in 2026), which is four times the current expenditure level. Foreign visitors are forecast to account for 97% of this total expenditure. This forecast is based on the assumption of an average expenditure per day of USD 35 for domestic visitors and USD 139 for foreign visitors, assumed to grow at an annual average rate of 1% between 2022 and 2041.
FIGURE 18: FORECAST OF VISITOR GUEST NIGHTS AND EXPENDITURE IN LABUAN BAJO, 2015 – 2041
2015 2021 2026 2041
Guest nights Domestic visitors 44 600 49 700 54 000 66 000 Foreign visitors 158 800 262 000 387 600 567 600 Total visitors 203 400 311 700 441 600 633 600
Expenditure (in Thousands USD) Domestic visitors 1 560 1 740 2 110 2 970 Foreign visitors 22 090 36 420 56 590 96 490 Total visitors 23 650 38 160 58 700 99 460
Source: Horwath HTL
12 Based on an average length of stay of 2.8 nights for domestic visitors and 3.5 nights for foreign visits in 2015, up to 4 nights in 2021 and the years after.
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INVESTMENT NEEDS
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12. AMENITIES: KEY RECOMMENDATIONS
12.1 KNOWN PIPELINE DEVELOPMENT • Beside the expansion of Plataran Komodo (additional 4 villas), Labuan Bajo is expecting development from Swiss-Belhotel group and Accor (Mercure Hotel). However, there is currently no concrete development plan or timeline for these projects. • There are currently 2 resorts under development on Seraya Kecil island. Each resort features between 10 and 15 bungalows. Although both resorts appeared to be mostly completed, construction has been halted. Thus, at the time of the report, it is unclear when construction will resume and when the resorts will be completed.
• Opened in 201613, Le Pirate Bajo is set right in the heart of town with incredible harbour views and only 10 minutes away from the airport. The Hotel features 14 rooms, a restaurant & bar, rooftop sky bar – only venue with live music, outdoor cinema and plunge pool. Le Pirate also offers Le pirate explorer – an overnight island hopping explorer boat. FIGURE 19: LE PIRATE
Clockwise from the Top: Double Harbour View Room. Le Pirate Explorer. Family Sweet. Restaurant.
• Although there are no known star-rated hotels in the pipeline in Labuan Bajo, there are increasing numbers of non-star-rated hotels and homestays as visitor arrivals to the region continue to grow.
13 This was used in pipeline development as it had not completed one full year of operations at the time of writing the report.
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• While demand for liveaboards is still much lower compared to traditional accommodation, there is a growing demand for this type of accommodation as it provides accessibility to remote locations, less visited sites. More and more hotels/resorts are expected to offer liveaboard options to guests as an alternative lodging to entice them to stay on longer within their properties/boats (e.g. Komodo Dive Resort’s liveaboard is expected to commence in 2017).
12.2 POTENTIAL ACCOMMODATION GAPS • Lack of hotels with international or regional presence to target more high-spending leisure guests.
• Require developing more and better community-based accommodations in the traditional villages (i.e. there are currently 27 villages near Mt. Mbeliling, yet there is no accommodation near the site) for ‘experiential’ tourism.
• Improve the basic infrastructure such as power supply and fresh water supply for guesthouses, homestays, and traditional villages. • Encourage some potential guesthouses or homestays to upgrade their facilities to meet the standards and expectations of international visitors such as private bathrooms and availability of Western cuisine.
12.3 FORECASTING FUTURE SUPPLY NEEDS
The key focus for Kabupaten Manggarai Barat should be sustainable ecotourism within the key tourism areas of Labuan Bajo and the Komodo National Park. There should not be large- scale development in the region to avoid mass-tourism destroying the marine life and unspoiled nature of the region upon which the tourism depends.
The development of a sufficient accommodation capacity with decent quality is essential to enable the development of the destination. Detailed discussion on the segmentation of demand will not be covered in this analysis.
Investors’ comments14:
• One Singapore investor showed some interest in due course with investment in a 4/5- star resort with around 200+ rooms “when the time is right”.
14 Investment sentiment gleaned from interviews with domestic and foreign investors, as per section 7.3.
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• The domestic investors were certainly keen to invest in the development of a hotel, within the next 5 years, options: - around 100 / 150 keys with F&B outlet;
- glamping type boutique island resort aimed at a rate of around IDR 650,000; - eco hotel with a small key count of under 100 rooms; - one investor was very keen to build “any hotel at any level”.
There are currently 707 star-rated rooms in Kabupaten Manggarai Barat. The forecasted demand for best-case scenario is based on assumed accommodation capacity growth, in which the number of rooms will be around 1,010 in 2021, 1,410 in 2026 and 2,010 in 2041 (Figure 20).
FIGURE 20: NUMBER OF ROOMS REQUIRED, 2015 – 2041 2015 2021 2026 2041 Guest nights 203,400 311,700 441,600 633,600 Rooms required 710* 1,010 1,410 2,010 Additional rooms required - 300 700 1,300
Source: Horwath HTL * rounded to nearest ‘0
The number of rooms required is calculated based on an occupancy rate of 40% in 2021, and 45% in 2026 and 2041. The assumed occupancy rate is higher compared to the current achieved occupancy due to the following reasons:
• A large percentage of rooms will be in Labuan Bajo. With better accessibility and supporting facilities, these accommodations generally perform better in terms of occupancy than those on remote islands, contributing to improved overall average occupancy; and • Increased awareness of the destination is expected to attract more regional visitors. This will help to improve occupancy during the low seasons with potential small-scale corporate off sites, leisure weekenders, and improve the overall annual occupancy.
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13. STAFF REQUIRED & SKILLS NEEDED
13.1 ACCOMMODATION STAFF REQUIRED The above demand and supply forecasts will have a net positive effect on employment in Kabupaten Manggarai Barat. Additional services and potential employment growth will occur in all tourism sectors.
The following summarizes the skills gaps identified following discussions with hotel managers in Labuan Bajo:
13.2 WHAT SKILLS ARE NEEDED? 13.2.1 ENTRY LEVEL • As the region’s popularity continues to grow, we expect that there are more accommodation and visitor facilities to be developed to accommodate the increasing number of visitor arrivals. Thus, vocational schools require training labour with basic skills including: service, culinary and language skills. • With the popularity of diving increasing in Manggarai, dive and first aid training is crucial to enhance capacity of local divers in the region. • Basic service excellence training and English courses are required for everyone engaging in visitor activities in the region (i.e. no-star hotel owners, airport taxi drivers, boat captains, etc.). • Given that unspoiled and well-preserved nature is the main unique selling point of the region, understanding and involvement in long-term sustainability of ecotourism are crucial. Therefore, environmental conservation training should be mandatory for all the stakeholders of the tourism sectors. 13.2.2 SUPERVISOR & MANAGEMENT • As the government intends to expand community-based accommodation, it is important to provide the local community with knowledge and guidance on how best to run local homestays. This training should not only include English courses and service standards for homestay, but also management skills, agrotourism and cultural sustainability.
• To assist local handicraft producers to offer appealing and better-quality souvenir products, training on product development and marketing are required. • As finding skilled staffs from outside Flores is becoming more challenging, it is important to provide sufficient training from both in-house and tourism programs to local employees for them to take up supervisor and management positions. These skills include people management and training skills, etc.
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13.3 ACCOMMODATION STAFF REQUIRED Figure 20 above highlights the number of room nights plus additional rooms forecast for Labuan Bajo.
Based on these additional rooms,
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Figure 21 provides an estimate of the number of staff required at entry-level, supervisor, and management levels by assumed hotel positioning. The hotel positioning is split into 5 categories based on actual achieved daily rates in 2015 across the country (this categorization is not specific to Labuan Bajo because insufficient information is available from which to draw staffing ratio conclusions).
Additional assumptions:
• % Total Rooms: the percentage of total rooms per rate category. For example, if the figure is 0.42 this means that 42% of total rooms are within this rate category. The estimates are based on the data collected in the Horwath HTL Indonesia Hotel Industry Survey of Operations 2016;
• Staff / Room Ratio: staffing levels or full-time equivalents (FTE) per room. For example, if the figure is 0.53 this means, that 0.53 FTE are required per room. The estimates are based on the data collected in the Horwath HTL Indonesia Hotel Industry Survey of Operations 2016); and
• The staffing level split or proportion of total staff within each level — entry, supervisor, and management — are based on estimates from Horwath HTL’s market research:
- Under USD 40 (achieved average daily rate, 2015) is 10% management and 90% entry level. It is assumed that this category includes homestays, smaller properties, family owned and less professionally managed properties. These are assumed to have a slightly different staff split between management (who are often owner relatives) and entry level, with no supervisor level.
- Over USD 40 (achieved average daily rate, 2015) is 5% management, 10% supervisor, and 85% entry level. These categories are assumed to typically include a higher proportion of star-rated hotels, greater professionalization, larger properties and are assumed to include three levels of staffing: entry level, supervisor and management.
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FIGURE 21: ESTIMATED NUMBER OF STAFF BY HOTEL CATEGORY USD USD USD
Note: 1,900 additional rooms is rounded to nearest 100
In other words, by 2021 it is forecast that an additional 266 staff will be required to meet the needs of the projected additional rooms. Between 2021 and 2026, a further 353 staff will be required, and between 2026 and 2041 a further 531 will be required.
13.4 ADDITIONAL MANGGARAI BARAT DESTINATION STAFF REQUIRED As recapped in Figure 16 above, between 2015 and 2041 the estimated number of visitors is expected to increase from 61,000 to approximately 165,000 in 2041.
Other supporting sectors that will benefit directly, should tourism arrivals and tourism developments continue to grow and meet expectations, include: • Food & beverage: in support of tourism. • Retail: as an extension to tourism, souvenirs if produced and marketed correctly, could also employ a large number of local people. • Daily diving, fishing and general tourism guides. • Transport service staff will be required, taxis, buses, boats, etc.
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The volume of current staff in such positions is unknown, so we cannot gauge the potential for increase; however, it is reasonable to expect staff increases to be in the range of three times the current levels given the threefold increase in arrivals forecast.
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14. TRANSPORT INFRASTRUCTURE BASELINE & NEEDS BASELINE
14.1 ROAD TRANSPORT 14.1.1 EXISTING CONDITION The road network in Kabupaten Manggarai Barat is classified into segments identified as national, provincial, and Kabupaten roads. As the majority of visitors in Flores stay in Labuan Bajo, the road infrastructure in Kabupaten Manggarai Barat plays an important role to support tourism activities. The total length of national, provincial, and Kabupaten roads in Manggarai Barat is 1445.72 kilometres. Figure 22 shows the length of road by class for Kabupaten Manggarai Barat.
FIGURE 22: EXISTING ROAD CONDITION AT KABUPATEN MANGGARAI BARAT Kabupaten Manggarai Barat– Labuan Bajo, KNP, Rinca Island National Provincial Kabupaten/Kota* Road Condition (km) Good (IRI <= 4) 69 56.1 438.2 Sufficient (4
Source: Badan Pusat Statistik, Kabupaten Manggarai Barat 2016
In 2015, the ratio of paved national roads was 100%. Similarly, the ratio of paved provincial roads was 91.6%, while that of Kabupaten roads was only 46.4%; hence, many Kabupaten road sections need to be improved, as shown in Figure 23.
External Access
Other Kabupaten roads within the study boundaries are also important, such as road in Kabupaten Manggarai, Ngada, Ende, Sikka, and Flores Timur. However, these roads mainly support the local activities and regional development of all of Flores, beyond the tourist sites of Kabupaten Manggarai Barat. Therefore, the role of these roads to support the tourism development would be marginal.
In general, the national and provincial road condition in these Kabupaten is good and mostly paved enabling good external connectivity of Labuan Bajo to rest of the Kabupatens in Flores.
