Baseline Analysis Report Integrated Tourism Master Plan for Lombok Vol.2 Task B - Demand and Opportunities for Tourism Destination Area Development

PT. AECOM Indonesia

Ver.03 – 12 July 2019

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Project Name : Integrated Tourism Master Plan for Lombok Project No. : JKTD18082 Document Name : Baseline Analysis Report Vol. 2

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Table of Contents

Quality Information ...... 2 Disclaimer...... 3 Table of Contents ...... 5 Table of Figures ...... 10 Table of Tables ...... 14 1. Introduction ...... 19 1.1. Background ...... 19 1.2. Objectives ...... 19 1.3. Methodology ...... 20 1.4. Report Structure ...... 20 1.5. Global Tourism Trends ...... 21 2. Demographic ...... 25 2.1. Lombok Population and Growth per City/Regency ...... 31 2.1.1. Kota Mataram Population and Growth ...... 31 2.1.2. Kabupaten Lombok Barat Population and Population Growth ...... 32 2.1.3. Kabupaten Lombok Tengah Population and Growth ...... 33 2.1.4. Kabupaten Lombok Utara Population and Growth ...... 35 2.1.5. Kabupaten Lombok Timur Population and Growth...... 36 2.1.6. Kecamatan Batu Layar Population and Growth ...... 38 2.1.7. Kecamatan Sekotong Population and Growth ...... 38 2.1.8. Kecamatan Praya Barat Population and Growth ...... 39 2.1.9. Kecamatan Pujut Population and Growth ...... 40 2.1.10. Kecamatan Tanjung Population and Growth ...... 41 2.1.11. Kecamatan Pemenang Population and Growth ...... 42 2.1.12. Kecamatan Jerowaru Population and Growth ...... 42 2.2. Data Limitation ...... 44 3. Macro-Economic ...... 45 3.1. Overview Region ...... 45 3.2. Lombok Regional Economy ...... 46 3.2.1. Lombok Agricultural Production Overview ...... 49 3.2.2. Lombok Fisheries Overview ...... 53 3.2.3. Lombok Food Processing Overview ...... 53 3.2.4. Lombok Commercial Enterprise Overview ...... 54

3.2.5. Lombok Manufacturing Overview ...... 55 3.2.6. Lombok Services Overview ...... 55 3.2.7. Economic Analysis ...... 56 3.3. Lombok Economy per City/Regency ...... 65 3.3.1. Kota Mataram ...... 65 3.3.2. Kabupaten Lombok Barat ...... 68 3.3.3. Kabupaten Lombok Tengah ...... 70 3.3.4. Kabupaten Lombok Utara ...... 72 3.3.5. Kabupaten Lombok Timur ...... 74 3.4. Lombok Investment Levels ...... 76 3.4.1. Domestic and Foreign Direct Investment ...... 77 3.4.2. Contribution of Foreign Investments by Country ...... 78 3.4.3. Realization of Foreign Direct Investment (PMA) ...... 79 3.4.4. Realization of Domestic Direct Investment (PMDN) ...... 80 4. Socio–economic ...... 82 4.1. Livelihood ...... 82 4.2. Education ...... 85 4.2.1. Education Facilities ...... 86 4.2.2. School Participation Rate ...... 88 4.2.3. Literacy Rate (Level of Education) ...... 88 4.2.4. School Age ...... 89 4.2.5. Constraints and Opportunities in Education for Tourism Development ...... 90 4.2.6. Data Limitation ...... 91 4.3. Workforce and Employment ...... 91 4.3.1. Workforce and Manpower ...... 91 4.3.2. Job Seekers ...... 97 4.3.3. Wages ...... 98 4.3.4. Skills Assessment ...... 99 4.3.5. Local Businesses and Firms ...... 131 4.3.6. Community Roles in Tourism Development ...... 133 4.4. Vulnerable Groups: Poverty and Other Social Problems ...... 135 4.4.1. Gender Issues ...... 139 4.5. Ethnicity and Religion ...... 140 4.5.1. A Brief History of Lombok People ...... 140 4.5.2. Ethnic Diversity in Lombok Island ...... 143 4.5.3. Custom and Traditions ...... 145

4.5.4. Language ...... 148 4.6. Indigenous People ...... 149 4.6.1. Indigenous Community Registered by the GOI ...... 150 4.6.2. Recognition of Indigenous Rights by AMAN ...... 151 4.6.3. Indigenous People Identified in the ESMF...... 154 4.6.4. Assessment of Indigenous People Presence within the Priority Key Tourism Area 155 5. Lombok Tourism Patterns Over Time ...... 156 5.1. Nusa Tenggara Barat Province Tourism Patterns ...... 156 5.1.1. Number and Growth of Domestic and Foreign Visitors ...... 157 5.1.2. Number of Visitation in NTB by Point of Entry ...... 158 5.1.3. Domestic Visitors’ Profile ...... 159 5.1.4. Foreign Visitors’ Profile ...... 160 5.1.5. Foreign Visitors’ Countries of Origin ...... 161 5.1.6. European Visitors’ Countries of Origin ...... 162 5.1.7. Asia-Pacific Visitors’ Countries of Origin ...... 162 5.1.8. ASEAN Visitors’ Countries of Origin ...... 163 5.1.9. Domestic Visitors Seasonality ...... 163 5.1.10. Foreign Visitors Seasonality ...... 164 5.1.11. Foreign Visitors Seasonality by Source Market Regions ...... 165 5.1.12. Estimated Expenditure of Domestic and Foreign Visitors ...... 166 5.2. Kota Mataram Tourism Patterns ...... 168 5.2.1. Number and Growth of Domestic and Foreign Tourism ...... 169 5.2.2. Domestic Visitors Seasonality ...... 169 5.2.3. Foreign Visitors Seasonality ...... 170 5.3. Kabupaten Lombok Barat Tourism Patterns ...... 171 5.3.1. Number and Growth of Domestic and Foreign Visitors ...... 171 5.3.2. Foreign Visitors’ Countries of Origin ...... 172 5.3.3. Foreign Visitors Seasonality by Source Market Region ...... 173 5.3.4. Number of Domestic and Foreign Visitors by Kecamatan ...... 173 5.3.5. Kecamatan Batu Layar Seasonality ...... 174 5.3.6. Kecamatan Sekotong Seasonality ...... 175 5.4. Kabupaten Lombok Tengah Tourism Patterns ...... 175 5.4.1. Number and Growth of Domestic and Foreign Visitors ...... 176 5.4.2. Domestic and Foreign Visitors Seasonality ...... 176 5.5. Kabupaten Lombok Utara Tourism Patterns ...... 177

5.5.1. Number and Growth of Domestic and Foreign Visitors ...... 177 5.5.2. Number of Domestic and Foreign Visitors by Kecamatan ...... 178 5.5.3. Domestic and Foreign Visitors Seasonality ...... 178 5.5.4. Kecamatan Pemenang Seasonality ...... 179 5.5.5. Kecamatan Tanjung Seasonality ...... 179 5.6. Kabupaten Lombok Timur Tourism Patterns ...... 180 5.6.1. Number and Growth of Domestic and Foreign Visitors ...... 180 5.6.2. Number of Domestic and Foreign Visitors by Kecamatan ...... 181 5.7. Future Visitor Market Demand Analysis ...... 181 5.7.1. Visitor Market Growth Rate Comparisons ...... 181 5.7.2. Summary of Lombok Visitor Market Demand ...... 183 6. Tourism Facilities ...... 185 6.1. Accommodation ...... 185 6.1.1. Comparison with Other Destinations ...... 186 6.1.2. Lombok Accommodation Overview ...... 189 6.1.3. Kota Mataram Accommodation...... 195 6.1.4. Kabupaten Lombok Barat Accommodation ...... 197 Kabupaten ...... 199 6.1.5. Lombok Tengah Accommodation ...... 199 6.1.6. Kabupaten Lombok Utara Accommodation ...... 201 6.1.7. Kabupaten Lombok Timur Accommodation ...... 202 6.2. Meeting Facilities ...... 203 6.3. Food and Beverage Facilities ...... 204 6.4. Retail Facilities ...... 205 6.5. Travel Agent and Tourism Information Services ...... 208 6.6. Spas and Salons ...... 210 6.7. Immigration Facilities and Clearance Systems ...... 211 6.8. Financial Services including ATMs ...... 211 6.9. Support Services: Laundry, Barber and Car Rental ...... 211 6.10. Internet Provision ...... 211 7. Capabilities and Skills of Local Businesses and Employees ...... 213 8. Marketing and Branding...... 218 8.1. ASEAN Marketing Strategy – Summary ...... 218 8.2. Indonesia Branding ...... 219 8.3. Social Media Sentiment: Lombok Island’s Tourism ...... 220 8.4. Lombok Island Tourism Strategies ...... 222

8.5. Benchmark Tourism Strategies ...... 225 8.5.1. Bali Province ...... 225 8.6. Marketing and Branding Summary ...... 225 9. Summary of Situational Analysis and Identification of Opportunities ...... 226

Table of Figures

Figure 1 Existing Tourist Attraction of Lombok Island ...... 17 Figure 2 Key Tourism Area ...... 18 Figure 3 Factors of Tourism Related Global Trends ...... 21 Figure 4 Lombok Population Map ...... 25 Figure 5 Lombok Population and Population Growth ...... 26 Figure 6 Lombok Population Growth Map ...... 27 Figure 7 Lombok Regional Density Map ...... 28 Figure 8 Population Pyramid for NTB Province in 2017 ...... 30 Figure 9 Kota Mataram Population Growth ...... 32 Figure 10 Kabupaten Lombok Barat Population Growths ...... 33 Figure 11 Kabupaten Lombok Tengah Population and Population Growth ...... 34 Figure 12 Kabupaten Lombok Utara Population and Population Growth ...... 35 Figure 13 Kabupaten Lombok Timur Population and Population Growth ...... 36 Figure 14 GRDP and GRDP Growth by Regional ...... 47 Figure 15 Lombok GRDP Contributors by Industry ...... 48 Figure 16 Lombok Selected Industries Growth ...... 49 Figure 17 Harvest Area and Production of Rice Grown in Lombok ...... 50 Figure 18 Harvest Area and Production of Rice Grown in Lombok ...... 50 Figure 19 Harvest Area and Production of Food Crops Grown in Lombok ...... 50 Figure 20 Harvest Area and Production of Food Crops Grown in Lombok ...... 50 Figure 21 Production of Vegetables Grown in Lombok ...... 51 Figure 22 Harvest Area of Vegetables Grown in Lombok ...... 51 Figure 23 Harvest Area of Fruits in Lombok ...... 52 Figure 24 Harvest Area of Crops in Lombok ...... 52 Figure 25 Production of Crops in Lombok ...... 52 Figure 26 Inland and Marine Water Fisheries ...... 53 Figure 27 Number of Villages/Subdistricts with Food Processing Industry ...... 54 Figure 28 Classification of Enterprises by Scale in Lombok ...... 54 Figure 29 Proportion of Industries in Lombok ...... 55 Figure 30 Service Industry in Lombok ...... 56 Figure 31 GRDP Classification based on Klassen Typology ...... 63 Figure 32 GRDP and GRDP Growth by Kota Mataram ...... 66 Figure 33 Kota Mataram GRDP Contributors by Industry ...... 66 Figure 34 Kota Mataram Selected Industries Growth ...... 67 Figure 35 GRDP and GRDP Growth by Kabupaten Lombok Barat ...... 68 Figure 36 Lombok Barat GRDP Contributors by Industry ...... 68 Figure 37 Lombok Barat Selected Industries Growth ...... 69 Figure 38 GRDP and GRDP Growth by Kabupaten Lombok Tengah ...... 70 Figure 39 Lombok Tengah GRDP Contributors by Industry ...... 71 Figure 40 Lombok Tengah Selected Industries Growth ...... 72 Figure 41 GRDP and GRDP Growth by Kabupaten Lombok Utara ...... 73 Figure 42 Kabupaten Lombok Utara GRDP Contributors by Industry ...... 73 Figure 43 Lombok Utara Selected Industries Growth ...... 74 Figure 44 GRDP and GRDP Growth by Lombok Timur Regency ...... 75

Figure 45 Lombok Timur Regency GRDP Contributors by Industry ...... 75 Figure 46 Kabupaten Lombok Timur Selected Industries Growth ...... 76 Figure 47 Realization Investment by Foreign Direct Investment (FDI) and Domestic Direct Investment (DDI) in Lombok ...... 77 Figure 48 Contribution Realization Investment by Region in Lombok ...... 78 Figure 49 Contribution of Foreign Investment by Country...... 78 Figure 50 Contribution Realization of Foreign Investment by Sectors ...... 79 Figure 51 Contribution Realization of Domestic Direct Investment by Sectors...... 81 Figure 52 Main Employment Status BY Working Age Population (≥15 Years) In Study Area ..... 84 Figure 53 Population by Livelihood in Kecamatan Pujut in 2017 ...... 84 Figure 54 Population by Livelihood in Kecamatan Praya Barat in 2017 ...... 85 Figure 55 Population by Livelihood in Kecamatan Jerowaru in 2017 ...... 85 Figure 56 Ratio Students – Schools and Students – Teachers by Regencies and Districts ...... 86 Figure 57 Literacy Rates (≥ 15 Years Old) in Study Area (2013 – 2017) ...... 89 Figure 58 Expected Year of Schooling in Study Area ...... 90 Figure 59 Mean Year of Schooling in Study Area ...... 90 Figure 60 Labor Force Participation Rates in Study Area (2013 – 2017) ...... 93 Figure 61 Percentage of Working Age Population (≥ 15 Years Old) by Educational Level in Study Area ...... 95 Figure 62 Open Unemployment Rates in Study Area (2013 – 2017) ...... 96 Figure 63 Number of Official Migrant Workers in Study Area (2015 – 2017)...... 96 Figure 64 Number of Job Seekers by Educational Level and Gender ...... 97 Figure 65 Average Expenditure per Capita of Population in Study Area (2013 – 2017) ...... 99 Figure 66 Vocational Schools in Lombok ...... 100 Figure 67 Poverty Rate in Study Area (2013 – 2017) ...... 136 Figure 68 Domestic and Foreign Visitors in NTB ...... 157 Figure 69 Domestic and Foreign Visitors in NTB ...... 157 Figure 70 Number of Domestic and Foreign Visitors in NTB by Point of Entry (2017) ...... 158 Figure 71 Domestic Visitation by Motivation (2018) ...... 159 Figure 72 Domestic Visitation in NTB by Age Group (2017) ...... 160 Figure 73 Foreign Visitation by Motivation (2018) ...... 160 Figure 74 Foreign Visitors’ Countries of Origin (2017) ...... 161 Figure 75 European Visitors’ Countries of Origin (2017) ...... 162 Figure 76 Asia-Pacific Visitors’ Countries of Origin (2017) ...... 162 Figure 77 ASEAN Visitors’ Countries of Origin (2017) ...... 163 Figure 78 Domestic Visitation in NTB by Month (2013-2017) ...... 163 Figure 79 Foreign Visitation in NTB by Month (2013-2017) ...... 164 Figure 80 Foreign Visitation in NTB by Region and by Month (2017) ...... 165 Figure 81 NTB Foreign and Domestic Visitors’ Estimated Expenditure ...... 166 Figure 82 Foreign Visitors' Daily Expenditure in Indonesia by Geographic Category ...... 167 Figure 83 Domestic and Foreign Visitors in Kota Mataram (2011-2016) ...... 169 Figure 84 Domestic Visitors in Kota Mataram by Month (2015-2016) ...... 169 Figure 85 Foreign Visitors in Kota Mataram by Month (2015-2016) ...... 170 Figure 86 Domestic and Foreign Visitors in Lombok Barat (2012-2016) ...... 171 Figure 87 Lombok Barat Foreign Visitors’ Countries of Origin (2017) ...... 172 Figure 88 Lombok Barat Asia-Pacific Visitors’ Countries of Origin (2017) ...... 172 Figure 89 Lombok Barat Foreign Visitors by Region by Month (2017) ...... 173 Figure 90 Lombok Barat Domestic and Foreign Visitors by Kecamatan (2017) ...... 173

Figure 91 Kecamatan Batu Layar Domestic and Foreign Visitation by Month (2017) ...... 174 Figure 92 Kecamatan Sekotong Domestic and Foreign Visitation by Month (2017) ...... 175 Figure 93 Lombok Tengah Domestic and Foreign Visitation (2007-2017) ...... 176 Figure 94 Lombok Tengah Domestic and Foreign Visitation by Month (2015) ...... 176 Figure 95 Lombok Utara Domestic and Foreign Visitation (2013-2017) ...... 177 Figure 96 Lombok Utara Domestic and Foreign Visitation by Kecamatan (2017) ...... 178 Figure 97 Lombok Utara Foreign and Domestic Visitation by Month (2017) ...... 178 Figure 98 Kecamatan Pemenang Domestic and Foreign Visitation by Month (2017) ...... 179 Figure 99 Kecamatan Tanjung Domestic and Foreign Visitation by Month (2017) ...... 179 Figure 100 Lombok Timur Domestic and Foreign Visitors (2014-2017) ...... 180 Figure 101 Lombok Timur Domestic and Foreign Visitors by Kecamatan (2017) ...... 181 Figure 102 Number of Domestic Tourists ...... 186 Figure 103 Number of International Tourists ...... 187 Figure 104 Number of Star-rated and Non-star-rated Hotels ...... 188 Figure 105 Average Length of Stay (ALOS) in Selected Tourism Destinations in Indonesia ..... 188 Figure 106 Accommodation Distribution Map by Type ...... 189 Figure 107 Number of Star and Non-Star Rated Hotels by City/Regency in Lombok ...... 190 Figure 108 Accommodation Distribution Map by Operator ...... 191 Figure 109 Number and Growth of Hotels and Rooms in Lombok ...... 192 Figure 110 Number of Star-Rated and Non Star-Rated Hotels and Rooms in Lombok ...... 193 Figure 111 Luxury and Upscale Hotel Market Performance ...... 193 Figure 112 Occupancy Rate of Star-Rated and Non-Star-Rated Hotels in Lombok ...... 194 Figure 113 Avarage Length of Stay of Domestic and Foreign Visitors in Lombok ...... 194 Figure 114 Number and Growth of Hotels and Rooms in Kota Mataram ...... 195 Figure 115 Occupancy Rate of Hotels in Kota Mataram ...... 196 Figure 116 Average Length of Stay of Domestic and Foreign Visitors in Kota Mataram...... 196 Figure 117 Number and Growth of Hotels and Rooms in Kabupaten Lombok Barat ...... 197 Figure 118 Number of Star and Non-Star ...... 198 Figure 119 Number and Growth of Hotels and Rooms in Kabupaten Lombok Utara ...... 201 Figure 120 Number and Growth of Hotels and Rooms in Kabupaten Lombok Timur ...... 202 Figure 121 MICE Facilities Distribution Map ...... 203 Figure 122 Food and Beverages Facilities Distribution Map ...... 204 Figure 123 Retail Facilities Distribution Map ...... 205 Figure 124 Mataram Mall ...... 206 Figure 125 Lombok Epicentrum Mall ...... 206 Figure 126 Lombok CIty Center ...... 207 Figure 127 Transmart Mataram ...... 207 Figure 128 Traditional Market ...... 208 Figure 129 Tour and Travel Agents Distribution Map ...... 208 Figure 130 Spas and Salons Map by Type ...... 210 Figure 131 Indosat Ooredoo’s Cellular Network Coverage in Lombok ...... 212 Figure 132 Telkomsel’s Cellular Network Coverage in Lombok ...... 212 Figure 133 XL Axiata’s Cellular Network Coverage in Lombok ...... 212 Figure 134 Recurring Themes for ATMS 2017-2020 ...... 219 Figure 135 Lombok Sentiment Analysis ...... 221 Figure 136 Lombok Sentiment Analysis - Accessibility ...... 221 Figure 137 Lombok Sentiment Analysis - Attractions ...... 222 Figure 138 Examples of Taglines and Images for Lombok ...... 222

Figure 139 Diagram of Lombok Island Image Formation Factors ...... 224 Figure 140 Key Halal Tourism Drivers Based on The Global Muslim Travel Index ...... 224 Figure 141 Bali Marketing and Branding Strategy ...... 225

Table of Tables

Table 1 Lombok Population by City and Regency ...... 26 Table 2 Lombok Regional Population Density...... 27 Table 3 Male and Female Population by City and Regency ...... 29 Table 4 Household and Average Household Size by City and Regency ...... 29 Table 5 Composition of Working Age Population in 2017 ...... 30 Table 6 Population in Key Touirsm Area by District ...... 30 Table 7 Kota Mataram Population ...... 31 Table 8 Kota Mataram Population Density in 2017 ...... 32 Table 9 Kabupaten Lombok Barat Population ...... 32 Table 10 Kabupaten Lombok Barat Population Density ...... 33 Table 11 Kabupaten Lombok Tengah Population ...... 34 Table 12 Kabupaten Lombok Tengah Population Density ...... 34 Table 13 Kabupaten Lombok Utara Population...... 35 Table 14 Kabupaten Lombok Utara Population Density ...... 36 Table 15 Kabupaten Lombok Timur Population ...... 36 Table 16 Kabupaten Lombok Timur Population Density ...... 37 Table 17 Population in Kecamatan Batu Layar ...... 38 Table 18 Population Density in Kecamatan Batu Layar ...... 38 Table 19 Population in Kecamatan Sekotong ...... 39 Table 20 Population Density in Kecamatan Sekotong ...... 39 Table 21 Population in Kecamatan Praya Barat...... 39 Table 22 Population Density in Kecamatan Praya Barat ...... 40 Table 23 Population in Kecamatan Pujut ...... 40 Table 24 Population Density in Kecamatan Pujut ...... 41 Table 25 Population in Kecamatan Tanjung ...... 41 Table 26 Population Density in Kecamatan Tanjung ...... 42 Table 27 Population in Kecamatan Pemenang ...... 42 Table 28 Population Density in Kecamatan Pemenang ...... 42 Table 29 Population in Kecamatan Jerowaru ...... 43 Table 30 Population Density in Kelurahan Jerowaru ...... 43 Table 31 GRDP 2017 by Region ...... 45 Table 32 GRDP by Lombok ...... 46 Table 33 Lombok Location Quotients Analysis ...... 58 Table 34 Kota Mataram Location Quotients Analysis ...... 58 Table 35 Kabupaten Lombok Barat Location Quotients Analysis ...... 59 Table 36 Kabupaten Lombok Tengah Location Quotients Analysis ...... 60 Table 37 Kabupaten Lombok Utara Location Quotients Analysis ...... 61 Table 38 Kabupaten Lombok Timur Location Quotients Analysis ...... 61 Table 39 Conclusion Location Quotients Analysis ...... 62 Table 40 Lombok Typology Klasen Analysis ...... 63 Table 41 Lombok Typology Klasen Quadrant Analysis ...... 64 Table 42 GRDP by Kota Mataram ...... 66 Table 43 GRDP by Kabupaten Lombok Barat ...... 68 Table 44 GRDP by Kabupaten Lombok Tengah ...... 70

Table 45 GRDP by Kabupaten Lombok Utara ...... 72 Table 46 GRDP by Kabupaten Lombok Timur ...... 74 Table 47 Realization of Foreign Direct Investment by Sectors ...... 79 Table 48 Realization of Domestic Direct Investment by Sectors ...... 80 Table 49 Study Location ...... 82 Table 50 Main Employment Sectors by Working Age Population (≥15 Years) In Study Area ...... 83 Table 51 List of Top Universities in NTB Province ...... 87 Table 52 Percentage of Working Age Population (≥ 15 Years Old) by Population Classification in Study Area ...... 92 Table 53 Percentage of Working Age Population per Kecamatan in Study Area ...... 92 Table 54 Number of Workforce Population in Study Area 2013 – 2017 ...... 93 Table 55 Population Who Worked in Study Area ...... 94 Table 56 2018 Regional Minimum Wages in Study Area ...... 98 Table 57 Average Wages Received by Labor/Employee in a Month by Study Area ...... 98 Table 58 Tourism Education FacilitIes and Approximate Graduates in NTB Province ...... 103 Table 59 Number of Students Polytechnic of Tourism Lombok ...... 104 Table 60 Number of Graduates Polytechnic of Tourism Lombok ...... 104 Table 61 Ratio of Permanent Lecturers/Number of Students ...... 105 Table 62 Number of Graduates from All Tourism Vocational Schools in NTB in 2017 ...... 106 Table 63 List of Tourism Vocational School (SMK) and Available Program of Study in NTB Province ...... 106 Table 64 List of Tourism Vocational School (SMK), Program Studies and Total Students in NTB Province ...... 107 Table 65 Number of Students Tourism Training Center in Lombok Timur and Tengah ...... 109 Table 66 Hotel and Room, Star and Non-Star Hotel in Mataram, 2017 ...... 110 Table 67 Several Star Hotels and Rooms in Mataram ...... 111 Table 68 Staff/Room Ratio (Assumption in Mataram) ...... 111 Table 69 Employement Projection 2022 in Mataram ...... 111 Table 70 Hotel and Room, Star and Non-Star Hotel in Senggigi, 2017 ...... 112 Table 71 List of Star Hotels in Senggigi Area ...... 112 Table 72 Staff/Room Ratio (in Senggigi) based on Star and Non-Star Rated Hotel ...... 113 Table 73 Staff/Room Ratio (in Senggigi) based on Hotel Samples ...... 113 Table 74 Employement Projection 2022 in Senggigi ...... 113 Table 75 Hotel and Room, Star and Non-Star Hotel in Mandalika, (signed MoU) ...... 114 Table 76 List of Star-Rated Hotels in Mandalika Area (signed MoU)...... 114 Table 77 Staff/Room Ratio in Mandalika (based on Novotel) ...... 114 Table 78 Average Room/Hotel in Mandalika (Estimated for 2019) ...... 114 Table 79 Number Rooms Assumption ...... 114 Table 80 Employment Projection in Mandalika When in Full Operation ...... 115 Table 81 Employment Projection in Mandalika When in Full Operation ...... 115 Table 82 Hotel Job Occupancy Ratio in Mataram and Senggigi ...... 115 Table 83 Hotel Job Occupancy Ratio in Mandalika ...... 115 Table 84 Employment Projection based on the Job Occupancy (in full operation for Mandalika) ...... 116 Table 85 Supply and Demand (per Job Occupation with Mandalika in Full Operation) ...... 117 Table 86 Main Roles of Stakeholder Institutions in Tourism Industry ...... 119 Table 87 Demand and Supply Hotel Industri in Mataram, Senggigi and Mandalika ...... 119 Table 88 NTB Tourism Business 2018 ...... 121

Table 89 NTB Star-Rated Hotel Workers ...... 122 Table 90 NTB Non Star-Rated Hotel Workers ...... 122 Table 91 Trends in Workers of Star-Rated Hotels ...... 123 Table 92 Trends in Workers of Non Star-Rated Hotels ...... 123 Table 93 NTB Restaurant Workers ...... 123 Table 94 NTB Bar Workers in 2016 ...... 123 Table 95 NTB Spa Workers in 2016 ...... 124 Table 96 NTB Diving Workers in 2016 ...... 124 Table 97 NTB Traveling Tours Workers in 2016 ...... 125 Table 98 Part 3 of the ITMP Project Components ...... 127 Table 99 Poverty Aspect in Study Area ...... 136 Table 100 Number of Welfare Family by Districts ...... 137 Table 101 Data on Social Problems in NTB Province ...... 137 Table 102 Population by Gender per Kecamatan in Study Area ...... 139 Table 103 Indigenous People Definitions ...... 149 Table 104 Customary Community Registered by GOI ...... 150 Table 105 Members of AMAN in Study Area ...... 152 Table 106 Recognition of Indigenous People by AMAN ...... 152 Table 107 Indigenous People Presence within the Priority Key Tourism Areas ...... 155 Table 108 Daily Expenditure by Country of Origin (Indonesia) ...... 167 Table 109 Foreign Visitors to NTB by Country of Origin ...... 167 Table 110 Domestic Visitors Projections based on Market Analysis and Demand Assessment 181 Table 111 Domestic Visitors Projections based on RIPPARDA NTB ...... 182 Table 112 Foreign Visitors Projections based on Market Analysis and Demand Assesment .... 182 Table 113 Domestic Visitors Projections based on RIPPARDA NTB ...... 183 Table 114 Classification of Star-Rated Hotels ...... 185 Table 115 Number of Restaurants in Lombok by City/Regency ...... 204 Table 116 Number of Travel Agents in Lombok ...... 209 Table 117 Key ITMP Tourism Destinations ...... 213 Table 118 Key Project Document Findings ...... 214 Table 119 Lombok Tourism Educators, ITMP and STED ...... 215 Table 120 Indigenous Communities in ITMP Priority Destination Areas ...... 216

Figure 1 Existing Tourist Attraction of Lombok Island

Figure 2 Key Tourism Area

1. Introduction

1.1. Background

Tourism sector can be a promising growth sector that can give multiplier impact if visitor spending mostly on locally-produced goods and services. Data from Indonesia’s national accounts suggests that most visitor spending stays in the Indonesian economy, only around 20% of the spending goes towards imported goods and services. Therefore, mostly stays in the economy and give multiplier effect increasing output and employment for other sectors relating to tourism sector like accomodation sector. Currently, Government of Indonesia (GoI) has decided to transform Indonesia’s economy using tourism sector as one of the main growth drivers. However, Indonesia’s foreign visitors are increasingly concentrated in Bali, and their average spending (and consequently their economic impact) has been declining recently. Consequently, the GoI must shift its approach to destination development to a more integrated and holistic, with an increased emphasis on a higher-paying segments visitor over quantity. One of tourism destination in Indonesia that attracts GoI’s attention is Lombok island which has been known as unspoiled paradise and Lombok is chosen as one of the priority destinations which is needed for development. A development project requires strong economic fundamentals to ensure project viability and economic sustainability. An assessment of the key economic variables to identify leading and potential economic sectors is essential to get a clear view of Lombok’s and its region’s economic climate. In addition, especially for an economy that is heavily driven by tourism, assessment on social sustainability, population, employment, visitor trends, and tourism facilities, and capabilities and skills of local businesses becomes a priority. The assessment is needed to obtain information about demand and potential development of the tourism destination areas. A summary of opportunities and constraints of the aformentioned sectors which cover other perspectives such as social, environmental, and cultural heritage will be essential in providing an image of Lombok’s current demand and opportunity. This report is part of the Baseline Analysis Report that contains the initial analysis related to demographic, macro-economic, socio-economic, tourism patterns, tourism facilities and local businesses. These assessments will be used as a baseline to obtain a more thorough understanding of the current condition and potential of the tourism destination area.

