Economics and Accounting Journal Vol.1, No.2, May 2018

THE STRATEGIC MANAGEMENT OF LAKE TOBA DEVELOPMENT

Posma Sariguna Johnson Kennedy Christian University of Indonesia [email protected]

Abstract To fulfill Sustainable Development Goals which is a document that become a reference in the framework of development in the world, one of the goals is the suistainable tourism issue for welfare. The government wants to make Lake Toba as one of the priority tourist destinations. Lake Toba with the beauty of the largest volcanic caldera in the world can invite demand for both domestic and foreign tourists. It is important to improve the environmental condition of the lake itself and how the infrastructure to reach the tourist destinations. The main purpose of this paper is to analyze the strategic management of Lake Toba development. The research method used is qualitative method. The government wants the best strategy with various implementations to prepare Lake Toba as a world tourism destination. Key Words: Lake Toba, Strategic Management, Tourism Destination.

1. INTRODUCTION which was filled with a very large water Lake Toba has very high potential debit. The people of Sumatera Utara tourism. The main attraction is the lake consist of various ethnic groups such as itself. Lake Toba is expected to be a Melayu, Batak Karo, Batak Toba, world-class environmentally-friendly Mandailing Batak, Batak Angkola, Batak destination that focuses on its volcanic Simalungun, Batak Pakpak, Nias and heritage combined with Batak culture. In another ethnic groups Minangkabau, the middle of Lake Toba there is an Aceh, Jawa, etc). Population in Lake island called Samosir Island. Many Toba area is dominated by Batak Toba, things are popular in Samosir Island. Batak Karo, and Batak Simalungun. Among them are Chairman of Batu Raja Lake Toba is one of the pride Batak Siallagan, Tomb of King Sidabutar, Toba community that is very useful for Ambarita, Parbaba Beach, Gunung the source of life. [BPIW, 2015] Pusuk Buhit, there is also Tuktuk Village The main objective of this paper is as the main accommodation area.[BPIW, analyze the strategic to national tourism 2015] of Lake Toba to increase tourist visits, Lake Toba is a land that inhabited both domestic and foreign. This is by individuals and ethnic groups of because there is a desire of government Batak Toba, living at an altitude of 900 to create new tourist destinations such as m above sea level. This lake is formed Bali which has long been known by from eruption of volcanic mount. The international tourists, one of which is eruption had an impact sprayed the crater 138 Lake Toba to increase national income strategic planners set goals and make other than taxes. decisions. Some important steps are formulated: 1) Setting the vision, mission and objectives of the company; 2. LITERATURE REVIEW 2) Examining threats, opportunities strengths, and weaknesses (SWOT 2.1 Supply and Demand in Tourism analysis); 3) Consider alternative The function and the tourism strategies; 4) Choosing a Strategy; 5) system, consists demand or the market as Implementation of Strategy; 6) tourists who visit, and supply as a tourist Evaluation Strategy. destination itself. The demand and Vision is a desire for a condition in the supply of a tourism activity is a major future that will be in accordance with the force in tourism planning. The demand ideals of all company members. The and supply, as a market, determines what mission is a fundamental purpose that tourists want, the needs and ability of distinguishes a company from other tourists to pay. Market can be similar companies and that explains its categorized, but will change over time. operational coverage. Purpose is the Supply and demand must be developed, translation of the mission. To formulate a not only as a response from the market strategy, the most important step is to but also as one of the geography and conduct an environmental analysis. This management factors associated with the analysis covers the environment outside tourist destination. Planning in the the company (external environment) and tourism development should be able to the environment within the company run with both strengths in the same time. itself (internal environment). Both results There are two things that can be will be combined to get a picture of the offered to tourists, namely products and conditions that are being faced by the services. The tourism product is the company, and also will be faced in the overall coverage of a product that is future. From the external and internal destined for a person or consumed by a environment circumstances we know the person during a tourist activity. Service SWOT of the company. SWOT analysis is a service that tourists receive during a is a systematic way to identify internal tour. There are three basic components company factors based on the forming tourism products and tourist assumption that an effective strategy will destinations, namely tourist attraction, maximize the strengths and opportunities amenitas and accessibility. Attraction is and minimize the weaknesses and threat, an advantage that can be used to "sell" [Pearce and Robinson, 2014] the area to attract tourists to conduct From the SWOT analysis it can be tourism activities. Amenitas is a comfort determined the alternative strategies. In supported by various completeness of the implementation of the strategy. facilities and infrastructure supporting Strategies should be implemented in tourism activities. The availability of accordance with the stated goals and facilities and infrastructure of tourism plans. The implementation of the activities can affect the sustainability of strategy spells out more clearly how the tourism activities in an area.[Haynes, strategy choices are realized as planned. 2000] [David, 2017] The last stage is the evaluation to 2.2 Strategy Management as a Foun- see how far the results of the stages are dation for Planning going through, as well as the feedback in The process of strategy implementing the strategy management management is the way in which process. [Jauch and Glueck, 1988]