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FIGURE 23: EXISTING ROAD LENGTH AND PAVEMENT IN OTHER KABUPATEN National Provincial Kabupaten/Kota* Kabupaten Manggarai– Wae Rebo Road Surface (km) Pavement 166.9 34.5 905.1 Non Pavement 244.7 Total 166.9 34.5 1,149.8 Kabupaten Ngada– Bajawa and Kelimutu Road Surface (km) Pavement 77.8 211.2 379.1 Non Pavement 662.6 Total 77.8 211.2 1,041.6 Kabupaten Ende - Ende Road Surface (km) Pavement 130.3 160.3 375,7 Non Pavement 449.0 Total 130,30 160,30 824,60 Kabupaten Sikka - Maumere Road Surface (km) Pavement 28.6 653.1 Non Pavement 403.4 Total 28.57 1056.4 Kabupaten Flores Timur - Larantuka Road Surface (km) Pavement 74 176 534 Non Pavement 47 Total 74 176 581
Source: Badan Pusat Statistik, Nusa Tenggara Timur 2016.
In 2015, the ratio of paved national and provincial roads in these Kabupaten was 100%. This condition not only supports the distribution of goods and commodities within the Pulau Flores (inner-island trading) but also benefits the visitors.
The key roads providing accessibility to rest of Flores is shown in Figure 24.
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FIGURE 24: MAIN ROADS CONNECTING KEY ATTRACTIONS AREA
Source: Department of Public Work, Nusa Tenggara Timur Province
Internal Access
The road connecting Komodo airport to Labuan Bajo is generally in good condition with spaces for dual 1 carriageway (with median) and sidewalks in major segment of the road.
Jalan Soekarno Hatta is the major road in Labuan Bajo, where most of the accommodations are located. The road condition of Jalan Soekarno Hatta is generally good with spaces for dual 1 carriageway (one way loop) and sidewalks in some segment of the road.
The other accommodation cluster is located along the coast in southern Labuan Bajo. The coastal road Jalan Pantai Pede provides access to this southern accommodation cluster. The road condition is generally good; however, the road sections are narrow in some segments (<7 metres width) without dedicated pedestrian path.
Number of Registered Vehicles
The number of vehicles registered in Kabupaten Manggarai Barat was 18,402 in 2015. Classified by the kind of vehicle, about 90% of the total is motorbikes. This is mainly because motorbikes are an affordable and convenient means of transport for the residents. The number of vehicle registration tends to increase over time, which will impact the overall traffic in the tourism area. Hence, it is necessary to assess the adequacy of roads and manage motorbikes in the tourism areas.
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FIGURE 25: NUMBER OF REGISTERED VEHICLES IN MANGGARAI BARAT Kabupaten Car Bus Truck Motor cycle Total Manggarai Barat 721 213 683 16,785 18,402
Source: Badan Pusat Statistik, 2016
There is no information available from the local authority for the traffic volumes for the road sections between Labuan Bajo and other tourism destinations.
14.1.2 ASSESSMENT OF EXISTING ROAD INFRASTRUCTURE Overall the condition of external road connecting Labuan Bajo to rest of the Kabupatens in Pulau Flores is good. Most important is Labuan Bajo, as it is the gateway for Flores and the Komodo National Park (KNP). In Labuan Bajo, the roads are wider, with spaces for road carriageway and pedestrians clearly delineated in most places. Overall, the urban road condition is good; however, some segments still lack maintenance and needs to be improved. It is crucial to improve the road conditions, allowing for improved sidewalks for key roads in tourism area.
14.1.3 FUTURE PLANS FOR ROAD INFRASTRUCTURE National and provincial roads in Manggarai Barat are generally in good condition. Some of the notable planned national strategic projects in relevant areas are:
• Development of National Strategic Road (50 km) across north Flores (Labuan Bajo – Bira – Reo) to improve the accessibility of the Kabupaten in the northern coast.
• Development of National Strategic Road (60 km) across south Flores (Labuan Bajo – Warloka – Wae Rebo – Borong) to improve the accessibility of the kabupaten in the southern coast.
However, investment in these projects is not justifiable solely from the perspective of tourism development as these roads will contribute to regional socio-economic development more broadly.
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14.2 AIR TRANSPORT 14.2.1 EXISTING CONDITION The Island is internationally accessed via Denpasar International Airport, Bali with air link to Airport Komodo. Furthermore, since September 2016, a daily direct flight to Jakarta is operated by Garuda Indonesia. 15
The airport terminal capacity for Ngurah Rai International Airport in Bali is 20 million passengers per year; it is currently handling around 17 million passengers, and is estimated to reach its maximum capacity by 2017. The physical site’s constraints limit the further expansion of airport infrastructure in Bali. Since Bali Airport is the major international gateway to Komodo, it is important ensure the airport infrastructure capacity for this gateway airport is adequate.
Komodo Airport is the major domestic gateway airport for Labuan Bajo, bringing in visitors to KNP and western Flores. The role of Komodo Airport is significant, with increasing number of passengers handled. Domestically, it provides access to isolated parts of the Flores Island that are inaccessible by other modes of transport.
FIGURE 26: KOMODO AIRPORT MAP
Source: ICAO Aerodrome ArcGIS Database
15 http://www.routesonline.com/news/38/airlineroute/268720/garuda-indonesia-expands-domestic-network-from-sep-2016/
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The annual numbers of passengers at Komodo Airport increased at a compound annual growth rate (CAGR) of 18.63% between 2011 and 2015. However, such high CAGR over 5 years is due to an accelerated growth from mid-2013 to 2014 immediately after completion of the runway extension. The total number of air passengers was about 259,000 in 2015.
There are six airlines (Garuda Indonesia, NAM Air, Susi Air, Air Fast, Kalstar, Wings Air), which operate at Komodo Airport. Figure 27 below shows the details of existing airport facilities.
FIGURE 27: KOMODO AIRPORT FACILITIES Facilities Remark Runway (Lm X Wm) 2370 x 45 m 97 x 18 m Taxiway 445 x 23 m 2 narrow aircraft Loading Apron Requirements 3 propeller aircraft Terminal building 9967 m2
Source: Aeronautical Information Publication, DGCA
14.2.2 ASSESSMENT OF EXISTING AIRPORT INFRASTRUCTURE The existing airport infrastructure at Komodo Airport is summarized in Figure 28:
FIGURE 28: EXISTING GAPS IN AIRPORT FACILITIES AT KOMODO AIRPORT Facilities Komodo Airport Assessment 2370 x 45 m Adequate to meet existing Runway (Lm X Wm) Capacity: 16 movements per hour aircraft movement 97 x 18 m Adequate to meet existing Taxiway (Parallel) 445 x 23 m aircraft movement No Parallel Taxiway Loading Apron Adequate to meet existing Capacity: 5 aircrafts stands Requirements aircraft movement Terminal Building Adequate to meet existing air 1.7million Capacity passenger demand
Source: Aeronautical Information Publication, DGCA, Surbana Jurong Analysis
• Komodo Airport can handle up to 1.7 million passengers. Existing passenger demand was around 259,106 at Komodo Airport in 2015, indicating that the airport is more than adequate.
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• The estimated capacity of the airport’s existing single runway is approximately 16 movements for Komodo Airport with Instrument Flight Rule facilities (refer to Appendix II for details). Airports handling fewer than one million passengers annually are categorized as small airports; estimated peak aircraft movement per hour in such airports is six, including take-off and landing. Since Komodo Airport’s passenger total is far lower than one million, it can reasonably be said that its runway capacity is more than sufficient.
14.2.3 FUTURE PLAN FOR AIRPORT INFRASTRUCTURE The government is planning to upgrade Komodo Airport’s runway to accommodate larger planes to potentially upgrade it to an international airport.
According to the Airport Master Plan (Ministry Decree KP 869 Year 2014), the following projects are proposed for Komodo Airport.
• Construction of new terminal facilities including an apron (2 spaces for B-737s, 2 for smaller jetliners, 4 for propeller aircraft), car parking, and access roads.
• Construction of a new terminal building of 11,240 square metres with a passenger handling capacity of 950 passengers during peak hours. Terminal building is estimated to accommodate about 2 million annual passengers.16
• Runway extension to 2450 x 45 metres.
FIGURE 29: KOMODO AIRPORT MASTER PLAN
Source: Directorate General Civil Aviation, Ministry of Transport, 2016
16 The Federal Aviation Administration indicates that a gross terminal area space requirement is planned to be between 0.06 and 0.12 sqft per annual passenger. Source: Planning and Design Guidelines for Airport Terminal Facilities, FAA Advisory Circular AC/150/5360-13, Washington, DC, April 1988.
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The proposed project is expected to improve Komodo Airport’s capability to accommodate narrow body aircraft for medium-haul flights and increase terminal capacity. The safety level will be improved to some extent at the same time because of the project includes installation of ILS (Instrument Landing System) facilities.
For these improvements to Komodo Airport’s passenger-handling capacity to be maximized, more frequent flights into Labuan Bajo must be implemented as well. These could from domestic origins such as Jakarta or regional international locations like Singapore or Kuala Lumpur, subject to demand.
14.3 WATER TRANSPORT 14.3.1 EXISTING CONDITIONS Water transport activities are largely concentrated in Labuan Bajo, as most visitors travel to Komodo Island via this port.
Currently, there are three means of water transport available to visitors to the tourism destination. These include: a government run ferry (ASDP) that travels between Labuan Bajo and Sape (West Nusa Tenggara); privately operated chartered boats to KNP; and cruise ships from Bali or Lombok.
• Labuan Bajo port is used mainly for transporting regional passengers and goods. Visitors staying in Labuan Bajo rent a boat from the private boat operators or local fishermen to visit the Park. Current port infrastructure in Labuan Bajo is managed by Dinas Perhubungan Manggarai Barat. The port hosts big and small boats and a new container terminal. Figure 30 shows the Labuan Bajo port facilities.
FIGURE 30: LABUAN BAJO PORT FACILITIES Facilities Remark Facilities Remark Status Class III National Terminal Capacity 200 pax Berth Ship Channel Length and width 245 X 12 m Length and width 1.44 mil x 250 m Surface Concrete Deep 7-10 m (LWS) Deep 8-12 m Port Basin Capacity 6,528 T/ m2 Area 300 m2 Tourism Berth 97 x 18 m Deep 6 m (LWS) Length and width 50 x 6 m Surface Concrete Deep 3-5 m Capacity Terminal 298 m2
Source: Directorate General Sea Transport, Ministry of Transport, 2016
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• Charter boats from Labuan Bajo are mostly used by independent travellers, with very few overnight visitors using liveaboards. According to Dinas Perhubungan, currently there are about 300 charter boats in service to Komodo.
• The majority of the chartered boats are shared tour boats used by foreign visitors, while domestic visitors use chartered boats (as they are more affordable) from local fishermen. The boats range from small boats with a capacity of 8 seats to bigger boats with 20 seats.
• In 2015, 42 cruises visited KNP. There are no existing cruise port facilities on Komodo Island, so cruise ships are not able to dock, requiring passengers to be tendered ashore. Cruise ships currently tender at Loh Liang tender pier.
• Regarding other jetty facilities, Loh Buaya Jetty is used to access Rinca Island, which is in good condition. There are no jetty facilities available on Padar Island. 14.3.2 EXISTING ASSESSMENT OF WATER TRANSPORT INFRASTRUCTURE The Labuan Bajo port infrastructure is adequate for handling current passenger ferry services from Labuan Bajo Sape, Denpasar, and Makassar. The boat services to the KNP, provided by private operators are adequate as well. There is a need to develop basic jetty facilities on Rinca Island.
Though there is no cruise ship infrastructure in KNP, considering the environmental sensitivity of the site, any improvement to cruise infrastructure should be carefully assessed.
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14.3.3 FUTURE PLANS FOR WATER TRANSPORT PT Pelindo plans to build a new Marina facility (50Ha) in Labuan Bajo Port dedicated to yachts and cruise ships in the near future, seen in Figure 31. It is estimated that this facility will take two years to complete once construction begins.
FIGURE 31: LABUAN BAJO PORT FACILITIES
Source: Pelindo III
However, considering that charter boats and cruise ships offer on-board accommodation and that these tours have a scheduled timetable; visitors are given very little time in the park (2 – 3 hours). Hence, the cruise infrastructure improvement will be subject to future demand study.
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TRANSPORT INFRASTRUCTURE INVESTMENT NEEDS
14.4 FUTURE MODE OF TRAVEL 14.4.1 MARKET SHARE OF VISITORS According to the market study, the share of foreign visitors will further increase in future.
Out of 83,200 visitor arrivals in 2021, around 79% are estimated to be foreign visitors, and this rate is expected to grow by 2041, with 86% of 165,400 total visitors coming from overseas.