1.2. Objectives

The objective of this report is to provide analysis of local economic conditions and development trends to obtain a detailed understanding of the current situation and potential development of the tourism destination areas. The following activities will be conducted in this report with special focus on tourism development based on information from Market Analysis and Demand Assessment (MADA):

• Assemble and review information on population (including etchnic minorities, vulnerable groups, Indigenous Peoples (IPs), and employment growth trends.

• Assemble and review information on different areas of potential economic growth, including tourism and travel, to identify the lingkages between the various sectors of the economy affecting, and affected by, tourism development in the tourism destination area. • Assemble and review information on domestic and foreign visitors and related accommodation, facilities, and attractions, past visitor trends and projected growth, and related demand for new tourism enterprises and services. • Assemble and review information on capabilities and skills of local businesses, especially local firms and communities to play an active role in, and benefit from, accelerated tourism development.

1.3. Methodology

A document titled Lombok Market and Demand Assessment was prepared by PU-BPIW to support the development of integrated tourism destinations across Indonesia. The assessment is horizontally rich in information since it already covers information from tourism to infrastructure investments. With such strong base, AECOM will build upon this report and provide more depth to the analysis on the vital components. AECOM will update the data and information provided in Lombok Market Analysis and Demand Assessment Document since this was conducted in 2016. This will comprise both supply and demand sides of tourism development. Some tourism-related global trends analysis and development strategy in the planning stages are also prepared. Data collection in the baseline stage is conducted in two different methods. One of which is literature review from research publications from the Cultural and Tourism Agency of NTB and Kota/Kabupaten in Lombok, statistics data from Central Statistics Bureau, and other official sources. The second method is interviews with relevant stakeholders, including Cultural and Tourism Agency of NTB and Kota/Kabupaten in Lombok, Economic Department of Development Planning Agency (Bappeda) NTB, Lombok Tourism Promotion Board (Badan Promosi Pariwisata Daerah/ BPPD) NTB, Indonesian Hotels and Restaurants Association (Perhimpunan Hotel dan Restoran Indonesia/ PHRI) NTB, Indonesia Hotel General Manager Association (IHGMA) NTB, Tourism Practitioners Association (Asosiasi Profesional Pariwisata Indonesia/ ASPPI) NTB, Assosiation of the Indonesian Tours and Travel Agent (ASITA) NTB, and local firms and residents that are randomly selected around key tourism areas. During the interviews, the teams will be able to discuss firsthand aspirations for the project, verify the site conditions, particularly post-earthquake conditions, and identify opportunities and constraints related to the project. Findings of this stage will provide the basis and foundation for subsequent strategy and design formulation. On the other hand, data on economics, demographics, social, environmental, cultural heritage, and tourism will play a vital role in providing an image of Lombok’s current socio-economic and tourism climate. This will be used to construct opportunities and constraints on developing the island’s tourism market.

1.4. Report Structure

This Baseline Analysis Report is divided into eight chapters that should be read in chronological order. The chapter of this Report are:

Chapter 1 Present the general introduction to the report’s volume as part of Baseline Analysis Report, background information, objective, methodology, and report structure Chapter 2 Review information on demographic condition in Lombok and key tourism areas, including population and its growth Chapter 3 Review information on macro-economic variables in Lombok and the key tourism areas related to tourism development, including GRPD overview, Base and non- Base analysis, local economic development overview, and investment overview Chapter 4 Review information on socio-economic conditions in Lombok and the key tourism areas, including livelihood, education, workforce and employment, poverty and social problems, ethnicity and indigenous people Chapter 5 Review information on Lombok tourism patterns over time in Lombok and the key tourism areas Chapter 6 Review information on tourism service facilities, including accommodation, MICE, food and beverage facilities, retail facilities, travel agent and tourism information services, spas and salons, financial services, support services, and internet provision in relation to tourism development Chapter 7 Review information on capabilities and skills of local businesses and employees, especially local firms and community roles in tourism development Chapter 8 Provide a summary of situational analysis and identification of opportunities and constraints spatially

1.5. Global Tourism Trends

In preparing the integrated tourism strategy there are a number of forces and trends that must be taken into account both in terms of analysis as well as strategy development in the planning stages.

Figure 3 Factors of Tourism Related Global Trends

The list below illustrates these trends and forces. The basis of these trends can be found in part in the literature search, which is summarized at the end of this section. Source: Various sources, compiled by Jamieson, W. (2018)

1. Increasing Uncertainty and Global Pressures Destinations are under constant pressure from a number of perspectives and will continue to be given the nature of rapid changes and events within the global and regional environment. These pressures will bring about a level of uncertainty affecting the ability of destinations to plan ahead especially with the growing numbers of natural disasters as well as political uncertainty. Determining factors to this uncertainty include: geopolitical tensions, trade wars, human rights, migration issues, ethnic frictions, safety and security concerns, natural disasters, competition. 2. Climate Change The threat of impacts of the process of climate change will have immediate impacts on the tourism industry given widely changing temperature variations, periods of drought and flooding, and especially the impact of sea level rise for coastal destinations. 3. Tourism Growth Tourism will continue to grow at between 4% and 6% worldwide (projected to be approximately 4.9% in Asia over the long-term). International tourism arrivals in Asia will increase at a higher rate than the rest of the world with much of that travel coming from within the region. The ability of destinations to absorb this level of visitation (overtourism) will be a continuing management and planning concern. While tourism is growing in many destinations, these destinations could benefit from tourism being directed to other communities. 4. Changing Visitor Expectations The nature of the visitor’s expectations is changing very quickly which can be seen as an advantage to destinations that are agile and able to respond to these changing needs and a challenge for destinations that do not have the administrative or creative abilities to develop unique services and experiences. Innovation and creativity will be seen as essential skills in meeting the needs of this changing visitor. The quality of service design and delivery will require innovation in the service design process. For example, the leisure traveler presents new opportunities for destinations with a MICE capacity. The Chinese market, which is by far the largest market in the world, brings with it opportunities and challenges which will be further discussed later in this report. 5. Demographic Change In part the change in visitor expectations is related to the changing demographic profile of visitors. The rise in the millennials, a quickly graying society, fewer children, the trend for families to travel together, higher levels of sustainable awareness, and other new trends require a fine-grained approach to developing experiences and opportunities for the visitor. 6. Experience Delivery and Design There is strong evidence of the need for well-developed and curated visitor experiences to meet the needs of the visitor. A move away from consumption of goods to consumption of experiences presents destinations with strong storytelling and design skills with a strong competitive advantage. An important component of experience design is in the need to design and manage the end-to-end customer journey. This emphasis on experience design and

delivery also brings with it a need for personalization and the development of personal development opportunities. 7. Rapid Urbanization Rapid urbanization has two tourism related components. Many of the popular destinations in the world are in fact cities, and due to their rapid growth, these urban areas are facing significant infrastructure and transportation pressures along with the need to meet the needs of a quickly growing middle class. Tourism, if not properly planned, can add to the pressures of these urban areas to develop sustainably and responsibly. Visitors often are seeking urban experiences and those cities that are well developed and structured have a significant position of advantage to meet the needs of these visitors. In addition to the quest for urban experiences, people living in already congested and polluted cities will seek pollution-free and quiet environments to recharge their batteries. 8. The Sharing Economy The sharing economy is having a significant impact on many destinations. Shared accommodation (e.g. Airbnb) and shared transportation (e.g. Uber, Grab) are now the norms in many places and visitors expect these services when they travel. Destinations that do not have a strong sharing economy will be at a disadvantage in meeting the needs of the visitor especially those from developed economies. 9. Infrastructure and Technology Gaps Given the growth of tourism and the lack of financial and human resources, many destinations have significant infrastructure needs both to meet the needs of their residents as well as the increased number of visitors. Significant investments will be required in order to ensure that tourism does not contribute to the environmental degradation of destinations and eases the congestion issues in many places. Technological advancements will provide destinations and visitors with unique opportunities to experience a destination before arrival and to enhance the experience when the visitor is within the place. Given the quickly growing nature of virtual reality and artificial intelligence, opportunities for storytelling and interpretation are vastly enhanced and will be advatangeous for destinations with strong technological developments. 10. Institutional and Human Capacity Gaps There will continue to be an ongoing organizational and human resource capacity crisis. Destination organizations will need to significantly change by adopting integrated approaches and working closely with a wide range of stakeholders. This will require significant changes in organizational structures as well as the people within them. The hospitality sector, for example, will struggle to attract and retain employees given the nature of the industry and will need to innovate and adopt different business models and use technology to continue to meet the needs of the visitors. 11. Sustainable and Responsible Tourism Development All of these trends must be considered within the sustainable and responsible set of principles and strategies. On a global basis the UN's Sustainable Development Goals (SDGs) provide important guidance for destinations and the tourism activities within them to guide responsible development. Companies have recognized the importance of the responsibility to both meet the needs of their customers as well as to ensure that the destinations in which they operate

are sustainable. There can be no doubt that sustainability and responsible development will become a major factor in people’s choice of a destination. The movement to responsible and sustainable tourism has prompted a re-examination of the nature of tourism development and a move towards more responsible approaches that stress metrics that go beyond international tourism arrivals and tourism spend, issues such as decreasing poverty, creating small and medium-sized enterprises, and increasing gender opportunities. In this section of the report, an emphasis is being put on several of these factors, namely external climate especially regarding the economy, demographic makeup and changes, and tourism growth and characteristics. This section will also discuss the characteristics and growth of the commercial aspects of tourism in Lombok, such as the hotel and retail market in different parts of the island, as well as the local, less formal economic characteristics.

2. Demographic

This demographic review will discuss the current state of the Lombok population to understand the nature in which the population has changed over time. This chapter will be divided into the following sections:

• The demographic population, density, and growth of Lombok in general, as well as each city/regency and a few identified districts with important tourism destinations; • Data limitation in the findings.

Figure 4 Lombok Population Map Source: BPS Province NTB and AECOM Analysis Based Figure 442, most of the districts located in the middle of the island are generally have the most populous districts with the population of 60,000-80,000 to even larger than 80,000 inhabitants in each district. With the development of Mandalika in Kecamatan Pujut, however, is the only district in the southern coast of Lombok Island that has a population of larger than 80,000 inhabitants. In contrary, some districts in the northeast of Lombok Island, namely Sembalun, Suela and Sambelia, have the smallest population of less than 40,000 inhabitants in each district. Other

districts that have a population of less than 40,000 inhabitants are Sukamulia in Lombok Timur, Kuripan in Lombok Barat, and Pemenang in Lombok Utara. Based on the decennial census data from 1990-2010, the population in Lombok grew at a Compounded Annual Growth Rate (CAGR) of 1.39%; while based on annual projected population data from the Central Bureau of Statistics of 2011-2017, population in Lombok grew at a CAGR of 1.38% – higher than the national CAGR of 1.2%. Based on the Local Regulation of Kota Mataram Number 3 of 2007, Regarding the Expansion of Kecamatan and Kelurahan in the Kota Mataram, the 3 districts were administratively divided into 6 districts; and Kabupaten Lombok Utara was formed based on Local Regulation Number 26 of 2008 as an expansion of Kabupaten Lombok Barat.

1,400,000

1,200,000

1,000,000

800,000

600,000

400,000

200,000

- 1990 2000 2010 2011 2012 2013 2014 2015 2016 2017 Lombok Barat Lombok Tengah Lombok Timur Lombok Utara Mataram

Figure 5 Lombok Population and Population Growth Source: Population Cencus and BPS Province NTB Lombok population in 2017 was recorded at 3,474,247 inhabitants spread across five (5) cities/regencies, as seen in Table 1. Lombok Utara has the lowest population number of 216,515 inhabitants with a CAGR of 1.2% during 2011-2017; while Lombok Timur has the highest population number of 1,183,204 inhabitants but the lowest CAGR of 1.0% during the same period. Mataram, as the capital city of the province with various attractions and ease of service to the facilities provided, has around 468,509 population with the highest CAGR of 2.4% in 2011-2017 period.

Table 1 Lombok Population by City and Regency

No. Kabupaten/ 2011 2012 2013 2014 2015 2016 2017 CAGR Kota (2011-2017) 1 Lombok Barat 606,044 613,161 620,412 644,586 654,892 665,132 675,222 1.8% 2 Lombok Tengah 868,895 875,231 881,686 903,432 912,879 922,088 930,797 1.2% 3 Lombok Timur 1,116,745 1,123,488 1,130,365 1,153,773 1,164,018 1,173,781 1,183,204 1.0% 4 Lombok Utara 202,092 203,564 205,064 210,133 212,265 214,393 216,515 1.2% 5 Mataram 406,910 413,210 419,641 441,064 450,226 459,314 468,509 2.4%

Total 3,200,686 3,228,654 3,257,168 3,352,988 3,394,280 3,434,708 3,474,247 1.4%

Source: BPS Province NTB

Figure 6 Lombok Population Growth Map Source: BPS Province NTB and AECOM Analysis The map above shows the growth of population in Lombok, with a range of <0.8% to >2.0%. The highest CAGR >2.0% in Kabupaten Lombok Barat is in Kecamatan Sekotong, Kecamatan Batulayar, and Kecamatan Gunung Sari and Kota Mataram. Nearly all Kecamatan experienced high growth rates, only two Kecamatan had average growth rates, namely in Kecamatan Selaparang and Kecamatan Cakranegara. On the other hand, Kabupaten Lombok Timur is dominated by Kecamatan with an annual population growth of <0.8%. The table below shows population density in each regency and city in Lombok. Kota Mataram, Kabupaten Lombok Tengah, and Kabupaten Lombok Timur by far have the highest population densities in the Lombok.

Table 2 Lombok Regional Population Density No. Kabupaten/Kota Area (km²) Population (2017) Population Density (2017) 1 Lombok Barat 1,053.87 665,132 631 2 Lombok tengah 1,208.40 922,088 763 3 Lombok Timur 1,605.55 1,173,781 731 4 Lombok Utara 809.53 214,393 264 5 Mataram 61.30 459,314 7,492

Source: BPS Province NTB

Figure 7 Lombok Regional Density Map Source: BPS Province NTB and AECOM Analysis The map above shows that the highest density with >2,000 people per km² is in Kota Mataram since it is the capital of the province. The highest population density after Kota Mataram is in Kabupaten Lombok Barat, the district with the highest population density is in Kecamatan Labu Api and Kecamatan Kediri, the two districts bordering Kota Mataram. In addition to Kabupaten Lombok Barat, the highest density was found in five districts in Kabupaten Lombok Timur, namely Kecamatan Masgabik, Kecamatan Sukamulya, Kecamatan Selong, Kecamatan Suralaga, and Kecamatan Sakra. But overall, the density in Lombok is mostly between 400 and 2,000 people per km². Population density of under 400 people per km² is mostly seen in Kabupaten Lombok Timur due to its mountainous terrain. There is limited data regarding the factors that change population size, but there is data at the provincial level. The last survey the Central Bureau of Statistics conducted for fertility rates was in 2012 and during that time NTB was recorded to have a fertility rate of 2.8 children. Compared to neighboring provinces Bali and Nusa Tenggara Timur (NTT), NTB is at a middle ground, as Bali has a fertility rate of 2.3 children, just above the replacement-level fertility of 2.1, while NTT has a fertility rate of 3.3 children. Life expectancy in the NTB province in 2017 was 65.5 years, which has steadily increased since 2013, during which the life expectancy was 64.7 years (Dinas Kesehatan NTB 2018). This is lower than the national average, which is at 69.3 years. Life expectancy is heavily influenced by the population’s child mortality rate. According to the Office of Public Health of Nusa Tenggara Barat (Dinas Kesehatan), the child mortality rate for infrants in NTB is

approximately 103 deaths for every 1,000 births in the area. It is expected, however, that life expectancy continues to age as child mortality decreases in abundance. Lombok Population in terms of Households, Gender, and Working Age

Table 3 Male and Female Population by City and Regency No. Study Area 2015 2016 2017 Male Female Male Female Male Female 1 Lombok Utara 104,573 107,692 105,730 108,663 106,812 109,703 2 Lombok Barat 320,102 334,790 325,213 339,919 330,182 345,040 3 Lombok 431,825 481,054 436,155 485,933 440,292 490,505 Tengah 4 Lombok Timur 542,159 622,006 546,569 627,212 550,958 632,246 5 Kota Mataram 222,596 227,630 227,097 232,217 231,797 236,712 Lombok 1,621,255 1,773,172 1,640,764 1,793,944 1,660,041 1,814,206 NTB Province 2,345,811 2,489,766 2,375,750 2,520,412 2,405,080 2,550,498

Source: BPS Province NTB The table above represents the amount of male and females from 2015 to 2017 in each regency in the area. Data shows that in the Lombok region there are 1,660,041 males and 1,814,206 females in 2017. Much like the rest of the NTB province, the Lombok region has more females than males.

Table 4 Household and Average Household Size by City and Regency No Study Area 2015 2016 2017 . Households Average Households Average Households Average Household Household Household Size Size Size 1 Lombok 58,970 3.60 59,562 3.60 60,151 3.60 Utara 2 Lombok 183,901 3.56 186,777 3.56 189,610 3.56 Barat 3 Lombok 272,518 3.35 275,267 3.35 277,866 3.35 Tengah 4 Lombok 341,493 3.41 344,358 3.41 347,122 3.41 Timur 5 Kota 123,134 3.66 125,620 3.66 128,135 3.66 Mataram Lombok 980,016 3.52 991,584 3.52 1,002,884 3.52 NTB 1,343,979 3.60 1,360,627 3.60 1,376,934 3.60 Province

Source: BPS Province NTB The table above presents the households and average household size in each regency and the Lombok region as a whole from 2015 to 2017. With a population of almost 3.5 million people, there are 1 million households with an average of 3.52 people per household. The most households can be found in Kabupaten Lombok Timur with 347,122 households, as it is the most populated regency. Kapubaten Lombok Utara has the smallest number of households with only 60,151 households, being the least populated regency. The largest average household size can be found in Kota Mataram with 3.66 people per household, while the smallest households are found in homes in Kabupaten Lombok Tengah, with an average of 3.35 people per household.

65+ 60 to 64 55 to 59 50 to 54 45 to 49 40 to 44 35 to 39 Male 30 to 34 25 to 29 Female 20 to 24 15 to 19 10 to 14 5 to 9 0 to 4 300,000 200,000 100,000 0 100,000 200,000 300,000

Figure 8 Population Pyramid for NTB Province in 2017 Source: Dinas Kesehatan NTB 2018 The figure above illustrates the population pyramid of the province. It is clear that the largest population lies within the younger population (0-14 years). As established, the productive age is 15-64 years old. Therefore, there is a higher percentage of the population that is part of the unproductive age (0-14 years old and 65+ years old). Therefore, there large proportion of children and elderly within the population has made Lombok’s dependency ratio relatively high.

Table 5 Composition of Working Age Population in 2017 Job No. Study Area Working School Seekers 1 Lombok Utara 106,043 1,877 9,899 2 Lombok Barat 316,827 10,749 37,171 3 Lombok Tengah 446,246 13,338 56,089 4 Lombok Timur 540,513 20,422 49,335 5 Kota Mataram 212,434 12,000 44,179 Lombok 1,622,063 58,386 196,673 NTB Province 2,316,720 79,449 273,340

Source: BPS Province NTB The table above presents the composition of the working age population. The working age population is defined as anyone above the age of 15 years old. Lombok represents 70% of all of NTB province’s workforce. Of the working age population in Lombok, around 86% are working, 3% are looking for jobs, and 10% are in school. The workforce profile is further elaborated in Section 4.3 Workforce and Employment. Lombok Population and Growth in Key Tourism Areas The analysis below is limited to the key tourism areas in seven districts in Lombok, and the following is population and growth in key tourism areas. Key tourism area demographic is based on the results of a survey conducted by the statistical center agency from 2013 to 2017.

Table 6 Population in Key Touirsm Area by District No Disitrict 2013 2014 2015 2016 2017 1 Batu Layar 46,974 48,800 49,599 54,013 55,466

No Disitrict 2013 2014 2015 2016 2017 2 Sekotong 58,154 60,423 61,447 68,451 70,410 3 Praya Barat 71,059 72,796 73,612 74,409 75,166 4 Pujut 99,258 101,633 102,659 103,656 104,596 5 Pemenang 33,431 34,257 35,347 35,866 36,388 6 Tanjung 45,729 46,859 47,425 47,918 48,411 7 Jerowaru 56,624 57,144 58,069 58,978 59,880

Total 411,229 421,912 428,158 443,291 450,317

Source: BPS Kecamatan Lombok Barat, Tengah, Utara, Timur The table above shows that the most populated tourism area was in Kecamatan Pujut with 104,596 people, while for the lowest population with 36,388 inhabitants was in Kecamatan Pemenang. Kecamatan Pemenang had the lowest population because some of the population are on islands such as Gili Trawangan, Air, and Meno.

2.1. Lombok Population and Growth per City/Regency

In this section, we will discuss the demographic data of Lombok, looking into Kota Mataram, Kabupaten Lombok Barat, Kabupaten Lombok Tengah, Kabupaten Lombok Utara, and Kabupaten Lombok Timur looking at its population numbers, population density, as well as annual grouth. We also further discuss in depth the demographic data for specific districts (Kecamatan) that have been identified in the ToR, namely Kecamatan Batu Layar, Kecamatan Sekotong, Kecamatan Praya Barat, Kecamatan Pujut, Kecamatan Tanjung, Kecamatan Pemenang, and Kecamatan Jerowaru. Data limitation will also be included in this analysis. 2.1.1. Kota Mataram Population and Growth

Kota Mataram demographic data are based on data provided by the Central Bureau of Statistics (BPS) from 2011 to 2017. At the end of 2017 there are 468,509 people spread across six (6) districts in Kota Mataram, with the largest population of 91,099 people in Kecamatan Ampenan, an old city in Mataram, and lowest population is in Kecamatan Cakranegara population with 67,791 people.

Table 7 Kota Mataram Population No Kecamatan 2011 2012 2013 2014 2015 2016 2017 CAGR (2011- 2017) 1 Ampenan 79,367 80,281 82,585 86,052 87,746 89,421 91,099 2.3% 2 Sekarbela 53,946 55,237 57,792 62,508 64,946 67,431 69,989 4.4% 3 Mataram 73,921 75,218 77,397 81,450 83,479 85,491 87,527 2.9% 4 Selaparang 73,222 74,148 73,806 74,513 74,795 75,027 75,235 0.5% 5 Cakranegara 64,771 65,792 65,488 66,516 66,983 67,395 67,791 0.8% 6 Sandubaya 61,683 62,534 65,605 70,025 72,277 74,549 76,868 3.7% Population 406,910 413,210 422,673 441,064 450,226 459,314 468,509 2.4%

Source: BPS Kota Mataram

Figure 9 Kota Mataram Population Growth

5.00% 480,000 4.50% 4.35% 470,000 4.00% 460,000 3.50% 450,000 3.00% 440,000 430,000 2.50% 2.29% 2.08% 2.02% 420,000 2.00% 1.55% 2.00% 410,000 1.50% 400,000 1.00% 390,000 0.50% 380,000 0.00% 370,000 2011 2012 2013 2014 2015 2016 2017

Population Pop. Growth

Source: BPS Kota Mataram and AECOM Analysis Kota Mataram had the highest growth of 4.35% in 2014 and had the lowest growth rate of 1.55% in 2012 and the Compound Annual Growth (CAGR) from 2011 until 2017 of 2.4%. The table below shows the high density in each district in the Kota Mataram, as Kota Mataram is the capital of the NTB province. The highest density is in Kecamatan Mataram with 8,134 inhabitants/km² as Kecamatan Mataram is the center of economic activity and residential area. Table 8 Kota Mataram Population Density in 2017 No. Kecamatan Area (km²) Population Population Density 1 Ampenan 9 91,099 9,630 2 Sekarbela 10 69,989 6,782 3 Mataram 11 87,527 8,134 4 Selaparang 11 75,235 6,986 5 Cakranegara 10 67,791 7,010 6 Sandubaya 10 76,868 7,448

Source: BPS Kota Mataram and AECOM Analysis 2.1.2. Kabupaten Lombok Barat Population and Population Growth

In 2017 the population of Kabupaten Lombok Barat was 675,222 inhabitants. Kecamatan Narmada is the district with the highest population, while Kecamatan Kuripan is a district with the fewest number of people. Table 9 Kabupaten Lombok Barat Population CAGR No. Kecamatan 2011 2012 2013 2014 2015 2016 2017 (2011 - 2017) 1 Sekotong 56,808 57,476 58,154 60,423 61,447 68,451 70,410 3.6% 2 Lembar 44,934 45,461 45,998 47,793 48,548 49,240 49,976 1.8% 3 Gerung 75,220 76,102 77,007 80,009 81,223 81,522 82,596 1.6% 4 Labuapi 61,462 62,183 62,918 65,371 66,393 65,331 65,978 1.2% 5 Kediri 54,771 55,414 56,070 58,254 59,233 57,315 57,723 0.9% 6 Kuripan 34,400 34,804 35,215 36,587 37,176 37,252 37,733 1.6% 7 Narmada 88,932 89,976 91,041 94,587 96,052 92,512 93,098 0.8% 8 Lingsar 64,155 64,909 65,677 68,235 69,292 68,459 69,182 1.3%

9 Gunungsari 79,475 80,409 81,358 84,527 85,929 91,037 93,060 2.7% 10 Batulayar 45,887 46,427 46,974 48,800 49,599 54,013 55,466 3.2% 606,04 613,16 620,41 644,58 654,89 665,13 675,22 Population 1.8% 4 1 2 6 2 2 2 Source: BPS Kabupaten Lombok Barat

Figure 10 Kabupaten Lombok Barat Population Growths

4.50% 700,000 4.00% 3.90% 680,000 3.50% 660,000 3.00% 2.50% 640,000

2.00% 620,000 1.56% 1.52% 1.50% 1.17% 1.60% 600,000 1.00% 1.18% 580,000 0.50% 0.00% 560,000 2011 2012 2013 2014 2015 2016 2017 Population Pop. Growth

Source: BPS Kabupaten Lombok Barat and AECOM Analysis Kabupaten Lombok Barat had the highest population growth of 3.90% in 2014 and had the lowest population growth of 1.17% in 2012 and the CAGR from 2011 until 2017 of 1.8%. The figure below illustrates the population density in Kabupaten Lombok Barat by district. The district with the highest density is in Kecamatan Kediri with 2,667 inhabitants/km²; and the lowest densitiy is in Kecamatan Sekotong with 133 inhabitants/km². Kecamatan Sekotong has a lot of agricultural land which causes low density.