139 3. RESEARCH METHOD

The Paper Research Method was Government of North Sumatra developed using descriptive qualitative Province wants to realize the vision: research literature research methods. "Realizing Lake Toba Area as the Water Secondary data are obtained from Source of People's Life, Kampung Central Bureau of Statistics of Samosir Center for Indigenous Batak Community District [BPS Kabupaten Toba Samosir. and Sustainable Tourism Area of the 2017], Regional Infrastructure World". The mission are: Realization of Development Board [BPIW, 2015], and the environment of Lake Toba Area; especially from Horwath HTL Tourism Realization of infrastructure Hotel Leisure Report under the title improvements in support of regional "Market Analysis and Demand development; Realization of Lake Toba Assessment of Lake Toba" [Howarth, as a world-class tourism area connected 2015]. This paper is in support of World with domestic and global tourism Bank Selection #1223583 as Howarth's market; Realization of region-based report in developing Lake Toba tourism commodity-based economy of superior destinations. Several field observations value added and able to compete in the are also conducted. Strategic global market; and Realization of local management of the development of this communities as the main actors in the Lake Toba destination uses the structure economic activities of the region. of thinking as shown below: [BPIW, 2015] The expected goal is the significant growth of visitors both by domestic and foreign tourists. Table 1. The Number of Visitors Growth

2015 2021 2026 2041 Foreig 116.85 264.65 58.709 81.070 ners 0 0

Domes 1.743. 2.041. 2.498. 3.083. tic 500 950 160 420 Figure 1: Strategic Management TOTA 1,802, 2,123, 2,615, 3,348, Source: from various sources L 209 020 010 070 Note: The number of visitors including 4. RESULT AND DISCUSSION day visitors and includes passengers on board.

Here is the analyze of strategy 2016- 2027- 2022- 2026 management for planning the 2021 2041 development of Lake Toba tourism destination in determining the decision Foreigners 5.5% 7,6% 5,6% making. Domestic 2,7% 4,1% 1,4% 4.1 Vision of Lake Toba TOTAL 2,8% 4,3 % 1,7%

Source: Horwath ( 2015)

