Journal of Indonesian Tourism, Hospitality and Recreation --- Volume 1, Nomor 2, Oktober 2018
TOURISM ECONOMIC IMPACT OF SOUTH LAMPUNG REGENCY
Hery Sigit Cahyadi
Tourism Destination Studies Department Bandung Institute of Tourism [email protected]
ABSTRACT South Lampung regency as one of the gates of Sumatra Island became one of the many tourist destinations in Indonesia, especially on the island of Sumatra. The existence of tourism activities in South Lampung District economic impacts for the community, such as increasing public income, increased employment and business opportunities for local communities. The purpose of this research is to measure the economic impact of tourism activities in South Lampung Regency. In analyzing the economic impacts of tourism activities in South Lampung District using Keynesian Income Multiplier and multiplier analysis to see the direct impact, indirect impacts, and further impacts. Based on the results of the analysis shows that the presence of tourism activities in South Lampung Regency has had an economic impact on the local economy even though the perceived impact is still small. As evidenced by the value of Keynesian Income Multiplier is 1.95, value ratio Income Multiplier of Type I 1.09, and value ratio Income Multiplier of Type II 1.34.
Keywords: South Lampung Regency, Economic Impact, Tourism Activities, Multiplier Effects
INTRODUCTION wisely and when used wisely it will create a Tourism is one sector of development that more prosperous society life. can spur economic growth of a region The tourism industry is one of the (Soemardjan, 1977:38). Indonesia is appropriate means to improve economic currently intensively undertaking progress both locally and globally. As an development and improvement in the industry that is currently the mainstay of tourism sector. One of the efforts undertaken various countries in the world, tourism by the government in development that can becomes one source of foreign exchange meet the inner and outer sufficiency of income. Increased foreign exchange development in the field of tourism, because earnings may have multiple impacts with tourism can expand employment (multiplier effects), the impact can be opportunities, increase business revenue and directly or indirectly, resulting in an impact also introduce the nature and culture of on the social, cultural, educational and Indonesia. Indonesia is a tropical country economic fields country (Pitana & Gayatri, that has beaches, mountains, forests and 2005: 110). rivers with abundant natural wealth. National tourism satellite balance data According Kreag (2001: 5) "A goal of (NESPARNAS) shows that Lampung developing the tourism industry in a Province is not yet included into the top ten community is maximizing positive positive spending structures tourist archipelago by impacts while minimizing potential negative province provinsi.Province Lampung as one impacts". Tourism as an industry can use the of the gates of Sumatra Island became one of abundance of natural resources, culture the many tourist destinations in Indonesia, especially in the island of Sumatra whose
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growth is not spared from the main target in tourist expenditure (tourism included) and the development and development of tourism investment, are the basis of two national tourism among the development of major benefits: income and employment ". culture and tourism aimed at the The economic impacts of tourism activities improvement of culture and tourism as the in South Lampung Regency are important to main area in advancing economic activity measure how much impact society income / together other fields in accordance with the income and employment opportunities for vision and mission of Lampung Province local people. that is Lampung advanced and prosperous in 2019 with economic improvement and LITERATURE REVIEW strengthen regional independence. The high rate of unemployment in a According to IUOTO (International Union developing country makes research on this of Travel Organization) quoted from Spilane economic impact useful. This high (1993) states that one of the reasons tourism unemployment rate makes economic is developed because tourism can be a development in a region, especially trigger for the development of national and economic development of the tourism sector international economy. Therefore the can provide jobs and income sources for economic impact of tourism activities needs surrounding communities. Mathieson and to be measured. Mathieson and Wall (2006: Wall (1982: 43) say "One of the first tasks of 70) states that the economic impact is the economic development is to find gainful relatively easier to measure than the physical employment for all people". Approach of and socio-cultural impact. Tourism is seen concept theory which done in research about as a field that has strong growth criteria and Economic Impact of Tourism of South can have an impact on economic growth Lampung Regency is as follows: from both formal and non-formal fields. Tourism Economic Impact With the increasing number of tourist According to Mathieson and Wall in arrivals coming to South Lampung regency Vanhove (2005: 169) there are six can affect the income of the people of South components that affect the economic impact Lampung regency due to travel activities of tourism activities: tourists must spend money taken to buy 1. The nature of the main facility and its food, drink, buy souvenirs and so forth. attractiveness Then anything else can felt by the people of 2. The volume and intensity of expenditure South Lampung Regency indirectly is the 3. The level of economic development in the creation of new jobs engaged in the tourism destination sector. From the subject can be affirmed that 4. The size of the economic base of the with the increase of total visits of tourists destination visiting the District of South Lampung will 5. The degree to which tourist expenditures obviously impacts of tourism activity for the recirculate within the destination community either from the direct or indirect 6. The degree to which the destination has economical side of the economy (Induce). adjusted to the seasonality of tourist Based on the seven aspects of the economic demand. impacts described by Vanhove are limited to Tourism activities that are dynamic and two aspects because in general these two always growing can cause two impacts that aspects have their own effects and benefits are positive and negative impacts. Lickorish for the surrounding community. Revenue or (1994) in Mason (2003: 35) argues about the income and employment are the two positive economic impact of tourism components that have the greatest impact on activities as follows: the economy. According to Vanhove (2005: 193) "the key elements of the final demand, 1. contribution to foreign exchange earnings