Table 10 Kabupaten Lombok Barat Population Density No Kecamata Area Poulation (2017) Population Density n (km²) (2017) 1 Sekotong 529.38 70,410 133 2 Lembar 62.66 49,976 798 3 Gerung 62.3 82,596 1,326 4 Labuapi 28.33 65,978 2,329 5 Kediri 21.64 57,723 2,667 6 Kuripan 21.56 37,733 1,750 7 Narmada 107.62 93,098 865 8 Lingsar 96.58 69,182 716 9 Gunungsari 89.74 93,060 1,037 10 Batulayar 34.11 55,466 1,626

Source: BPS Kabupaten Lombok Barat and AECOM Analysis 2.1.3. Kabupaten Lombok Tengah Population and Growth

At the end of 2017, there are 930,797 people spread across twelve (12) districts in Kabupaten Lombok Tengah, with the largest population of 112,997 people in Kecamatan Praya and lowest population in Kecamatan Batukliang Utara population of 51,924 people.

Table 11 Kabupaten Lombok Tengah Population CAGR No. Kecamatan 2011 2012 2013 2014 2015 2016 2017 (2011- 2017) 1 Praya Barat 69,338 70,418 71,059 72,796 73,612 74,409 75,166 1.35% 2 Praya Barat Daya 51,447 52,135 52,476 53,768 54,308 54,833 55,327 1.22% 3 Pujut 97,229 98,534 99,258 101,633 102,659 103,656 104,596 1.22% 4 Praya Timur 62,936 63,653 63,982 65,528 66,124 66,700 67,239 1.11% 5 Janapria 70,416 71,501 72,068 73,905 74,726 75,530 76,294 1.34% 6 Kopang 75,958 76,639 77,007 78,716 79,340 79,938 80,490 0.97% 7 Praya 103,757 105,518 106,478 109,219 110,516 111,785 112,997 1.43% 8 Praya Tengah 60,090 60,984 61,460 62,995 63,678 64,344 64,975 1.31% 9 Jonggat 89,641 90,585 90,943 93,158 93,961 94,736 95,455 1.05% 10 Pringgarata 63,071 64,492 65,242 57,115 68,095 69,064 70,002 1.75% 11 Batukliang 71,742 72,468 72,897 74,520 75,153 75,754 76,332 1.04% 12 Batukliang Utara 47,436 48,304 48,816 50,079 50,707 51,329 51,924 1.52% Population 863,061 875,231 881,686 893,432 912,879 922,078 930,797 1.27% Source: BPS Kabupaten Lombok Tengah

Figure 11 Kabupaten Lombok Tengah Population and Population Growth

2.50% 940,000

2.18% 920,000 2.00%

900,000 1.50% 1.41% 1.33% 880,000

1.00% 1.01% 0.95% 860,000 0.74% 0.50% 840,000

0.00% 820,000 2011 2012 2013 2014 2015 2016 2017

Population Pop. Growth

Source: BPS Kabupaten Lombok Tengah and AECOM Analysis Kabupaten Lombok Tengah had the highest population growth of 2.18% in 2015 and the lowest of 0.75% in 2013; and a Compound Annual Growth (CAGR) from 2011 until 2017 of 1.27%. The table below describes population density in Kabupaten Lombok Tengah based on districts. The district with the highest density is found in Kecamatan Praya – home to Lombok International Airport – with a density of 1,845 inhabitants/km². The district with the lowest density is Kecamatan Praya Barat Daya with 443 inhabitants/km².

Table 12 Kabupaten Lombok Tengah Population Density No. Kecamatan Area (km²) Population (2017) Population Density (2017) 1 Praya Barat 152.75 75,166 492 2 Praya Barat Daya 124.97 55,327 443 3 Pujut 233.55 104,596 448 4 Praya Timur 82.57 67,239 814

No. Kecamatan Area (km²) Population (2017) Population Density (2017) 5 Janapria 69.05 76,294 1,105 6 Kopang 61.66 80,490 1,305 7 Praya 61.26 112,997 1,845 8 Praya Tengah 65.92 64,975 986 9 Jonggat 71.55 95,455 1,334 10 Pringgarata 52.78 70,002 1,326 11 Batukliang 50.37 76,332 1,515 12 Batukliang Utara 181.96 51,924 285

Source: BPS Kabupaten Lombok Tengah and AECOM Analysis 2.1.4. Kabupaten Lombok Utara Population and Growth

At the end of 2017 there are 216,515 people spread across five (5) districts in Kabupaten Lombok Utara, with the largest population of 48,411 people in Kecamatan Tanjung and lowest population of 36,388 people in Kecamatan Pemenang.

Table 13 Kabupaten Lombok Utara Population CAGR (2011 No. Kecamatan 2011 2012 2013 2014 2015 2016 2017 - 2017) 1 Pemenang 32,949 33,434 33,431 34,257 35,347 35,866 36,388 1.67% 2 Tanjung 45,069 45,424 45,729 46,859 47,425 47,918 48,411 1.20% 3 Gangga 41,191 41,162 41,795 42,828 42,342 42,572 42,799 0.64% 4 Kayangan 37,763 37,958 38,317 39,264 39,419 39,757 40,094 1.00% 5 Bayan 45,120 45,586 45,792 46,925 47,732 48,280 48,823 1.32% Population 202,092 203,564 205,064 210,133 212,265 214,393 216,515 1.16%

Source: BPS Kabupaten Lombok Utara

Figure 12 Kabupaten Lombok Utara Population and Population Growth

3.00% 220,000

2.50% 2.47% 215,000

2.00% 210,000

1.50% 205,000 1.01% 1.00% 1.00% 200,000 0.73% 0.99% 0.74% 0.50% 195,000

0.00% 190,000 2011 2012 2013 2014 2015 2016 2,017

Population Pop. Growth

Source: BPS Kabupaten Lombok Utara and AECOM Analysis Kabupaten Lombok Utara had the highest rate of population growth of 2.47% in 2014 and had the lowest rate of population growth of 0.73% in 2012; and a Compound Annual Growth (CAGR) from 2011 until 2017 of 1.16%.

The table below explains population density in Kabupaten Lombok Utara. Compared to the other regencies and cities in Lombok, the average population density in Kabupaten Lombok Utara is the lowest because the formation of Kabupaten Lombok Utara is due to the expansion of Kabupaten Lombok Barat, creating a new administrative boundary. The highest population density in the districts in Kabupaten Lombok Utara is found in Kecamatan Tanjung with 419 inhabitants/km². Kecamatan Pemenang is home to the famous Gili Islands (Trawangan, Meno, Air) where Lombok tourism is growing rapidly.

Table 14 Kabupaten Lombok Utara Population Density No. Kecamatan Area (km²) Population (2017) Population Density 1 Pemenang 129.54 36,388 281 2 Tanjung 115.64 48,411 419 3 Gangga 157.35 42,799 272 4 Kayangan 126.35 40,094 317 5 Bayan 329.1 48,823 148

Source: BPS Kabupaten Lombok Utara and AECOM Analysis 2.1.5. Kabupaten Lombok Timur Population and Growth

At the end of 2017 there are 1,183,204 people spread across twenty (20) districts in Kabupaten Lombok Timur, with the largest population of 100,669 people in Kecamatan Masbagik and lowest population in Kecamatan Sembalun with 20,050 people.

Table 15 Kabupaten Lombok Timur Population CAGR No. Kabupaten/Kota 2011 2012 2013 2014 2015 2016 2017 (2011 - 2017) 1 Keruak 49,381 49,886 50,374 50,837 51,499 52,144 52,778 1.1% 2 Jerowaru 55,507 56,076 56,624 57,144 58,069 58,978 59,880 1.3% 3 Sakra 53,708 54,257 54,787 55,290 55,841 56,369 56,882 1.0% 4 Sakra Barat 47,867 48,357 48,829 49,277 49,809 50,322 50,822 1.0% 5 Sakra Timur 41,693 42,119 42,529 42,920 43,354 43,771 44,176 1.0% 6 Terara 65,795 66,469 67,119 67,735 68,178 68,589 68,979 0.8% 7 Montong Gading 40,606 41,021 41,422 41,802 42,026 42,233 42,424 0.7% 8 Sikur 67,341 68,029 68,692 69,323 69,634 69,910 70,159 0.7% 9 Masbagik 95,339 96,315 97,257 98,151 99,029 99,863 100,669 0.9% 10 Pringgasela 50,746 51,265 51,765 52,241 52,699 53,135 53,555 0.9% 11 Sukamulia 30,678 30,991 31,294 31,581 31,828 32,063 32,287 0.9% 12 Suralaga 51,817 52,347 52,858 53,343 53,629 53,891 54,132 0.7% 13 Selong 85,411 86,285 87,128 87,929 89,137 90,316 91,481 1.1% 14 Labuhan Haji 53,886 54,437 54,970 55,474 55,996 56,495 56,978 0.9% 15 Pringgabaya 90,753 91,681 92,576 93,427 93,980 94,488 94,962 0.8% 16 Suela 37,382 37,764 38,133 38,483 38,703 38,904 39,093 0.7% 17 Aikmel 94,168 95,131 96,060 96,942 97,802 98,622 99,412 0.9% 18 Wanasaba 59,348 59,953 60,539 61,095 61,459 61,795 62,109 0.8% 19 Sembalun 19,016 19,211 19,399 19,577 19,743 19,90 20,050 0.9% 20 Sambelia 30,308 30,619 30,918 31,202 31,603 31,993 32,376 1.1% Population 1,120,750 1,132,213 1,141,845 1,153,773 1,164,018 1,173,781 1,183,204 0.97% Source: BPS Kabupaten Lombok Timur Figure 13 Kabupaten Lombok Timur Population and Population Growth

1.20% 1,200,000 1.00% 1.02% 1.04% 1,180,000 0.89% 0.80% 0.85% 0.84% 0.80% 1,160,000

0.60% 1,140,000

0.40% 1,120,000

0.20% 1,100,000

0.00% 1,080,000 2011 2012 2013 2014 2015 2016 2017

Population Pop. Growth

Source:BPS Kabupaten Lombok Timur and AECOM Analysis Kabupaten Lombok Timur had the highest population growth of 1.22% in 2015 and had the lowest population growth of 0.92% in 2014 and a Compound Annual Growth (CAGR) from 2011 until 2017 of 0.97%. The table below explains the population density in Kabupaten Lombok Timur based on districts. Kabupaten Lombok Timur has the most districts compared to other regencies because, based on area, it is the largest compared to other cities/regencies. The highest population density is in Kecamatan Jerowaru with 8,717 inhabitants/km² and the lowest population density is in Kecamatan Sembalun with 92 inhabitants/km² because Kecamatan Sembalun is the location of Mount Rinjani, so not many people live in Kecamatan Sembalun.

Table 16 Kabupaten Lombok Timur Population Density No. Kecamatan Area (km²) Population (2017) Population Density (2017) 1 Keruak 40.49 52,778 1.303 2 Jerowaru 142.78 59,880 8,717 3 Sakra 25.09 56,882 2,267 4 Sakra Barat 32.3 50,822 1,573 5 Sakra Timur 37.04 44,176 1,193 6 Terara 41.41 68,979 1,666 7 Montong Gading 25.66 42,424 1,653 8 Sikur 78.27 70,159 896 9 Masbagik 33.17 100,669 3,035 10 Pringgasela 134.26 53,555 399 11 Sukamulia 14.49 32,287 2,228 12 Suralaga 27.02 54,132 2,003 13 Selong 31.68 91,481 2,888 14 Labuhan Haji 49.57 56,978 1,149 15 Pringgabaya 136.2 94,962 697 16 Suela 115.01 39,093 340 17 Aikmel 122.92 99,412 809 18 Wanasaba 55.89 62,109 1,111 19 Sembalun 217.08 20,050 92 20 Sambelia 245.22 32,376 132

Source: BPS Kabupaten Lombok Timur and AECOM Analysis

2.1.6. Kecamatan Batu Layar Population and Growth

The population in Kecamatan Batu Layar in 2017 was 54,013 people. Kecamatan Batu Layar is one of the districts which has tourist attractions, divided into nine (9) administrations/subdistricts (Kelurahan), with the highest population in Kelurahan Sandik with 15,404 people and the lowest population in Kelurahan Pusuk Lestari with a total of 1,322 people.

Table 17 Population in Kecamatan Batu Layar No Subdistrict 2013 2014 2015 2016 2017 CAGR 1 Sandik 13,051 13,553 13,775 15,000 15,404 5.67% 2 Meninting 5,921 6,163 6,264 6,821 7,005 5.75% 3 Batulayar 6,256 6,493 6,599 7,187 7,379 5.64% 4 Lembahsari 2,401 2,500 2,541 2,767 2,842 5.74% 5 Senteluk 4,702 4,890 4,970 5,412 5,558 5.71% 6 Senggigi 4,706 4,873 4,952 5,394 5,539 5.56% 7 Batulayar 5,536 5,747 5,841 6,361 6,531 5.65% Barat 8 Bengkaung 3,287 3,419 3,475 3,784 3,886 5.71% 9 Pusuk 1,114 1,163 1,182 1,287 1,322 5.78% Lestari Total 46,974 48,801 49,599 54,013 55,466 5.69%

Source: BPS Kecamatan Batu Layar Population density in Kecamatan Batulayar in 2017 was 1,626 inhabitants/km². The subdistrict with the highest density was Kelurahan Bengkaung with 7,473 inhabitants/km², and the subdistrict with the lowest density of 415 inhabitants/km² was Kelurahan Lembah Sari.

Table 18 Population Density in Kecamatan Batu Layar No Kelurahan Area Population Population (km²) (2017) Density 1 Sandik 7.00 15,404 2,201 2 Meninting 1.02 7,005 6,868 3 Batulayar 7.14 7,379 1,033 4 Lembahsari 6.84 2,842 415 5 Senteluk 2.88 5,558 1,930 6 Senggigi 6.87 5,539 806 7 Batulayar Barat 1.20 6,531 5,443 8 Bengkaung 0.52 3,886 7,473 9 Pusuk Lestari 0.64 1,322 2,066

Total 34.11 55,466 1,626

Source: BPS Kecamatan Batu Layar & AECOM Analysis 2.1.7. Kecamatan Sekotong Population and Growth

Population in Kecamatan Sekotong in 2017 was 70,410 people. Kecamatan Sekotong is one of the districts that has tourist attractions. Kecamatan Sekotong is divided into nine (9) administrations/subdistricts, with the highest population in Kelurahan Buwun Mas with a number of 14,819 people and the lowest population in Kelurahan Gili Gede Indah with 1,410 people, as the Gili Gede region is on its own island. Whereas for CAGR 4.90% from 2013 to 2017. Detailed per-subdistrict data can be seen on the table below:

Table 19 Population in Kecamatan Sekotong No Subdistrict 2013 2014 2015 2016 2017 CAGR 1 Pelanggan 7,591 7,887 8,021 8,935 9,192 4.89% 2 Sekotong Barat 8,947 9,296 9,454 10,532 10,833 4.89% 3 Buwun Mas 12,241 12,719 12,935 14,410 14,819 4.89% 4 Sekotong Tengah 5,745 5,969 6,070 6,762 6,956 4.88% 5 Kedaro 5,848 6,076 6,179 6,883 7,081 4.88% 6 Batu Putih 6,573 6,829 6,945 7,736 7,958 4.88% 7 Cendi Manik 5,418 5,629 5,724 6,377 6,560 4.88% 8 Gili Gede Indah 1,198 1,245 1,266 1,410 1,450 4.81% 9 Taman Baru 4,593 4,773 4,853 5,406 5,561 4.88% Population 58,154 60,423 61,447 68,451 70,410 4.90%

Source: BPS Kecamatan Sekotong Population density in Kecamatan Sekotong in 2017 as a whole has a density of 133 inhabitants/ km². The subdistrict with the highest density is Kelurahan Kedaro with 626 inhabitants/km² and for lowest density, there are 82 inhabitants/km² in Kelurahan Pelanggan.

Table 20 Population Density in Kecamatan Sekotong No Kelurahan Area (km²) Population Population (2017) Density 1 Pelanggan 112.3 9,192 82 2 Sekotong Barat 74.0 10,833 146 3 Buwun Mas 83.2 14,819 178 4 Sekotong 48.0 6,956 145 Tengah 5 Kedaro 11.3 7,081 626 6 Batu Putih 77.1 7,958 103 7 Cendi Manik 63.1 6,560 104 8 Gili Gede Indah 5.1 1,450 286 9 Taman Baru 55.3 5,561 101

Total 529.38 70,410 133

Source: BPS Kecamatan Sekotong and AECOM Analysis 2.1.8. Kecamatan Praya Barat Population and Growth

Population in Kecamatan Praya Barat in 2017 is 75,166 people. Kecamatan Praya Barat is one of the districts that has numerous tourist attractions, such as Selong Belanak. Kecamatan Praya Barat is divided into ten (10) administrations/subdistricts, with the highest population in Kelurahan Batujai with 14,061 people and the lowest population in Kelurahan Tanak Rarang with 1,716 people. CAGR in this district is 1.4% from 2013 to 2017.

Table 21 Population in Kecamatan Praya Barat No Subdistrict 2013 2014 2015 2016 2017 CAGR 1 Selong Belanak 4,543 4,643 4,706 4,910 4,960 2.2% 2 Mekar Sari 4,900 5,008 5,075 6,123 6,185 6.0% 3 Banyu Urip 4,868 4,975 5,042 5,313 5,367 2.4% 4 Kateng 7,184 7,343 7,442 7,617 7,694 1.7% 5 Mangkung 11,175 11,424 11,578 11,610 11,728 1.2%

6 Bondir 7,791 7,964 8,071 7,998 8,079 0.9% 7 Setanggor 3,623 3,704 3,754 3,587 3,623 0.0% 8 Penujak 11,195 11,444 11,599 11,635 11,753 1.2% 9 Batujai 14,061 14,371 14,566 13,917 14,061 0.0% 10 Tanak Rarang 1,719 1,756 1,779 1,699 1,716 -0.1% Total 71,059 72,632 73,612 74,409 75,166 1.4%

Source: BPS Kecamatan Praya Barat Population density in Kecamatan Praya Barat in 2017 as a whole has a density of 492 inhabitants/km² while for the subdistrict with the highest density is in Kelurahan Bondir of 1,185 inhabitants/km² and for the lowest density there is only 273 inhabitants/km² in Kelurahan Selong Belanak.

Table 22 Population Density in Kecamatan Praya Barat No Subdistrict Area (km²) Population (2017) Density 1 Selong Belanak 18.2 4,960 273 2 Mekar Sari 21.45 6,185 288 3 Banyu Urip 21.59 5,367 249 4 Kateng 22.35 7,694 344 5 Mangkung 23.13 11,728 507 6 Bondir 6.82 8,079 1,185 7 Setanggor 6.51 3,623 557 8 Penujak 15.32 11,753 767 9 Batujai 12.13 14,061 1,159 10 Tanak Rarang 5.25 1,716 327

Total 152.75 75,166 492

Source: BPS Kecamatan Praya Barat and AECOM Analysis 2.1.9. Kecamatan Pujut Population and Growth

Population in Kecamatan Pujut in 2017 is 104,598 people. Kecamatan Pujut is also one of the districts that has a famous tourist attraction, namely Mandalika. Kecamatan Pujut is divided into sixteen (16) administrations/subdistricts, with the highest population in Kelurahan Sengkol with 11,112 people and the lowest population in Kelurahan Segele Anyar with 3,128 people. From 2013 to 2017, CAGR in this district is 1.3%.

Table 23 Population in Kecamatan Pujut No Subdistrict 2013 2014 2015 2016 2017 CAGR 1 Tampak 5,195 5,326 5,374 5,526 5,577 1.8% 2 Prabu 3,842 3,938 3,973 3,912 3,947 0.7% 3 Kuta 7,944 8,142 8,216 9,120 9,202 3.7% 4 Rembitan 7,477 7,664 7,733 7,770 7,841 1.2% 5 Sukadana 5,049 5,175 5,221 5,198 5,245 0.9% 6 Mertal 7,609 7,799 7,869 7,526 7,595 -0.1% 7 Pengengat 5,622 5,763 5,814 5,652 5,703 0.3% 8 Teruwai 4,881 5,002 5,047 4,995 5,040 0.8% 9 Gapura 2,644 2,719 2,734 2,850 2,876 2.1% 10 Kawo 9,154 9,384 9,468 9,530 9,616 1.2% 11 Segale Anyar 2,952 3,026 3,053 3,100 3,128 1.4%

12 Sengkol 10,576 10,842 10,941 11,013 11,112 1.2% 13 Pengembur 9,024 9,250 9,334 9,452 9,538 1.4% 14 Ketara 4,146 4,250 4,288 4,392 4,432 1.7% 15 Tanak Awu 8,868 9,092 9,173 9,277 9,362 1.4% 16 Bangket Parak 4,275 4,382 4,421 4,343 4,382 0.6% Total 99,258 101,754 102,659 103,656 104,596 1.3%

Source: BPS Kecamatan Praya Barat Population density in Kecamatan Pujut in 2017 as a whole has a density of 448 inhabitants/km². The subdistrict with the highest density, it is Kelurahan Ketara with 1,245 inhabitants/km², and for the lowest density there is Kelurahan Bangket Perak with 273 inhabitants/km².

Table 24 Population Density in Kecamatan Pujut No Subdistrict Area (km²) Population (2017) Population Density 1 Tampak 34.54 5,577 161 2 Prabu 4.93 3,947 801 3 Kuta 23.66 9,202 389 4 Rembitan 14.75 7,841 532 5 Sukadana 7.83 5,245 670 6 Mertal 14.27 7,595 532 7 Pengengat 11.97 5,703 476 8 Teruwai 29.6 5,040 170 9 Gapura 3.4 2,876 846 10 Kawo 8.36 9,616 1,150 11 Segale Anyar 4.5 3,128 695 12 Sengkol 18.36 11,112 605 13 Pengembur 13.33 9,538 716 14 Ketara 3.56 4,432 1,245 15 Tanak Awu 10.77 9,362 869 16 Bangket Parak 29.72 4,382 147 Total 233.55 104,596 448

Source: BPS Kecamatan Praya Barat and AECOM Analysis 2.1.10. Kecamatan Tanjung Population and Growth Population in Kecamatan Tanjung in 2017 is 48,411 people. Kecamatan Tanjung is one of the districts that has a famous tourist attraction, namely Medane Beach. Kecamatan Tanjung is divided into 7 administrations, with the highest population in Kelurahan Teniga with 10,216 people and the lowest population in Kelurahan Sokong with 2,375 people. Populations of all the subdistricts in Tanjung can be seen in the table below.

Table 25 Population in Kecamatan Tanjung No Subdistrict 2013 2014 2015 2016 2017 1 Sigar Penjalin 8,673 8,796 2 Sokong 2,343 2,375 3 Tanjung 5,398 5,425 Data Missing 4 Tegal Maja 8,134 8,238 5 Jenggala 8,293 8,298 6 Teniga 10,081 10,216

7 Medana 4,996 5,063 Total 0 0 0 47,918 48,411

Source: BPS Kecamatan Tanjung Population density in Kecamatan Tanjung in 2017 as a whole has a density of 419 inhabitants/km². The subdistrict with the highest density is Kelurahan Jenggala, amounting to 1,943 inhabitants/km² and the subdistrict with the lowest density is Kelurahan Sokong with only 165 inhabitants/km².

Table 26 Population Density in Kecamatan Tanjung

No Subdistrict Area (km²) Population (2017) Population Density 1 Sigar Penjalin 14.29 8,796 616 2 Sokong 14.4 2,375 165 3 Tanjung 23.76 5,425 228 4 Tegal Maja 45.9 8,238 179 5 Jenggala 4.27 8,298 1,943 6 Teniga 8.46 10,216 1,208 7 Medana 4.56 5,063 1,110

Total 115.64 48,411 419

Source: BPS Kecamatan Tanjung and AECOM Analysis 2.1.11. Kecamatan Pemenang Population and Growth

Population in Kecamatan Pemenang in 2017 was 36,388 people. Kecamatan Pemenang is one of the districts that has a famous tourist attraction, namely Gili Trawangan, Air, and Meno. Kecamatan Pemenang is divided into 4 administrations, with the highest population located in Kelurahan Pemenang Timur with 13,724 people and the lowest population in Gilli Indah with 7,433 people. Populations of all the subdistricts in Pemenang can be seen in the table below.

Table 27 Population in Kecamatan Pemenang No Subdistrict 2013 2014 2015 2016 2017 1 Pemenang Barat 8,754 8,858 8,959 2 Pemenang Timur 13,601 13,674 13,742 Data Missing 3 Gili Indah 7,302 7,373 7,443 4 Malaka 5,673 5,961 6,244 Total 0 0 35,330 35,866 36,388

Source: BPS Kecamatan Pemenang Population density in Kecamatan Pemenang in 2017 as a whole has a density of 281 inhabitants/ km². The subdistrict with the highest density is in Kelurahan Malaka with 921 inhabitants/km² and the subdistrict with the lowest density is Kelurahan Pemenang Timur with 164 inhabitants/km².

Table 28 Population Density in Kecamatan Pemenang No Subdistrict Area (km²) Population (2017) Population Density 1 Pemenang Barat 12.41 8,959 722 2 Pemenang Timur 83.69 13,742 164 3 Gili Indah 26.66 7,443 279 4 Malaka 6.78 6,244 921 Total 129.54 36,388 281

Source: BPS Kecamatan Pemenang and AECOM Analysis 2.1.12. Kecamatan Jerowaru Population and Growth

Population in Kecamatan Jerowaru in 2017 is 59,880 people. Kecamatan Jerowaru is one of the districts that has a famous tourist attraction, namely Pantai Beach. Kecamatan Jerowaru is divided into 15 administrations, with the highest population in Kelurahan Jerowaru with 10,712 people and the lowest population in Kelurahan Kwan Rundun with 1,228 people. Whereas for CAGR in this district is 2.1% from 2013 to 2017. Populations of all the subdistricts in Jerowaru can be seen in the table below.

Table 29 Population in Kecamatan Jerowaru No Subdistrict 2013 2014 2015 2016 2017 CAGR 1 Batu Nampar 1,860 1,943 1,974 2,006 2,036 2.2% 2 Sukaraja 3,554 3,683 3,743 3,801 3,860 2.1% 3 Jerowaru 9,883 10,223 10,388 10,551 10,712 2.0% 4 Pemongkong 3,906 4,042 4,108 4,171 4,236 2.0% 5 Pandan Wangi 8,100 8,378 8,511 8,646 8,778 2.0% 6 Sekaroh 3,760 3,891 3,954 4,016 4,077 2.0% 7 Wakan 6,778 7,024 7,138 7,249 7,360 2.1% 8 Ekas Buana 2,195 2,270 2,307 2,343 2,379 2.0% 9 Kwan Rundun 1,135 1,171 1,190 1,210 1,228 1.9% 10 Batu Nampar Selatan 1,287 1,334 1,356 1,377 1,398 2.0% 11 Pene 2,040 2,115 2,149 2,183 2,216 2.0% 12 Sukadamai 1,606 1,665 1,692 1,718 1,745 2.0% 13 Sepapan 4,098 4,239 4,208 4,375 4,442 2.0% 14 Seriwe 3,257 3,370 3,425 3,478 3,531 2.0% 15 Paremas 1,737 1,796 1,826 1,854 1,882 2.0% Total 55,196 57,144 57,969 58,978 59,880 2.1%

Source: BPS Kecamatan Jerowaru Population density in Kecamatan Jerowaru in 2017 as a whole has a density of 8,717 inhabitants/km² while the subdistrict with the highest density is Kelurahan Wakan with 1,025 inhabitants/km² and the subdistrict with the lowest density is Kelurahan Sekaroh with 99 inhabitants/km².