140 Approximately, 90% of the population 4.2 Environmental Analysis of in 3 major tourism districts do not have Tourism Destination access to PDAM water supply. Water 4.2.1 Macro Environmental Analysis demand for tourism activities is smaller The Indonesian Government desire than 5% of total demand. About 20% of to increase significant revenue from the households in 3 major tourism districts tourism sector as non-oil revenues. Thus are not equipped with adequate established a program of tourism sanitation facilities. development with 10 priority objectives. Through the National Medium-Term 4.2.3 Demand Analysis Development Plan (RPJMN). A number The number of domestic visitors of objectives have been set up to enhance represents 92% of total visitors to Lake the role of tourism in the Indonesian Toba. Day visitors with an estimated economy. number of 483,000 visits by 2015. In 2015-2019, the Government and Visitors who live in non-commercial the Ministry of Tourism target the accommodation (friends and relatives) increase of international visitors from 9 with an estimated number of 598,000 million to 20 million, domestic visits visits by 2015. Visitors staying in from 250 million to 275 million, tourism commercial accommodation with an contribution to GDP from 4 percent to 8 estimated arrival amount of 662,500 by percent, tourist income from Rp120 2015. 95% of Indonesian domestic trillion to Rp240 trillion, Indonesia tourists come for holiday destinations. ranked in Tourism and Tourism Rank Their arrival increased in the last 5 years. from 70th place to 30th, and tourism The number of visitors to international sector workforce from 11 million to 13 tourists is still very limited, ie as many as million workers. 58,700 tourists in 2015. International visitors represent only 3% of the total 4.2.2 Natural Environmental Analysis visitors. They mostly live in commercial There is a deterioration in water accommodation (120,700 night guests quality as a result of the various wastes with an average duration of 2.1 nights). dumped into the lake causing pollution. International visitors have continued Existing wastes are domestic waste, to increase over the last 5 years. Most agricultural waste, waste from foreign visitors come from Malaysia and aquaculture in floating net, as well as Singapore (50% and 10% respectively). waste oil derived from water transport activities. More than 50% of solid waste 4.2.4 Supply Analysis in 7 districts around Lake Toba is not The length of national road in collected and disposed of properly. Danau Toba is 542.98 km. Consists of, There is a destruction of forest areas, in the length of provincial road is 172,74 the form of deforestation for various km, the length of district road is 4,170,59 purposes around the lake. Causes km and the length of ring road in Danau fluctuations in water flow into the lake Toba area is 277,08 Km. The existing resulting in erosion and increased road network in the Lake Toba area is sedimentation. Drainage does not have a mostly quite good, especially the road direct impact on visitors around Lake that connects to the district capital. Toba. Airport Silangit, has terminal Less than 10% of the population in capacity - 36,500 passengers/year, 3 major tourism districts do not have adequate capacity (17,800 passengers access to PLN power supplies. Power handled by 2015). Runway Capacity - demand for tourism activities is smaller 2400 m, no parallel taxiway, capable of than 5% of total demand.