14.4.2 MODE OF ARRIVAL The mode of arrival and visitor movement pattern is expected to remain similar to current trends, with air transit being the mode used by the overwhelming majority of visitors. In 2021 and 2041, 95% of domestic visitors and around 100% of foreign visitors are estimated to arrive by air.
Hence, air transport remains an important means of transport for visitors. Komodo Airport will remain the principal gateway and it is important to ensure the adequacy of Komodo Airport infrastructure. Internal road connectivity in Labuan Bajo and sea connectivity to the attraction areas will also play an important role.
FIGURE 32: SURVEY OF TRANSPORT MODAL SPLIT Domestic Share (%) Foreign Share (%) Mode of Transport Arrival Mode of Transport Arrival 2021 2041 2021 2041 Air 95% 95% Air 100% 100% Sea 5% 5% Sea 0% 0% Land 0% 0% Land 0% 0% Total 100 100 Total 100
Source: Surbana Jurong and HHTL
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14.4.3 TRANSPORT MODAL SPLIT Private transport will remain the preferred mode of transport for visitors. The following modal split assesses the impact of tourism on the road infrastructure capacity (Figure 33).
FIGURE 33: FUTURE SCENARIO OF TRANSPORT MODAL SPLIT Domestic Visitor Share (%) Foreign Visitor Share (%) 2021 & 2021 & Mode of Transport 2015 Mode of Transport 2015 2041 2041 Tour Bus Tour Bus Tour Van 20% 20% Tour Van Public bus/Railway 20% 20% Public bus/Railway Private car/Car rental/Taxi 60% 60% Private car/Car rental/Taxi 100% 100% Total 100 Total 100
Source: Surbana Jurong and HHTL
Based on the above modal split, Figure 34 and Figure 35 present the distribution of peak visitors using different modes of transport.
FIGURE 34: ESTIMATE OF TOURISM PASSENGERS BY TRANSPORT MODES IN 2021 Domestic Share Foreign Share Peak visitor per day 335 Peak visitor per day 1,685 Mode of Transport Arrival Mode of Transport Arrival Air Sea Land Air Sea Land No of Visitor 318 17 - No of Visitor 1,685 - - Mode of Transport to reach tourism Mode of Transport to reach tourism attractions attractions Tour Bus - - - Tour Bus - - - Tour Van 64 3 - Tour Van - - - Public Public - - - - bus/Railway 64 3 bus/Railway Private Private car/Car - car/Car 1,685 - - rental/Taxi 191 10 rental/Taxi Total 318 17 - Total 1,685 - - Source: Surbana Jurong
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FIGURE 35: ESTIMATE OF TOURISM PASSENGERS BY TRANSPORT MODES IN 2041 Domestic Share Foreign Share Peak visitor per day 405 Peak visitor per day 3,615 Mode of Transport Arrival Mode of Transport Arrival Air Sea Land Air Sea Land No of Visitor 385 20 - No of Visitor 3,615 - - Mode of Transport to reach tourism Mode of Transport to reach tourism attractions attractions Tour Bus - - - Tour Bus - - - Tour Van 77 4 - Tour Van - - - Public Public - - - - bus/Railway 77 4 bus/Railway Private Private car/Car - car/Car 3,615 - - rental/Taxi 231 12 rental/Taxi Total 385 20 - Total 3,615 - -
Source: Surbana Jurong
14.5 ROAD TRANSPORT NEEDS 14.5.1 FUTURE TRAFFIC VOLUME AND ROAD CAPACITY Traffic analysis constitutes general traffic generated by the daily commuters and traffic generated by visitors.
General Traffic Volume and Road Capacity
The traffic volume to and from the tourism attractions in the future will be affected by the traffic increases as a result of other economic activities in the Labuan Bajo region. The forecast number of vehicles in 2021 and 2041 in Manggarai Barat is presented in Figure 36. By 2041, registered vehicles are estimated to increase from the existing 18,000 vehicles to an estimated 43,000 vehicles.
FIGURE 36: NUMBER OF VEHICLES IN PAST AND FUTURE Manggarai Barat Year No of Vehicles Growth 2015 18,402 Base 2021 24,528 4.91% 2041 42,874 2.83%
Source: Surbana Jurong
Since the current traffic volume is not available, the future general traffic volume is difficult to be estimated.
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Visitors Traffic Volume
The visitor traffic volume generated is an important component that will be distributed on the road network. Based on the provisional modal split for domestic and foreign visitors, the number of vehicles generated for each mode and number of visitors per vehicle are shown in Figure 37 and Figure 38. Refer to Appendix 4 for Visitor Traffic Volume Estimation Approach.
FIGURE 37: TRAFFIC VOLUME ESTIMATION IN 2021 Domestic Share Foreign Share Labuan Pax / Labuan Pax / Bajo vehicle Bajo vehicle Tour Bus - 35 Tour Bus - 35 Tour Van 5 14 Tour Van - 14 Public bus/Railway 2 35 Public bus/Railway - 35 Private car/Car Private car/Car 4 rental/Taxi 50 4 rental/Taxi 421
Total 57 Total 421
FIGURE 38: TRAFFIC VOLUME ESTIMATION IN 2041 Domestic Share Foreign Share Pax / Pax / Labuan Bajo Labuan Bajo vehicle vehicle Tour Bus - 35 Tour Bus - 35 Tour Van 6 14 Tour Van - 14 Public bus/Railway 2 35 Public bus/Railway - 35 Private car/Car Private car/Car 904 4 rental/Taxi 61 4 rental/Taxi Total 69 Total 904
The summary of visitor traffic in key road corridors is shown in Figure 39.
FIGURE 39: TRAFFIC VOLUME ESTIMATION IN 2021 AND 2041 (ADT) 2021 2041 Corridor ADT PCE Peak ADT PCE Peak Labuan Bajo 429 433 43 69 978 98 ADT: Average Daily Traffic
PCE: Passenger Car Equivalent was adopted from Djohar (1984) Passenger Car Unit value and Saturation Flow for Junctions in Bandung
Peak: Peak hour
In summary, the traffic volume generated by visitors is insignificant and will not have any major impact on the road traffic.
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14.5.2 ROAD INFRASTRUCTURE NEEDS Based on the above assessment, following are the key road transport infrastructure needs for the destination.
• The road capacity in Labuan Bajo will be adequate to cater to the expected low traffic volume in future. In future, all the major roads in Labuan Bajo should be well maintained in terms of pavement conditions targeting for IRI < 4 (IRI: International Roughness Index <= Good), including the key segment in Labuan Bajo connecting the city center to Komodo Airport (20 kilometers). It is also important to improve the sidewalks in key tourism areas, including beach resort/hotel and port areas. • In 2015, the ratio of paved national and provincial roads on Flores was 100%. This condition benefits the visitors’ movement for inner-island trips. Considering the low traffic volume, regional road capacity is adequate. However, for the connectivity to other places of interest on the island, it is desirable to upgrade the road width to Bina Marga standards (7 meters wide). Furthermore, all roads—national, provincial, and kabupaten—that connect Labuan Bajo to other sites of interest need to be well maintained in terms of pavement conditions, with a target of IRI <4.
14.6 AIR TRANSPORT NEEDS 14.6.1 FUTURE AIR PASSENGER DEMAND17 KOMODO AIRPORT
• Air passenger movement at Komodo Airport is forecast to reach 399,000 in 2021 and about 722,000 by 2041.
• The yearly aircraft movement is forecast to reach 4,555 aircraft in 2021 and 7,831 aircraft by 2041.
14.6.2 AIRPORT INFRASTRUCTURE NEEDS KOMODO AIRPORT
Figure 40 below summarises the demand and capacity for air travel at Komodo Airport. The air passenger demand for 2021 and 2041 is equivalent to 8 and 13 peak hour movements respectively. Hence, the 16 peak hour movement that the runway could handle is more than sufficient to handle the demand.
17 The Future Air Passenger Demand and Aircraft Movement are estimated on a broad basis to assess the airport infrastructure needs for tourism development. A separate detailed specific Airport Study needs to be conducted to look into the specific air passenger and aircraft demand for individual airports.
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FIGURE 40: KOMODO AIRPORT – INFRASTRUCTURE NEEDS
Airport Existing Short Term Long Term Improvement (2015) (2021) (2041) Plan Air Passenger 259,106 NA 339,654 722,453 Demand 3,486 aircrafts per 2 spots for B737, 4,555 aircrafts 7,830 aircrafts per Aircraft landing year 2 spots for small, per year year and Take Off 6 peak hour 4 spots for 8 peak hour 13 peak hour Demand movement propeller movement movement 2225 X 45 m Runway extension Estimated to 2450 x 45 m Capacity: 16 Runway (Lm X Estimated movements per Adequate Adequate Wm) Capacity: 16 hour movements per Existing Capacity hour Adequate Parallel Taxiway No No Adequate Adequate 5 active stands 2 spots for B737, needed for 7 aircraft stands 5 aircrafts in peak 2 spots for small, aircrafts in needed in peak Loading Apron hour 4 spots for peak hour hour Requirements Capacity: 4 propeller Adequate with Adequate with aircrafts stands Capacity: 8 stands apron apron expansion expansion Existing Terminal Building Capacity Terminal 2 million pax / is adequate. 1.7 million Adequate Building year Terminal Building Expansion not needed
Hence, only certain components of airport improvement plan such as apron expansion will be needed in the long term.
14.7 SEA TRANSPORT NEEDS
Most visitors use air rather than sea transport to reach Komodo or Labuan Bajo. Therefore, it is less likely that transport ferry demand will increase significantly for Labuan Bajo.
Based on this assessment, the existing port infrastructure has the capacity to accommodate projected ferry passengers. The existing passenger terminal facility is sufficient to accommodate 200 passengers and therefore there is no need for port facility improvements for the Port of Labuan Bajo.
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Access to the KNP is constrained by sensitive eco-system and the tourism study considers a sustainable ecotourism within the key tourism areas of Labuan Bajo and the Komodo National Park. Thus, there will not be a significant increase in demand for boat access to these islands from Labuan Bajo. While existing jetty facilities need to be well-maintained, a jetty facility will need to be developed for Rinca Island. In addition, the market study identifies potential for eco-resorts close to the KNP, especially on the islands close to the city. Basic Jetty facilities will be needed for these eco-resort Islands as well.
While the privately-owned chartered boats provide sufficient services at this time and will grow as per the demand increases, the informal services need to be regulated by the government to ensure the maintenance of quality and safety standards.
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15. BASIC CAPACITY INFRASTRUCTURE (AMENITIES)
BASELINE
15.1 BACKGROUND FOR PHYSICAL INFRASTRUCTURE ASSESSMENT FIGURE 41: LABUAN BAJO TOURISM DESTINATION AND KEY ATTRACTIONS
Source: Google Maps, HHTL, Surbana Jurong
The 2 key attractions that we have identified that will drive tourism to Flores are the Komodo National Park (KNP) and the town of Labuan Bajo, both within Kecamatan Komodo, shown in Figure 41. The basic infrastructure assessment is conducted for Kabupaten Manggarai Barat, the designated Destination, with a focus on Kecamatan Komodo and selected towns for wastewater and sanitary assessment.
15.2 WATER SUPPLY 15.2.1 EXISTING WATER SUPPLY CONDITIONS Surface water is the main source of water supply in Labuan Bajo. PDAM (local water utility) Wae MBeliling is responsible for the production, storage, and distribution of portable water from five water sources, located at Wae Mowol, Wae Moto, Wae MBaru, Wae Kaca, and Wae Mese. Total capacity of these water sources is 82 L/s. As much as 56 L/s of water are produced from these sources, shown in Figure 42.
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FIGURE 42: CAPACITY OF PDAM WATER SOURCES IN LABUAN BAJO
Available Capacity Produced Capacity No. Water Source System (L/s) (L/s)
1 Wae Mowol Gravity 10.00 5.00 2 Wae Moto Gravity 13.00 6.00 3 Wae Kaca Gravity 8.00 3.00 4 Wae M Baru Gravity 11.00 4.00 5 Wae Mese WTP Pump 40.00 38.00 Total 82.00 56.00
Source: PDAM Wae MBeliling Kab. Manggarai Barat
Water produced is distributed through a piping network to the city of Labuan Bajo. Ten reservoirs were constructed for storage of water: DRPD, Batu Cermin, Firdaus/ BTN, Golo Koe, Wae Mata, Tuke Tai Kaba, PT. Sak, PU, Merombik, and Tondong Pengka, shown in Figure 43. These reservoirs have a total storage capacity of 1,850 cubic metres, broken down in Figure 44.