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Journal of Indonesian Tourism, Hospitality and Recreation --- Volume 1, Nomor 2, Oktober 2018
2. contribution to government revenues revenue derived from the existence of 3. generation of employment tourism activities, namely: Travel and 4. contribution to regional development tourism is an important source of goverment According to Pearce (1989) in Mason revenues, while direct tourism expendicture (2003: 35) will arise negative economic (i.e.tourist receipts) stimulates futher impact of tourism activities, as follows: expendicture (hence, income for local 1. Inflation businesses) through the multiplier effect. 2. Opportunity Cost The presence of tourism activities 3. Depend on Tourism contributes to income and is classified into All tourism activities in tourism two things, direct and indirect income destinations contribute to the impact on the contributions. Tourists who directly visit the economy in the region. The impact of destination and spend their money on tourism activities on the economy by destinations will be included in the income Vanhove (2005: 169) is divided into seven category direct, while indirect income is categories as follows: secondary effects derived from final demand 1. Income Generation in the tourism sector on the economy 2. Employment Generation through multiplier effects categorized on 3. Tax Revenue Generation indirect income. 4. Balance Of Payment Effects Tourism activities in an area have an 5. Improvement Of The Economic Structure economic impact which in turn results in the Of a Region circulation of money sourced from tourist 6. Encouragement Of Entrepreneurial expenditure. The emergence of this Activity circulation is caused by tourists spending a 7. Economic Disadvantages certain amount of money to buy tourism All components will be too large if to be products, whether it is a service product or investigated from tourism activities. other product, then the income from the two Vanhove (2005: 169) argues "The key of the products will be used again to be used as a final demand, tourist expenditure (tourism cost or capital from the production of included) and tourist investment, is the basis products and the production of these service of two major benefits: income and products. Mathieson and Wall (1982: 64) employment". Pearce minimizes into two state that multiplier effects in tourism components: income / income and jobs. activities are often referred to as circulation Pearce's opinion is stated in Mason of money, "The tourist multiplier can be (2003: 45) that: the study of the impact of defined as the initial tourist expenditures tourist development on a destination or must be multiplied in order to obtain the destination has been the largest single total cumulative income effect for a element of tourism research. much of this specified time period ". predominantly the work of economists and Padure and Turtureanu (2005: 4) argue has concentrated on the effects of income about the multiplier effect "The flow of and employment. money generated by spending tourists multiplies as it passes through various Income Generation sections of the economy through the Padure and Turtureanu (2005:4) argue operation of the multiplier effect". Padure that without taking into account receipts and Turtureanu (2005: 5) tourist expenditure from domestc tourism, international tourism can be analyzed as follows: receipts alone contribute to a great extent. The low of money generated by tourist 1. Direct Expenditures spendingx multiplies as it passes through Is tourist expenditure on hotel goods and various sections of the economy. According services and other additions in hotels, to Sharpley (2006:13) income generation restaurants and other tourism facilities such 108
Hery Sigit Cahyadi : Tourism Economic Impact of South Lampung Regency
as buses, taxis, domestic flights and also descriptive research is a study to provide a includes tourism investments in the region. description of symptoms, phenomena, or 2. Indirect Expenditures facts studied by describing the value of Is expenditure that covers the total independent variables, without intending to number of inter-business transactions link or compare. resulting from direct spending, such as the The purpose of this study is to describe the purchase of goods by hoteliers from local economic impact of tourism activities in suppliers and the purchase of local suppliers South Lampung Regency where income from wholesalers. generation and employment generation are 3. Continued Expenditures the focus and are part of the economic Is a tourist expenditure incurred due to impact. additional additional spending resulting from This study uses data sourced from tourists, direct spending. For example, hotel workers workers who work in the tourism industry, purchase goods or services using their and tourism industry actors. In accordance wages. with the title of thesis in this study "Tourism From the concepts that have been Economic Impact of South Lampung described, the concept of Padure & Regency" using one variable is the variable Turtureanu (2005: 5) is used in this study of economic impact of tourism from the and there are three components in Income, tourism activity in South Lampung Regency, namely: therein there are two sub variable namely 1. Direct expenditure of tourists sub variable of Income Generation and sub 2. Indirect tourist expenditure variable of Employment Generation. 