141 handling 16 aircraft per hour, adequate room is composed of 22.9 small rooms. capacity (currently 2 hours peak The growth of hotel rooms from 2009 to movement). Sibisa Airport, has runway: 2015 in 3 main districts are: Simalungun 750 m x 18 m, terminal: 120 m2. by 1%, Samosir 3% and Toba Samosir For trains, there are no rail by 6%. Overall, 3 Toba districts are connections to the core tourist areas of targeting growth of around 3% in 6 years Lake Toba. Medan-Pematang Siantar from 2015. path with a train journey is approximately 4 hours. It is estimated 4.3 SWOT Analysis that 5% of foreign visitors and 10% of We can deliver some strength, domestic visitors use trains/public weakness, opportunity and threat factors transport. of destination. Lake transportation, several small 4.3.1 Strength ports (no proper docking facilities), Lake Toba is the rich natural beauty small boat, service every half hour. It lake as a world-class attraction. A strong mainly operates in Tigaraja -Tomok and awareness that Lake Toba is a tourist Tigaraja - Tuk Tuk, adequate capacity destination at national and international with 28 fleet, 30 capacity per ship. There level. Good flight connections between are 2 ferry operators RORO: Ajibata - Indonesia (Medan) and Southeast Asian Tomok privately operated and Balige - countries. Culture and way of life Batak Onan Runggu & Simanindo - Tigaras strong and unique in Indonesia. Lake operate in public. Ferry RORO every 2.5 Toba is the largest volcanic caldera in hours. Current capacity and frequency the world, created by the eruption 74,000 are still sufficient. years ago which is the largest eruption of Local collector roads along the the last 2 million years. coast of Samosir island are poorly linked between subdistricts, but on some roads 4.3.2 Weakness connecting sub-districts are quite good. Road infrastructure between Medan Medan to Tebing Tinggi (83 km) with and Parapat is poor. The environment is travel time 2 hours 20 minutes. Tebing deteriorating. Low quality and less Tinggi to Pematang Siantar (52km), varied hotel accommodation. Company travel time 1 hour 40 minutes. Pematang demand and MICE are very limited in Siantar to Parapat (43 km), travel time 1 increasing occupancy. Limited number hour 10 minutes. Parapat to Balige and variety of supporting tourism (60km), travel time 1 hour 30 minutes. facilities, such as restaurants, Balige to Siborong Borong (19.6km), recreational activities retail and travel time 1 hour. Toba - Berastagi - commercial. Limited investor interest. Medan via Tigaras (147km), travel time Fog events, almost every year in the 6 hours. middle of the year caused by forest fires By the end of 2015, there are a total have a negative impact on the visit. of 131 hotels (3,391 rooms) in 3 main districts that surround Lake Toba. Only 4.3.3 Opportunity 16 hotels (more than 10%) have a 4 star Road improvement between rating. Star hotels focus on major tourist Medan- Tebing Tinggi is expected to towns, Tuktuk (Samosir District) and reduce travel time. There is strong Parapat (Simalungun Regency). support from the central government for Simalungun and Samosir regencies development and promotion. Possibility dominate star hotels with a total of 116 to introduce recreational attractions (boat hotels. The maintenance of hotels is trips, water sports and activities, golf, generally below standard. The average hiking and bcycling). Lake Toba tourism

142 is possible packed with other attractions 2. If environmental degradation (shopping in Medan, Brastagi and Bukit continues, it will dampen visitor Lawang). The government has applied interest in tourism destinations for Geopark Toba Caldera written on the 3. Growth in accommodation and UNESCO Global Geopark Network. tourism activities will be in minimal Opportunity to promote Batak culture to demand . tourists with the new Kualanamu airport. 4. The average duration of stay will More air connections can be built with remain the same as the past. other regional gateway towns. 5. The visitor's spending will remain low. 4.3.4 Threats 6. Projected growth in domestic visitors Absence of proper waste will slow down management, waste disposal, 7. Forecast of domestic visitors to Lake deforestation and commercial fishing Toba will continue to grow but in methods, and smoke pollution. Negative limited rate natural lakeside regulations are not 8. The attractiveness of Lake Toba is eliminated by the district/provincial low due to the degradation of government, that allow for illegal environmental and road access construction that damages the lakeside. 9. Due to environmental degradation, Lake Toba has an earthquake risk Lake Toba will lose its appeal. (occurred around Bukit Pusuk Bukit, especially in 1987 along the south bank). From SWOT analysis above, the 4.4.2 Scenario Strategy 2: Best main problem in Toba Lake tourism Scenario Strategy destination is: environmental degradation This strategy is described as an is currently a significant threat to the integrated tourism master plan where success of development in future; and there are real efforts to rehabilitate, Lake Toba is a natural asset with poor preserve the lake environment, facilitate road accessibility. public investment in bike lanes and hiking, as well as the development of 4.4 Alternative Strategy other new tourism facilities. From the environmental analysis of Accessibility from Medan and North Lake Toba Destination Tourism and Coast of North Sumatra increases SWOT analysis, as well as the main between 2016 and 2021 (where the travel problems faced, two strategic scenarios time from Medan to Parapat decreases are defined. Namely, the first strategy from more than 5 hours to a maximum of scenario as business as usual and second 2 hours 30 minutes. Faster flight strategy scenario as the best scenario. scheduling between Airports in Jakarta and Silangit to facilitate weekend travel 4.4.1 Scenario Strategy 1: Business as From Jakarta Mining MICE facilities and Usual Strategy leisure activities, marinas, hotels and real This strategy is described that the estate in major accommodation areas in degradation of Lake Toba natural Parapat and Samosir Island. The environment continues to occur, and projection of the market response to this travel time through the road will still best scenario is [Howarth, 2015] : harm the visitors and potential investors. 1. The market potential is very high as Projections for the market response are there will be an increase in day trips [Howarth, 2015]: and stay briefly at Lake Toba from 1. Demand will remain unchanged Medan and surrounding areas significantly. 2. Increased visitor accessibility will lead to increased investment in