FIGURE 43: LOCATION OF WATER SOURCE AND WATER RESERVOIR AT LABUAN BAKO
Source: Perusahaan Daerah Air Minum, Wae MBeliling Kab. Manggarai Barat
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FIGURE 44: CAPACITY OF WATER RESERVOIRS AT LABUAN BAJO No. Water Reservoir Capacity (cubic metres) 1 DPRD 250 2 Batu Cermin 150 3 Firdaus/ BTN 150 4 Golo Koe 200 5 Wae Mata 325 6 Tuke Tai Kaba 150 7 PT. Sak 150 8 PU 125 9 Merombik 200 10 Tondong Pengka 150 Total 1,850
Source: Perusahaan Daerah Air Minum, Wae MBeliling Kab. Manggarai Barat
15.2.2 ASSESSMENT OF EXISTING WATER SUPPLY INFRASTRUCTURE Based on Permen PU 01/PRT/M/2014 sustainable water supply is defined as having access to a safe and reliable water source that can supply at least 60l/cap/day. For the key tourism areas, the higher quality SNI 3-7065-2005 standard is assumed, meaning that the population and visitors in key tourism areas should have access to sustainable piped water supply which is defined as having a house connection and 24-hour water supply at 120l/cap/day for domestic users and 250l/cap/day for visitors staying overnight.
The national statistical office (BPS) has baseline information on service provision. BPS collects this information by sample surveys and aggregate data are available at the Provincial level and sometimes at the Kabupaten/Kota level. In practice, it was not possible to arrive at a reliable baseline for water supply service provision in the key tourism areas because data were either not available or were only available at the Provincial level which is not sufficiently detailed to serve as a baseline for the tourism areas.
As a proxy data have been collected on population connected to piped networks of water supply companies (PDAM), because these data are widely available by PDAM at Kabupaten and Kecamatan level. It should be noted however that these data should be regarded as minimum number of people served by piped water supply, because apart from PDAM many local networks exist, often community operated, that deliver sustainable water supply.
In the context of this study PDAM data as presented here should therefore not be taken as absolute figures for current water supply service levels but should be considered as an indication of variation in service levels between the several tourism areas. More detailed study at Kecamatan level is needed to arrive at a thorough baseline for each of the key tourism areas. Existing coverage of PDAM water supply is tabulated below in Figure 45.
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FIGURE 45: EXISTING COVERAGE OF PDAM WATER SUPPLY Key Tourism Area PDAM Coverage (% of households served) Kabupaten Manggarai Barat 7.53 Kecamatan Komodo 25.65
Source: BPS Nusa Tenggara Timur
As of 2015, PDAM water supply service has covered 7.53% of households in Kabupaten Manggarai Barat, and 25.65% of households in Kecamatan Komodo18, where most of the tourism activities are taking place. Other source of water supply comes from groundwater (private wells in rural areas), small scale desalination plants and other types of surface water. Residents of Labuan Bajo also purchase bottled water for their daily use.
Existing capacity of the raw water sources is not fully utilized. Only 68.3% of potable water are produced from the existing raw water sources. The actual water delivered to the end users is lesser the high rate of water loss in Indonesia is taken into consideration (about 33%).
Residents in rural areas, especially islands (i.e. Komodo Island, Rinca Island, etc.) where water distribution networks are difficult to reach, use rainwater as their main source of water supply. During the dry season when water supply is insufficient, residents of these islands import water from Labuan Bajo.
15.2.3 FUTURE PLANS FOR WATER SUPPLY The local authorities intend to extend water supply coverage by expanding the water supply network. Moreover, to support the development of tourism activities, local authorities have proposed to expand the water supply network to the ports in Labuan Bajo. This will shorten the distance to transport water to the surrounding islands. Water will also be used to support the boat and cruise business at the ports.19
Extension of the water supply network to the ports area would help to improve water supply for port operation. It is recommended that the extension should also cover areas surrounding the port where most of the hotels are located. However, upgrading the water treatment plants’ capacity and control in water loss during distribution is equally important to optimize utilization of the available raw water sources.
18 Source: PDAM Wae MBeliling Kab.MaBar, Dinas Kependudukan Kab.MaBar, 2016 19 Source: Pengembangan Destinasi Pariwisata Prioritas Indonesia – Labuan Bajo
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To mitigate the shortfall of water supply in rural areas such as Komodo and Rinca Islands, sufficient numbers of water storage tanks shall be placed to store and stock water for usage during the dry season.
15.3 WASTEWATER AND SANITATION 15.3.1 EXISTING WASTEWATER AND SANITATION CONDITIONS According to the national service standards for public works and spatial planning (SPM Permen PU 01/PRT/M/2014) sustainable sanitation is defined as having access to a private or a communal (MCK) toilet connected to a septic tank or to a piped sewer system with downstream treatment facilities. If population density is higher than 300 inhabitants/ha an off-site sewer system is required with centralized wastewater treatment plant. Waste water treatment facilities must meet specified technical and effluent quality standards.
The national statistical office (BPS) has baseline information on service provision. BPS collects this information by sample surveys and aggregate data are available at the Provincial level and sometimes at the Kabupaten/Kota level. In practice, it was not possible to arrive at a reliable baseline for sanitation service provision in the key tourism areas because data were either not available or were only available at the provincial level, which is not sufficiently detailed to serve as a baseline for the tourism areas.
As a proxy, STBM (Sanitasi Total Berbasis Masyarakat) data have been collected because these data are widely available to the kecamatan level. It should be noted, however, that STBM data in general give a much too positive picture of current service levels, because the STBM service level represents a lesser quality than the level required in the relevant national standards noted above. STBM’s definition of adequate sanitation includes sanitation facilities which:
• Avoid water contamination; • Avoid contact between human and feces;
• Avoid contact between insects/ animals and feces; • Not smelling unpleasant; and • Easy to clean.
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The STBM definition means that all sanitation facilities are included, even pit latrines and temporary structures, and only open defecation practices are excluded. The percentage of population served as indicated by STBM data is therefore much higher than population served in accordance with national service level quality standards. In the context of this study STBM data as presented here should therefore not be taken as absolute figures for current sanitation service levels but should be considered as an indication of variation in service levels between the several tourism areas. More detailed study at Kecamatan level is needed to arrive at a reliable baseline for each of the key tourism areas.
15.3.2 EXISTING ASSESSMENT OF WASTEWATER AND SANITATION Existing coverage of adequate sanitation, as defined by STBM standards, is tabulated in Figure 46 below:
FIGURE 46: EXISTING COVERAGE OF STBM STANDARD SANITATION Adequate Sanitation Core Tourism Area (% of households equipped with/ has access to adequate sanitation) Kabupaten Manggarai Barat 38.88 Kecamatan Komodo 62.67
Source: Sanitasi Total Berbasis Masyarakat
There is no off-site or integrated wastewater discharge and management system in Kabupaten Manggarai Barat. Domestic, industrial, and tourism waste is discharged into onsite/individual septic tanks. Wastewater is often discharged directly into drains and rivers or into the sea in areas where septic tanks are unavailable.
Only 38.88% of the households in Kabupaten Manggarai Barat and 62.67% in Kecamatan Komodo are equipped with adequate sanitation facilities according to the relatively low STBM standard. Meanwhile, percentage of adequate sanitation at towns where most of the hotels are located varies. Batu Cermin, Goron Talo, Labuan Bajo, and Pasir Putih has satisfactory access to adequate sanitation (>80%); meanwhile, only 11.46% of the households in Macang Tanggar has access to adequate sanitation. It is recommended that the existing gap be closed immediately.
15.3.3 FUTURE PLANS FOR WASTEWATER AND SANITATION The authority has plans to develop an integrated wastewater treatment plant at visitor attractions. Meanwhile, in Pokja (Kelompok Kerja Air Minum Dan Penyehatan Lingkungan) medium term plan for Kabupaten Manggarai Barat, a) To reduce BABS (open defecation) to 0% b) To increase on-site wastewater management facilities (septic tank) to 85% c) To increase centralized and integrated wastewater management facilities to 15%
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Improvement and upgrading of wastewater and sanitation facilities are important to promote hygienic living of residents and visitors in Kabupaten Manggarai Barat. The above-mentioned plans (especially item (a)) have to be implemented as soon as possible.
15.4 DRAINAGE 15.4.1 ASSESSMENT OF EXISTING DRAINAGE AND FLOODING ISSUES The entirety of Kabupaten Manggarai Barat is categorized as a high-risk flood zone. Flash floods often occur in low-lying areas during heavy downpour.
The upgrading of existing drainage systems, including construction of a detention and retention pond, is recommended to slow down the runoff time, thus providing sufficient time for the surface runoff to be discharged into water bodies.
FIGURE 47: FLOOD DISASTER RISK INDEX MAP
Source: Badan Nasional Penanggulangan Bencana (BNPB), 2010
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15.5 SOLID WASTE INFRASTRUCTURE 15.5.1 EXISTING SOLID WASTE COLLECTION AND DISPOSAL CONDITIONS Generally, waste is collected manually and transported to a TPS (Tempat Pembuangan Sementara, or Temporary Disposal Site). TPSs are located at residential and community centres. From TPS, waste is transported to TPST (Tempat Pengolahan Sampah Terpadu, or Integrated Waste Processing). Most of the TPSTs are located near the market and managed by Kecamatan/ District agency. Segregation of wastes takes place in TPST. Remaining waste is then transported to TPA (Tempat pembuangan Akhir, or Final Disposal Area). The process of solid waste collection and disposal is shown in Figure 48.
FIGURE 48: PROCEDURE OF SOLID WASTE COLLECTION AND DISPOSAL
Source: RTRW, Rencana Tataruang Wilayah
According to the national service standards for public works and spatial planning, sustainable solid waste management is defined as having access to a solid waste collection services of at least twice a week and transport of waste collected to a transfer station or processing unit. Solid waste management operations must be in accordance with national technical standards for management of solid waste facilities (Permen PU 03 Year 2013) and for urban waste management techniques (SNI 19-2454-2002).
A number of TPS are provided in the city of Labuan Bajo. One TPA (open dumping) is located at Kaper, Desa Golo Bilas, with a capacity of 41.829 cubic metres. Locations of TPS and TPA in Labuan Bajo are shown in Figure 49.
However, some waste is disposed on the roadside or on unoccupied land due to insufficient numbers of TPS and a lack of community awareness. The average amount of solid waste generated at Labuan Bajo is 46,281 cubic metres/ year, but only 38,690 cubic metres are collected. Coverage of solid waste management is at a satisfactory level of 83.60%.
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FIGURE 49: LOCATION OF TPS AND TPA IN LABUAN BAJO
Source: Dinas Kebersihan, Pengelolaan Sampah, Google Earth.
15.5.2 ASSESSMENT OF EXISTING SOLID WASTE MANAGEMENT The existing solid waste management system in Labuan Bajo is insufficient. Both Temporary Disposal Sites (TPS) and Final Disposal Sites (TPA) demonstrate gaps between waste generated and their capacity to manage the generated waste. Another 4.452 cubic metres of TPA capacity is required to manage all the wastes generated. Beforehand, sufficient numbers of TPS and wastes collection/ transportation system must be in place.
Although the percentage of solid waste collected in Labuan Bajo is relatively high (83.60%) as compared to other cities in Indonesia, pollution caused by solid wastes are still critical. Uncollected solid waste from the city of Labuan Bajo is disposed of in drains and rivers which end up in the open sea, and is carried by the waves to the surrounding islands, including the KNP.
Other than household waste, other sources of waste that are currently not managed and that pollute the ocean and reefs are the yachts, fishing settlements on some small islands, and the visitor boats traveling to islands and reefs, which often leave behind plastic bottles and other litter.