Table 30 Population Density in Kelurahan Jerowaru No Subdistrict Area (km²) Population (2017) Population Density 1 Batu Nampar 3.24 2,036 628 2 Sukaraja 4.98 3,860 775 3 Jerowaru 11.83 10,712 905 4 Pemongkong 13.6 4,236 311 5 Pandan Wangi 18.49 8,778 475 6 Sekaroh 41.16 4,077 99 7 Wakan 7.18 7,360 1,025 8 Ekas Buana 7.14 2,379 333 9 Kwan Rundun 4.98 1,228 247 10 Batu Nampar Selatan 2.99 1,398 468 11 Pene 2.97 2,216 746 12 Sukadamai 2.22 1,745 786 13 Sepapan 4.87 4,442 912 14 Seriwe 14.67 3,531 241 15 Paremas 2.46 1,882 765 Total 142.78 59,880 8,717

Source: BPS Kecamatan Jerowaru and AECOM Analysis

2.2. Data Limitation

Limitation of available data has been a practical constraint for our analysis. In this demographics section, data on temporary residents may be useful in establishing the significance of migrant- workers in Lombok’s society; and whether or not it is likely to change once the tourism industry is accelerated. However, data on in-migration and out-migration, number of expatriates, and other types of temporary residents are not available through the NTB Registry Agency or any other official institutions.

3. Macro-Economic

This macroeconomic review will be discussed in the context of a comparison between several provinces in Indonesia. This chapter will also describe the economy into the following sections:

• Identification of different industries within the Lombok regional economy, specifically the industries that may be influenced by the growth of tourism; • Economic analysis through the Location Quotients and identification of basic and non-basic sectors, as well as the Klassen typology, to see how each sector of the economy is holding up against the growth in general; • Economic activity within each city/regency on Lombok island, including analysis on its GRDP and sector configuration for its particular regency; and • Investment levels from both foreign and domestic investors, including descriptions of the promotions and incentives given to the investors.

3.1. Overview Region

Table 31 GRDP 2017 by Region

Kota/ Lombok NTB NTT Bali Bangka Sumut DIY Belitung Kabupaten

Area (km²) 4,738.65 20,153.15 47,931.54 5,636.66 16,424.23 32,762.45 3,185.00

GRDP at 51,102,167 94,644,993 62,788,077 144,964,204 50,007,751 487,531,230 92,302,022 Constant Prices

GRDP 6.86% 5.82% 5.16% 5.59% 4.51% 5.12% 5.26% Growth

Top 3 GRDP Agriculture, Agriculture, Agriculture, Agriculture, Accommodation and Contributors Forestry, and Forestry, and Forestry, and Forestry, and Manufacturing F&B Services Manufacturing Fishery Fishery Fishery Fishery (22.7%) (12.9%) (20,3%) (20.5%) (22.1%) (27.6%) (24.9%)

Agriculture, Agriculture, Wholesale and Mining and Govt. Information and Forestry, and Forestry, and Manufacturing Retail; Motor Quarrying Administration, Communication Fishery Fishery Vehicle Repair Defence, and Social (19.0%) (20.7%) (11.1%) (15.1%) Security (12.6%) (13,7%) (18,2%)

Wholesale and Wholesale and Wholesale and Wholesale and Construction Retail; Motor Retail; Motor Construction Retail; Motor Retail; Motor Construction Vehicle Repair Vehicle Repair Vehicle Repair (12.2%) Vehicle Repair (9.6%) (9.6%) (12.8%) (11.5%) (14.5%) (17.5%)

GRDP per 19.68 23.46 17.24 50.71 48.90 47.96 31.99 Capita

In terms of macroeconomics, NTB recorded a Gross Regional Domestic Product (GRDP) below the current market price of IDR 94.6 trillion in 2017. The table above provides a summary of the macroeconomic profiles of Lombok and NTB relative to five other selected tourist destination provinces in Indonesia, namely Bangka Belitung, NTT, D.I. Yogyakarta, Bali and North Sumatra. Although, this figure is in third place behind North Sumatra and Bali, it is still much smaller than Sumatra North of IDR 487.5 trillion in 2017 as clearly illustrated by the picture above. Therefore, it is very encouraging to see the highest NTB Real GRDP growth compared to other provinces at 5.8% in 2017.

As shown above, the top three NTB contributors to the GRDP are the Agriculture, Forestry and Fishery, Mining and Quarrying, and the Wholesale and Retail; Motor Vehicle Repair industries. Therefore, this shows how NTB is still economically good in the primary sector with a supportive domestic market as reflected in the large wholesale and retail industries. Although the NTB Long Term Development Plan (RPJPD) states that the province aims to stay away from the primary sector by 2025, it is not always a negative factor for the province's tourism aspirations because the Agriculture, Forestry and Fishery industry can potentially provide strong support for nature-based tourism, or often referred to as ecotourism, which is in line with Lombok's idea of the island's future tourism market. 3.2. Lombok Regional Economy

This section will review the Lombok Regional economy in further depth, with each sub-section describing the current state of the top 5 sectors that contribute to the region’s GRDP, which are the following:

• Agricultural sector mainly covered by the different crops and fruits that are the most popular to be produced on the island; • Fisheries sector, which Lombok has comprised mainly of • Food processing sector, identifying which regency produces the most food; • Industry sector, introducing the different sectors of the industry in Lombok, as well as its proprotion of contribution into the economy; • And finally, the services sector, which describes the current state of the different service industries that contribute to Lombok’s economic activity. The table below illustrates the total GRDP of Lombok in 2010-2017 as an aggregate of the 5 cities/regencies which has consistently showed an annual growth of above 6%. GRDP at current prices of Lombok in 2017 reached IDR 68.3 trillion. In nominal terms, this GRDP is increased by IDR 6.9 trillion compared to 2016 which reached IDR 61.4 trillion. The increase in GRDP value is influenced by increased production in all categories and inflation (Bank Indonesia, 2018). Based on the 2010 constant market prices, GRDP also increased from IDR 51.1 trillion in 2016 to IDR 47.8 trillion in 2017. This showed that during 2017 Lombok experiencing economic growth of about 6.86%, significantly higher than the previous year.

Table 32 GRDP by Lombok

Indicator Unit 2010 2011 2012 2013 2014 2015 2016 2017

GRDP at Current Prices IDR Million 33,444,646 36,658,318 40,048,409 43,848,726 49,549,626 55,985,623 61,437,391 68,369,107

GRDP at Constant Prices IDR Million 33,444,646 35,547,220 37,691,003 39,981,562 42,406,069 45,098,380 47,822,637 51,102,167

GRDP Growth % 6.29% 6.03% 6.08% 6.06% 6.35% 6.04% 6.86%

GRDP per Capita IDR Million 10.55 11.47 12.40 13.46 14.78 16.49 17.89 19.68

Source: BPS NTB Province and AECOM Analysis One indicator of the level of prosperity of the population in a region/area can be seen from the value of GRDP per capita, which is the quotient between added value generated by all economic activities by the population (Bank Indonesia, 2018).

Therefore, the size of the population will affect the value of GRDP per capita, while the size of the value of GRDP is highly dependent on natural resources and factors of production that are in the area. GRDP per capita at current prices shows the value of GRDP per head or per one resident. Value of GRDP per capita Lombok at current market prices since 2010 to 2017 continues to increase. In 2010 GRDP per capita stood at IDR 10.55 million, which nominally continued to rise until the year 2017 reached IDR 19.68 million (see Table 32).

Figure 14 GRDP and GRDP Growth by Regional

20,000,000 7.0% 18,000,000 6.8% 16,000,000 6.6% 14,000,000 6.4% 12,000,000 6.2% 10,000,000 6.0% 8,000,000 5.8% 6,000,000 5.6% 4,000,000 5.4% 2,000,000 5.2% 0 5.0% 2010 2011 2012 2013 2014 2015 2016 2017

Mataram Lombok Barat Lombok Tengah Lombok Utara Lombok Timur Lombok GRDP Growth

The figure above shows aggregated GRDP data from the five cities/regencies in Lombok. Kabupaten Lombok Timur is the largest contributor to GRDP with IDR 17.6 trillion, while Kabupaten Lombok Utara has the lowest GRDP with IDR 4.3 trillion. Between 2012 and 2016, annual GRDP growth rate was floating around the 6.3% level. However, it experienced a significant leap in 2017 where it reached 6.8%, which is promising in terms of Lombok’s economic growth. 2012 saw a decline in the GRDP growth rate from 6.3% to 6.1% due to it being a political year where the election of the Regional Head of the NTB Province was being held.

Figure 15 Lombok GRDP Contributors by Industry

Agriculture, Forestry, and Fishery

Mining and Quarrying Agriculture, Forestry, and Fishery Manufacturing 20% Gas and Electricity Supply

Water Supply, Waste Management, and 6.87% Recycling Construction

Wholesale and Retail; Motor Vehicle Repair

Transport and Storage

Accommodation and F&B Services

Information and Communication

Accommodation and F&B Services Finance and Insurance Services 3% Real Estate 9.90% Construction Business Services 11% Govt. Administration, Defence, and Social Security Education Services Wholesale and Retail; Motor Vehicle Repair 15% Health Services and Sosial Activities

Other Services

Source: BPS NTB Province and AECOM Analysis The diagram above illustrates the different industries’ contribution to the Regional Lombok GRDP in 2017 current prices. The top 3 industries in Lombok are Agriculture, Forestry, and Fishery (20%), Wholesale and Retail; Motor Vehicle Repair (15%), and Construction (11%). The Agricultural sector is still the leading sector in Lombok with a contribution of 20% towards the economy as Lombok still has an abundance of productive land to provide as the community's source of income. For the purpose of this study, it is important to note that the Accommodation and F&B sector have only contributed 3% to Lombok’s GRDP and ranks 11th out of 17 sectors despite the island being a relatively well-known tourism destination in Indonesia. This also comes inspite of the recent major developments of Kuta Mandalika in Kabupaten Lombok Tengah. In comparison, based on data from the Central Bureau of Statistics, the Accommodation and F&B Services industry in Bali accounts for 23% of the total GRDP in 2016. However, with the continued development of tourism in Lombok, this Accommodation and F&B industry’s contribution is expected to rise in the future to accommodate the expected increase in number of visitors.

Figure 16 Lombok Selected Industries Growth

12,000,000

Agriculture, Forestry, and 10,000,000 Fishery

Wholesale and Retail; Motor Vehicle Repair 8,000,000 Construction

6,000,000 Transport and Storage

Govt. Administration, 4,000,000 Defence, and Social Security Education Services

2,000,000 Accommodation and F&B Services

- 2010 2011 2012 2013 2014 2015 2016 2017

Source: BPS NTB Province and AECOM Analysis The chart above shows the growth of the top 6 sectors in the Lombok Region with the addition of the Accommodation sector. The Accommodation sector has a Compound Annual Growth Rate (CAGR) of 7.8%. Although income from the Accommodation sector is not as large as other sectors, the average growth in the sector is the highest, showing the largest CAGR. Due to the earthquakes that hit Lombok in 2018, a significant increase in the Accommodation sector, however, may be unlikely for that year. The Agricultural sector has the highest opinion value, only having a 4.0% CAGR is indeed not a sector that has the lowest CAGR compared to the sector found in Figure 16161413. 3.2.1. Lombok Agricultural Production Overview

From an economic standpoint, agriculture and horticulture is seen as a source of income. The Statistical Bureau notes that the sub-sector contributes IDR 3.24 trillion in 2016, an increase from IDR 2.92 trillion in the previous year. Agriculture is a main source of income for 501 of the 598 subdistricts and villages in the island of Lombok. The main agricultural data collected consists of harvested area and production.

Figure 17 Harvest Area and Production of Rice Grown in Lombok

1,500,000

1,200,000

900,000

600,000

300,000

0 Wetland Dry Land

Harvest Area (ha) Production (Ton)

Source: BPS NTB Province and AECOM Analysis Rice produced in the island of Lombok is grown in wetland and dryland. While wetland-grown rice is produced in Mataram and all the regencies, dryland-grown rice is produced only in the regencies. From the figure above, there is higher harvest area and production of wetland-grown rice as compared to those of dryland. Due to the limited availability of data, Figure 171715 utlizes data collected from 2015.

Figure 19 Harvest Area and Production of Food Crops Grown in Lombok

225,000

150,000

75,000

0 Maize Soybeans Peanuts Mung Beans Cassava Sweet Potato

Harvest Area (ha) Production (ton)

Source : BPS NTB Province and AECOM Analysis The graph above utlizes data collected from 2015 due to the limited availability of data. From the graph above, it is evident that there is a relatively higher production of maize as compared to other crops in the island of Lombok. It is worth noting that crops of higher physical density, such as sweet potato, cassava and maize, have a higher production to harvest area ratio compared to those of lower physical density (soybeans, peanuts and mung beans). The graphs below utlizes data collected from 2016 due to the limited availability of data. It is evident that there is a relatively higher production of bird’s eye chillies in terms of productivity and harvest area as compared to other crops.

Figure 21 Production of Vegetables Grown in Lombok

Productivity (Ton) 100000

75000

50000

25000

Beans

Shallots

Spinach

Eggplant Potatoes

Cabbage

Tomatoes

Cucumber

Chili Pepper

WaterSpinach

Bird'sEye Chilli ChineseCabbage

Source : BPS NTB Province and AECOM Analysis

Figure 22 Harvest Area of Vegetables Grown in Lombok

Harvest Area (ha)

7000

5250

3500

1750

Beans

Shallots

Spinach

Chinese

Eggplant Potatoes

Cabbage Cabbage

Tomatoes

Cucumber

Chili Pepper

WaterSpinach Bird'sEye Chilli

Source : BPS NTB Province and AECOM Analysis

Due to the limited availability of data, data concerning the production of fruits in Lombok is limited to the harvest area as shown in the graph below. It is evident that mangoes are the most produced fruit in Lombok.

Figure 23 Harvest Area of Fruits in Lombok

Harvest Area (ha)

62500

50000

37500

25000

12500

0 Mango Papaya Sapodilla Guava Rambutan Pineapple Durian Source : BPS NTB Province and AECOM Analysis Due to the limited availability of data, data concerning the production of fruits in Lombok is limited to the year 2016. From the harvest area and production tables below, it is evident that coconuts are Lombok’s most produced crop.

Figure 24 Harvest Area of Crops in Lombok

Harvest Area (ha)

50000

37500

25000

12500

Clove

Kapok

Cocoa

Coffee

Vanilla

Pepper

Ricinus

Virginia

Cashew

Coconut

Tobacco Tobacco

Tamarind CandleNut Areca Palm Source : BPS NTB Province and AECOM Analysis

Figure 25 Production of Crops in Lombok

Production (Ton)

50000

37500

25000

12500

Clove

Kapok

Cocoa

Coffee

Vanilla

Pepper

Ricinus

Virgnia

Cashew

Coconut

Tobacco Tobacco

Tamarind

CandleNut Areca Palm

Source : BPS NTB Province and AECOM Analysis

The agriculture sector employs the most workers compared to all other industries in the Lombok region. This indicates that the island is still heavily reliant on the primary sector, as well as having more workers in the self-employed and/or part-time employment. This is likely due to the limited skill set that requires to work for a farm, as well as the island’s high levels of soil fertility. Employment themes are further discussed in Section 4.1 Livelihood. 3.2.2. Lombok Fisheries Overview

Fishery statistics are secondary data obtained from the Directorate General of Caught Fisheries and the Directorate General of Agriculture. Fisheries in Indonesia are classified into caught and cultivated fisheries. While caught fishery is defined as the business activities in which fish or other marine biota is captured and collected, cultivated fishery is the business activity in maintaining, raising, and/or breeding the fish or other aquatic biota as well as harvesting the results in a controlled environment. Fishery production in 2017 amounted to 1,435,998.54 tonnes, comprising of 236,111.56 tonnes from inland fisheries and 1,199,886.98 tonnes from marine water fisheries. Figure 26 Inland and Marine Water Fisheries Inland Fisheries Marine Water Fisheries

16%

84%

Source : BPS NTB Province and AECOM Analysis 3.2.3. Lombok Food Processing Overview

The Food and Beverage industry produces food and drink products, including the processing and preservation of meat, fish, fruits, vegetables, oil and fats, milk and dairy foods, and grinding grain.

The table below presents the number of villages or subdistricts with food processing industries. It is evident that Kabupaten Lombok Timur has the highest number of villages/subdistricts.

Figure 27 Number of Villages/Subdistricts with Food Processing Industry

Villages/Subdistricts

120

0 Lombok Barat Lombok Tengah Lombok Timur Lombok Utara Kota Mataram Source : BPS NTB Province and AECOM Analysis 3.2.4. Lombok Commercial Enterprise Overview

Commercial enterprises in Lombok can be classified into micro-small scale, medium scale and large scale enterprises. Lombok’s commercial enterprises are composed of chiefly micro-small- scale enterprises. While medium scale enterprises make for a small proportion of enterprises in all the regencies and cities in Lombok, there is a relatively considerable proportion of medium scale industries in Kabupaten Lombok Timur. Large scale enterprises by far make up for the least number of commercial enterprises in Lombok, only being found in Kabupaten Lombok Barat and Kota Mataram. Figure 28 Classification of Enterprises by Scale in Lombok

Micro-Small Scale Medium Scale Large Scale

160

120

0 Lombok Barat Lombok Tengah Lombok Timur Lombok Utara Kota Mataram

Source : BPS NTB Province and AECOM Analysis

3.2.5. Lombok Manufacturing Overview

Figure 29 Proportion of Industries in Lombok

Textile and Garment , 1%

Printing and Media Reproduction , 3% Tobacco, 18% Wood (excl. Furniture), 1%

Nonmental Food and Mining, 3% Beverage, 73% Furniture Industry, 1%

Source: BPS NTB Province and AECOM Analysis Data concerning gross value added across various industries in Lombok for year 2015 is used to represent the proportion of industries in the island. The Food and Beverage industry accounts for 73% of Lombok’s industrial value, while the Tobacco industry accounts for 18%. Industries such as the Textile and Garment industry, Wood industry, Printing and Media Reproduction industry, Non-metal Mining industry and Furniture industry each account for 3% or less of Lombok’s overall industrial value. Tourism affects manufacturing through different channels. The first channel would be affecting the other sectors through general waging and pricing. The second channel is through the local sale of economic activity in services production and traded goods production, which may impact the manufacturing productivity through local within and cross-sector productivity spillovers. 3.2.6. Lombok Services Overview

Figure 30 Service Industry in Lombok

4,500,000 14.0%

4,000,000 12.0% 3,500,000 10.0% 3,000,000

2,500,000 8.0%

2,000,000 6.0% 1,500,000 4.0% 1,000,000 2.0% 500,000

0 0.0%

GRDP (Current Prices) Overall GRDP Growth Rate Selected Industry GRDP Growth Rate

Source : BPS NTB Province and AECOM Analysis The Services industry in Lombok is compromised of the Accommodation and F&B services, Informationa and Communication services, Finance and Insurance services, Business services, Education services, Health and Social services, as well as other services offered on the island. In terms of absolute values, Education Services contribute the most to the economy with almost IDR 4,000 trillion out of the IDR 68,000 trillion overall GRDP. This is an encouraging figure since it shows how Lombok’s education sector is playing a significant role in the overall economy, which implies that the island’s economic growth is being paired by a growth in skilled labor force. This is followed by the Finance and Insurance Services (IDR 3,100 trillion) and Accommodation and F&B Services (IDR 2,300 trillion). The table above shows the different contributions made by different categories of the Services industry towards Lombok’s Gross Regional Domestic Product (GRDP) in 2017. In relative terms, Lombok’s services industry is showing promising figures. The green line above shows the average annual GRDP growth rate from all of Lombok’s economic sectors between 2010 and 2017. As shown, the CAGR of every single service industry in Lombok is higher than the overall growth rate. The highest of all is the Finance and Insurance Services with an 11.8% annual growth. This industry, therefore, looks to have great potential to Lombok’s economy in the near future due to its high absolute figures and growth rate. This is then followed by the Information and Communication industry (8.8%) which is unsurprising due to the rapid development of this particular industry in Indonesia (10% nationwide). The Accommodation and F&B Services come third with 7.6% annual growth rate, which is another encouraging figure for Lombok’s tourism industry. 3.2.7. Economic Analysis

This section will analyze the different economic sectors in the Lombok economy to see the potential development growth of each sector. The first analysis determines the basic sectors (superior

sectors) and non-basic sectors. The following analysis will be the Klassen typology, describing the stages the different economic sectors are in. Tourism is an activity that has a cross-scale business relationship. Not only does it create jobs in the tertiary sector, tourism also encourages growth within the primary and secondary sectors of industry. The development of tourism activities will move the layers of the business chains involved so that it will create a multiplier effect that will provide significant economic benefits for all parties involved in the tourism business chain. The multi-economic impact of tourism will reach direct impacts, indirect impacts, and associated impacts that are generally associated with small and medium scale businesses and businesses in the upstream sector, such as agriculture, plantations, and livestock (Ashley, Roe and Goodwin (2001)). It is important that the attraction of the tourism sector stretches to remote areas because three- quarters of the poor population still live in those areas. There is an opportunity to support traditional activities such as agriculture and handicrafts through tourism. The fact that tourism is an industry that is labor-intensive can provide jobs for women and teenagers. In addition, putting aside economic factors, tourism can also provide non-material benefits such as pride to the local culture. 3.2.7.1. Basic and Non-Basic Sector (Location Quotient)

In this section the basic and non-basic sectors will be shown on the existing industries in the Lombok Regional area and five other districts/cities regional potential according to Location Quotients. Location Quotients is used to view the basic and non-basic sectors. If a sector has a Location Quotients number larger than one (>1) then the sector is a basic sector, whereas a sector that has a Location Quotients number less than one (<1), then the sector is a non-basic sector. A sector is said to be the basic sector indicating that the sector is a superior/potential sector, which has the potential to export. On the other hand, the non-basic sector is a non-superior sector and has no potential for exports. (Arsyad ((1999:140-141)) Measuring economic potential in an area based on data can use the theoretical approach of the Economic Base Analysis as developed by Robert Murrah Haig for the Regional Plan of New York In 1928. This theory is based on the development of the role of the economic sector, both within the region and outside the region towards the economic growth of the region. The method is then grouped into three sectors, namely the leading sector, potential sector, and non-leading sector. The basic concept of economic base lies in the assumption that the economic growth rate of a region is determined by the growth of exports from the region that can generate income from outside the region. Sectors with good export performance and rapid growth are categorized as basic activities/sectors (leading sectors). In contrast, the business category that does not have high export performance can be categorized as a non-basic sector. Based on Lombok GRDP data and NTB Province GRDP at 2010 constant prices for 2010-2017, calculations can be made using the Location Quotient (LQ) method to obtain comparative advantages of cities and districts in Lombok compared to the provincial economy. In the same way as for the economy of NTB Province, basic or non-basic sectors or activities will be known.

Lombok Region

Table 33 Lombok Location Quotients Analysis

Year No Sector Average 2010 2011 2012 2013 2014 2015 2016 2017 1 Agriculture, Forestry, and Fishery 1.12 1.01 0.93 0.92 0.90 1.01 1.00 0.93 Non-Basic 2 Mining and Quarrying 0.14 0.19 0.26 0.26 0.27 0.16 0.17 0.21 Non-Basic 3 Manufacturing 1.79 1.63 1.52 1.50 1.49 1.72 1.70 1.59 Basic 4 Gas and Electricity Supply 1.42 1.25 1.15 1.08 1.07 1.27 1.25 1.18 Basic Water Supply, Waste Management, 5 1.72 1.57 1.48 1.48 1.47 1.70 1.72 1.61 Basic and Recycling 6 Construction 1.40 1.27 1.20 1.21 1.20 1.38 1.37 1.28 Basic Wholesale and Retail; Motor 7 1.30 1.18 1.10 1.10 1.09 1.26 1.26 1.18 Basic Vehicle Repair 8 Transport and Storage 1.49 1.34 1.25 1.26 1.24 1.41 1.42 1.33 Basic 9 Accommodation and F&B Services 1.69 1.52 1.42 1.40 1.40 1.60 1.59 1.49 Basic 10 Information and Communication 1.69 1.53 1.42 1.42 1.41 1.62 1.62 1.52 Basic 11 Finance and Insurance Services 1.43 1.32 1.23 1.24 1.23 1.42 1.41 1.34 Basic 12 Real Estate 1.46 1.31 1.23 1.22 1.22 1.41 1.42 1.34 Basic 13 Business Services 1.34 1.22 1.14 1.14 1.13 1.31 1.31 1.24 Basic Govt. Administration, Defence, and 14 1.32 1.21 1.14 1.14 1.12 1.29 1.28 1.19 Basic Social Security 15 Education Services 1.43 1.28 1.22 1.22 1.21 1.39 1.38 1.29 Basic Health Services and Social 16 1.61 1.46 1.38 1.38 1.38 1.58 1.59 1.48 Basic Activities 17 Other Services 1.55 1.39 1.33 1.32 1.31 1.51 1.52 1.42 Basic Source: BPS NTB Province and AECOM Analysis Based on Table , there are 15 basic sectors and the top 3 sectors with the largest average score with 1.6 being the Water Supply, Waste Management, and Recycling sector because Lombok's geography has a beach and mountain area. The Water Supply, Waste Management, and Recycling sector can potentially expand beyond Lombok. Following this, the Manufacturing sector has an average score of 1.59 and the Information and Communication sector has an average score of 1.52. The Accommodation and F&B Services sector is not included in the top 3 but is a basic category with an average score of 1.49, which means that accommodation has the potential for economic development not only within Lombok but outside Lombok as well. Kota Mataram

Table 34 Kota Mataram Location Quotients Analysis

Year Average No Sector 2010 2011 2012 2013 2014 2015 2016 2017 1 Agriculture, Forestry, and Fishery 0.22 0.20 0.19 0.19 0.18 0.19 0.18 0.17 Non-Basic 2 Mining and Quarrying 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Non-Basic 3 Manufacturing 2.28 2.18 2.17 2.13 2.12 2.45 2.26 2.29 Basic 4 Gas and Electricity Supply 1.68 1.50 1.46 1.35 1.32 1.54 1.39 1.39 Basic Water Supply, Waste 5 2.40 2.30 2.36 2.32 2.29 2.63 2.40 2.40 Basic Management, and Recycling 6 Construction 1.15 1.09 1.13 1.13 1.12 1.28 1.17 1.17 Basic

Wholesale and Retail; Motor 7 1.53 1.44 1.48 1.48 1.46 1.68 1.54 1.55 Basic Vehicle Repair 8 Transport and Storage 3.09 2.19 0.89 0.87 0.85 0.97 0.92 0.94 Basic 9 Accommodation and F&B Services 0.85 0.80 0.81 0.81 0.81 0.93 0.85 0.91 Non-Basic 10 Information and Communication 3.55 3.33 3.28 3.23 3.16 3.58 3.27 3.27 Basic 11 Finance and Insurance Services 2.95 2.89 2.94 2.91 2.86 3.28 3.01 3.07 Basic 12 Real Estate 1.63 1.53 1.57 1.57 1.58 1.82 1.69 1.72 Basic 13 Business Services 2.53 2.41 2.44 2.44 2.41 2.77 2.57 2.61 Basic Govt. Administration, Defence, and 14 1.48 1.38 1.38 1.35 1.32 1.50 1.37 1.37 Basic Social Security 15 Education Services 1.76 1.65 1.73 1.73 1.73 1.98 1.81 1.83 Basic Health Services and Social 16 2.57 2.40 2.46 2.42 2.40 2.76 2.54 2.56 Basic Activities

17 Other Services 2.41 2.25 2.35 2.31 2.28 2.64 2.41 2.42 Basic

Source: BPS Kota Mataram and AECOM Analysis The table above shows the basic or non-basic sectors in Kota Mataram, after the results of the calculation of analysis from 17 sectors. There are 4 sectors which are non-basic sectors including the Agriculture, Forestry, and Fishery sector, Mining and Quarrying sector, Transport and Storage sector, Accommodation and F&B Services sector. This shows that the role of the non-basic sector only supports local industries and there is little the potential to develop outside Kota Mataram. There are 14 basic sectors in Kota Mataram, the highest sector being the Information and Communication sectors, Finance and Insurance sectors, and Other Services and Business Services sectors. This means that the industrial sector is the basis of economic activity to produce goods that can be exported to other regions and to bring economic benefits out of Kota Mataram. Kabupaten Lombok Barat