3. Continued expenditure of tourists The population in this study is the tourism To measure income generation there are industry actors located in the South several methods or techniques that can be Lampung regency. Tourist Nusantara be an used according to Vanhove (2005: 193) as option because it is based on the dominance follows: of the number of tourists visiting the 1. The national accounts method archipelago. For the tourist sample the (simplified) researcher chooses the accidental sampling 2. The Henderson-Cousins method technique that is to determine the sample by 3. The input-output approach chance, which means that only those who 4. The tourism satellite account are incidentally met with the researcher are 5. The multiplier method then selected and / or willing to be elected To analyze income generation, the then can be used as a sample when viewed multiplier method or technique needs to be by the person concerned can be considered appropriate to be used as a data source used. This formula illustrates how the value of travelers' continued expenditures can be Kusherdyana and Sulaiman, (2013: 12). For driven by expenditures made by previous sample business actors and tourism tourists, and shows how economic activities workforce an accidental technique is used affect the economy at the local level which where the respondent is selected by chance has the source from tourism activities. according to the researcher in the field and then selected and / or willing to choose by researchers. The researchers then used Isaac METHODOLOGY In this research the method used by writer is and Michael's formula to determine the descriptive research method with number or size of the sample based on the quantitative approach, this research is first error rate of 5%. processed to draw a conclusion from a research conducted. According to Iskandar in Musfiqon (2012: 61) Quantitative
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RESULT AND DISCUSSION a. Keynisian Income Multiplier =
1. Average Holiday Spending Calculations about the economic b. Income Multiplier Ratio Type I = impacts of tourism activities can be made by looking at income generation and employment generation of the tourism sector c. Income Multiplier Ratio Type II = and then calculating the average total expenditure of tourists as long as the tourists Information: visit a destination. Based on the results of D = local income earned directly from E data obtained from research in the field by (Rupiah) distributing questionnaires to the domestic U = local income earned induced from E tourists amounting to 330 respondents who (Rupiah) visited the tourist attraction located in South E = additional visitor expenses (Rupiah) Lampung Regency then calculated using the N = local income earned indirectly from E formula Tourist Tourist Spending. (Rupiah) Average Spending = 3. Direct Income Generation According to Archer in Mathieson and Information: Wall (2006:110) Direct Income South Total Spending : Total Tourist Spending Lampung Regency's tourism industry is Q : Total of tourist visitation samples generated from first-time tourist 198,428,000 Average Spending = expenditures and it's called direct income 330 generation. The economic impact of tourism Average Spending = 601,296.97 activities in South Lampung Regency is During the visit to South Lampung regency, measured by overall tourist expenditures the average amount of tourist spending is such as lodging costs, meals / drinking costs, Rp. 601.296,97, - expenses incurred during travel and other 2. Income Generation purposes. There are five categories to According to Padure and Turtureanu determine the direct income in the tourism (2005: 5) there are three aspects In the industry is the cost of lodging, food and aspect of income multiplier: direct drink costs, transportation costs, entrance expenditure aspect, indirect expenditure fees and souvenirs. The following is a table aspect and expenditure aspect. To measure of proportion of tourists who visit the the impact of tourism activities in South District of South Lampung: Lampung Regency on the economy of the Table 1. Proportion of Tourist Spending community there are two types of at South Lampung Regency multipliers, as follows: Total Spending Category Percentage a. Keynesian local income multiplier, this (Rupiah) type shows how much visitor expenditure Accommodation 58,300,000 29.38 has an impact on the increase of local Food and Drink 48,224,000 24.30 people's income. Transportation 53,511,000 26.97 b. Ratio Income Multiplier, this type shows Entrance Ticket 15,759,000 7.94 how much perceived impact of the Souvenir 22,634,000 11.41 expenditure of tourists impact on the local Total 198,428,000 100 economy. This type measures both Expenditure of tourists in South indirect and subsequent impacts. Lampung regency is a big enough money Mathematical formula for Keynesian circulation, especially on holidays and Income Multiplier and Ratio Income weekends. Viewed based on the data table Multiplier as follows: above shows the total of tourist spending obtained from the results of the distribution 110
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of questionnaires to 330 respondents tourists typical day. Details of the income of tourism amounted to Rp. 198.428.000, -. business actors in South Lampung Regency If the average number of tourist visits can be seen in the table below, the highest to the South Lampung regency per month income from tourism businesses in South 46,826 people then the calculation of tourist Lampung Regency is the swimming pool spending per month of Rp. 28.156.331.900, - business and the lowest is public toilet . The magnitude of the economic impact that effort. Some business actors such as selling occurred due to tourism activities in South souvenirs and food / beverage businesses do Lampung regency can be seen from the not have employees / laborers this is because amount of money rotation that occurs. the scale of business traders are still small Tourists who make a visit to the South medium but not all small scale. Lampung regency have a need in traveling Table 3. Business Income at South and