Existing service level data were collected for each of the key tourism areas at the Kabupaten/Kota level. More detailed and disaggregated data were not encountered. In Kabupaten, the solid waste collection services are limited to the most densely populated and urbanized towns, whereas rural areas are often not yet served. More detailed study is needed to arrive at a thorough baseline for the key tourism areas.
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15.5.3 FUTURE PLANS FOR SOLID WASTE INFRASTRUCTURE According to Dinas Kebersihan (Sanitation Agency) Labuan Bajo, the authority has plans to close the existing gap of solid waste management facilities. A research study is in progress to locate a suitable location for a new TPA. It is anticipated that this new TPA will be capable of handling existing and future waste generation.
Though proposals for upgrading and improving solid waste management facilities are in place, no detailed information such as a timeline, capacities of the proposed TPS and TPA, or frequency of waste collection have been made known. The existing capacity gap must be closed as soon as possible.
15.6 POWER SUPPLY 15.6.1 EXISTING POWER SUPPLY CONDITIONS PLN (the National Electricity Company) Labuan Bajo is responsible for electricity production, transmission, and distribution in Kabupaten Manggarai Barat. In 2015, only 25.25% of the households in Kabupaten Manggarai Barat are served by PLN. The coverage is higher (89.72%) in Kecamatan Komodo where most of the visitor attractions and hotels are located.
There are three diesel power plants in Kabupaten Manggarai Barat (2 located in Kecamatan Komodo and 1 in Kecamatan Lembor). A total of 5.4 MW of electricity is produced and distributed from these power plants. However, electricity demand during peak hours has reached 5.8 MW, exceeding capacity. Therefore, rolling blackouts are practiced to overcome the 0.4 MW power demand deficit. Figure 50 illustrates the location and capacities of the power plants in Manggarai Barat.
15.6.2 ASSESSMENT OF EXISTING POWER SUPPLY INFRASTRUCTURE Existing coverage of power supply network is tabulated in Figure 50 below:
FIGURE 50: EXISTING COVERAGE OF POWER SUPPLY NETWORK Core Tourism Area PLN Coverage (% of households served) Kabupaten Manggarai Barat 25.25 Kecamatan Komodo 89.72
Source: BPS Nusa Tenggara Timur
Coverage of PLN power network is unsatisfactory in Kabupaten Manggarai Barat. Although the percentage is higher in Kecamatan Komodo, expansion of the coverage is still required as this is the Kecamatan where Labuan Bajo and most of the visitor attractions are located.
15.6.3 FUTURE PLANS FOR POWER SUPPLY A few plans have been proposed by the authority to improve the power supply condition in Kabupaten Manggarai Barat:
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• Construction of a geothermal power plant at Golo Bilas in Kecamatan Komodo is on- going. It is expected to be completed by the end of 2017 and would be able to supply 5 MW of electricity.
• Plan to build a diesel power plant at Golo Bilas, with capacity of 1.8 MW.
• Plan to build a gas engine power plant at Kecamatan Boleng. This is a long-term plan and the proposed power plant would be able to generate 2x10 MW of power.
Existing and planned power facilities are shown on the map below (Figure 51).
FIGURE 51: EXISTING AND PROPOSED POWER PLANTS IN MANGGARAI BARAT
Source: PLN Labuan Bajo, Google Earth
The shortage of power supply, especially during peak hours, can be solved by the completion of the under-construction geothermal power plant at Golo Bilas, provided that it is finished and in operation as planned. In the longer term, the proposed power plants are necessary to fill the gap and to support the growth in power demand.
15.7 TELECOMMUNICATION INFRASTRUCTURE 15.7.1 EXISTING TELECOMMUNICATION INFRASTRUCTURE According to dishubkominfo of Manggarai Barat (Dinas Perhubungan Komunikasi dan Informatika, or the Department of Communication and Informatics), residents in Labuan Bajo are well served with the existing telecommunication facilities. There are twenty-seven (27) telecom towers at Manggarai Barat. These telecom towers are owned by 3 private companies: Tower Bersama Group, Day Mitra Telekomunikasi, and Telkomsel.
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FIGURE 52: TELECOM TOWERS IN MANGGARAI BARAT
Source: dishubkominfo Manggarai Barat, Google Earth
15.7.2 ASSESSMENT OF EXISTING TELECOMMUNICATION INFRASTRUCTURE Existing conditions of telecommunication infrastructure in Labuan Bajo is satisfactory. There are no major gaps or issues with regards to the service and coverage of the telecommunication system in Labuan Bajo. However, our finding shows that the coverage of the telecommunication facilities in the KNP is low.
The government’s expansion plans were not known during the interview, as most of the Base Transceiver Stations (BTS) and towers are owned by the telco companies. As long as there are business opportunities and potential new subscribers, the telco companies are willing to invest and set up new BTS and telecom towers to widen their coverage and improve their service.
15.8 SUMMARY OF EXISTING BASIC INFRASTRUCTURE A summary of existing coverage and basic infrastructures gaps in Labuan Bajo is shown in Figure 53.
FIGURE 53: SUMMARY OF EXISTING BASIC INFRASTRUCTURE ASSESSMENT Existing Existing Infrastructure Remarks Coverage Gap Kab. Low coverage in Kabupaten Manggarai Manggarai 7.53% 92.47% Barat and relatively higher coverage in Water Supply Barat Kec Komodo. Note that actual current (households served by coverage is higher because non-PDAM PDAM) Kec. 25.65% 74.35% piped supply is not captured in the Komodo baseline.
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Kab. Coverage at main hotel location varies: Manggarai 38.88% 61.12% Batu Cermin – 100% Barat Goron Talo – 100% Wastewater and Labuan Bajo – 100% Sanitation Pasir Putih – 80.94% (households equipped/ Macang Tanggar – 11.46% has access to adequate Kec. 62.67% Note that actual current sanitation 37.33% sanitation) Komodo coverage is lower because STBM standards are inferior to national standards.
Kabupaten Manggarai Barat categorized as Need to manage flood risk for Drainage high risk flood zone Kabupaten Manggarai Barat Solid Waste Existing gap (settlements along the (solid waste generated Kec. 83.60% 16.40% coast line) has to be closed at the collected and disposed Komodo soonest at designated TPA) Kab. Low power supply coverage at Power Supply Manggarai 25.25% 74.75% Kabupaten Manggarai Barat (households served by Barat PLN) Kec. Higher coverage at Kecamatan 89.72% 10.28% Komodo Komodo, but need to be improved Kec. Coverage is satisfactory, but Expansion of coverage is needed at Telecommunication Komodo restricted to the city area KNP
Currently, the development of infrastructure facilities is concentrated at the mainland of the Labuan Bajo, despite the fact that the off-shore KNP is the primary tourist draw in the area. Basic infrastructure facility improvements, such as public toilets and solid waste management, are essential in the Komodo Islands as more foreign and local visitors are expected. It is recommended that the development of infrastructure facilities in these islands must be planned with caution, so that the habitats of the Komodo dragons and other flora and fauna are not disrupted.
Only 7.53% of the households in Kabupaten Manggarai Barat and 25.65% of the households in Kecamatan Komodo are served by PDAM water supply. Production of potable water from the existing raw water sources must be optimized. Meanwhile, in Komodo and Rinca Island, and other islets with a resident population of fishermen, construction of water storage facilities would help to mitigate the problem of insufficient water sources during dry season.
Accessibility to the adequate sanitation facilities are 38.88% in Kabupaten Manggarai Barat and 62.67% in Kecamatan Komodo. The existing gap has to be closed as soon as possible, with focus given to areas where most of the hotels are located, namely Pasir Putih and Macang Tanggar.
Power supply in Labuan Bajo is insufficient. There is urgent need to ease the shortage of capacity during peak hours. Generally, coverage of power supply in Kecamatan Komodo is high (89.72%) as compared to other Indonesian cities, improvement is required as more visitor arrivals are expected.
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The existing solid waste management system in Labuan Bajo is insufficient and community awareness of solid waste management and cleanliness issues is low. Existing capacity of the TPA is unable to cope with the wastes generated. Uncollected solid waste has caused pollution at the nearby islands, including the KNP. The existing gap, especially the settlements along the coastline, including settlements on islets, and other sources of pollution such as yachts and visitor boats, has to be closed as soon as possible.
There are no major issues with regards to the telecommunication infrastructure. Other than improvement and expansion of existing coverage in Labuan Bajo, focus should be given to the KNP area.
Kabupaten Manggarai Barat is categorized as a high-risk flood zone. Flooding often occurs at low-lying areas during heavy downpours and at high tide. Improvement and upgrading of the storm water drainage system is required.
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BASIC CAPACITY INFRASTRUCTURE INVESTMENT NEEDS
15.9 FORECAST POPULATION & VISITOR ARRIVALS Basic infrastructure analyses are carried out for the short and long term with reference to the projected population and visitor arrivals as shown in Figure 54 and Figure 55.
The population growth for the key kabupaten is based on the growth rate produced by BPS at the kabupaten level. As Kabupaten Manggarai Barat is dominated by hotels in Labuan Bajo (Kecamatan Komodo), projection for basic infrastructure needs are broken down to Kecamatan Komodo. It is assumed in this assessment that all the existing and future commercial accommodation are located in Kecamatan Komodo.
FIGURE 54: FORECAST OF POPULATION Key Tourism Area 2015 2021 2041 Kec. Komodo 48,812 50,336 51,016
Source: Horwath HTL
FIGURE 55: FORECAST OF COMMERCIAL ROOMS REQUIRED 2015 2021 2041 Kec. Komodo 710 1,010 2,010
Guest per room = 2.0 Source: Horwath HTL
Basic infrastructure demand projections are carried out based on the projected population in the key tourism kecamatan and the number of visitor arrivals staying in commercial accommodation.
15.10 WATER SUPPLY 15.10.1 FUTURE DEMAND With reference to the projected population and visitor arrivals and water consumption rates (as shown in Figure 57), water demand forecasts are tabulated in
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Figure 56 and Figure 57. Note that these projections represent maximum requirements if all piped water supply would be provided by PDAM. In reality, many non-PDAM local piped water supply networks exist, often community operated, that deliver sustainable water supply.
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FIGURE 56: WATER DEMAND PROJECTIONS (L/S) 2015 Kec. Komodo Served by Not Served by 2021 2041 Demand PDAM PDAM Domestic 56 14 42 70 71 Visitor 3 1 2 6 12 Total 60 15 44 76 82
Source: Surbana Jurong
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Figure 56 above showcases estimated water demand (L/s) by different categories of consumers in 2015 (with amount of water served and not served by PDAM). Projected water demand by different categories of consumers in 2021 and 2041 are also presented. Ratio of estimated water demand to support tourism activities with respect to overall demand is shown in Figure 57.
FIGURE 57: ESTIMATED WATER DEMAND RATIO 2015 2021 2041 Domestic 56 70 71 Visitor 3 6 12 % of visitor / total 5.50% 7.72% 14.10%
Source: Surbana Jurong
Key Assumptions
The average water demand for the study area is estimated by using unit water demand per capita for local residents and visitors. The SNI 3-7065-2005 standard has been used, meaning that the population and visitors should have access to sustainable piped water supply which is defined as having a house connection and 24 hours water supply at 120l/cap/day for domestic users and 250l/cap/day for visitors staying overnight. The adopted water consumption rate in lpcd (litres per capita per day) for residents and visitors are tabulated in Figure 58. The projected water demand is then converted to L/s (litres per second). The unit rates of water consumption for different usages are expected to increase by 20% – 25% in 2021 due to an upturn in living standards and water accessibility; and then remain constant to 2041, considering sufficient water conservation approaches and awareness among residents.
FIGURE 58: WATER CONSUMPTION RATE Unit Rate (lpcd) Type of Usage 2015 2021 2041 Domestic 100 120 120 Visitor Commercial Accommodation 200 250 250
Based on the above considerations, total existing water demand is forecast to be 60 L/s for Kecamatan Komodo. From total demand, 25.65% are provided by piped water supply. Water demand in 2021 and 2041 is estimated to be about 76 L/s and 82 L/s in Kecamatan Komodo. Existing water demand for tourism activities is about 5.5% of the overall water demand, and forecast to increase to close to 15% in 2041.