Table 35 Kabupaten Lombok Barat Location Quotients Analysis

Year No Sectors Average 2010 2011 2012 2013 2014 2015 2016 2017 1 Agriculture, Forestry, and Fishery 1.09 0.98 0.91 0.91 0.89 1.01 1.00 0.93 Non-Basic 2 Mining and Quarrying 0.23 0.31 0.42 0.42 0.44 0.26 0.27 0.33 Non-Basic 3 Manufacturing 1.19 1.10 1.03 1.02 1.02 1.19 1.20 1.13 Basic 4 Gas and Electricity Supply 1.43 1.30 1.20 1.14 1.14 1.35 1.33 1.25 Basic Water Supply, Waste Management, 5 1.56 1.41 1.33 1.33 1.32 1.52 1.57 1.44 Basic and Recycling 6 Construction 1.59 1.45 1.36 1.37 1.37 1.57 1.56 1.45 Basic Wholesale and Retail; Motor Vehicle 7 1.18 1.06 0.98 0.97 0.96 1.09 1.09 1.01 Basic Repair 8 Transport and Storage 1.63 1.46 1.36 1.35 1.35 1.56 1.52 1.47 Basic 9 Accommodation and F&B Services 4.34 3.92 3.67 3.67 3.65 4.12 4.11 3.83 Basic 10 Information and Communication 1.25 1.12 1.05 1.06 1.05 1.21 1.22 1.14 Basic 11 Finance and Insurance Services 1.05 0.94 0.89 0.88 0.87 0.99 0.98 0.95 Non-Basic 12 Real Estate 1.30 1.17 1.09 1.08 1.07 1.22 1.23 1.17 Basic 13 Business Services 0.76 0.69 0.63 0.62 0.62 0.71 0.70 0.65 Non-Basic Govt. Administration, Defence, and 14 1.24 1.14 1.08 1.08 1.07 1.22 1.22 1.13 Basic Social Security 15 Education Services 1.27 1.14 1.07 1.07 1.06 1.21 1.21 1.13 Basic

16 Health Services and Social Activities 1.17 1.05 0.99 0.99 0.97 1.12 1.11 1.03 Basic

Year No Sectors Average 2010 2011 2012 2013 2014 2015 2016 2017 17 Other Services 1.39 1.23 1.16 1.15 1.13 1.29 1.30 1.21 Basic Source: BPS Lombok Barat Regency and AECOM Analysis The table above shows the basic or non-basic sectors found in Kabupaten Lombok Barat. There are four sectors included in the non-basic category, including the Agriculture, Forestry and Fisheries sector, the Mining and Wuarryings ector, the Financial Services and Insurance sector, and the Business Services sector. Regarding the role of the non-basic sector, it is smaller in the district compared to the role at the provincial level and economic development will only develop in Kabupaten Lombok Barat. Meanwhile, the three sectors that had the largest average score were the Accommodation and F&B Services sector with an average score of 3.83, followed by the Transport and Storage Sector having an average score of 1.47, and the Construction sector having an average score of 1.45. Relating to the sector in the district is more dominant than the sector at the provincial level and as a guide to the district surplus for the sector's products. Kabupaten Lombok Tengah

Table 36 Kabupaten Lombok Tengah Location Quotients Analysis

Year No Sectors Average 2010 2011 2012 2013 2014 2015 2016 2017 1 Agriculture, Forestry, and Fishery 1.52 1.31 1.11 1.11 1.10 1.26 1.25 1.17 Basic 2 Mining and Quarrying 0.15 0.19 0.24 0.25 0.27 0.16 0.17 0.21 Non-Basic 3 Manufacturing 1.71 1.46 1.23 1.22 1.21 1.39 1.36 1.27 Basic 4 Gas and Electricity Supply 1.21 1.02 0.88 0.82 0.81 0.97 0.96 0.91 Non-Basic Water Supply, Waste Management, 5 1.96 1.71 1.48 1.48 1.46 1.69 1.70 1.60 Basic and Recycling 6 Construction 1.70 1.45 1.25 1.25 1.24 1.43 1.43 1.34 Basic Wholesale and Retail; Motor 7 1.11 0.96 0.82 0.81 0.81 0.92 0.93 0.87 Non-Basic Vehicle Repair 8 Transport and Storage 0.61 1.33 2.37 2.45 2.40 2.71 2.76 2.57 Basic

9 Accommodation and F&B Services 0.77 0.66 0.57 0.56 0.57 0.66 0.66 0.61 Non-Basic

10 Information and Communication 0.98 0.85 0.73 0.73 0.74 0.85 0.86 0.80 Non-Basic 11 Finance and Insurance Services 0.90 0.78 0.62 0.61 0.61 0.69 0.68 0.65 Non-Basic 12 Real Estate 1.53 1.33 1.13 1.12 1.12 1.29 1.30 1.22 Basic 13 Business Services 1.14 0.98 0.82 0.81 0.80 0.92 0.92 0.86 Non-Basic Govt. Administration, Defence, and 14 1.33 1.15 0.99 0.98 0.96 1.11 1.10 1.03 Basic Social Security 15 Education Services 1.42 1.17 1.00 0.97 0.94 1.09 1.09 1.01 Basic Health Services and Social 16 1.64 1.42 1.22 1.21 1.20 1.38 1.38 1.29 Basic Activities 17 Other Services 1.40 1.20 1.04 1.02 1.00 1.16 1.16 1.09 Basic Source: BPS Lombok Tengah Regency and AECOM Analysis The table above shows the basic and non-basic sectors found in Kabupaten Lombok Tengah, of the 17 sectors there are 7 sectors included in the non-basic category, namely Mining and Quarrying sector, Gas and Electricity Supply sector, Wholesale and Retail; Motorized Wehicle Repair sector, Accommodation and F&B Services sector, Information and Communication sector, Financial and Insurance Services sector, and the Business Services sector. This means that the non-basic sector

in Kabupaten Lombok Tengah has the potential for local economic development and does not have the potential for economic development outside Kabupaten Lombok Tengah. For the basic sector there are 10 sectors from the 17 sectors. The top three sectors which have the largest average score are the Transport and Storage sector with an average score of 2.57, followed by the Water Supply, Waste Management, and Recycling sector having an average score average of 1.60, and the Construction sector with an average score of 1.34. This means that the basic sector in Kabupaten Lombok Tengah has development potential in the local economy and has the potential for economic development outside Kabupaten Lombok Tengah. Kabupaten Lombok Utara

Table 37 Kabupaten Lombok Utara Location Quotients Analysis

Year No Sectors Average 2010 2011 2012 2013 2014 2015 2016 2017 1 Agriculture, Forestry, and Fishery 1.80 1.64 1.61 1.52 1.50 1.68 1.68 1.56 Basic 2 Mining and Quarrying 0.13 0.17 0.24 0.23 0.25 0.15 0.15 0.19 Non-Basic 3 Manufacturing 0.34 0.32 0.32 0.31 0.31 0.36 0.37 0.35 Non-Basic 4 Gas and Electricity Supply 1.66 1.47 1.46 1.32 1.33 1.60 1.58 1.50 Basic Water Supply, Waste Management, 5 1.56 1.43 1.47 1.46 1.47 1.75 1.78 1.67 Basic and Recycling 6 Construction 1.05 0.95 0.96 0.93 0.92 1.07 1.07 1.00 Basic Wholesale and Retail; Motor 7 1.24 1.12 1.08 1.02 1.01 1.16 1.17 1.10 Basic Vehicle Repair 8 Transport and Storage 0.93 0.83 0.81 0.76 0.76 0.87 0.89 0.84 Non-Basic

9 Accommodation and F&B Services 3.58 3.28 3.22 3.06 3.09 3.59 3.62 3.41 Basic

10 Information and Communication 1.11 0.99 0.97 0.93 0.90 1.03 1.02 0.96 Non-Basic 11 Finance and Insurance Services 1.14 0.97 0.91 0.83 0.82 0.92 0.86 0.79 Non-Basic 12 Real Estate 1.70 1.50 1.46 1.36 1.36 1.57 1.58 1.49 Basic 13 Business Services 1.80 1.58 1.51 1.42 1.42 1.64 1.64 1.54 Basic Govt. Administration, Defence, and 14 1.16 1.09 1.09 1.05 1.05 1.23 1.23 1.15 Basic Social Security 15 Education Services 1.41 1.26 1.28 1.22 1.21 1.39 1.39 1.30 Basic Health Services and Social 16 0.95 0.87 0.89 0.84 0.84 0.96 0.98 0.91 Non-Basic Activities 17 Other Services 1.19 1.06 1.08 1.02 1.02 1.18 1.18 1.12 Basic Source: BPS Lombok Utara Regency and AECOM Analysis The table above shows the basic or non-basic sectors found in Kabupaten Lombok Utara, there are 6 sectors from 17 sectors which are included in the non-basic category which are the Mining and Quarrying, Manufacturing, Transportation and Storage, Information and Communication, Financial and Insurance Services, and Health Services and Social Activities sectors. This means that the sector can only be developed by local economies in Kabupaten Lombok Utara. Meanwhile, 11 out of 17 sectors were included in the basic category the three basic sectors with the largest average score are the Accommodation and F&B Services sector with an average score of 3.34, followed by the Water Supply, Waste management, and Recycling sector with 1.67, and the Agriculture, Forestry and Fisheries sector with 1.56. The basic sector in Lombok Utara Regency has the potential for development in the local economic sector and has the potential for economic development outside Lombok Utara Regency related to exports because the region will have a good economy if it can export outside the region.

Kabupaten Lombok Timur

Table 38 Kabupaten Lombok Timur Location Quotients Analysis

Year No Sectors Average 2010 2011 2012 2013 2014 2015 2016 2017

1 Agriculture, Forestry, and Fishery 1.46 1.32 1.23 1.23 1.21 1.37 1.36 1.27 Basic

2 Mining and Quarrying 0.20 0.26 0.36 0.28 0.39 0.24 0.25 0.31 Non-Basic 3 Manufacturing 2.24 2.04 1.92 2.13 1.84 2.10 2.05 1.88 Basic 4 Gas and Electricity Supply 1.26 1.11 1.03 0.80 0.97 1.16 1.15 1.08 Basic Water Supply, Waste Management, 5 1.10 0.97 0.89 1.00 0.88 1.02 1.04 0.99 Non-Basic and Recycling 6 Construction 1.36 1.23 1.16 1.18 1.16 1.34 1.36 1.27 Basic Wholesale and Retail; Motor 7 1.34 1.23 1.14 1.16 1.15 1.33 1.33 1.25 Basic Vehicle Repair 8 Transport and Storage 0.74 0.67 0.62 0.65 0.61 0.70 0.70 0.64 Non-Basic

9 Accommodation and F&B Services 0.58 0.52 0.48 0.48 0.47 0.55 0.54 0.50 Non-Basic

10 Information and Communication 1.04 0.94 0.87 0.86 0.86 0.98 1.00 0.94 Non-Basic 11 Finance and Insurance Services 0.85 0.76 0.70 0.66 0.71 0.82 0.83 0.79 Non-Basic 12 Real Estate 1.31 1.18 1.10 1.14 1.08 1.24 1.26 1.19 Basic 13 Business Services 0.76 0.68 0.63 0.66 0.62 0.71 0.71 0.67 Non-Basic Govt. Administration, Defence, and 14 1.29 1.20 1.13 1.34 1.15 1.32 1.33 1.24 Basic Social Security 15 Education Services 1.29 1.16 1.08 1.15 1.10 1.25 1.24 1.16 Basic Health Services and Social 16 1.24 1.14 1.06 1.12 1.07 1.23 1.24 1.16 Basic Activities 17 Other Services 1.10 0.99 0.95 0.97 0.93 1.06 1.09 1.01 Basic Source : BPS Lombok Timur Regency and AECOM Analysis The table above shows the basic and non-basic sectors found in Kabupaten Lombok Timur, there are 7 sectors non-basic category from 17 sectors, the sectors of which are Mining and Quarrying, Water supply, Waste Management, and Recycling, Transportation and Storage, Accommodation and F&B Services, Information and Communication, Financial Services and Insurance, and Business Services. This means that the 7 sectors are only able to develop locally and still import from areas outside of Lombok Timur. Meanwhile, out of 17 sectors there are 10 sectors basic category and the top three sectors have the largest average score, namely the Manufacturing sector has an average score of 1.88, followed by the Agriculture, Forestry, and Fisheries sector having a score average of 1.27, and Wholesale and Retail; Motorized Vehicle Repair has an average score of 1.25. This means that 7 sectors have the potential for development to the outside of Kabupaten Lombok Timur. Conclusion

Table 39 Conclusion Location Quotients Analysis

Sector Type Top 3 Basic Sectors Basic Non-Basic 1 2 3 Lombok 15 2 Water Supply, Waste Manufacturing Information and Management, and Recycling Communication Kota Mataram 14 3 Information and Finance and Insurance Business Services Communication Services Kabupaten Lombok 13 4 Accommodation and F&B Construction Transport and Storage Barat Services

Kabupaten Lombok 10 7 Transport and Storage Water Supply, Waste Construction Tengah Management, and Recycling Kabupaten Lombok 11 6 Accommodation and F&B Water Supply, Waste Agriculture, Forestry, and Utara Services Management, and Fishery Recycling Kabupaten Lombok 10 7 Manufacturing Agriculture, Forestry, and Govt. Administration, Timur Fishery Defence, and Social Security Source: AECOM Analysis From the results of the LQ analysis in Lombok, there are fifteen sectors in the basic sector with the top 3 being the Water, Manufacturing, and Information sectors. Meanwhile, the accommodation sector in Lombok gets the fourth ranking, indicating the accommodation sector has the potential to be more developed because it has contributed quite significantly to the economy of Lombok. While each city and regency vary in the number of basic sectors and non-basic sectors, Kota Mataram has the largest number of basic sectors, with fourteen basic sectors because Kota Mataram is the provincial capital of NTB. The Accommodation sector in Mataram is a non-basic sector because Kota Mataram is a city center that is not suitable for developing the accommodation sector. The smallest number of basic sectors with a total of ten basic sectors is found in Kabupaten Lombok Tengah and Kabupaten Lombok Timur, while for the Accommodation sector in Kabupaten Lombok Tengah and Kabupaten Lombok Timur it is a non-basic sector. However, Kabupaten Lombok Tengah has begun the development of tourism by building Lombok's international airport in an ongoing development called Mandalika. For the Accommodation sector, Kabupaten Lombok Barat and Lombok Timur are the first ones that start the tourism development, hence the development in those two regencies are ahead compared to the others. 3.2.7.2. Klassen Typology

The Klassen Typology analysis tool is used to describe about the pattern and structure of economic growth in each region. Klassen typology essentially divides regions based on two main indicators, namely regional economic growth and regional per capita income. Through this analysis four characteristics of economic growth patterns and structures were obtained, namely: fast-developed and fast-growing areas (high growth and high income), advanced but depressed (high income but low growth), fast developing regions (high growth but income), and relatively lagging regions (low growth and low income) (Kuncoro and Aswandi, 2002: 27-45) and (Radianto, 2003: 479-499). Conversely, a Klassen typology was used to categorize regional economic sectors into four characteristics: developed sector, stagnant sector, developing sector, and underdeveloped sector. The classification expressed by quadrant is shown in the below figure:

Quadrant I Quadrant II Developed Sector Stagnant Sector si > s and ski > sk si < s and ski > sk Quadrant III Quadrant IV Developing Sector Under Developed Sector si > s and ski < sk si < s and ski < sk

Figure 31 GRDP Classification based on Klassen Typology Where: si= growth rate of analyzed regional sector; s= growth rate of referenced regional sector; ski= contribution of analyzed regional sector; sk = contribution of referenced regional sector.

Table 40 Lombok Typology Klasen Analysis

No Sectors NTB Province Lombok Quadrant

Year Growth Contribution Year Growth Contribution Average (s) Average Average (si) Average 2010 2017 2010 2017 (sk) (ski)

1 Agriculture, Forestry, 14,939,022 20,879,657 4.97% 21.74% 7,955,914 10,488,170 3.98% 21.82% 2 and Fishery

2 Mining and Quarrying 20,471,115 19,635,137 -0.51% 24.34% 1,388,577 2,206,015 7.36% 4.25% 3

3 Manufacturing 3,210,934 4,206,655 3.88% 4.50% 2,738,316 3,604,000 3.95% 7.50% 1

4 Gas and Electricity 34,905 78,058 15.45% 0.07% 23,572 49,625 13.82% 0.09% 2 Supply

5 Water Supply, Waste 51,749 72,453 5.00% 0.08% 42,477 62,795 5.98% 0.12% 1 Management, and Recycling

6 Construction 5,715,145 9,054,621 7.30% 8.96% 3,827,633 6,256,029 7.93% 11.93% 1

7 Wholesale and Retail; 7,136,898 12,111,623 8.71% 11.68% 4,418,208 7,692,333 9.26% 14.32% 1 Motor Vehicle Repair

8 Transport and Storage 4,140,342 6,344,726 6.66% 6.36% 2,936,134 4,555,734 6.90% 8.86% 1

9 Accommodation and 988,890 1,663,016 8.52% 1.61% 795,492 1,341,499 8.58% 2.53% 1 F&B Services

10 Information and 1,211,821 2,157,765 9.76% 2.05% 976,177 1,766,331 10.12% 3.24% 1 Communication

11 Finance and Insurance 1,490,068 3,074,943 13.30% 2.77% 1,018,239 2,225,696 14.82% 3.84% 1 Services

12 Real Estate 1,695,622 2,678,341 7.24% 2.65% 1,179,427 1,933,645 7.99% 3.68% 1

13 Business Services 97,949 157,587 7.61% 0.16% 62,713 105,261 8.48% 0.20% 1

14 Govt. Administration, 3,812,957 4,640,841 2.71% 5.13% 2,407,846 2,991,181 3.03% 6.39% 1 Defence, and Social Security

15 Education Services 2,643,366 4,062,120 6.71% 4.07% 1,807,214 2,829,612 7.07% 5.48% 1

16 Health Services and 1,198,736 1,825,595 6.54% 1.84% 919,854 1,463,119 7.38% 2.82% 1 Social Activities

17 Other Services 1,283,208 2,001,855 7.00% 1.99% 946,854 1,531,123 7.71% 2.93% 1

GRDP 70,122,726 94,644,993 4.37% 100.00% 33,444,646 51,102,167 6.60% 100.00% Source: BPS Lombok and AECOM Analysis Table 41 Lombok Typology Klasen Quadrant Analysis Quadrant I Quadrant II 1. Manufacturing 1. Agriculture, Forestry, and Fishery 2. Water Supply, Waste Management, and Recycling 2. Gas and Electricity Supply 3. Construction 4. Wholesale and Retail; Motor Vehicle Repair 5. Transport and Storage 6. Accommodation and F&B Services 7. Information and Communication 8. Finance and Insurance Services 9. Real Estate 10. Business Services 11. Govt. Administration, Defence, and Social Security 12. Education Services 13. Health Services and Social Activities

14. Other Services Quadrant III Quadrant IV 1. Mining and Quarrying -

Source: BPS Lombok and AECOM Analysis

From the table, it can be seen that sectors that can be categorized as advanced and rapidly developing sectors (Quadrant I) are, Manufatruring sector, Water Supply sector, Construction sector, Wholesale sector, Transport sector, Accommodation and F&B sector, Information sector, Finance sector, Real Estate sector, Business sector, Govt. Administration sector, Education sector, Health Services sector, and other service sectors. In the city and regency in Lombok, fourteen sectors have a performance rate of positive economic growth and a greater share of the overall condition of the province. Furthermore, the agricultural and gas sectors according to the Klassen typology are categorized as advanced but depressed sectors (Quadrant II). The agriculture and gas sectors have a GRDP growth value that is lower than the provincial GRDP growth but has a contribution to the Kabupaten GRDP that is greater than the contribution of the sector's value to the provincial GRDP. In other words, the agriculture and gas sector in Lombok can be categorized as a saturated sector. Klassen's typology analysis also found that in this district the only sectors which are categorized as potential sectors or could still be rapidly developing (Quadrant III) is the mining sector. The sector in Quadrant III can be interpreted as a booming sector. Although the market share of this region is relatively smaller than the provincial average. In the context of Klassen's typology, it is also seen that no industry sector in Lombok is classified as a relatively lagging sector (Quadrant IV). 3.2.7.3. Conclusion

Based on both the Klassen Typology and the Location Qoutients analysis, the sectors that have connections to tourism in general have a high potential of growth. Through the LQ analysis, it was found that the Accommodation and F&B sector is a basic sector, meaning that growth can occur in the future and through the Klassen Typology, the Acommodation and F&B sector would

3.3. Lombok Economy per City/Regency

This section discusses the current economic conditions in all five cities/regencies in Lombok. Each city/regency will have a detailed look into the major economic sectors in each regency. The regency with the highest GRDP is Kabupaten Lombok Timur at IDR 17.5 trillion, with Kota Mataram having the second largest GRDP. For every regency except Kota Mataram, the largest contributing economic sector is Agriculture, Forestry, and Fishery, while in Mataram it is Wholesale Retail; Motor Vehicle Repair. The sector most related to tourism (Acommodation and F&B Services) still only contributes a small percentage into the economy and grows at a relatively stable rate in each regency. 3.3.1. Kota Mataram

The table below illustrates the total GRDP of Kota Mataram in Lombok from 2010-2017 and its growth rates within the period. GRDP at current prices of Kota Mataram in 2017 reached IDR 16.53 trillion. In nominal terms, this GRDP is increased by IDR 1.71 trillion compared to 2016 which reached IDR 14.81 trillion.

Based on the 2010 constant market prices, GRDP also increased from IDR 11.52 trillion in 2016 to IDR 12.47 trillion in 2017. This shows that in 2017, Kota Mataram experienced economic growth of about 8.19 percent, higher than the previous year.

Table 42 GRDP by Kota Mataram

Indicator Unit 2010 2011 2012 2013 2014 2015 2016 2017

GRDP at Current Prices IDR Million 8,147,458 8,725,271 9,124,324 10,153,327 11,634,046 13,219,242 14,806,612 16,529,137

GRDP at Constant Prices IDR Million 8,147,458 8,388,999 8,476,037 9,149,725 9,890,462 10,680,347 11,525,278 12,469,460

GRDP Growth % 2.96% 1.04% 7.95% 8.10% 7.99% 7.91% 8.19%

GRDP per Capita IDR Million 20.22 21.66 22.65 25.20 28.88 32.81 36.76 41.03

Source : BPS Kota Mataram and AECOM Analysis Along with its fluctuating GRDP, Kota Mataram GRDP per capita (average output per population) in 2016 also fluctuates around the IDR 36.76 million per capita per annum mark. In 2017, GRDP per capita was recorded at IDR 41.03 million per capita per annum, thus showing a 12% increase. Based on 2010 constant market prices, the value of GRDP of Kota Mataram in 2017 increased. The value of GRDP of Kota Mataram at constant 2010 prices reached IDR 12.47 trillion in 2017; increased from IDR 11.52 trillion in 2016. It shows that during 2017 occurred economic growth of 8.19 percent, higher than the last economic growth which reached 7.91 percent. The position of Mataram as the capital of NTB province and the center of trade certainly has a big impact on the improvement of inter-regional trade in this side of export. Added more with the attraction of trading centers such as malls and wholesalers/retail are widely available in the city of Mataram.

Figure 32 GRDP and GRDP Growth by Kota Mataram

10.00% 20,000,000 7.91% 8.00% 7.95% 8.10% 8.19% 7.99% 15,000,000 6.00% 10,000,000 4.00% 2.96% 5,000,000 2.00% 1.04% 0.00% 0 2010 2011 2012 2013 2014 2015 2016 2017

GRDP at Current Prices GRDP Growth

Source: BPS Kota Mataram and AECOM Analysis The graph above shows GRDP growth based on Kota Mataram. The year 2012 had the lowest GRDP growth rate with 1.04% which may be cause by it being a political year when the Regional Head of NTB Province election was taking place. The figure then sharply increased in 2013 by 7.95% and maintained such level in the following years.

Figure 33 Kota Mataram GRDP Contributors by Industry

Other Services Agriculture, Forestry, and 5% Fishery 4% Health Services and Sosial Manufacturing Activities 9% 4%

Education Services 8% Govt. Administration, Defence, Construction and Social Security 10% 8%

Real Estate Wholesale and Retail; 5% Motor Vehicle Repair 20% Finance and Insurance Services 11%

Information and Communication Transport and Storage 6% Accommodation and F&B 6% Services 2%

Source: BPS Kota Mataram and AECOM Analysis As shown by the pie chart to the above based on current prices, Kota Mataram economy is dominated by the Wholesale and Retail; Motor Vehicle Repair industry, which accounted for 20 percent of its GRDP in 2017. This is the followed by the Finance and Insurance industry with 11 percent and the Construction industry at shared 3rd place for its contribution to the region’s GRDP. The contribution of the Accommodation and F&B sector in Kota Mataram accounted for 2 percent and ranks 13th out of 17 sectors. Kota Mataram is the capital of the NTB province, making high activity in Kota Mataram, especially for business trips, it requires facilities to stay and restaurants, in addition to business trips, there are some tourists in Mataram because of its location near Kabupaten Lombok Utara and Barat.

Figure 34 Kota Mataram Selected Industries Growth

3,000,000

2,500,000 Wholesale and Retail; Motor Vehicle Repair 2,000,000 Construction

1,500,000 Manufacturing

1,000,000 Finance and Insurance Services

500,000

- 2010 2011 2012 2013 2014 2015 2016 2017

Source: BPS NTB Province and AECOM Analysis Figure 343432 shows the growth of GRDP from the top 6 sectors that most contributed to Kota Mataram and the Accommodation sector. The Financial sector had a Compound Annual Growth (CAGR) of 13.4%, demonstrating Kota Mataram’s status as a capital city, resulting in many activities in this sector. The Accommodation sector has a CAGR of 10.8%, meaning that the Accommodation sector continues to grow because of the need for business activities in Mataram,

despite the earthquake in 2018. The city center of Mataram continues to develop due to improvements in treatment from the central government. 3.3.2. Kabupaten Lombok Barat

The table below illustrates the total GRDP of Kabupaten Lombok Barat from 2010 to 2017 with its growth rates within said period. GRDP at current prices of Kabupaten Lombok Barat in 2017 reached IDR 13.9 trillion. In nominal terms, GRDP is increased by IDR 1.3 trillion compared to 2016, which reached IDR 12.6 trillion. Based on the 2010 constant market prices, GRDP also increased from IDR 9.7 trillion in 2016 to IDR 10.4 trillion in 2017. This shows that during 2017, Kabupaten Lombok Barat was experiencing economic growth of about 6.63%, higher than the previous year.

Table 43 GRDP by Kabupaten Lombok Barat

Indicator Unit 2010 2011 2012 2013 2014 2015 2016 2017 GRDP at Current Prices IDR Million 7,011,320 7,664,982 8,325,952 8,987,252 10,131,269 11,451,539 12,639,315 13,961,909 GRDP at Constant 2010 IDR Million 7,011,320 7,435,386 7,827,193 8,238,698 8,708,308 9,264,933 9,790,957 10,440,539 Prices GRDP Growth % 6.05% 5.27% 5.26% 5.70% 6.39% 5.68% 6.63% GRDP per Capita IDR Million 11.69 12.65 13.58 14.49 15.72 17.49 19.00 20.68

Source: BPS Kabupaten Lombok Barat and AECOM Analysis In 2010 GRDP per capita stood at IDR 11.69 million. Nominally, GRDP continued to rise until in 2017 it reached IDR 20.68 million (see Table 43). Based on 2010 constant prices, the value of GRDP of Kabupaten Lombok Barat in 2017 has increased. The value of GRDP of Kabupaten Lombok Barat at constant prices 2010, reached IDR 7.01 trillion. The number increased from IDR 9.79 trillion in 2016. Figure 353533 shows that 2017 had an economic growth of 6.63%, higher than the previous year’s economic growth, which reached 5.68%.

Figure 35 GRDP and GRDP Growth by Kabupaten Lombok Barat

7.00% 6.63% 16,000,000 6.39% 6.00% 6.05% 14,000,000 5.26% 5.70% 5.68% 12,000,000 5.00% 5.27% 10,000,000 4.00% 8,000,000 3.00% 6,000,000 2.00% 4,000,000 1.00% 2,000,000 0.00% 0 2010 2011 2012 2013 2014 2015 2016 2017

GRDP at Current Prices GRDP Growth

Source: BPS Kabupaten Lombok Barat and AECOM Analysis The chart above shows GRDP growth in Kabupaten Lombok Barat. In terms of the GRDP growth rate for 2010-2017, it showed fluctuating growth; in 2012 and 2013 it was 5.27% and 5.26%, and then sharply increased in 2015 to 6.39%, and shows an increase again in 2017 to 6.63%. In 2012 the GRDP growth rate had experienced a decline to 5.27% due to it being a political year.