these needs can be met by people who Lampung Regency run businesses related to the field of tourism. Business Unit Income/month (Rupiah) The activity of providing and meeting the Swimming pool 72,000,000 needs of travelers with the community raises Souvenir 61,800,000 economic transactions between people and Restaurant 56,500,000 tourists so that people directly feel the direct Accommodation 51,000,000 economic impact of the activity tourism. Transportation 16,500,000 Local businesses located in South Lampung Outbound 15,000,000 Regency are mostly medium-scale and Food and Beverage 15,000,000 Toilet 2,000,000 crowded buyers only at certain times such as Total 289,800,000 holidays and weekends. The increasing number of tourist visits will also increase the 4. Indirect Income Generation economic activity that comes from expenses According to Archer in Mathieson and incurred by travelers and this will make the Wall (2006: 110) said that indirect income is amount the velocity of money will increase. the expenditure of the tourism industry in Revenue earned by entrepreneurs will re- South Lampung district used for labor cost, spin in this case further used by cost to buy production needs in order to entrepreneurs as their capital is like to buy support tourism activity in South Lampung raw materials, pay the wage fee labor. Total regency. The indirect economic impacts in profit earned by entrepreneurs is the total South Lampung Regency that occur as a revenue minus expenses for raw materials result of tourism activities are seen from the and costs wages of labor. proportion of expenditure to buy production The proportion of revenues of business needs and the proportion of labor costs actors earned from tourist expenditure is incurred by business actors to support 65.04% and the smallest proportion is the tourism activities in South Lampung labor wage of 15.09%. In detail can be seen Regency as shown in the following table: in the following table: Table2. Business Income Proportion Table 4. Business Unit Proportion Component Income Proportion (%) Component Proportion (%) Information Income 65.04 Income 65.04 businessman Raw materials cost 19.87 Raw materials 19.87 businessman Employee’s salary 15.89 cost Labor cost 15.09 businessman Labor costs are the smallest proportion of this because most entrepreneurs hire labor Based on the above data the proportion only at certain times such as weekends and that business actors do is equal to 19.87% of also large holidays that the number of the proceeds of operations used for the cost visitors will increase significantly from a of purchasing raw materials. The subsequent
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proportion of 15.09% of revenues is used by 5. Induced Effect business actors for labor. Not too high The economic impact of tourism proportion on expenditure for raw material activities in South Lampung Regency is not cost and also labor cost due to raw material only seen from direct impacts and indirect cost in most business actors is durable so the impacts but also see the continued impacts intensity of purchasing is low while for labor that result from the tourism activity in South wage this is because at some business acter Lampung regency. This continued impact is only hire labor at time certain time only. a further income incurred by the costs The indirect economic impact in South incurred by employees working in the Lampung Regency is also seen from salary tourism sector to meet the needs of life and wages received by the worker which other needs such as expenditure for furthermore from the income of labor will be consumption including meals and water, used to buy the material needs and used for school fees, household expenses and other purposes so that this raises the velocity transportation costs (Archer in Mathieson of money which will then become a further and Wall, 2006: 10). In meeting the needs of impact. The following table data is the daily living, most of the local workforce average of labor income in Lampung Selatan feels inadequate if only relying from the Regency based on the questionnaire income of work in the field of tourism, distribution result, as follows: therefore most of the labor is looking for Table 5. Labor Income side income to meet the needs of life. In Labor Income table 20 it can be seen that the highest Unit Number (Rupiah) proportion of the percentage is the Employees 18 36,370,000 consumption cost expenditure of 62.47% it Food and Drinking 8 18,380,000 becomes the highest due to the basic needs Business and also become the main component. The Transportation 3 5,940,000 lowest proportion is spending on electricity Parking 3 3,000,000 costs. Here is a table of data on the Outbound 2 3,960,000 proportion of labor expenditures. Souvenir Shop 1 1,500,000 Total 35 69,150,000 Table 6. The Proportion of Labor Expenditure The above table data shows that there Component Percentage (%) is a diversity in the amount of labor income Consumption cost 62.47 depending on the type of work undertaken Kid’s School Cost 11.89 by the community in South Lampung Electricity Cost 9.32 District. Total labor income based on Transportation Cost 16.33 questionnaires distributed to 35 respondents 6. Analisis Multiplier in South Lampung Regency is Rp. To find out how the economic impact 69.150.000, -. arising from the existence of tourism The large number of tourist arrivals in activities in South Lampung regency can be South Lampung regency and the existence of measured from how much tourist spending velocity of money that occurs and comes during the visit in South Lampung regency from the expenditure of tourists this will and calculated the value of multiple effects open opportunities business opportunities for that occur. There are two ways to measure people in South Lampung district which then the economic impacts that result from can cause economic activity in South tourism activities at the local level: Lampung regency and could cause a more a. Keynesian local income multiplier, this significant economic impact again. type shows how much visitor expenditure has an impact on the increase of local people's income.