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15.10.2 WATER SUPPLY INFRASTRUCTURE NEEDS It is estimated that the available raw water sources are insufficient to fulfil the water demand in Kecamatan Komodo in the near future. Other than on expansion of piped water coverage and utilization of raw water sources, the authority must look for new sources of raw water.
Short Term Recommendations (2021)
• 100% piped water in Kecamatan Komodo.
• Look for new sources of raw water.
• Expansion of existing water supply networks and construction of new networks to meet the above-mentioned targets.
• Expansion of existing water treatment plants to utilize the existing water sources available.
• Effective and necessary efforts should be put in place to reduce water loss to 20%.
Long Term Recommendations (2041)
• Construction of new water treatment plant(s) to produce potable water from the existing and potential new water sources.
• Expansion of existing water supply networks and the construction of networks to serve the potential growth of population and visitor arrivals.
• Effective and necessary efforts should be made to reduce water loss to 10%.
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15.11 WASTEWATER AND SANITATION 15.11.1 FUTURE DEMAND With reference to the projected population and visitor arrivals, the forecast sewage generation is tabulated in Figure 59 and Figure 60. Sewage generation is assumed at 80% of water supplied. Note that current coverage of adequate sanitation in this analysis relates to STBM standards. Actual current sustainable sanitation coverage is lower because STBM quality standards are inferior to national standard SPM Permen PU 01/PRT/M/2014.
FIGURE 59: SEWAGE GENERATION PROJECTION (L/S) * 2015 Kec. Komodo Adequate Inadequate 2021 2041 Demand Sanitation Sanitation Domestic 45 28 17 56 57 Visitor 3 3 - 5 9 Total 48 31 17 61 66
Source: Surbana Jurong * Sewage generation = 80% water consumed
Figure 59 above showcases estimated sewage generation (L/s) by different categories of consumers in 2015 (with the amount of adequate and inadequate sanitation as per STBM standards). Projected sewage generation by different categories of consumers in 2021 and 2041 are also presented. The ratio of estimated sewage generation from tourism activities with respect to overall generation is shown in Figure 60.
FIGURE 60: ESTIMATED SEWAGE GENERATION RATIO 2015 2021 2041 Domestic 45 56 57 Visitor 3 5 9 % of visitor / total 5.50% 7.72% 14.10%
Source: Surbana Jurong
The total current sewage generation is estimated to be 48 L/s for Kecamatan Komodo. From the total generated sewage 62.67% is discharged and managed by STBM standard sanitation facilities. Sewage generation in 2021 and 2041 is forecast to be about 61 L/s and 66 L/s. Current sewage generation from visitors is about 5.5% of the overall sewage generation, and is estimated to increase to close to 15% by 2041.
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15.11.2 WASTEWATER AND SANITATION INFRASTRUCTURE NEEDS The following key projects for wastewater and sanitation infrastructure are recommended for the short term (2021):
• 100% coverage of sustainable sanitation in Kecamatan Komodo;
• Installation of sufficient numbers of septic tanks in residential areas;
• Small scale wastewater treatment plants are recommended at the hotels/ resorts; and
• Public toilet and sanitation facilities should be provided at tourism sites.
Recommendations for the long term (2041) are as below:
• 100% coverage of sustainable sanitation in Kabupaten Manggarai Barat;
• Development of integrated sewage treatment facilities, including sewage treatment plants and sewerage networks.
15.12 DRAINAGE 15.12.1 DRAINAGE INFRASTRUCTURE NEEDS Kabupaten Manggarai Barat (including Kecamatan Komodo) is categorized as a high-risk flood zone. Flooding often occurs at low lying areas during heavy downpours.
Upgrading of storm water drainage facilities are required, especially in Labuan Bajo. Other than deepening and widening of the existing drainage system, the authorities should consider construction of detention and retention ponds to slow the water runoff time. Besides this, solid waste collection and disposal facilities must be improved so that no trash ends up in the waterways.
15.13 SOLID WASTE INFRASTRUCTURE 15.13.1 FUTURE DEMAND With reference to the projected population and visitor arrivals, and the rate of solid waste generation (as shown in Figure 62), the forecast solid waste generation is tabulated in Figures 61 and 62.
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FIGURE 61: SOLID WASTE GENERATION PROJECTINO (L/DAY) 2015 Kec. Komodo Sustainable Unsustainable 2021 2041 Demand Management Management Domestic 109,827 91,815 18,012 113,256 137,745 Visitor 4,970 4,155 815 7,070 16,884 Total 114,797 95,970 18,827 120,326 154,629
Source: Surbana Jurong
Figure 61 above showcases estimated solid waste generation (L/day) by different categories of consumers in 2015 (with amount of sustainable and unsustainable management). Projected solid waste generation by different categories of consumers in 2021 and 2041 is also presented. The ratio of estimated solid waste generation from tourism activities with respect to overall generation is shown in Figure 62.
FIGURE 62: ESTIMATED SOLID WASTE GENERATION RATIO 2015 2021 2041 Domestic 109,827 113,256 137,745 Visitor 4,970 7,070 16,884 % of visitor / total 4.33% 5.88% 10.92%
Source: Surbana Jurong
Key Assumptions
The average solid waste generation for the study area is estimated by using solid waste generation unit rates per capita for local residents and visitors. The adopted rate in L/c/d (litres per capita per day) for residents and visitors is tabulated in Figure 63. It is forecast that there will be no changes in unit rate of solid waste generation over the short term (2021), but it will increase by 20% in the longer term (2041).
FIGURE 63: RATE OF SOLID WASTE GENERATION20 Unit Rate (L/capita/day) Type of Usage 2015 2021 2041 Domestic 2.25 2.25 2.7 Visitors Commercial Accommodation 3.5 3.5 4.2
20 Reference: Standard for Setting of Town Environmental Sanitation Facilities, China and Ministry of the Environment and Water Resources, Singapore, Kosuke. K, Tomohiro. T. Revisiting Estimates of Municipal Solid Wastes Generation per Capita and Their Reliability, 2015.
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Our analysis shows that total solid waste generation in 2015 is forecast to be 114,797 L/day in Kec. Komodo. From the total solid waste generated, only about 83.60% is collected and disposed at the designated TPAs. Solid waste generation in 2021 and 2041 is estimated to be about 120,326 L/day and 154,629 L/day in Kecamatan Komodo. Existing solid waste generated from tourism activities is about 4.33% of the overall generation, and estimated to slightly increase to 5.88% in 2021, and further climb to 10.92% in 2041.
15.13.2 SOLID WASTE INFRASTRUCTURE NEEDS Sustainable solid waste facilities should be made available at residential areas, markets and visitor attractions. Organized collection, transportation and disposal systems are necessary, particularly in the key tourism areas.
KNP is made up of several islands near Labuan Bajo. The environmental health of the park is crucial and must be preserved. As such, the following solid waste infrastructure projects are recommended for the short term (2021):
• 100% sustainable solid waste management (collection and disposal at designated TPAs) in Kec. Komodo, especially in Batu Cermin, Goron Talo, Labuan Bajo, Pasir Putih, and Macang Tanggar where most of the tourist attractions and hotels are located;
• Allocation of sufficient numbers of Temporary Disposal Sites (TPS);
• Increase in the capacity of trash trucks and frequency of collection is needed;
• Education and enforcement is needed to create awareness among the residents of the importance of solid waste management and to forbid them from disposing rubbish into the water bodies; and
• Expansion of existing Final Disposal Sites at TPA Kaper.
Recommendations for the long term (2041) are as below: • Solid waste collection and disposal facilities should be increased and expanded accordingly;
• Allocation of more Integrated Waste Processing Sites (TPST) will be needed so that solid waste is sorted and segregated before transporting to Final Disposal Sites (TPA). This can reduce the amount of waste delivered and is a more sustainable and environmentally- friendly approach; and
• Development of new TPA sanitary landfill technology. Landfill sites can fill up quickly if waste is not reduced and reusable waste is not collected, separately and recycled. There is also the risk of groundwater contamination if not sealed correctly or the liner system of the landfill site is damaged.
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15.14 POWER SUPPLY 15.14.1 FUTURE DEMAND With reference to the projected population and visitor arrivals, and power consumption rate (Figure 65), the forecast power demand is tabulated in
Figure 64 and Figure 65:
FIGURE 64: POWER DEMAND PROJECTION (MWH) 2015 Kec. Komodo Served by Not Served by 2021 2041 Demand PLN PLN Domestic 48,812 43,797 5,015 125,840 242,328 Visitor 2,840 2,548 292 5,050 12,060 Total 51,652 46,345 5,307 130,890 254,388 Source: Surbana Jurong
Figure 64 above showcases estimated power demand (Mwh) by different categories of consumers in 2015 (with amount of power served and not served by PLN). Projected power demand by different categories of consumers in 2021 and 2041 are also presented. Ratio of estimated power demand to support tourism activities with respect to overall demand is shown in Figure 65.
FIGURE 65: ESIMATED POWER DEMAND RATIO 2015 2021 2041 Domestic 48,812 125,840 242,328 Visitor 2,840 5,050 12,060 % of visitor / total 5.50% 3.86% 4.74%
Source: Surbana Jurong
Key Assumptions
The adopted rate Kwh (Kilowatt hours) for residents and visitors is tabulated in
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Figure 66. It is estimated that the unit rate of power consumption will increase in the short term (2021) and long term (2041).
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FIGURE 66: POWER CONSUMPTION RATE21 Unit Rate (Kwh) Type of Usage 2015 2021 2041 Domestic (per person) 1,000 2,500 4,750 Visitor Commercial Accommodation (per room) 4,000 5,000 6,000
Based on the above considerations, existing power demand is forecast to be 51,652 Mwh for Kec. Komodo. Out of the total demand, 89.72% is fulfilled by the PLN power network. Power demand in 2021 and 2041 is estimated to be about 130,890 Mwh and 254,388 Mwh. Power demand for tourism activities remains at about 4% to 6% of the overall demand.
15.14.2 POWER SUPPLY INFRASTRUCTURE NEEDS There is no major concern with regards to power supply to support the tourism activities due to its relatively small demand as compared to residents’ demand.
The following key power supply infrastructure projects are recommended for the short term (2021):
• 100% coverage of PLN power supply in Kecamatan Komodo;
• Expansion of existing power transmission and distribution networks and construction of new networks to meet the above-mentioned target; and
• Completion of power plant at Golo Bilas.
Recommendations for the long term (2041) are as below:
• 100% coverage of PLN power supply in Kabupaten Manggarai Barat;
• Completion of new power plant at Kecamatan Boleng; and
• Expansion of existing power supply networks and construction of new networks to transmit and distribute generated power from PLN’s power plant to support potential growth of power demand.
21 Reference: National Energy Council, Republic of Indonesia. Bin Su, Hotel Design and Energy Consumption, 2012.
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15.15 TELECOMMUNICATION INFRASTRUCTURE 15.15.1 TELECOMMUNICATION INFRASTRUCTURE NEEDS The expansion of existing telecommunication coverage is required to serve the growing population and visitor arrivals. It is also important to ensure sufficient connectivity in case of emergencies, and for the visitors to share their travel experiences. Collaboration between the authorities and the telecom companies is needed to improve the telecommunication infrastructure. Projected population and visitor arrivals should be made known to the telecom companies so that upgrading and expansion of telecommunication facilities can be planned in advanced.
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KEY RECOMMENDATIONS
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16. WHAT WILL TRIGGER INVESTMENT?
Investment responds to actual increases or future anticipated increases in demand. To mobilize private investment, investors need to be convinced that the anticipated future increases in demand will materialize and that the return on investment will be satisfactory.
In the following sections, we will provide:
• recommendations for improvements in the regulatory environment and destination management;
• recommendations for products and services that are suitable for development and management by SMEs; and
• recommendations for tourism-driven infrastructure investments, both transport and basic capacity.
16.1 RECOMMENDATIONS ON DESTINATION ENHANCEMENTS The following destination enhancements will help foster investment which would facilitate Labuan Bajo and KNP in reaching the projected visitor arrival levels:
• Improvement of destination image and awareness regionally and internationally. • Improvement of infrastructure is essential, as it is the key to further investment. Good access to and around the destination, together with fresh water and electricity, it is critical to attract more investors. • Improvement of air connectivity to the region, particularly international flights.