Figure 36 Lombok Barat GRDP Contributors by Industry

Govt. Administration, Defence, and Social Security 6%

Agriculture, Forestry, and Fishery 20% Mining and Quarrying Accommodation and 6% F&B Services Manufacturing 9% 4% Construction 13% Transport and Storage 10% Wholesale and Retail; Motor Vehicle Repair 13%

Source: BPS Kabupaten Lombok Barat and AECOM Analysis As shown by the pie chart above, Kabupaten Lombok Barat economy is dominated by the Agriculture, Forestry, and Fishery industry which accounted for 20% of its GRDP in 2017. This is then followed by the Construction and Wholesale and Retail; Motor Vehicle Repair industry with 13% each, and the Transport and Storage industry with 10% contribution each to the region’s GRDP. The contribution of Agriculture, Forestry, and Fishery is still the main one because part of the land in Kabupaten Lombok Barat is still agricultural land and the majority of people in Kabupaten Lombok Barat still rely on agriculture as their main income driver. The Accommodation and F&B Services sector in Kabupaten Lombok Barat contributes 9 percent to its economy and is ranked 5th out of 17 sectors. Kabupaten Lombok Barat is the first region to focus on tourism in Lombok, especially in the area of Senggigi. Its beaches, tourism destinations surrounding the beaches, and the development of star-rated hotels in Senggigi may explain why this industry’s share on the total GRDP is largest than the other cities/regencies in Lombok. In fact, the first 5- star hotel in Lombok is located in Senggigi.

Figure 37 Lombok Barat Selected Industries Growth

2,500,000

Agriculture, Forestry, and 2,000,000 Fishery Construction

1,500,000 Wholesale and Retail; Motor Vehicle Repair Transport and Storage 1,000,000 Mining and Quarrying

500,000 Accommodation and F&B Services - 2010 2011 2012 2013 2014 2015 2016 2017

Source: BPS Kabupaten Lombok Barat and AECOM Analysis The chart above shows the top 6 sectors that contribute the most in Kabupaten Lombok Barat. From 2010 until 2017, the Accommodation sector shows the highest CAGR with 7.3%. In fact, the growth of the Accommodation sector continues to increase every year, meaning that the sector

has the potential to develop in Kabupaten Lombok Barat. Before the earthquake occured, annual growth rates have been increasing, but for the next 2 years, it will likely slow down due to many rehabilitation efforts and decreases in tourist visits. 3.3.3. Kabupaten Lombok Tengah

The table below illustrates the total of GRDP from Kabupaten Lombok Tengah in Lombok from 2010-2017 and its growth rates. GRDP at current prices of Kabupaten Lombok Tengah in 2017 reached IDR 15.9 trillion. In nominal terms, this GRDP increased by IDR 1.3 trillion compared to 2016, which reached IDR 14.6 trillion. Based on 2010 constant prices, the value of GRDP of Kabupaten Lombok Tengah in 2017 increased. The value of GRDP of Kabupaten Lombok Tengah at constant prices 2010 was IDR 6.8 trillion in its base year. The number increased to IDR 10.8 trillion in 2016. It shows that in 2017 Lombok Tengah’s economy grew by 6.47%, higher than the previous year’s economic growth at 5.67%.

Table 44 GRDP by Kabupaten Lombok Tengah

Indicator Unit 2010 2011 2012 2013 2014 2015 2016 2017

GRDP at Current IDR Million 6,833,070 7,787,961 9,154,773 10,243,517 11,665,562 13,202,869 14,675,876 15,957,720 Prices

GRDP at Constant IDR Million 6,833,070 7,577,200 8,616,439 9,153,911 9,728,881 10,271,862 10,853,940 11,555,940 Prices

GRDP Growth % 10.89% 13.72% 6.24% 6.28% 5.58% 5.67% 6.47%

GRDP per Capita IDR Million 7.94 9.02 10.46 11.62 12.91 14.46 15.92 17.14

Source: BPS Kabupaten Lombok Tengah and AECOM Analysis GRDP per capita at current prices shows the value of GRDP per head or per one resident. The value of GRDP per capita in Kabupaten Lombok Tengah at current market prices since 2010 to 2017 continues to increase. In 2010 GRDP per capita stood at IDR 7.94 million and continued to rise until 2017, reaching IDR 17.14 million (see Table 44).

Figure 38 GRDP and GRDP Growth by Kabupaten Lombok Tengah

16.00% 18,000,000 14.00% 13.72% 16,000,000 12.00% 14,000,000 12,000,000 10.00% 10.89% 10,000,000 8.00% 6.28% 6.47% 8,000,000 6.00% 6,000,000 6.24% 5.58% 5.67% 4.00% 4,000,000 2.00% 2,000,000 0.00% 0 2010 2011 2012 2013 2014 2015 2016 2017

GRDP at Current Prices GRDP Growth

Source: BPS Kabupaten Lombok Tengah and AECOM Analysis The chart above shows GRDP growth in Kabupaten Lombok Tengah. Based on the data provided by the Central Bureau of Statistics, Lombok Tengah’s GRDP peaked in 2012 with 13.72%, but

then plummeted in 2013 where it was at the lowest GRDP growth rate with 6.24%. From that point on, GRDP growth has maintained at around 5.5% to 6.5% until 2017.

Figure 39 Lombok Tengah GRDP Contributors by Industry

Education Services 4%

Govt. Administration, Defence, and Social Security 6%

Accommodation and F&B Agriculture, Forestry, and Services Fishery 1% 25%

Mining and Quarrying Transport and Storage 4% 21%

Manufacturing 5% Construction 11%

Wholesale and Retail; Motor Vehicle Repair 11%

Source: BPS Kabupaten Lombok Tengah and AECOM Analysis The diagram above illustrates the contribution of the Kabupaten Lombok Tengah GRDP based on industries. The top 3 contributing industries are: Agriculture, Forestry, and Fishery sector with a contribution of 25%, Trasnport and Stroge sector with a contribution of 21%, Wholesale and Retail; Motor Vehicle Repair sector and Construction sector with a contribution of 11% each. For the contribution of the Agricultural sector, it is still the first leading sector in Kabupaten Lombok Tengah because some of the land available in Kabupaten Lombok Tengah is agricultural land, with the availability of land for agriculture making the community's source of income from agricultural products.

However, the Accommodation and F&B sector has only contributed 1% to the total GRDP and is ranked 14th out of 17 sectors. This is because even though tourism in Kabupaten Lombok Tengah has begun to develop, it is not as well known as Lombok Barat and Utara. However, since there is an airport being moved to Kabupaten Lombok Tengah and developing tourism locations such as Mandalika and Selong Belanak, it means that there is tourism potential that will increase the contribution of Accommodation and F&B in the economy of Kabupaten Lombok Tengah.

Figure 404038 shows the top 6 sectors that have the most contribution in Kabupaten Lombok Tengah along with the Accommodation sector. Growth from 2010 to 2017 has continued to increase in value but annual growth rates varies.

The highest CAGR with 34.8% per year is found in the transportation and storage sector because Kabupaten Lombok Tengah is the location of Lombok International Airport. The increase began to be seen from 2011 to 2012 when the airport began operating.

Figure 40 Lombok Tengah Selected Industries Growth

3,500,000

3,000,000 Agriculture, Forestry, and Fishery

2,500,000 Transport and Storage

Construction 2,000,000 Wholesale and Retail; Motor Vehicle Repair 1,500,000 Manufacturing

1,000,000 Govt. Administration, Defence, and Social Security

500,000 Accommodation and F&B Services

- 2010 2011 2012 2013 2014 2015 2016 2017

Source: BPS Kabupaten Lombok Tengah and AECOM Analysis

The Accommodation sector has a CAGR of 7.6%, which is less than the Transportation sector because of the existence of transportation centers in Kabupaten Lombok Tengah. The impact of the airport influences the development of tourist areas around Kabupaten Lombok Tengah such as in Mandalika and Kuta.

3.3.4. Kabupaten Lombok Utara

The table below illustrates the total GRDP and it growth rates in Kabupaten Lombok Utara from 2010 to 2017. GRDP at current prices in 2017 reached IDR 4.3 trillion. In nominal terms, it increased by IDR 0.4 trillion compared to 2016 which reached IDR 3.9 trillion. Based on 2010 constant market prices, the value of GRDP of Kabupaten Lombok Utara in 2017 is increased. The value of GRDP of Kabupaten Lombok Utara at constant prices 2010 reached IDR 2.3 trillion. The number increased from IDR 3.1 trillion in 2016. It shows that during 2017 occurred economic growth of 6.19 percent, higher than the last economic growth which reached 5.25 percent.

Table 45 GRDP by Kabupaten Lombok Utara

Indicator Unit 2010 2011 2012 2013 2014 2015 2016 2017

GRDP at Current Prices IDR Million 2,369,373 2,560,215 2,736,375 2,916,855 3,249,527 3,618,131 3,966,453 4,345,435

GRDP at Constant Prices IDR Million 2,369,373 2,495,979 2,597,798 2,704,665 2,828,842 2,962,781 3,118,278 3,311,328

GRDP Growth % 5.34% 4.08% 4.11% 4.59% 4.73% 5.25% 6.19%

GRDP per Capita IDR Million 11.84 12.67 13.44 14.22 15.46 17.05 18.50 20.07

Source: BPS Kabupaten Lombok Utara and AECOM Analysis

Value of GRDP per capita Kabupaten Lombok Utara at current market prices since 2011 to 2017 continues to increase. In 2010 GRDP per capita stood at IDR 11.84 million. Nominally, it continued to rise until the year 2017 reached IDR 20.07 million (see Table 45).

Figure 41 GRDP and GRDP Growth by Kabupaten Lombok Utara

7.00% 5,000,000 6.19% 4,500,000 6.00% 4,000,000 5.34% 5.00% 5.25% 4.73% 3,500,000 4.08% 4.59% 3,000,000 4.00% 4.11% 2,500,000 3.00% 2,000,000

2.00% 1,500,000 1,000,000 1.00% 500,000 0.00% 0 2010 2011 2012 2013 2014 2015 2016 2017

GRDP at Current Prices GRDP Growth

Source: BPS Kabupaten Lombok Utara and AECOM Analysis The chart above shows GRDP growth in Kabupaten Lombok Utara. In 2012, GRDP growth was at the lowest point of 4.08%, then increased in 2014 to 4.59%, and shows a sharp increase again in 2017 with 6.19%.

Figure 42 Kabupaten Lombok Utara GRDP Contributors by Industry

Govt. Administration, Defence, and Social Security 6%

Agriculture, Forestry, and Fishery 34%

Accommodation and F&B Services 8%

Transport and Storage 5%

Wholesale and Retail; Motor Vehicle Repair Construction 14% 9%

Source: BPS Kabupaten Lombok Utara and AECOM Analysis Based on the pie chart above, it shows the 3 largest contributing sectors in Kabupaten Lombok Utara are Agriculture, Forestry, and Fishery sector with a 34% contribution, Wholesale and Retail Motor Vehicle Repair sector with a 14% contribution and Construction sector with a 9% contribution. Agriculture is the largest contribution with 34 percent, because agricultural land is still widely used for livelihoods, the dominant agricultural products are tobacco and rice.

The F&B and Accommodation Services sector, which contributed 8 percent, came in fourth place from the 17 sectors. Kabupaten Lombok Utara is famous for tourist attractions such as Gili Trawangan, Gili Air and Gili Meno. These islands are more famous than Lombok as a whole and activities on these islands are crowded with foreign tourists. To respond to tourists’ demand for restaurants and accommodation, some local residents made lodging from their homes and opened

small retail facilities and restaurants. Not only do local residents contribute, there are several large restaurants opened by foreigners, based on interviews during a survey of most foreigners who opened businesses to rent a business place for 5 to 10 years. This means that tourism development, especially on Gili Island, makes the Accommodation Services sector a sector that significantly contributes to the economy in Kabupaten Lombok Utara.

Figure 43 Lombok Utara Selected Industries Growth

1,200,000

Agriculture, Forestry, 1,000,000 and Fishery

Wholesale and 800,000 Retail; Motor Vehicle Repair Construction 600,000 Accommodation and F&B Services 400,000 Govt. Administration, Defence, and Social 200,000 Security

- 2010 2011 2012 2013 2014 2015 2016 2017

Source: BPS Kabupaten Lombok Utara and AECOM Analysis The graph above is the top 6 sectors that contribute the most in Kabupaten Lombok Utara. The sector with the highest CAGR is the Accommodation sector with 16%, meaning the growth of the Accommodation sector has the potential to be developed, assisting the economic condition of Kabupaten Lombok Utara, including the three Gili Islands, which are established tourism destinations.

3.3.5. Kabupaten Lombok Timur

GRDP at current prices of Kabupaten Lombok Timur in 2017 reached IDR 17.5 trillion. In nominal terms, this GRDP table is increased by IDR 1.5 trillion compared to 2016 which reached IDR 16 trillion. Based on the 2010 constant prices, GRDP also increased to IDR 13.3 trillion in 2017 from IDR 12.5 trillion in 2016. In 2017 Kabupaten Lombok Timur experienced economic growth of about 6.31 percent, faster than the previous year. The increase of GRDP is purely caused by the increased production of all categories, not influenced by inflation.

Table 46 GRDP by Kabupaten Lombok Timur

Indicator Unit 2010 2011 2012 2013 2014 2015 2016 2017 GRDP at Current Prices IDR Million 9,083,426 9,919,889 10,706,985 11,547,775 12,869,222 14,493,842 16,040,343 17,574,905 GRDP at Constant Prices IDR Million 9,083,426 9,649,656 10,173,536 10,734,563 11,249,576 11,918,457 12,534,185 13,324,900 GRDP Growth % 6.23% 5.43% 5.51% 4.80% 5.95% 5.17% 6.31%

GRDP per Capita IDR Million 8.22 8.88 9.53 10.22 11.15 12.45 13.67 14.85 Source: BPS Kabupaten Lombok Timur and AECOM Analysis One indicator of the level of prosperity of the population in a region/area can be seen from the GRDP per capita. The value of GRDP per capita in Kabupaten Lombok Timur at current market prices since 2011 to 2017 continues to increase. In 2010 GRDP per capita stood at IDR 8.22 million. Nominally, it continued to rise until 2017 reaching IDR 14.85 million (see Table 46).

Figure 44 GRDP and GRDP Growth by Lombok Timur Regency

7.00% 20,000,000 6.31% 6.23% 18,000,000 6.00% 5.95% 5.43% 5.51% 16,000,000 5.17% 5.00% 14,000,000 4.80% 12,000,000 4.00% 10,000,000 3.00% 8,000,000

2.00% 6,000,000 4,000,000 1.00% 2,000,000 0.00% 0 2010 2011 2012 2013 2014 2015 2016 2017

GRDP Growth GRDP at Current Prices

Source: BPS Lombok Timur Regency and AECOM Analysis The graph above shows GRDP growth in Kabupaten Lombok Timur. In terms of the GRDP growth rate for 2010 to 2017, in 2014 GRDP growth rate was at the lowest point with 4.80%, then increased in 2015 to 5.95%, and shows an increase again in 2017 to 6.31%.

Figure 45 Lombok Timur Regency GRDP Contributors by Industry Agriculture, Forestry, and Fishery

Mining and Quarrying

Manufacturing Govt. Administration, Defence, and Social Gas and Electricity Supply Security 7.5% Water Supply, Waste Management, and Recycling Construction Accommodation and F&B Services Wholesale and Retail; Motor Vehicle Repair 1% Agriculture, Forestry, Transport and Storage and Fishery 28% Accommodation and F&B Services

Information and Communication

Finance and Insurance Services

Real Estate Wholesale and Retail; Motor Vehicle Repair Business Services 17% Manufacturing 8% Govt. Administration, Defence, and Social Security Construction Education Services 11% Health Services and Sosial Activities

Other Services

Source: BPS Kabupaten Lombok Timur and AECOM Analysis Based on the pie chart above, the top 3 contributing sectors in Kabupaten Lombok Timur are: Agriculture, Forestry, and Fishery sector with a contribution of 28 percent, Wholesale and Retail; Motor Vehicle Repair sector with a contribution of 17 percent and Construction sector with a

contribution of 11 percent. Agriculture, Forestry, and Fishery sector still dominate because in general Lombok is still dominated by agricultural land and Lombok Timur is the region that has the largest argricultural land area compared to other regions. The Accommodation sector contributed only 1% for Kabupaten Lombok Timur’s economy, ranked 14th out of 17 sectors. This reflects how tourism development in Lombok Timur is not as fast as the other regions. But with the presence of Pink Beach as one of its main tourism attractions, some facilities for tourists are needed, which may help the local economy growth in Kabupaten Lombok Timur.

Figure 46 Kabupaten Lombok Timur Selected Industries Growth

4,000,000

3,500,000 Agriculture, Forestry, and Fishery 3,000,000 Wholesale and Retail; Motor Vehicle Repair 2,500,000 Construction

2,000,000 Manufacturing

Mining and Quarrying 1,500,000

Govt. Administration, 1,000,000 Defence, and Social Security Accommodation and 500,000 F&B Services

- 2010 2011 2012 2013 2014 2015 2016 2017

Source: BPS Kabupaten Lombok Timur and AECOM Analysis The chart above is the top 6 most contributing sectors and the Accommodation sector in Kabupaten Lombok Timur. Even though GRDP increases every year, the growth rates of each sector vary. The sector with the highest CAGR is the Wholesale and Retail; Motor Vehicle Repair sector, with a CAGR of 8.0%. Meanwhile, the CAGR of the Accommodation sector was 6.7%, meaning that the growth of GRDP is stable and has the potential to be developed further in Lombok Timur, especially since Kabupaten Lombok Timur is an underdeveloped area and was not severely affected by the recent earthquakes.

3.4. Lombok Investment Levels

In the analysis of traditional neoclassical theory and endogenous growth theory, foreign investment has a positive role for developing countries. The presence of foreign investment is expected to fill the gap between the supply of savings, foreign exchange reserves, government revenues and managerial expertise in recipient countries with the level of inventory needed to achieve growth and development targets. The existence of differences in the relative number of labor and capital owned between countries causes differences in the rate of return of capital as stated in interest rates. This causes the movement of capital from rich countries to poor countries (Krugman, 2004). A country that has a low value of domestic savings must think harder to increase foreign investment in its country (Syamsudin, 2008). Foreign investment is needed in order to close the foreign exchange gap caused by the deficit in the current account in the balance of payments (Tan, 2014). While the foreign exchange gap is a result of a deficit in the trade balance of goods and services.

The deficit in the current account was closed by capital flows, including domestic investment. Furthermore, it will be elaborated on foreign investment and domestic investment in Lombok to find out the effect of foreign investment and domestic investment on the economy in Lombok. 3.4.1. Domestic and Foreign Direct Investment

Based on the data provided by the NTB Dinas Penanaman Modal dan Pelayanan Terpadu Satu Pintu (DPMPTSP) which is responsible for coordinating investment coming into the province, in 2009 until 2017 Lombok has succeeded in attracting a total investment of IDR 18.6 trillion, consisting of investment domestic of IDR 5.3 trillion (28%) and foreign investment of IDR 13.3 trillion (72%). Domestic investment in 2017 has the highest investment value of IDR 2.2 trillion compared to the previous year and foreign investment in 2015 has the highest investment value of IDR 4.6 trillion. This is because 2014 was a political year and political activities made an impact to the economy in 2015.

Figure 47 Realization Investment by Foreign Direct Investment (FDI) and Domestic Direct Investment (DDI) in Lombok

5,000,000,000,000 4,500,000,000,000 4,000,000,000,000 3,500,000,000,000 3,000,000,000,000 2,500,000,000,000 2,000,000,000,000 1,500,000,000,000 1,000,000,000,000 500,000,000,000 - 2009 2010 2011 2012 2013 2014 2015 2016 2017

DDI FDI

Source: DPMPTS NTB Province & AECOM Analysis Domestic investment data and foreign investment are obtained based on cities and regencies in Lombok in 2017 (as shown in Figure 474745). Domestic investment greatly contributes in 84% of Kabupaten Lombok Barat and 16% in foreign investment in Kota Mataram, meaning that domestic investment has not been evenly distributed to other districts in Lombok. Different from domestic investment, foreign investment is spread in various cities and regencies, including Kabupaten Lombok Barat 34%, Kabupaten Lombok Utara 29%, Kota Mataram 18%, Kabupaten Lombok Tengah 11% and Kabupaten Lombok Timur 8%. Kabupaten Lombok Barat has the largest proportion compared to other regions due to Kabupaten Lombok Barat being the first region developed for the tourism sector, followed by Kabupaten Lombok Utara. Geographically, Kabupaten Lombok Utara is indeed close to Kabupaten Lombok Barat and also consists of 3 very famous islands, Gili Trawangan, Gili Air, Gili Meno.

Figure 48 Contribution Realization Investment by Region in Lombok DDI FDI

Kabupaten Kabupaten Lombok Timur Kota Mataram Kota Mataram Lombok 8% 16% Tengah 18% 11%

Kabupaten Kabupaten Lombok Utara Kabupaten Lombok Barat 29% Lombok Barat 34% 84%

Source: DPMPTS NTB Province & AECOM Analysis

3.4.2. Contribution of Foreign Investments by Country

In 2018, there is data showing foreign investment in Kota Mataram, Kabupaten Lombok Barat, Kabupaten Lombok Tengah, Kabupaten Lombok Utara, and Kabupaten Lombok Timur to the industry sector. According to data from DPMPTS NTB Province, there are 30 countries that currently invest in Lombok and 5 countries interested in investing:

Figure 49 Contribution of Foreign Investment by Country Singapura Join Country Kanada 4% Spanyol Korea Selatan Australia Guensey Italia Hongkong,RRT Jerman Amerika Serikat Ceko French Perancis 16% Inggris Austria British Virgin Irlandia Norwegia Malaysia Singapore Swedia Australia Belgia 3% 58% Hungaria Belanda South Korea Jepang 11% Negara Gabungan Taiwan RR.Tiongkok Tunisia Selandia Baru Slovakia Afrika Selatan India Firlandia Source: DPMPTS NTB Province & AECOM Analysis

The largest foreign investment originates from Singapore with a contribution of 58%, followed by France with a contribution of 16%, South Korea with a contribution of 11%, joint countries with a contribution of 4% contribution, and Australia with a contribution of 3%. 3.4.3. Realization of Foreign Direct Investment (PMA)

Dinas Penanaman Modal dan Pelayanan Terpadu Satu Pintu (DPMPTSP) records the realization of foreign investment from NTB Province data from 2011 to 2017. The industrial sector is divided into 11 sectors but there are 3 sectors that do not get foreign investment, which are the Transportation, Fishery, and Farm sectors (as shown in Table 474747).

Table 47 Realization of Foreign Direct Investment by Sectors

No Sectors FDI 2011 2012 2013 2014 2015 2016 2017 1 Tourism 489,822,662,500 32,264,478,000 146,530,830,000 1,656,532,460,000 2,152,007,880,000 2,109,728,503,100 1,434,680,401,095

2 Transportation n/a n/a n/a n/a n/a n/a n/a 3 Trading 14,920,282,000 47,242,917,000 2,858,000,000 1,856,770,000 20,481,463,200 9,049,859,100 37,916,894,100 4 Agriculture 33,467,805,800 17,376,462,000 n/a n/a n/a 3,188,006,700 n/a 5 Farm 4,009,000,000 3,019,500,000 55,909,100,000 9,456,100,000 27,600,000,000 n/a n/a 6 Forestry n/a n/a n/a n/a n/a n/a n/a 7 Fishery 24,893,292,200 11,047,500,000 9,552,040,000 25,000,000 14,567,238,600 173,244,359,700 63,017,189,000 8 Mining of 644,449,144,000 910,936,872,000 3,119,006,850,000 1,692,304,250,000 5,048,426,648,400 6,582,191,043,600 146,858,016,600 Electric Energy 9 Industrial 32,712,642,000 10,614,186,000 6,300,000,000 44,925,000,000 103,635,736,800 3,537,841,900 12,856,680,000 10 Other Service 114,777,530,000 6,523,335,000 34,687,530,000 1,431,594,940,000 2,284,725,033,000 606,352,402,500 509,754,887,492

Source: DPMPTS NTB Province For the 8 sectors that receive foreign investment from 2011 to 2017, the realization of each year is quite dynamic. The Tourism sector receives the most foreign investment, with almost 65% of all investment going to tourism, which amounts to IDR 1.4 trillion in 2017. This means the Tourism sector in Lombok is able to make foreign investors invest in Lombok.

Figure 50 Contribution Realization of Foreign Investment by Sectors

Other Service 23% Industrial Touirsm 0% Trading Fishery Mining of Electric Energy Mining of Electric Energy 7% Touirsm Industrial Fishery 65% 3% Other Service

Trading 2%

Source: DPMPTS NTBProvince & AECOM Analysis

3.4.3.1. Foreign Investment Promotion and Incentives

Based on interviews with foreign investors from the Lombok Market Analysis and Demand Assessment, there is still little interest in investing into Lombok, as many investors are still not interested in future development of the island. It seems like the foreign investors still consider Bali as the more interesting destination and therefore are willing to establish investment ties in the other tourism location. Following these interviews, more was conducted for investors of the the Indonesian tourism Special Economic Zones (SEZ). These investors have experienced the following fiscal incentives: higher tax incentives and allowance have been given compared to investing in other areas. Tax deductions are also common, however benefits and transparency is still at an inconsequential level, therefore more information is still required. Tax holidays are also given, however does not affect hotels in particular, as these organizations do not make money for several years, therefore a reduction in loss does not change too much. Non-fiscal employment tax breaks are also immaterial, since the majority of staff working in Lombok is only Indonesian. 3.4.4. Realization of Domestic Direct Investment (PMDN)

Dinas Penanaman Modal dan Pelayanan Terpadu Satu Pintu (DPMPTSP) records the realization of domestic investment from NTB Province data from 2011 to 2017, which divides the industrial sector into 11 sectors. Realization in each year is uneven because in 2011 to 2017 there was a non-existent realization, which might be cause by missing data (as shown in Table 48).

Table 48 Realization of Domestic Direct Investment by Sectors

No Sectors DDI 2011 2012 2013 2014 2015 2016 2017 1 Tourism 158,412,925,885 106,072,666,590 136,137,141,609 347,186,424,641 149,700,546,662 n/a 284,646,063,494 2 Transportation 11,742,250,000 n/a 1,331,073,524,709 326,902,295,617 35,000,000,000 36,000,000,000 n/a 3 Trading 3,050,000,000 n/a n/a n/a n/a 63,611,056,331 161,794,526,578 4 Agriculture n/a n/a n/a 30,303,308,878 17,956,327,030 n/a n/a 5 Farm 35,734,926,600 n/a n/a 172,503,143,523 103,852,910,619 177,181,614,095 n/a 6 Forestry n/a n/a n/a 4,000,000,000 11,000,000,000 n/a n/a 7 Fishery 33,079,677,250 n/a 25,397,453,744 12,519,502,900 2,743,817,513 71,632,694,029 n/a 8 Mining of n/a n/a 22,521,695,673 72,051,902,449 3,017,693,106 50,590,008,129 8,258,850,024,366 Electric Energy 9 Industrial 150,600,000,000 n/a 1,663,376,507 322,966,839,368 6,356,441,663 11,213,646,081 125,292,500,000 10 Other Service 25,443,973,318 292,606,494,019 20,384,519,176 62,153,130,325 16,177,263,407 1,606,584,171 244,659,343,543

Source: DPMPTS NTB Province

The biggest domestic investment in 2017 is towards the Electricity Energy Mining sector, which is 91%. The Tourism sector received 3% of all investment, amounting to IDR 284 billion. This data shows that Tourism needs more investment by domestic investors. It also can be seen that Tourism is always included in the realization of domestic investment in each of these quarters, greatly helping the development of tourism in regional Lombok.

Figure 51 Contribution Realization of Domestic Direct Investment by Sectors

Industrial Other Service Touirsm 1% 3% 3% Trading 2%

Touirsm Trading Mining of Electric Energy Industrial Other Service

Mining of Electric Energy 91%

Source: DPMPTS NTB Province & AECOM Analysis

Based on the data analyzed, it can be concluded that investment in Lombok is dominated by domestic investment of 72%, and the largest investment is in Kabupaten Lombok Barat and Kota Mataram. Those two districts are indeed the most dominant center of tourism activity and already attract the foreign and domestic investors. For sector-based realization of domestic investment, the tourism sector has the largest contribution of 65% with IDR 1.43 trillion and the realization of domestic investment in the tourism sector contributes only 3% to IDR 284.6 billion. To help the economy of Lombok, it will need an increase of tourism investment contribution in several regions both in foreign and domestic investment.