143 commercial offerings in Toba Lake from industrial timber estate permits tourism destinations. (HTI) and truckloads from Toba Pulp 3. In 2016-2021, although accessibility Lestari. Restoration of Lake Toba has not been fully improved it can without waste from keramba is now the encourage realization of some homework of seven districts that investments. overshadowed the lake, namely Samosir, 4. In 2021-2041, the attractiveness of Toba Samosir, Humbang Hasundutan, objectives increases. North Tapanuli, Simalungun, Dairi and 5. The average duration of stay and Karo. tourist expenditure will increase over Second, is by optimizing the time. production from the local area. For 6. The projected growth of domestic example for fruits, coffee, vegetables and tourist arrivals experienced high and a variety of food Toba lake mainstay. significant growth. There are seven districts around Lake 7. By 2041 it is estimated that day Toba and all agree on the development. visitors from the Medan area will They want all area of around Lake Toba increase from 483,000 (2015) to enjoy the rise of destination. 902,000 (2041) Third, is from the connectivity side. 8. Travel on non-commercial Infrastructure becomes important in the accommodation grows faster development. There are the ring road on 9. Lake Toba will increasingly attract Samosir Island and a major road that visitors from the provinces outside of passes towards Kualanamu Airport. North Sumatra. Developing the 97 km-long Siantar- 10.Produce 4.5 times more international Parapat toll road, which will start in visitors by 2041 compared to 2015. 2017, is expected to be completed by 2019. Extend the airport runways of 4.5 Implementation by the Govern- Silangit in North Tapanuli and Sibisa ment Airport. Prepared a ferry to connect from To realize the development of the ground to Samosir. The waters tourism destinations of Lake Toba between Tano Ponggol and Samosir significantly, the government has Island will be deepened, in order to established an Authority Management facilitate the boat to enter the lake Toba. Agency of Lake Toba Tourism Area It will be provided 600 ha of greenery based on Presidential Regulation No. 49 land. Inside the tourist area will be built of 2016. Some plans will be and are 5 five-star luxury hotel, convention being done. center, and golf course. 600 hectares First, begins with the cleaning of the land is also included for the Land environment of Lake Toba as a whole. Authority of Tourism Agency. There are The government will ban the existence new attractions, namely Taman Bunga of floating net cages. Fish production Nusantara. from keramba in Lake Toba reaches 80 Fourth, is the strengthening of the thousand tons of fish in 2015. A total of side history of Lake Toba. The history 51 thousand tons of fish come from can be an attraction to come to the lake. community owned cages, while the rest Lake Toba is a large natural volcano, is are from corporate keramba. But, the the largest caldera lake in the world carrying capacity of Lake Toba is only located in the province of North 50 thousand tons every year. Damage to Sumatra, 176 km to the west of Medan the lake marked the existence of 5600 as the capital of the province. [BPIW, floating net cages that produce high 2015] organic waste. In addition, the damage

144 5. CONCLUSION For that reason, the best scenario should The development of Lake Toba's be done. Economic impacts with the best destinations needs to be done jointly by scenario allow the projected number of the government with the community. If visitors to Lake Toba to increase almost the future strategy is done by business as twice from 1.8 million in 2015 to 3.3 usual scenario, it will remain to the million in 2041. Investments will also detriment of visitors and potential rise to anticipate future demand investors. The degradation of Lake Toba increases. natural environment continues to occur.

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