• The destination requires a master plan with clear goals, strategies, and timelines to develop the destination. Currently, the tourism industry in the region appears to be disorganised and developing in an ad-hoc way.
• Investors are hoping that there will be more support from government and other NGOs in developing the destination in terms of market research, joint venture partner matching, and exhibition/tradeshow coordination.
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16.2 LEGAL & REGULATORY ENVIRONMENT ENHANCEMENTS The following legal and regulatory environment enhancements would also help foster investor confidence and drive both domestic and foreign investment in Labuan Bajo:
• Security of tenure for investors: currently securing land rights continues to be the main challenge for investors. This is a common issue across Indonesia however in Labuan Bajo there is the additional challenge of family consensus22 prior to transferring ownership title. Once title is transferred, the possibility of other family members laying claim to the land in the future still exists (whether they ultimate succeed or fail it is time consuming and frustrating). Thus, ensuring security of tenure will provide investors with more confidence in investing in the region. • More transparency in legal frameworks. Without a solid grasp of the issues at hand, businesses are exposed to risk of tax penalties, and even of civil or criminal litigation.
• More comprehensive guidelines and parameters regarding tax incentives. Currently, there are several tax incentives to attract investors to the region. However, investors do not understand or have clear information regarding the requirements and the procedures. • Zoning regulations should be passed/enforced so that the region avoids large-scale development which would have a negative impact on the region’s environment and cultural heritage.
16.3 SME DEVELOPMENT INTERVENTIONS For forecasts to be met, there must be a significant increase in businesses serving the tourism sector, many of which will be SMEs. They will deliver services supporting the larger investments. To encourage sufficient SME development to meet demand, the Indonesian government may need to mobilize assistance specifically targeted at SMEs.
SMEs are integral to the success of a destination, as they play a significant role in creating local employment and engaging local people in tourism industry, with the potential to foster long-term and sustainable economic development.
22 Based on adat (customary) law rather than formal legal rules.
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16.3.1 SME: POSSIBLE SME PRODUCTS & SERVICES High quality service offered by SMEs is a key factor for a successful destination, which is still lacking in Kabupaten Manggarai Barat. By providing high quality service, the overall competitiveness of the destination will be greatly improved. The following products and services, in line with the vision for future growth, provide opportunities for SMEs to develop.
• A great opportunity for development in Manggarai Barat is sustainable ecotourism. All stakeholders of tourism sectors should be required to promote and preserve the spectacular scenery and marine biodiversity. Main objectives of eco-tourism include: - Provide tour groups with small number of visitors to different attractions (Komodo, Rinca, Cunca Wulang Canyon) to provide exclusivity to the travellers and limit the impact on natural environment. - Eco-tourism resorts/hotels that are designed to integrate with the environment. This can be achieved through landscape planning, architectural standards as well as energy and wasted minimisation. • Continue to develop community-based tourism to promote the Manggarai culture, but in such a way that it still sustains their tradition. While educating visitors about the historical cultural tradition of the villages, this will also provide income to the villagers. • Locally sourced products: the region has a wide range of local handicrafts ideal for the tourism market.
• Horticulture supply chain: previously horticulture products were imported from surrounding islands. Thus, producing organic vegetables to support community-tourism villages that cannot product sufficient food is a viable potential revenue source.
• Restaurants & bars that offer international cuisine are required. • Mariculture: encourage fishers to shift from catching fish to culturing or farming fish, thereby reducing the threat of over-exploitation of coastal fish stocks and marine resources, while at the same time providing similar, if not better, incomes. • English-speaking guides. • Diving and inland cultural tour companies.
• Transportation (within the main island and between islands). 16.3.2 SME DEVELOPMENT INTERVENTIONS To encourage SMEs seeking new business growth opportunities, many assistance programs and changes from the government are required, including:
• Encourage the construction of eco-friendly accommodation in Labuan Bajo and other islands within the KNP
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• Sponsor reef protection, recycling, and waste management for local community. • Incentive programs for accommodation development with eco-friendly architecture. • Support for sustainable enterprise development though technical assistance.
• Locally source handicrafts: - Assist handicraft producers to enhance their product quality and marketing capacity. - Establish protection of intellectual property rights of locally-sourced products.
• Mariculture: - Develop business plan for a hatchery outside the KNP that reduces the impact on the reef eco-system.
- Provide training and workshops to local communities. - Establish legal framework and assess the possibility of zoning plans with respect to aquaculture development
• Support sustainable development of traditional villages: - Support, advise, and provide local villagers training on how to handle visitors and the English language.
- Providing consulting and training for local villages in the area of agriculture, in particular organic production and the identification of clients. - To link handicraft producers more closely to the tourism trade and make the product more competitive, trainings in product development and financial management should be organized. - Establish codes of conduct to help visitors to the villages respect and conserve the culture. - Introduce entry tickets to the traditional villages for visitors and create event calendars for these communities.
• Encourage the establishment of high-quality restaurants and tour operators: - Classes to improve knowledge about food costing, hygiene, and restaurant service. - Training for tour guides and boat crews to provide better service and to generate greater awareness of the importance of adhering to safety standards. • Encourage locals to protect the pristine natural attractiveness of Kabupaten Manggarai Barat.
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16.4 KEY RECOMMENDATIONS FOR TRANSPORT INFRASTRUCTURE INVESTMENT The key recommendations on investment needs for transport infrastructure to support tourism are presented below.
16.4.1 ROAD INFRASTRUCTURE Internal road connectivity in Labuan Bajo holds the most significance for this destination. The physical road conditions of major primary and secondary roads in Labuan Bajo is good, with certain segments lacking maintenance. Improvements to pedestrian paths are also needed. All the major roads in Labuan Bajo (connecting to the airport, port, beach and hotels/resort) should be well-maintained in terms of pavement conditions targeting for IRI < 4. Considering the low traffic volume, road capacity will be adequate in the short term.
The physical road conditions of the national and provincial roads in Flores is good and mostly paved with adequate road capacity, enabling good external connectivity of Labuan Bajo to the rest of Flores.
16.4.2 AIR TRANSPORT The current airport infrastructure at Komodo airport is adequate to meet the future air passenger demand for Labuan Bajo.
16.4.3 WATER TRANSPORT Less than 5% of the tourists arrive by sea. Existing facilities at Labuan Bajo Port are adequate to accommodate the ferry services. Considering the environmental sensitivity, any improvement to cruise infrastructure should be carefully assessed. Due to the limitation of sensitive ecosystem, there will not be a significant increase in boat services to KNP. It will be adequate to maintain the existing jetty/pier facilities in Komodo Island and Rinca Island in good condition. A new jetty facility will be needed for Padar Island and other potential eco- resorts islands close to the city.
16.5 KEY RECOMMENDATIONS FOR BASIC INFRASTRUCTURE INVESTMENTS
Basic infrastructure such as water supply, wastewater and sanitation, and solid waste management is important as they result in unhygienic conditions posing health hazards that also impact the tourism development potential. Therefore, ensuring hygienic conditions and a clean environment is a prerequisite for tourism development. The overall coverage of basic service delivery in Kecamatan Komodo is above average. However, improvement and upgrading works are required to support the expected increased demand.
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• Coverage of basic service delivery in Kecamatan Komodo is satisfactory, with higher level of service at major tourist attractions and hotel concentrated areas. 62.67% of its population has access to adequate sanitation, and about 83.60% of solid waste generated in Kecamatan Komodo are collected and properly disposed. Conditions of basic infrastructure are at a higher level at areas where hotels are concentrated. Access to adequate sanitation at these areas stands at a higher standard, with average of 78.48% of accessibility. The lack of basic services poses a serious health risk for the resident population and visitors alike and has an impact on the flora and fauna of the national park and the fragile marine environment. Hence, the investments in short term will be needed for improvements in wastewater and solid waste management for Kecamatan Komodo.
• Generally, coverage of piped water supply is low in Kecamatan Komodo. Residents in rural areas especially islands (Komodo Island, Rinca Island, etc.) where water distribution networks are difficult to reach, use rainwater as their main source of water supply. The authority has proposed to expand the water supply network to the ports in Labuan Bajo. Other than on expansion of piped water coverage and utilization of raw water sources, it is also crucial for the authority to look for new source of raw water.
• The entire Kabupaten Manggarai Barat, including Kecamatan Komodo and the KNP, are prone to regular flooding. Upgrading of storm water drainage system is required.
• Other basic infrastructure, such as for power and telecommunications, need improvement but are not hampering further tourism development.
16.6 RECOMMENDATIONS FOR SPATIAL PLANS 16.6.1 EXISTING SPATIAL PLANS AND REGULATORY FRAMEWORK To ensure a sustainable urban growth and tourism development, it is important to have a detailed spatial plan and development guidelines for tourist attractions areas where the development pressures are increasing at a rapid pace.
Indonesia has an established system for spatial planning and most of the destinations have a Spatial Plan for the kabupaten/kota or provincial level. As per the National Spatial Planning Act (Law No. 26/2007 amending Law No. 24/1992), the provincial and local governments are authorized to implement spatial planning. The Rencana Tata Ruang Wilayah (RTRW) and the Rencana Detail Tata Ruang (RDTR) are the two major spatial plans prepared at the regional level (province and kabupaten) and local level (kabupaten or Special Areas within kabupaten and kota), respectively.
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In general, an RTRW serves as the concept-level spatial plan, providing broad directions for provinces or kabupaten, while the RDTR serves as the detailed-level spatial plan indicating detailed land uses such as residential uses by density, commercial use, mixed use, government use, industrial use, social facilities, etc., for the kota or other designated areas within the kabupaten.
The RTRW is managed by the provincial or kabupaten-level Bappeda. The RTRW is prepared for the time horizon of 20 years. It is important to review the Master Plan considering the changing socio-economic conditions and infrastructure needs, including new tourism targets and plans. As discussed in the previous sections on Transport Infrastructure and Basic Services Infrastructure, there are several individual sector plans being prepared by the respective authorities, some of which are critical, while others are not needed. Based on the infrastructure needs assessment, the critical plans need to be incorporated into a revised RTRW. This will remove duplication and provide unified planning direction to the respective implementing agencies to execute development programmes towards the common vision and goals.
This section assesses the availability of spatial plans and regulations to ensure that the tourism assets are protected. The main tourism asset for Labuan Bajo is its marine, cultural, and natural environment; as such it is critical to have regulation to ensure protection of the coastal, cultural, and eco-sensitive areas in all potential tourist attractions. Following is the overview of plans in place for Labuan Bajo.
Rencana Tata Ruang Wilayah (RTRW) Kabupaten Manggarai Barat Master Plan 2010
• The RTRW Kabupaten Manggarai Barat Master Plan is the regional-level spatial structure plan prepared for Kabupaten Manggarai Barat. It provides broad directions on development structure with strategic areas for urbanization, and infrastructure such as major roads, airports, and ports within the Kabupaten, and is shown in Figure 67.
• The plan clearly indicates the environmental protection zones such as protected forest, nature conservation areas, and mangrove forests.
• Additionally, the plan shows the other cultivation zones indicating areas for community forest, farmland, residential and industry uses.
• The Plan also covers the broad zoning intentions for above-mentioned zones controlling the permitted and forbidden activities, minimum infrastructure needed, and highlighting enforcement mechanisms such as incentives, disincentives and penalties.
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• At the point of study, there is no approved RDTR for Labuan Bajo. In the absence of such Detailed Master Plan, there could be some inaccuracies in boundaries, especially with regards to the protected area delineations. An RDTR is also essential to regulate urbanization, especially in tourist attractions areas and its immediate surroundings.
FIGURE 67: RTRW MANGGARAI BARAT REGENCY MASTER PLAN 2010
Source: RTRW
KNP Management Plan • The KNP Management Plan for Komodo indicates specific zones including: core zone, wilderness zone with limited tourism, tourism use zone, traditional use zone, pelagic zone, special research and training zone, and traditional settlement zone. The Plan specifies permitted and forbidden activities in these zones. The Plan is shown in Figure 68.
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FIGURE 68: KNP ZONING
Source: KNP Management Plan
16.6.2 GAPS & NEEDS FOR IMPROVEMENT IN SPATIAL PLANNING FRAMEWORK Figure 69 summarizes key gaps and improvements needed in the planning framework for Labuan Bajo.