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b. Ratio Income Multiplier, this type shows income and profit from business results then how much perceived impact of the the economic impact that arises also felt by expenditure of tourists impact on the local local workers in the form of salary wages economy. This type measures both from where he works. Value of Income indirect and subsequent impacts. Multiplier Ratio Type I is 1.09 so that every Mathematical formula for Keynesian Income tourist spending of Rp. 100,000 will cause Multiplier and Ratio Income Multiplier as an economic impact of Rp. 109,000 to direct follows: and indirect impacts (sourced from the a. Keynisian Income Multiplier = income of business actors and wages received by workers). Then the value of b. Income Multiplier Ratio Type I = Ratio Income Multiplier Type II is 1.34 so that every tourist spending of Rp. 100.000, - c. Income Multiplier Ratio Type II = will cause an economic impact of Rp. Information: 134.000, - which is a direct impact and D = local income earned directly from E induced impact as the source (income of (Rupiah) business actors and expenses for labor U = local income earned induced from E consumption costs). (Rupiah) The values obtained above have E = additional visitor expenses (Rupiah) criteria for determining whether or not the N = local income earned indirectly from E economic impacts arising from tourism (Rupiah) activity in the area, as described by Marine Here's the calculationwith multiplier Ecotourism for Atlantic Area (2001) in the formula: Milestari criteria are: a. Keynisian Income Multiplier: a. If the value is between zero and one (0 113 Journal of Indonesian Tourism, Hospitality and Recreation --- Volume 1, Nomor 2, Oktober 2018 table below is an empirical study of the economic impact. Table 8. Economic Impact Contribution From Tourism Activities at South Lampung Regency Keynisian Income Multiplier 1.95 Income Multiplier Tourism Activities at South Income Multiplier Ratio Type I Lampung Regency Ratio Type II 1.09 CONTRIBUTE 1.34 7. Employment Multiplier South the tourists who visit the South Lampung Lampung regency and make expenditures per one visit Tourism activities generate economic of Rp 100,000, - will be able to create impacts thus forming opportunities for employment opportunities for 61.35 percent employment opportunities for the of new workforce in tourism. The overall community. To analyze it is used multiplier result of the analysis on the economic method is the comparison between direct impact of tourism in South Lampung and indirect employment that comes from Regency shows that the existence of tourism the expenditure of tourists. activities in South Lampung Regency has The systematic formula: not given maximum contribution to the ( + ) economy of the community. Ek = Information: CONCLUSION Direct: Direct Labor related to tourism With the presence of tourism activities in sector South Lampung regency it raises the Indirect: Labor who work at supporting economic activity that affects the economy tourism business sector of the community in South Lampung The formula is a comparison of the regency. The increasing number of tourist number of workers whose types of work are arrivals to the southern Lampung regency in directly related to tourists and not directly each year to prove that there has been a associated with tourists then divided by the tourism activity that gives economic impact. number of tourists who visit the visit to The results of observations by researchers in South Lampung regency. Here is the the field obtained data on the number of calculation of the analysis that make up tourist visits in South Lampung regency in employment as the effect of tourism activity 2016 amounted to 561,919 tourists. in South Lampung Regency: The number of visits has an influence on the (121,752) economy in Lampung Selatan Regency = 198,428,000 either directly, indirectly and continuously. = 0.0006135 From the results of questionnaires The analysis results obtained that distributed to 330 respondents in South every tourist spending Rp. 1, - gives the Lampung regency, the average of tourist effect of job opportunity for 0.0006135 spending during visit to South Lampung workforce in South Lampung District. When regency is Rp. 601.296,97. 114 Hery Sigit Cahyadi : Tourism Economic Impact of South Lampung Regency Measurement of income generation and REFERENCES employment generation arising from tourism Kreag, G. (2001). 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