4. Socio–economic

This section provides a general overview of the socio-economic characteristics of communities in Kabupaten Lombok Utara, Lombok Barat, Lombok Tengah, and Lombok Timur in general. The socio-economic factors discussed will be livelihood, education, workforce and employment, vulnerable groups, and indigenous people in the region. In addition, available information of communities in eleven (11) selected tourism destinations in 7 districts (as presented in Table 49), as the most likely to affect or be affected by the ITMP Project are also presented.

Table 49 Study Location Priority Key Tourism No Tourism Kecamatan Kabupaten Areas Destination

Gili Island-Senggigi Area 1 Tanjung Tanjung Lombok Utara 2 Gili Island Pemenang Lombok Utara 3 Senggigi Batu Layar Lombok Barat Southern Coast Area 4 Sekotong Sekotong Lombok Barat 5 Area Guling Sekotong Lombok Barat 6 Mandalika Pujut Lombok Tengah 7 Mekaki Bay Pujut Lombok Tengah 8 Tanjung Aan Pujut Lombok Tengah 9 Jogo Hills Praya Barat Lombok Tengah 10 Selong Balanak Praya Barat Lombok Tengah 11 Pink Beach Jerowaru Lombok Timur

4.1. Livelihood

An important component of this social baseline study is livelihoods and occupations within communities predicted to be affected by the project/activity plan. The data we have collected isbeen at a provincial, regional and district level, depending on the availability of information. It is found that the industry that absorbs the most employment in most of Lombok is the agriculture industry, taking up over 43% in the regencies. The tourism industry is still relatively small, but there is room for growth. In the NTB Province, the primary sector is the agriculture sector (about 35.81%); followed by the trade, restaurant and hotel sector (22.22%); community and social services (15.68%); industry sector (11.78%); construction sector (7.41%) and the rest worked for other sectors. Female workers take a larger share in contribution to agriculture sector (34.40%), trade, restaurant and hotel sector (32.44%), services sector (16.03%), and industry sector (14.7%) (Central Bureau of Statistics NTB Province, 2018). Agriculture is the main employment sector in the regencies in the study area (over 43%), while Kota Mataram has the lowest (only 2.37%). In Kota Mataram, a large portion of the workforce works in trade (38.9%), or the services sector (26.61%). Industry constitutes around 12.23% of the

employment with non-specified sectors still constituting around 19.89% of employment (Central Bureau of Statistics Kota Mataram, 2018). The tourism sector is in the service category with one of the jobs needed is a tour guide. Based on data from Association of Indonesian Guides (HPI) NTB, all tour guides who are members of HPI are able to speak English. Other abilities include Arabic, Korean, Italian, Mandarin, and French. From this information it can be stated that the need for foreign languages (other than English) is still quite high. This information could be used by the Project to understand the available job skills in the community within the Project affected area, which are mostly in agricultural works. Only a small percentage of the community is familiar with industrial skills. On the other hand this shows people's dependence on agricultural land. As aforementioned in Chapter 3, the tourism sector is a may have an indirect effect to all sectors of the economy, but within the sectors mentioned, the most directly connected sector would be the trade, restaurant, and hotel sector, the second largest industry on the island. The development of tourism potential so far is still limited to certain destinations and only affects the surrounding communities. The table below are some of the livelihoods of the people by main employment status in each regency on the Lombok Island.

Table 50 Main Employment Sectors by Working Age Population (≥15 Years) In Study Area

Study Area Kabupaten Kabupaten Kabupaten Kabupaten Main Employment Status NTB Lombok Lombok Lombok Lombok Province Utara Barat Tengah Timur Agriculture Sector 829,637 56,809 10,601 173,807 221,549 Mining Sector 31,176 795 15,560 1,289 3,908 Industry Sector 272,857 3,861 42,833 50,773 54,178 Electricity, gas and water 6,793 0 1,253 776 0 Construction 171,694 7,109 46,248 35,363 36,830 Trading, Food and Hotel 514,871 21,897 94,224 77,476 86,865 Transportation, warehousing 88,854 1,975 11,454 10,211 11,871 and Communication Financial, Property and 37,474 1,044 4,063 5,002 2,820 Services Community and Social 363,364 11,744 77,843 48,215 67,319 Services Total 2,316,720 105,234 294,479 402,912 485,340 Total Population 4,955,578 216,515 654,892 930,088 1,183,204 Percentages 46% 48% 45% 43% 41% Source: (Central Bureau of Statistics NTB Province, 2018); (Central Bureau of Statistics Kabupaten Lombok Utara, 2018); (Central Bureau of Statistics Kabupaten Lombok Barat, 2018); (Central Bureau of Statistics Kabupaten Lombok Tengah, 2018); (Central Bureau of Statistics Kabupaten Lombok Timur, 2018)

Since the agriculture and trade sectors are the major sectors in NTB Province and regencies in study area, most of the working population work as self-employed (an average of 40.82% in cities/regencies in study area), while an average of 27.42% are labor/workers (either in services or trade sector).

About 73.62% of working population in NTB Province work in the informal sector, namely those who have employment status as self-employed, temporary laborers, freelance in agriculture, freelance in non-agriculture and family workers. By contrast, only 26.38% of the working population works in the formal sector, such as permanent/paid labors and labors/employees. This pattern is also similar with the regencies in the study area where informal workers are about 69% of the workforce. This is inversely proportional to Kota Mataram, where as a result of growth in formal trades and services some 58.01% of the population works in the formal sector.

NTB Province Kabupaten Lombok Utara Kabupaten Lombok Barat Kabupaten Lombok Tengah Kabupaten Lombok Timur Kota Mataram 60 50 40

% 30 20 10 0 Self-employed Labor / Worker Freelance Family Workers Main Employment Status

Figure 52 Main Employment Status BY Working Age Population (≥15 Years) In Study Area

Source: (Central Bureau of Statistics NTB Province, 2018)

At the district level in the study area (Kecamatan Tanjung, Pemenang, Batu Layar, Sekotong, Pujut, Praya Barat and Jerowaru) BPS data on population by livelihood in 2017 is only available for some districts (Kecamatan Pujut, Praya Barat and Jerowaru). See Figure 535351 to Figure 555553. According to these figures, the primary livelihoods in each of these districts are from the agricultural sector. This is consistent with the employment data at regency level, where agriculture is the largest sector absorbing labour.

Armed/Police Government Forces Employee (TNI/Polri) (PNS) 0% Teacher 1% 3% Fisherman Retired 5% 0%

Farm Labour 25%

Farmer 62% Sharecropper 4%

Figure 53 Population by Livelihood in Kecamatan Pujut in 2017

Private Freelancer Employee Entrepreneur Government 7% 6% 0% Employee Retired (PNS) 1% 2% Merchant 1% Fisherman 4% Farmer 79%

Figure 54 Population by Livelihood in Kecamatan Praya Barat in 2017

Government Armed/Police Employee Forces (PNS) (TNI/Polri) Retired 1% 0% 0% Teacher 1% Merchant 1% Others 10%

Farmer Breeder 38% 18%

Farm Labour 26%

Sharecropper 5% Figure 55 Population by Livelihood in Kecamatan Jerowaru in 2017

4.2. Education

This section discusses the current state of education within the island of Lombok. As some data may be limited, we have also taken into consideration specific data sets that represent the whole NTB province. The following characteristics are explored in detail in the next sub-sections:

• Education facilities, describing the current teacher to student ratio, students per school, as well as current available universities; • School participation rate, identifying how much of the population attend school at different age groups, as well as how much of the population has received formal education; • The literacy rate of the NTB province compared to the rest of Indonesia, as well as the conditions of the current reading abilities;

• The average age the population go to school for; and • Constraints and opportunities in education for tourism growth. While considering the data limitation, it can be said that education in Lombok is at a good state relative to the rest of Western Indonesia, however for further growth in the tourism sector, more support from government agencies should be implemented. Indicators used to see the movement of development in education sector include availability of education facilities, school enrollment rates, population literacy rate and the education level completed by population, and school life expectancy, described as follows.

4.2.1. Education Facilities

In general, each regency of study area has school facilities available from primary school to senior high school. The ratio of students to school buildings and students to teacher is presented in Figure 51. It shows that the junior high school sector in Kabupaten Lombok Utara has limited schools and teachers, where one junior high school building may accommodate around 899 students and one teacher teaches around 81 students. At the district level, BPS does not provide education data for the senior high school level in Kecamatan Batu Layar and Kecamatan Sekotong. Figure 565654 shows a complete range of education facilities is available in each district, namely elementary and junior high school levels. However, some districts have limited school buildings and facilities, so some schools suffer from overcrowding. Kecamatan Tanjung has the highest ratio of students per senior high school, since there are only 4 senior high schools available in Kecamatan Tanjung, while the total number of students is about 1,970 students. Meanwhile, Kecamatan Sekotong has the highest ratio with 694 students per junior high school, meaning that 1 junior high school building has to accommodate about 694 students. There are only 4 junior high schools in Kecamatan Sekotong or about 4.8% of the total schools in Kabupaten Lombok Barat. There are around 2,777 junior high school students.

1,000 900 899

800 694 700

600 493 500

400

273

261 245

300 239

203

184

181

179

174

163

162

159

154

150

147

139

131

129

129 125

200 121

115

112

109

54 27

100 20

14 14

10 10

7 7

15 12 14 18 17 23 12 12 12 15 18

0 0

0 0 0

Ratio students per primary schools Ratio students per primary school teacher Ratio students per junior high schools Ratio students per junior high school teacher Ratio students per senior high school Ratio students per senior high school teacher

Figure 56 Ratio Students – Schools and Students – Teachers by Regencies and Districts

Tourism sector growth in NTB is supported by the Mataram Tourism Vocational High School located in Kota Mataram. However, this vocational school still requires support and development. Quality improvements can be made starting from the curriculum, majors available according to market needs, and facilities and infrastructure, so that graduates can be ready to work (Turmuzi, 2017). To improve student competency, in 2018 Mataram Vocational High School cooperated with the NTB Tourism Polytechnic by providing opportunities for students to continue their education at the Polytechnic without an entrance examination. With this cooperation, it is expected that after graduating, students will truly be ready to work with better competence. (Post Kota NTB, 2018). With respect to higher education, most of the top universities in NTB Province are located in and around Kota Mataram, although two of the top universities are also located in Kabupaten Lombok Timur, namely Universitas Hamzanwadi and Universitas Gunung Rinjani. The following table is the list of top universities in NTB Province.

Table 51 List of Top Universities in NTB Province Rank University Location 1 Universitas Mataram Kota Mataram 2 Universitas Hamzanwadi Kabupaten Lombok Timur 3 Universitas Islam Negeri Mataram Kota Mataram 4 Universitas Muhammadiyah Mataram Kota Mataram 5 Universitas Teknologi Sumbawa Kabupaten Sumbawa 6 Universitas Nahdlatul UlamaNusa Tenggara Barat Kota Mataram 7 Universitas Islam Al-Azhar Mataram Kota Mataram 8 Universitas Mahasaraswati Mataram Kota Mataram 9 Universotas Samawa Kabupaten Sumbawa Besar 10 Univesitas Nahdlatul Wathan Kota Mataram 11 Universitas Gunung Rinjani Selong, Kabupaten Lombok Timur 12 Universitas Nusa Tenggara Barat Kota Mataram 13 Universitas 45 Mataram Kota Mataram Source: (UniRank, 2018) Sekolah Tinggi Pariwisata (STP) Mataram or Mataram Tourism Institute was the first tourism institute in NTB Province since 2014 to provide education in undergraduate tourism, a hotel and hospitality diploma, and a tour travel diploma (Sekolah Tinggi Pariwisata Mataram, 2018). Higher education in tourism is also provided by Lombok Tourism Polytechnic (Politeknik Pariwisata Lombok/PPL) which is also located in Kota Mataram. PPL is supported by the Indonesian Ministry of Tourism. PPL enrolled 118 students in 2016. In 2018, the Ministry of Tourism plans to coordinate with various industries and tourism leaders in Lombok to establish scholarship programs for students at PPL. In addition to formal education, some non-formal education is also in great demand by prospective workers in the tourism sector. Some private institutions such as LPKN (National Competency Education Institution) and P4M (Professional Development Training Center) in Mataram provide tourism education and training facilities that are equivalent to the D1 program (one year training). In addition, HPI NTB also has the capacity for building programs for the community, especially those related to skills needed by tour guides, such as language, hospitality, and character. These institutions usually have relations with hotels or travel agents to provide the needed workforce.

According to interviews with NGOs that have educational programs in Lombok, graduates from private institutions are in even more demand for hotels or travel agents, because their skills are considered better than graduates of government-owned SMKs and BLKs.

4.2.2. School Participation Rate

A primary indicator of educational development is school participation rates. School Participation Rate describes the population at school age (7–18 years old) who are enrolled in school. In NTB Province, the highest school enrollment rate is at primary school, where the school enrollment rate about 99.43 percent, meaning that almost all children aged 7-12 years are being educated in primary school (Central Bureau of Statistics NTB Province, 2017). The School Participation Rate indicator is not only used to monitor educational programs that have been given by the government, but also to see whether the target set by the government is achieved. In 2017, 6.5% of the NTB population had graduated from university and 1.31% with an academy degree. Of the remaining population most are elementary school graduates (26.65%), senior high school graduates (24.39%), junior high school graduates (19.44%), and the rest (21.72%) did not receive any diploma or formal education (Central Bureau of Statistics NTB Province, 2018).

According to Indonesia Minister of Tourism, 100 percent of graduates of tourism institutes supported by the Ministry of Tourism of Republic of Indonesia in Lombok were absorbed by the labor market (Tempo, 2016). However, the education enrollment rate in NTB Province for the ages of 16-18 (age of study in senior high school) is significantly lower. Despite this, school enrollment rates at this age increased in 2017 to 76.61%. Even with the positive increase, there is continuous effort from the regional government to improve educational attainment in the coming year. At the senior high school age group, the percentage of women who get the education begins to decrease. Since the level of education at this age is considered sufficient for women so they starting to switch activities as a worker or housekeeper, thus it is likely the cause of low school enrollment in women.

4.2.3. Literacy Rate (Level of Education)

The overall literacy rate in NTB Province was about 87.14% in 2017, but the regencies in study area have literacy rates below the provincial literacy rate (see Figure 575755). Compared to overall illiteratacy in Indonesia, NTB Province still has a high illiteracy rate. Over the past five years, the number of illiterate people in NTB Province has not changed significantly, and between 2013 and 2017 declined from 15.33% to 12.86% (Central Bureau of Statistics NTB Province, 2018). This is almost of 3 times the illiteracy rate in Indonesia in 2017 of 4.5% (Central Bureau of Statistic Republic of Indonesia, 2018).

Kabupaten Lombok Barat Kabupaten Lombok Tengah Kabupaten Lombok Timur Kabupaten Lombok Utara NTB Province 91.00 89.00 89.29 87.06 87.14 87.00 86.96 86.97 85.63 85.62 87.47 85.66 85.00 84.67 84.45 84.96 83.46

% 83.00 82.02 81.38 81.00 81.38 81.04 81.74 80.47 80.94 79.00 78.25 78.49 78.74 77.00 76.01 75.00 75.01 2013 2014 2015 2016 2017 Year

Figure 57 Literacy Rates (≥ 15 Years Old) in Study Area (2013 – 2017)

Currently, the problem of education is still a priority scale of development in NTB Province. The Absono (Angka Buta Aksara Nol/Zero Illiteracy Number) and Adono (Angka Drop Out Nol/Zero Drop Out Number) programs are a concrete manifestation of the government to improve the quality of education in NTB Province. The Absono and Adono programs scheme is include 4 (four) components i.e. open access to information, increased rates of continuing school, increased quality and quantity of graduates, and availability of quality labor force (Central Bureau of Statistics NTB Province, 2018).

4.2.4. School Age

An important indicator of public awareness about education is the Expected Year of Schooling (EYS) for children of school-going age1 and Mean Year of Schooling (MYS) for adults aged 25 years and older2. In 2017, the Central Bureau of Statistic reported that the average number of EYS and MYS in Kabupaten Lombok Utara, Lombok Barat, Lombok Tengah and Lombok Timur had increased by 0.15 years and 0.18 years respectively. During 2013 to 2017, EYS grew an average of 0.22% per year. Increasing the EYS is a positive signal that more and more residents are going to school. In 2017, the average EYS in the study area reaches about 13.05 years.

1 “Number of years of schooling that a child of school entrance age can expect to receive if prevailing patterns of age-specific enrollment rates were to stay the same throughout the child’s life (UNDP.2010.p.223).” Invalid source specified. 2 “Average number of years of education received by people ages 25 and older in their lifetime based on education attainment levels of the population converted into years of schooling based on theoretical durations of each level of education attended (UNDP.2010.p.224).” Invalid source specified.

13.5 13.3 13.35 13.1 13.12 13.16 13.13 13 12.77 13.04 13.04 12.81 12.83 12.8 12.73 12.66 12.68 12.69

% 12.5 12.46 12.46 12.36 12.31 12.34 12.09 12 12.08 11.8711.93

11.5 2013 2014 2015 2016 2017 Year

NTB Province Kabupaten Lombok Utara Kabupaten Lombok Barat Kabupaten Lombok Tengah Kabupaten Lombok Timur

Figure 58 Expected Year of Schooling in Study Area Source: (Central Bureau of Statistics NTB Province, 2018)

6.71 6.79 6.9 7 6.54 6.67 6.5

% 6.32 6.15 6.26 6.15 6 5.94 6.06 5.93 5.95 5.69 5.5 5.38 5.52 5.63 5.54 5.6 5.36 5.54 5 5.47 5.22 4.5 4.89 4.97 2013 2014 2015 2016 2017 Year

NTB Province Kabupaten Lombok Utara Kabupaten Lombok Barat Kabupaten Lombok Tengah Kabupaten Lombok Timur

Figure 59 Mean Year of Schooling in Study Area Source: (Central Bureau of Statistics NTB Province, 2018)

The MYS of Regency populations aged 25 years and over in the study area has increased, growing 0.15% per year during period 2013 to 2017. This growth portrays human development status, which indicates educational achievements of the better human quality in the study area. In 2017, on average, the population aged 25 years and over have reached 6 years of education, or its equivalence, and has completed basic education (primary school). However, it is still very far from the goal of 12-years of compulsory education program aspired by central government.

4.2.5. Constraints and Opportunities in Education for Tourism Development

Formal education for tourism and hospitality is available starting from senior high school (vocational school) or about 15 years of schooling. However, It needs an improvement in the quality

of human resource for achieving higher formal education. In NTB Province the productive population (over 15 years old) graduated from university in 2017 was only 6.5%, while academy/diploma graduates were 1.31% of the total population. Based on the mean year of schooling, most of population aged 25 and above in NTB Province and regencies in study area has reached 5.5 to 7 years of education or equal primary school graduates while the population with incomplete basic education is mostly found in in Kabupaten Lombok Tengah and Lombok Timur. Education is an indicator of skills and one of the indicative factors in getting employment opportunities and determining wages. In addition to technical skills, things that must also be learned in education are soft skills or character. The results of interviews with Mataram STP lecturers stated that the indicator of quality and the most demanded job seekers in the tourism sector are those who have good discipline and honesty. Some soft skills such as politeness and sympathy are also important judgments. Hard skills such as language skills, gestures, cooking, driving, etc., come as secondary considerations. As the Lombok achieved the 2015 World Best Halal Destination, Lombok tourism continues to grow progressively so the opportunity for educated workers in the tourism sector will be greater. Moreover, Indonesia Tourism Development Corporation (ITDC) is ready to accommodate graduates from the Tourism Colleges (Sekolah Tinggi Pariwisata) in NTB such as Lombok Tourism Polytechnic. A number of investors are now preparing to build at Mandalika Resort. 4.2.6. Data Limitation

As mentioned above, Lombok now has a number of vocational schools and universities specializing in tourism and hospitality. However, detailed data on the number of tourism-related course graduates are not available through the NTB Education Agency or the Workforce Agency. The importance of such data is that it may provide some insights on how ready Lombok’s homegrown workforce is in responding to the future demand for tourism- and hospitality-related skilled workers.

4.3. Workforce and Employment

This section discusses the current state of the workforce at the provincial and regional level. This is explored through the following sub-sections:

• Descriptions workforce and manpower - in 2018, it was found that the Labor Force Participation Rates within the cities/regencies in Lombok averaged 68.126%. • Profile of job seekers - 94.58% of job vacancies cannot be filled by the right person in that position, it could be due to inadequate education and work experience. • Wage levels of workers - the regional minimum wages in study area are higher than the provincial minimum wages.

4.3.1. Workforce and Manpower

According to Central Bureau of Statistics Republic of Indonesia, the working age is defined as the population who are 15 years old or older (Central Bureau of Statistics Republic of Indonesia, 2018). The working population is further classified as “Economically Active Group” and “Not Economically Active Group”. The Economically Active Group is composed of those who take part in an economic sector, either in having or looking for job opportunities, i.e. as the labor force. Labor Force

Participation Rates (LFPRs) is the number of populations classified as labor for every 100 active ‘manpower’. The “Not Economically Active Group” consists of part of the population who are not engaged in direct economic activity (attending school, housekeeping. and other activities). The working age population in NTB Province reached 3,498,399 people in 2017. The labor force was 2,396,169 people, where 96.68% of them were working in various industries, and the rest were not working/still looking for a job or were defined as unemployed. LFPR in NTB Province was 68.49% while the Open Unemployment Rate (OUR)3 at 3.32% (see Table 52).

Table 52 Percentage of Working Age Population (≥ 15 Years Old) by Population Classification in Study Area

Study Area Population Kabupaten Kabupaten Kabupaten Kabupaten NTB Kota Classification Lombok Lombok Lombok Lombok Province Mataram Utara Barat Tengah Timur Economically Active Working 2,316,720 106,043 316,827 446,246 540,513 212,434 Unemployed 79,449 1,877 10,749 13,338 20,422 12,000 Not Economically Active Attending 273,340 9,899 37,171 56,089 49,335 44,179 School Housekeeping 695,307 28,775 99,680 123,000 174,484 66,443 Others 133,583 5,623 16,532 24,387 42,830 12,737 Total 3,498,399 152,217 480,959 663,060 827,584 347,793 LFPRs 68.49 70.90 68.11 69.31 67.78 64.53 OUR 3.32 1.74 3.28 2.90 3.64 5.35 Source: (Central Bureau of Statistic Nusa Tenggara Barat Province, 2018) The LFPR describes the level of labor force participation in an area. If LFPR is higher, the number of people working in an area increases, or conversely the lower LFPR, the smaller number of people working in an area. A small LFPR in a region may be due to a high number of school-age residents, the elderly, and housewives/husbands; or because the harvest season has not occurred yet so that workers have not been absorbed as formal workers. In 2017 the largest LFPR was in Kabupaten Lombok Utara at 70.9% and the smallest LFPR in Kota Mataram at 64.53%. Figure 606058 shows the LFPRs in the study area during 2013 to 2017, however there is no data available for 2016 from the Central Bureau of Statistics.

Table 53 Percentage of Working Age Population per Kecamatan in Study Area Regency District Working Age

Batu Layar 32,808 Lombok Barat Sekotong 39,557 Pujut 67,375 Lombok Tengah Praya Barat No data in BPS Lombok Timur Jerowaru 37,979 Tanjung 32,371 Lombok Utara Pemenang 24,572 Source: (Central Bureau of Statistic Nusa Tenggara Barat Province, 2018)

3 Open Unemployment Rate describes the proportion of the workforce who are unemployed and actively seek and are willing to work.

Kabupaten Lombok Barat Kabupaten Lombok Tengah Kabupaten Lombok Timur Kabupaten Lombok Utara Kota Mataram NTB Province 80

% 65

50 2013 2014 2015 2017 Year

Figure 60 Labor Force Participation Rates in Study Area (2013 – 2017) Source: (Central Bureau of Statistics NTB Province, 2018)

The workforce in 4 regencies (Lombok Barat, Lombok Tengah, Lombok Timur, and Lombok Utara) and 1 city (Mataram) of the study area has increased evenly from 2013-20174. In 2017, the total workforce in the 4 regencies and 1 city takes up about 70.13% of the total workforce population in NTB Province. The highest active workforce in 2017 was in Kabupaten Lombok Timur with 560,935 people. This shows an increase of 8.11% from the previous year, meanwhile the lowest workforce participation was in Kabupaten Lombok Utara with 107,920 people. There was an increase of only 0.35% from the previous year.

Table 54 Number of Workforce Population in Study Area 2013 – 2017 Year Study Area 2013 2014 2015 2017

NTB Province 2,146,002 2,221,810 2,255,879 2,396,169 Kabupaten Lombok Barat 275,413 291,325 309,811 327,576 Kabupaten Lombok Tengah 476,080 457,131 435,212 459,584 Kabupaten Lombok Timur 504,155 533,706 518,868 560,935 Kabupaten Lombok Utara 83,532 91,394 107,547 107,920 Kota Mataram 177,455 198,838 210,461 224,434

Source: (Central Bureau of Statistics NTB Province, 2018) Although the workforce age ranges from 15 years old, Law Number 13 of 2003 explains that the working age starts from the age of 18 years. Thus, 15 to 17-year-olds are still categorized as children. In Article 68 of Law Number 13 of 2003, associated with ILO Convention Number 138 and Number 182 explained that children over 15 years old up to under 18 years old may work and

4 Of noted the workforce data in 2016 is not available from Central Bureau of Statistics NTB Province

are treated as adult workers except to work for the worst jobs for children as stipulated in Article 745. Over the last 5 (five) years, the number of people who work in each regency within the study area has increased. Kabupaten Lombok Timur has the largest active workforce in 2017 compared to other cities/regencies with as many as 540,513 people (about 23.33% of the total population who worked in NTB Province) or an increase of 11.37% (55,173 people) from the previous year. The following table shows the population who worked within the study area.

Table 55 Population Who Worked in Study Area Year Study Area 2013 2014 2015 2017

NTB Province 1,981,842 2,094,100 2,127,503 2,316,640 Kabupaten Lombok Barat 257,485 279,123 299,430 316,827 Kabupaten Lombok Tengah 439,703 428,016 402,912 446,246 Kabupaten Lombok Timur 461,157 495,475 485,340 540,513 Kabupaten Lombok Utara 64,394 86,441 105,234 106,043 Kota Mataram 78,330 189,308 194,671 212,432

Source: (Central Bureau of Statistics NTB Province, 2018) The workers in NTB Province are predominately low educated workers (primary school graduates and below) by 47.34%, where the population who have not completed primary school is the largest. Meanwhile, workers who completed junior and senior high schools and higher-educated (who reached higher education of diploma and university) workers reached 39.85% and 12.81% of the workforce, respectively (Central Bureau of Statistics NTB Province, 2018). In general, the working age population 6 in NTB Province was predominantly primary school graduates (about 26.05%) and senior high school graduates (24.39%). Recently, university graduates have been increasing (6.5% from the previous year of 6.08%). However, the working age population in NTB Province still has low education because about 48.37% of the workforce has only completed Pimary school. Many have also not completed primary school (see Figure 616159).

5 Worst jobs include (a) all work in the form of slavery or the like, (b) any work that uses, provides, or offer children for prostitution, the production of pornography, pornographic shows, or gambling, (c) all work that utilizes, provides, or involves children for the production and trade of liquor, narcotics, psychotropic substances and other addictive substances, and/or (d) all work that endanger a child’s health, safety or morals. 6 Population above 15 years old and under 65 years old which include working population and unemployement.