FIGURE 69: GAPS IN SPATIAL PLANNING FRAMEWORK, LABUAN BAJO Existing Plans Assessment Gaps /Needs for Improvement Broad Spatial Concept Plans - The RTRW Regency - RTRW for Manggarai - RTRW Regency Master Master Plan provides Barat Regency needs to Plan broad directions on be reviewed based on - KNP Management Plan development structure the tourism demand, and broad level land uses. rationalized - The KNP Plan clearly infrastructure needs, and indicates inaccessible areas detailed socio-economic for conservation and other assessments. accessible zones for - KNP management plan traditional settlers and needs revision and tourists. updating, in view of expected increases in visitor numbers and impacts from tourism. A broadening of the management focus to address issues within the marine area of the park along with other terrestrial species is
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Existing Plans Assessment Gaps /Needs for Improvement required to ensure the long-term effective conservation of the property.23 Detailed Spatial Master - No approved RDTR - Detail Spatial Master Plan Plans (RDTR) will be needed - RDTR Labuan Bajo is in for tourist/urban areas preparation process to regulate the development in these areas.
• For the Labuan Bajo tourism destination, the RTRW Regency Master Plan and KNP Management Plan are the two major plans that guide the overall development and identify eco-sensitive zones for environmental protection. While the RTRW was prepared for 2010-2030 and provides broad directions for spatial development, it is important and timely to review the RTRW such that it addresses the tourism demand and related infrastructure needs, along with the changing future socio-economic potentials of Labuan Bajo. The reviewed RTRW will help to establish common goal for all implementing agencies to execute the respective sector development plans.
There are no approved RDTR for the tourist/urban areas in Labuan Bajo tourism destination. The RTRW only provides broad directions for spatial planning and is not enough to regulate the development especially in the key tourist/urban areas along the coastal areas. Due to the absence of RDTR for the key tourist/urban area, the exact demarcation of conservation/protection boundaries may not be clear. Hence, it is important to speed up the finalization of the RDTR demarcating the clear boundaries of protection areas and further distribution of land uses especially in key supporting urban and attractions in Labuan Bajo.
23 https://whc.unesco.org/en/list/609
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APPENDIX 1: SOURCES OF INFORMATION USED
The methodology for evaluating the tourism potential of Labuan Bajo and KNP presented in this report has been developed using both primary fieldwork research and existing statistics. Quantitative data were provided by different government offices, while interviews provide qualitative information for the research. The sources of primary and secondary data are referenced in the report and listed in the below section. However, in some cases the information presented is a product of experience and observation prior to and during the fieldwork, and as such it is not specifically attributed by source.
INTERVIEWS
Interviews were conducted with various government offices at central as well as provincial & Kabupaten level. The interviews serve to gain a better understanding of tourism development and investment process in Indonesia and Labuan Bajo.
• Central Government
- Badan Pusat Statistik - BKPM, Jakarta - Profile Kesehatan of each Kabupaten
- Perusahaan Listrik Negara (PLN) - Sanitasi Total Berbasis Masyarakat (STBM) - Bappenas
- Kementerian Pariwisata (International marketing, domestic marketing, investment, transport liaison, marketing communications) - Kawasan Economi Khusus, Jakarta • Labuan Bajo (Provincial & Kabupaten)
- Kabupaten Manggarai Barat Development Planning Agency (Bappeda) - Kabupaten Manggarai Barat Environmental Agency - Kabupaten Manggarai Barat Population Agency
- Dinas Perhubungan Komunikasi dan Informatika Kabupaten Manggarai Barat - Dinas Pekerjaan Umum Kabupaten Manggarai Barat - Dinas Kesehatan Kabupaten Manggarai Barat
- Perusahaan Daerah Air Minum Kabupaten Manggarai Barat
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- PLN (National Power Company) Kabupaten Manggarai Barat - Dinas Pariwisata Kabupaten Manggarai Barat - National Park Agency Komodo
- KNP Agency. • Investment sentiment is gleaned from interviews with existing and potential tourism investors. The investors chosen had interests in various tourism-related assets including hotels, restaurants, ground transportation and travel agencies. The questions were aimed at gathering their thoughts on the pros and cons of SEZs, the tourism investment climate in Indonesia, the future of tourism investment and possible investment in Labuan Bajo. Potential and existing domestic investors (total of 6) and International investors (total of 25), from the current key arrivals source markets of Australia, China, Japan, Malaysia and Singapore.
• Tour operators/Travel agents:
- Local: Labuan Bajo, Bali and Jakarta; and
- Foreign (total of 41): from the current key arrivals source markets of Australia, China, Japan, Malaysia and Singapore as well as France, Germany and the United Kingdom.
• Hotels in Labuan Bajo & KNP.
STATISTICS
The above data was collected and cross-checked based on the below sources:
• BPS Accommodation Survey for the East Nusa Tenggara Province, with results published by the BPS of Kabupaten Manggarai Barat. • BPS Domestic Survey, with results available only at Province Level
• BPS Exist survey with results available only at Province Level
• BPS Census on population
• Statistics of KNP
• Pelindo III Cruise statistics
• Reviews on TripAdvisor Website
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APPENDIX II: SUPPORTING DATA FOR TRANSPORT ANALYSIS
Possible Hourly Aircraft Movements
• Since Komodo airport does not have a parallel taxiway similar to Halim Airport in Jakarta, landing aircrafts need to run up to the end of the runway, turn at the turn pad and taxi along the runway up to the exit taxiway. Similarly, departing aircrafts will taxi along the runway, turn at the turn pad and start for take-off. Since departing and landing aircrafts occupy the runway for a long time, the runway capacity decreases.
• As shown in Figure 70, the runway occupancy time by landing and departing aircrafts is calculated at approximately 460 seconds. As a result, assuming that the situation in which a departing aircraft follows a landing aircraft is continuous, the hourly runway capacity is calculated at approximately 16 movements.
FIGURE 70: SINGLE RUNWAY OCCUPANCY TIME
Source: Survey from Halim Airport Runway Occupancy Time (JICA, 2012)
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APPENDIX III: MARKET-LEADING HOTELS
Jayakarta Komodo Flores: Managed by the Jayakarta group, the hotel is the first five-star resort in Labuan Bajo, and is currently one of the market leaders on the main island. The hotel comprises 71 rooms, including Deluxe rooms, Suites and a Presidential Suite. Other facilities that are offered at the hotel includes outdoor swimming pool, spa & massage, tennis court, karaoke, fitness centre, diving centre, and meeting room. The meeting room can accommodate up to 200 people, and is popular for government business. Given Jayakarta group’s presence in Indonesia, the Hotel is able to attract good demand from domestic market, from both FIT and government business. Furthermore, the group also provides the hotel good support in terms of marketing, staff training, and standard operating procedures. The Hotel is also a key player in providing and supporting training for local communities in Labuan Bajo
FIGURE 71: JAYAKARTA KOMODO FLORES
Clockwise from the Top: Hotel Façade. Deluxe Room. Restaurant. Meeting Room.
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Bintang Flores: Located in Labuan Bajo, Bintang Flores is amongst the few star-rated hotels in the district. The hotel features 61 rooms, an all-day-dining facility, meeting rooms, dive shop, convenience store, an outdoor swimming pool, and a private white sand beach.
FIGURE 72: BINTANG FLORES
Clockwise from the Top: Hotel’s façade. Guestroom. Meeting Room. All-day dining.
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La Prima: Located 15 minutes from the airport, the 4-star hotel is amongst the newest hotels in Labuan Bajo. The hotel features 88 rooms with either Sea View or Hill View, an all- day dining facility, meeting rooms, private beach, outdoor pool, gym, and dive centre.
FIGURE 73: LA PRIMA
Clockwise from the Top: King-sized Bed Guestroom. Hotel Façade. Twin Room. All-day Dining.
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Komodo Dive Resort: is the third offshore resort to open on the KNP’s border over the past 5 years, after Angel Island opened in 2010 and backpacker favourite Kanawa Beach Bungalows opened in 2011. The resort is one of the famous and best quality resorts in Kabupaten Manggarai Barat. The resort features 16 seafront bungalows made from teak wood each with a private bathroom, terrace, and garden. The resort offers an all-day dining restaurant, a bar, a small open-air gym and a dive centre. The resort is particularly popular amongst high-end European and American travellers for its luxurious guestroom and diving cruise. The resort is a few minutes from many famous diving sites in Komodo such as Caste Rock, Crystal Rock, Batu Bolong, Karang Malassar, the mantas aggregation site, and many more. As the resort is located on a remote island, Komodo Dive Resorts face high operating expenses as: food supplies, guest supplies need to be transported from Labuan Bajo and high electricity expenses. Although the resort has desalination plant to produce water for showers and toilets, drinking water and laundry are still imported from Labuan Bajo. Currently, the resort is rebuilding a 30-metre-long traditional boat, the Sea Dragon, which will offer live-aboard trips beginning in 2017.
FIGURE 74: KOMODO DIVE RESORT
Clockwise from the Top: Aerial View. Sebayur Spa. All-day Dining. Guestroom.
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Seraya Hotel: located on a private island, the resort is 30 minutes from Labuan Bajo and 3 hours from Rinca and Komodo Island. The resort is one of the newest resorts in Flores, featuring 24 luxurious rooms with direct beach access, each with a spacious wooden deck with recliners out front and a roofless Balinese-style bathroom with outdoor showers and pebble flooring out back. Leveraging its new, luxurious product, the resort is particularly popular amongst European travellers and has been able to command high rate. The resort also offers an outdoor swimming pool, massage facilities, and PADI diving centre.
FIGURE 75: SERAYA HOTEL
Clockwise from the top: Outdoor Swimming Pool. Seraya Island. Guestroom. All-day dining.
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Angel Island Resort: Opened in 2010, the resort is the first resort established in Komodo. Located on a 15-hectare private island of Bidadari, Angel resort is a small eco-resort, featuring 10 private villas set in a verdant hibiscus garden. The island has 3 white sand beaches on its south and east sides, whilst the north and west sides present the rough side of the island. The resort features an all-day-dining offering all-inclusive a la carte meals, and a diving centre. Surrounded by a coral reef, Angel Island is the only protected island in the area.
FIGURE 76: ANGEL RESORT
Clockwise from the top: Aerial View. Deluxe Room. All-day Dining. Cottage.
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APPENDIX IV: ROAD CAPACITY ASSESSMENT
GENERAL TRAFFIC VOLUME
Future traffic volume for general Traffic is estimated by using following method;
푇푟푎푓푓𝑖푐 푉표푙푢푚푒 𝑖푛 2021 푁푢푚푏푒푟 표푓 푟푒푔𝑖푠푡푒푟푒푑 푣푒ℎ𝑖푐푙푒푠 𝑖푛 2021 = 푇푟푎푓푓𝑖푐 푉표푙푢푚푒 𝑖푛 2015 푥 푁푢푚푏푒푟 표푓 푟푒푔𝑖푠푡푒푟푒푑 푣푒ℎ𝑖푐푙푒푠 𝑖푛 2015
푇푟푎푓푓𝑖푐 푉표푙푢푚푒 𝑖푛 2041 푁푢푚푏푒푟 표푓 푟푒푔𝑖푠푡푒푟푒푑 푣푒ℎ𝑖푐푙푒푠 𝑖푛 2041 = 푇푟푎푓푓𝑖푐 푉표푙푢푚푒 𝑖푛 2015 푥 푁푢푚푏푒푟 표푓 푟푒푔𝑖푠푡푒푟푒푑 푣푒ℎ𝑖푐푙푒푠 𝑖푛 2015
VISITORS TRAFFIC VOLUME
The traffic volume is estimated as follows:
• Obtain the number of visitors who enter each tourism destination and potential visitor’s distribution around the destination. • Distribute the number of the visitors in each transport facility. • Based on the number of passengers per vehicle, the total visitor traffic volume is estimated. Figure 77 illustrates the methodology of visitor traffic volume estimation.
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FIGURE 77: FLOWCHART OF VISITOR TRAFFIC VOLUME ESTIMATION
Number of visitors in peak day
Apportionment rate
Number of visitors classified by transport facility
Number of passengers per vehicle classified by vehicle type
Tourist traffic volume classified by vehicle type
Source: Surbana Jurong
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