NTB Province Kabupaten Lombok Utara Kabupaten Lombok Barat Kabupaten Lombok Tengah Kabupaten Lombok Timur Kota Mataram 35 30 25

20 % 15 10 5 0 Not attend Not yet Primary Junior High Senior High Diploma University school completed School School School Primary School Education Level

Figure 61 Percentage of Working Age Population (≥ 15 Years Old) by Educational Level in Study Area Source: (Central Bureau of Statistics NTB Province, 2018) The Open Unemployment Rate (OUR) in NTB Province decreased by about 2.71% in 2017; it was followed by Kabupaten Lombok Tengah and Kabupaten Lombok Timur (see Figure 626260). Based on education level, the highest OUR percentage in NTB Province is the working age population with senior high school education, but the number has decreased by 22% compared to 2016. The decline in the unemployment rate in NTB province and several regencies could be due an increase in informal workers, because it was recorded in the Central Burau of Statistics that the workforce in the informal sector increased to 73.62% in 2017 and the rest worked in the formal sector. Kabupaten Lombok Utara and Lombok Barat have slightly increased in OUR from about 0.65% to 1.05%. It means that the absorption of the workforce has not been maximized in the formal sector such as permanent laborers/employees or there has not been an increasing workforce working in the informal sector, such as entrepreneurs, temporary labors, freelance, and family labors. Research from the Center of Reform on Economics (Core) Indonesia supports that the growth of informal employment is higher than the formal sector. Uptake of labor in the informal sector such as trade and services is higher because of more and more business actors (UMKM). Besides that, the increase is also triggered by the development of information technology, digital economy, and online transportation services – technologies the tourism sector is currently very dependent on. Informal employment also does not have to require a minimum education level, and tends to be unbonded, so it may be more attractive to job seekers.

Kabupaten Lombok Barat Kabupaten Lombok Tengah Kabupaten Lombok Timur Kabupaten Lombok Utara Kota Mataram NTB Province 11

7 % 5

1 2013 2014 2015 2017 Year

Figure 62 Open Unemployment Rates in Study Area (2013 – 2017) Source: (Central Bureau of Statistics NTB Province, 2018) Furthermore, NTB Province is also one of the province’s largest providers of migrant workers. Over the last three years, the number of migrant workers from NTB has continued to decline (see Figure 636361). In 2017, the number of migrant workers coming from NTB was 25,787 people, a decrease of 6.89% compared to 2016. The principal contributors of migrant workers are Kabupaten Lombok Timur (44%), Kabupaten Lombok Tengah (26.79%) and Kabupaten Lombok Barat (12.8%), where the regencies have a relatively high population. The most targeted destination country for work is Malaysia (83.17%). Others are Hong Kong, Brunei Darussalam, Taiwan, Singapore, and several other countries in Asia, the Middle East, and the Americas (Central Bureau of Statistics NTB Province, 2018).

Kabupaten Lombok Barat Kabupaten Lombok Tengah Kabupaten Lombok Timur Kabupaten Lombok Utara Kota Mataram NTB Province 28,000 26,000 24,000 22,000 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2015 2016 2017

Figure 63 Number of Official Migrant Workers in Study Area (2015 – 2017) Source: (Central Bureau of Statistics NTB Province, 2018) In general, the development of tourism in Lombok has an impact on increasing workers from outside Lombok. There is no numerical data regarding the number of workers from outside the Lombok area, but qualitatively from the results of interviews with NGO staff and STP Mataram

lecturers, there are many prospective workers from outside Lombok. This was indicated by the large number of registrants in tourism schools and BLK from outside Lombok. The ability and competitiveness of native Lombok people compared to outsiders is quite high, but the difference is in terms of service. The character of Lombok people (especially men) is not one of serving, while tourism is a form of service. 4.3.2. Job Seekers

A total of 10,873 job seekers, where 63.36% is male and 36.63% is female, have been registered with the Labor and Transmigration Agency and have not get any job (Central Bureau of Statistics NTB Province, 2018). According to Figure 646462, there was a total of 3,721 job seekers with primary school education, where 78.39% were male job seekers, and about 332 job seekers were diploma graduates, where 59.04% were female job seekers in 2018.

Male Female

3,000 2,500 2,000 1,500 1,000

500 NumberPopulation of 0 Not yet Primary Junior High Senior High Diploma University completed School School School Primary School Education Level

Figure 64 Number of Job Seekers by Educational Level and Gender Source: (Central Bureau of Statistics NTB Province, 2018) Regarding in-migration of job seekers, the data both from Central Bureau of Statistics and Labor and Transmigration Agency is not available. There were 59,325 job vacancies available in NTB Province in 2015-2016, however only 3,215 job seekers (5.42%) got job placements 2016 (Central Bureau of Statistics NTB Province, 2018). It means that about 94.58% of job vacancies cannot be filled by the right person in that position, possibly due to inadequate education and work experience. Regarding the recruiting process, there are no local regulations governing employment, so all companies/industries are free to recruit workers according to the required specifications of the company. Indeed, there is no separation of job seekers who were from Lombok and beyond, but actually, along with the development of tourism in Lombok, the interest of people outside Lombok to work in the tourism sector began to increase. This data is reflected in the increasing number of tourism school students from outside Lombok. Tour operators will look for experienced employees and job seekers from outside Lombok usually have more experience.

4.3.3. Wages

The minimum wage differs from region to region and is determined based on the cost of living in each region as well as productivity and economic growth. Increase in labor productivity is in line with the increase in the minimum wage that applies in each region. Minimum Wage of NTB Province (UMP) is regulated in NTB Governor Decree Number 561-815 of 2017. In 2018, the minimum wage of NTB Province is IDR 1,825,000. This amount increased by 11.87% from 2017, higher than the standard increase in wages following the standards set by the central government, which is 8.71% (according to Ministry of Labor Regulation Number 78 of 2015 and Government Regulation Number 78 of 2016). The regional minimum wages in study area are higher than the provincial minimum wages, as seen in the following table.

Table 56 2018 Regional Minimum Wages in Study Area

2018 Regional Minimum Study Area Wage (IDR)

NTB Province 1,825,000 Kabupaten Lombok Utara 1,883,000 Kabupaten Lombok Barat 1,827,000 Kabupaten Lombok Timur 1,831,000 Kabupaten Lombok Tengah 1,832,500 Kota Mataram 1,863,524

Source: (Labor and Transmigration Agency of NTB Province, 2018) The average wages of male and female workers in the study area in last year of 2017 is presented in Table 57. Kota Mataram has the highest average wages for male and female workers compared to other regencies in the study area. Despite this, women’s wages are still below the men’s wages and most women’s wages in the regencies, except Kota Mataram, are also below the regional minimum wage. This suggests that the level of wage gap between men and women is still quite large, although each year there is an increase in the number of women working. However, the work obtained still shows a difference in treatment in gender. One of the reasons for the occurrence of the gender wage gap is due to differences in education levels between men and women.

Table 57 Average Wages Received by Labor/Employee in a Month by Study Area

Total Male + Study Area Male Female Female

NTB Province 2,704,946 1,782,218 2,361,821 Kabupaten Lombok Utara 2,100,710 1,160,884 1,739,884 Kabupaten Lombok Barat 2,314,295 1,645,447 2,104,244 Kabupaten Lombok Timur 2,067,482 1,182,524 1,691,678 Kabupaten Lombok 2,132,028 1,336,545 1,885,540 Tengah Kota Mataram 3,313,925 2,401,599 2,938,116 Source: (Central Bureau of Statistics NTB Province, 2018) Each sector applies a minimum wage that is appropriate for its workers, but tourism sector workers are more likely to get tips beyond the minimum salary so they can get more. For example a hotel driver will get more tips than a driver in a government agency, as is the same case for a cleaning

service worker at a hotel compared to a cleaning service worker at a bank. During the holiday season and the number of tourists increases, workers in the tourism sector earn more. Even the tips or bonuses obtained can be greater than the regular salary. In addition, average expenditure per capita of population in NTB Province in 2017 was IDR 821,052 per year (see Figure 656563), while each regency in study area have a lower average expenditure per capita (between IDR 665,910 to 784,653). The average expenditure per capita of Kabupaten Lombok Utara decreased around 8.16% from IDR 805,507 in 2016 to IDR 744,352 in 2017.

Kabupaten Lombok Barat Kabupaten Lombok Tengah Kabupaten Lombok Timur Kabupaten Lombok Utara NTB Province Poly. (NTB Province)

900,000 800,000 700,000

IDR 600,000 500,000 400,000 2013 2014 2015 2016 2017 Year

Figure 65 Average Expenditure per Capita of Population in Study Area (2013 – 2017) Value of income and expenditure can be used as an indicator to determine welfare status, however, there are other factors such as the number of families, land ownership, productive/non- productive age, can also determine the status.

4.3.4. Skills Assessment

4.3.4.1. Literature Review – Market Analysis and Demand Assessment

Based on the sections Market Analysis and Market Demand Forecasts, and Investment Needs (MADA, 2015), the report explains what skill exist, skill gaps, and exiting training schools. 1. Skill Development a. What skills exist • Most training for hotel staff is done on-the-job. • SMK Training is insufficient and out-dated for current market demands. • Inadequate training for more senior positions. • Difficult to recruit staff for entry, supervisory or managerial positions. • Bali is used as a source of management staff. • Rank and file and supervisors tend to be local. • Different hotel associations propose to provide lectures and assist in training the students to improve the overall quality of human resources in Lombok. b. Skill Gaps • Service, systems (reservation, cashier, etc.) culinary and language skills • Basic service excellence training (beneficiaries to include non-star hotel owner, taxi drivers, boat captain, etc.). • Environmental understanding and conversation skills.

• Access to market training, particularly for homestay providers. c. Training Schools In Lombok, there are 47 SMK (29 private and 18 public schools). Figure 64 illustrates how the SMK are split across the 5 regencies/cities of Lombok.

6 4 20 6

Kota Mataram Lombok Utara Lombok Barat Lombok Timur Lombok Tengah

Figure 66 Vocational Schools in Lombok Source: Directorat Pembinaan Sekolah Menengeh Kejuruan

Vocational schools provide the main workforce for the industry (which most relevant training is done on-the-job)

• SMK 4 Mataram: course for hotel accommodation, food services, and business travel. • SMK Hasanuddin Mataram: business travel and office administration courses • SMK Saraswati Mataram: hotel accommodation courses • SMK Tourism Mataram: hotel accommodation, hospitality courses. All SMK provide language training and practical operational courses in addition to classroom theory. Some hotels in Mataram and Senggigi, like Santika and the Kila Senggigi, are supporting these schools by opening their hotels to train students. These vocational schools are important for talent source for entry-level staff in hotels and tourism services in Lombok. Lombok Cooking School – SAPI Culinary provides a 1-year program with a 6-month internship that trains students in culinary skills, services, English, food safety and hygiene, accounting basics, and F&B management. Hotel Association – Different hotel associations propose to lecture and assist in training the student to improve the overall quality of human resoruces in Lombok. Their members also send their employees to Bali to get certified by the certification body. In 2014/2015, this programme was supported by the government, free of charge to the hotel and employees, however, in 2016 the government cut their budget, and this program is no longer funded.

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LMP3 RINTAM – Hotel and tourism training centers offer 1-year hotel and tourism courses that are based on Indonesia’s National Standard Competency, with lectures coming from representatives of star-rated hotels. Politeknik Pariwisata Lombok – In mid-2016, the tourism ministry officialy opened the Lombok PoltekPar to nurture the future human resoruces needed to mee the development forecasts of a major tourism destination. During their first year, the school will have 120 students. Currently they are using the Diklat Building of NTB civil servant administration office (BKD), however in the future the PoltekPar building will be in Puyung, Lombok Tengah. Currenty the school has 4 major studies: tour and travel, room division, culinary, and F&B services. Most of the training schools are concentrated in Lombok Tengah dan Lombok Timur. Service, culinary, other operational skills, and language trainings are provided at established hotels as well. Many hotel groups that have a presence outside of Lombok (such as in Bali or Jakarta) provide training courses at their sister properties where the hotel market is more established. 2. Staff Required & Skills Needed Hotel Accommodation Staff Required The following summarizes the skills gaps identified based on discussions with Lombok Hotel managers. a. Service, systems (reservations, cashier, etc.), culinary and language skills b. Basic service excellence c. Environmental conservation knowledge to preserve the island’s natural beauty Additional Staff Required The hotel positioning is split into 5 categories based on actual achievced daily rates in 2015 across the country, not specific to Lombok where insufficient information is available from which to draft staffing ratio conclusions. Additional assumption - Percentage of total rooms per rate category: This value calculates how much of the rooms at each rate compose the total amount of rooms in Indonesia. For example, if the figure is 0.42, this means that 42% of total rooms are within this rate category. These estimates are based on data collected in the Howarth HTL Indonesia Hotel Industry Survey of Operations 2016. o

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- The staffing level split or proportion of total staff within each entry level, supervisor and management level are based on estimates from market research. The daily rate values are based on the findings from 2015. o USD 40 ▪ 5% Management; 10% Supervisors; 85% Entry-level This category is assumed to have higher professionalization, a larger proportion of star-rated hotels, and larger properties in general. It is assumed that these accommodation locations operate with all three levels of workers. F&B Staff Required In 2015, there were 1,379 registered restaurants with an average of 22 seats per restaurant. Should the number of restaurants increase at a similar pace to visitor arrivals between 2015 and 2041, this will involve an increase of around 2,351 restaurants and an estimated additional 10,582 staff between 2015 and 2041. Assumption for additional staffing factor of 4.5. Tour Guide Staff Required From 2013 to 2015, there were an estimated 453 registered guides in Lombok. This increased from an estimated 383 in 2012. This equates a total of 1 guide per 2,873 arrivals and 2,999 arrivals in 2012 and 2013 respectively. 2041 will see an increase of around 1,076 guides. This will include the following types of guides: - Regular tour guides - Dive guide/masters: With the recommended push to make certified and accompanied safety dive compulsory, more available and professional for the general public, this number will increase significantly from current levels. - Authorized hiking guides and rangers: With the recommended push to make certified and accompanied safety dive compulsory, more available and professional for the general public, this number will increase significantly from current levels. Additional Employment Opportunities - Retail: An extension to tourism, souvenirs if produced and marketed correctly could also employ a large number of local people. The existing oleh-oleh is basic, to say the least, much of which are imported. - Events production and participation: The production of daily cultural shows or workshops, whether they be evening performances or daily batik workshops, will require additional staff. In addition, possible monthly adventure events or workshops, whether they national or regional level of competition or daily diving and trekking workshops, will require additional staff. - Transport service staff will be required, such as taxis, buses, and minivans. In the Best-Case Scenario as described, the forecast volume of additional staff is around the following values:

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1. 24,000 hotel staff 2. 10,500 food and beverage staff 3. 1,000 tour guides 4. Around 3 times the volune of current staff providing other tourism services.

4.3.4.2. Literature Review – Employement Projection (ISED)

4.3.4.2.1. Worker Supply - Tourism Educational Skills Facilities (School, Program Study, Students)

Nusa Tenggara Barat Province has some related tourism educational facilities including but not limited to as below

• Lombok Tourism Polytechnic (Politeknik Pariwisata (Poltekpar) Lombok) • Mataram Tourism College (Sekolah Tinggi Pariwisata–STP, previously Tourism Academy) • Mataram University (Diploma III on Tourism) • Tourism Vocational High Schools (Sekolah Menengah Kejuruan-SMK) • Work Training Centers (Balai Latihan Kerja-BLK) on Tourism o BLK Lombok Tengah o BLK Lombok Timur o BLK Mataram • Private Training Centers (Lembaga Pelatihan Kerja-LPK)

Table 58 Tourism Education FacilitIes and Approximate Graduates in NTB Province Number Number of Graduates Institution of Schools 2018 2019 2020 2021 2022 Lombok Tourism Polytechnic 1 347 347 347 797 797 Mataram Tourism College 1 1,884 1,884 1,884 1,884 1,884 Mataram University (D3 Tourism) 1 Tourism Vocational High Schools (SMK) 51 7,510 7,510 7,510 7,510 7,510 Work Training Centers (BLK) BLK Lombok Tengah 1 48 128 128 128 128 BLK Lombok Timur 1 472 1,060 1,060 1,060 1,060 BLK Mataram 1 N/A N/A N/A N/A N/A Private Training Centers (LPK) 280 N/A N/A N/A N/A N/A Total 337 10,261 10,929 10,929 11,379 11,379 Source: (AMC 2018)

Lombok Tourism Polytechnic (Politeknik Pariwisata (Poltekpar) Lombok)

Vision - The vision of the Poltekpar Lombok is to become a higher education institution of tourism in the vocational field with international standards, Indonesian personality, and excel in the Asian region by 2025 (Politeknik Pariwisata Lombok 2016). Program Study - Poltekpar Lombok has 4 Programs, starting from Diploma III to Diploma IV:

• Program (DIV) - Travel Arrangement Study • Program (DIII) - Culinary Arts Study • Program (DIII) - Dish Study

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• Program (DIII) - Room Division Study (CNN Indonesia 2017). International Class - Poltekpar Lombok is considered a government breakthrough in polytechnic training of world-class tourism. In 2020 the Lombok Polytechnic is expected to be able to open international classes and implement the 3Cs namely Curriculum, Certification, and Center of Excellence (venuemagz.com 2019). World Curriculum Standard - Curriculum will be based on world standards. Certification requires all school graduates under the Ministry of Tourism, lecturers, and universities to be standardized to ASEAN standards. Meanwhile, the center of excellence requires everyone to have special expertise to enter the tourism industry. Specialties in Lombok are directed to halal tourism (venuemagz.com 2019). Number Students - The number of Poltekpar Lombok students over the past three years have cuulated to 809 students. In 2016, the Lombok Polytechnic received 120 students, in 2017 there were 380 students, and in 2018 there were 343 students. In 2019 the Lombok Polytechnic is planned to receive over 340 new students (venuemagz.com 2019). Applied Practical Skils - In 2019 the Poltekpar Lombok plans to build a practical kitchen, a practical restaurant, and a practical hotel with 60 4-star rated standard rooms (venuemagz.com 2019). Qualified Field Work - Poltekpar Lombok has a training program covering Field Work Practices (PKL) conducted at Tambora Hotels. Industrial Training is carried out in the tourism industries such as hotels, restaurants, travel agencies, and airlines for six months both domestically and abroad. Students can carry out training in Singapore, Malaysia, Australia, Japan and America (Politeknik Pariwisata Lombok 2016). Poltekpar Lombok collaborates with tourism stakeholders in Lombok in improving the quality of learning, reviewing curriculum, providing training venues, and absorbing graduates. In addition, the Poltekpar also established ties with the Nusa Dua Bali School of Tourism (STP) in improving the capacity and competence of teaching staff by implementing standards, monitoring, and evaluating quality (Politeknik Pariwisata Lombok 2016). Poltekpar Lombok also collaborated with the Swiss International Management Institute (IMI), which was facilitated by the Ministry of Tourism, Coordinating Minister of Maritime Affairs, and Indonesian Ambassador to Switzerland, in terms of increasing the capacity of teaching staff and education staff and developing a skills-based curriculum (Politeknik Pariwisata Lombok 2016).

Table 59 Number of Students Polytechnic of Tourism Lombok

Study Program 2018 2019 2020 2021 2022 D3 Room Division 290 290 490 490 490 D3 Tata Hidang (F&B Service) 252 252 452 452 452 D3 Culinary (F&B Kitchen) 255 255 555 555 555 Total Students 797 797 1,497 1,497 1,497 Source: (AMC 2018)

Table 60 Number of Graduates Polytechnic of Tourism Lombok Study Program 2018 2019 2020 2021 2022 D3 Room Division 140 140 140 290 290 D3 Tata Hidang (F&B Service) 102 102 102 252 252 D3 Culinary (F&B Kitchen) 105 105 105 255 255 Total Graduates 347 347 347 797 797

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Source: (AMC 2018) The two tables above depict the number of students and graduates from the Tourism Polythecnic in Lombok, as well as the expected number of pupils in the future. Based on the data, 2018 showed a 43.54% graduation rate from the institution. This is a relatively low graduation rate, as less than half of the class did not pass. However, it is important to consider both economic and personal factors of the students in the island. Although the tables do project an increase in graduation rate, from 347 out of 797 in 2018 to 797 out of 1,497 (53.24%), it is still a rate that may not be meeting demand for highly skilled workers.

Mataram Tourism College (Sekolah Tinggi Pariwisata-STP, previously Tourism Academy) Program Study - STP Mataram has a vision to become a superior and competitive based training institution focusing on culture tourism. STP Mataram has 4 study programs, namely:

• Tourism • Hospitality • Travel • Tyatama Training Center (stpmataram 2018). STP Mataram also has a commitment to for their students graduate with the 3Cs: Character, Competency, and Collaborative (suarantb.com 2018). Students - In the 2010/2011 academic year, there were 323 registered students at STP Mataram and has graduated 601 students since its creation (stpmataram 2018). In November 2018 STP Mataram graduated 236 students with 41.1% of them accepted to work in the tourism sector (suarantb.com 2018). Lecturers and Staff - In the 2010/2011 academic year, STP Mataram had 28 permanent lecturers and was assisted by 20 non-permanent lecturers. With 12 supporting staff, including librarians, technicians, laboratory staff, and CS (stamataram 2018). Facilities - STP Mataram has supporting facilities, such as lecture halls, lecturer rooms, lab kitchen, lab bar and café, and other spaces. Lecture aids are also available in the form of OHP, laptops, and LCD projectors. Until now the STP Mataram has its own library, using an area of 60 m2, with a library housing 4,760 collections (stamataram 2018). Mataram University Mataram University has a D3 Tourism department. By 2025, the department envisions to realize the progam as a tourism development institution in eastern Indonesia that is able to produce professional graduates in the field of tourism based on faith, morals, and ethics (FEB Unram 2017).

Table 61 Ratio of Permanent Lecturers/Number of Students

2017/2018 2018/2019

Study Number of Number Ratio of Number of Number Ratio of Status Level Program Permanent of Permanent Permanent of Permanent Lecturers Students Lecturers/ Lecturers Students Lecturers/ Number of Number of Students Students Tourism Active D3 15 550 1:36.7 15 707 1:47.1 Source: (Kementrian Riset, Teknologi dan Pendidikan Tinggi 2019) As depicted in the table above, there is a need for more educators within the tourism program in Mataram Univeristy. In the 2017-2018 school year, there were 15 permanent lecturers and 550

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pupils. However, the number of enrolled students increased by 22.2% to 707 pupils the next year, while the number of lecturers remained the same. It is clear that the university will need to recruit additional lecturers in order to keep up with the growth of the program.

Tourism Vocational High School (SMK) Tourism Vocational Schools (SMKs) in NTB provide programs of study that includes hotel accommodation (Hotel Akomodasi), Tourism (Kepariwisataan), Culinary (Tata Boga), Catering Service (Jasa Boga), and Patissery (Patiseri). The SMKs are located in several regencies including in Lombok (Lombok Barat, Lombok Timur, Lombok Utara, Lombok Tengah) and outside of Lombok (Sumbawa, Sumbawa Barat, and Dompu).

Table 62 Number of Graduates from All Tourism Vocational Schools in NTB in 2017 Program of Study Male Female Total Hotel Accommodation 1,935 1,145 3,080 Tourism 1,355 685 2,040 Catering Service 528 676 1,204 Culinary 455 649 1,104 Patisserie 37 45 82 Total Graduates 4,310 3,200 7,510 Source: (AMC 2018) Based on the table above, the majority of students who graduated from all the vocational schools in the province in 2017 were males, with 4,310 males graduating compared to 3,200 females. The most popular program of study was Hotel Accommodation, mainly due to the fact that it is available at most schools, as seen in Table 62. The least popular program of study was Patisserie, with only 82 graduates, though this is likely because of the lack of schools that offer this program. Out of 44 vocational schools in the province, 31 offer Hotel Accommodation, 20 offer programs in Tourism, 11 offer Cookery, 10 offer Catering Service programs, and only 2 offer training in Patisserie.

Table 63 List of Tourism Vocational School (SMK) and Available Program of Study in NTB Province Program of Study No SMK Name Hotel Tourism Cookery Catering Patissserie Total Accommodation Service Lombok Barat 1 SMKN 1 Lingsar v v v v 4 2 SMKN 1 Gerung v 1 3 SMKN 1 Sekotong v v v 3 4 SMKN 1 Batulayar v v v v 4 5 SMKN 1 Praya Barat v v 2 6 SMKN 1 Janapria v 1 7 SMKN 1 Batukliang v 1 8 SMKN 1 Praya v v v v v 5 9 SMKN 1 Praya Timur v v 2 10 SMKN 1 Pujut v v v 3 11 SMKS Islam Manbaul Ulum v 1 12 SMKS Nurul Madinah v 1 Lombok Timur 13 SMKN 1 Sakra v v 2 14 SMKN 1 Selong v v 2 15 SMKN 1 Kotaraja v v 2 16 SMKN 1 Sikur v 1 17 SMKS Qurrota Ayun NW Joben v 1 18 SMKS Ilhami Aikmel v 1 19 SMKS NW Pancor v v 2 20 SMKS Shofwatul Khaer Bilok Petung v 1

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Program of Study No SMK Name Hotel Tourism Cookery Catering Patissserie Total Accommodation Service Lombok Utara 21 SMKN 1 Pemenang v v v v 4 22 SMKN 1 Tanjung v v 2 23 SMKS Pariwisata Gili Trawangan v 1 24 SMKS Al Bayan v 1 Lombok Tengah 25 SMKS Islam Madinatujannah Jowet v 1 26 SKMS Islam Tastura Az Zikra v 1 Mangkung 27 SMKS Islam Ad Duha v 1 28 SMKS Nura Darma Husada Sepakat v 1 29 SMKS NW Sanggeng v 4 30 SMKS AL Marif Nu Al Mansuriyah v 1 31 SMKS Abdul Karim NW Montong v 1 Sapah 32 SMKS Birrul Walidain NW v 1 Pengengat 33 SMKS Daril Amani Jelateng v 1 34 SMKS Plus Munirul Arifin NW Praya v 1 35 SMKS Anak Bangsa v 1 36 SMKS Islam Al Tarbiyah v 1 37 SMKS Darul Abor NW Kute v v 2 38 SMKS Al Hadi Tambun v v 2 39 SMKS Dane Rahil v 1 Sumbawa 40 SMKN 1 Sumbawa Besar v v v v v 5 Sumbawa Barat 41 SMKS YLPK Taliwang v 1 Dompu 42 SMKN 1 Dompu v 1 43 SMKN 1 Hu v 1 44 SMKS Pariwisata v 1 Total 31 20 11 10 2 Source: (AMC 2018)

Table 64 List of Tourism Vocational School (SMK), Program Studies and Total Students in NTB Province Program Study No SMK Name Hotel Tourism Cookery Catering Patissserie Total Accommodation Service Lombok Barat 1 SMKN 1 Lingsar 135 92 35 15 0 277 2 SMKN 1 Gerung 0 173 0 0 0 173 3 SMKN 1 Sekotong 138 161 0 110 0 409 4 SMKN 1 Batulayar 225 168 129 192 0 714 5 SMKN 1 Praya Barat 36 69 0 0 0 105 6 SMKN 1 Janapria 178 0 0 0 0 178 7 SMKN 1 Batukliang 19 0 0 0 0 19 8 SMKN 1 Praya 371 246 144 349 36 1,146 9 SMKN 1 Praya Timur 46 30 0 0 0 76 10 SMKN 1 Pujut 157 52 112 0 0 321 11 SMKS Islam Manbaul Ulum 0 0 0 27 0 27 12 SMKS Nurul Madinah 0 18 0 0 0 18 Lombok Timur 13 SMKN 1 Sakra 92 99 0 0 0 191 14 SMKN 1 Selong 63 63 0 0 0 126 15 SMKN 1 Kotaraja 50 56 0 0 0 106 16 SMKN 1 Sikur 0 33 0 0 0 33 17 SMKS Qurrota Ayun NW Joben 0 0 35 0 0 35 18 SMKS Ilhami Aikmel 0 0 0 221 0 221 19 SMKS NW Pancor 0 0 27 37 0 64 20 SMKS Shofwatul Khaer Bilok Petung 0 19 0 0 0 19

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Program Study No SMK Name Hotel Tourism Cookery Catering Patissserie Total Accommodation Service Lombok Utara 21 SMKN 1 Pemenang 179 82 46 128 0 435 22 SMKN 1 Tanjung 0 432 376 0 0 808 23 SMKS Pariwisata Gili Trawangan 32 0 0 0 0 32 24 SMKS Al Bayan 137 0 0 0 0 137 Lombok Tengah 25 SMKS Islam Madinatujannah Jowet 0 59 0 0 0 59 26 SKMS Islam Tastura Az Zikra 78 0 0 0 0 78 Mangkung 27 SMKS Islam Ad Duha 70 0 0 0 0 70 28 SMKS Nura Darma Husada Sepakat 88 0 0 0 0 88 29 SMKS NW Sanggeng 46 0 0 0 0 46 30 SMKS AL Marif Nu Al Mansuriyah 31 0 0 0 0 31 31 SMKS Abdul Karim NW Montong 32 0 0 0 0 32 Sapah 32 SMKS Birrul Walidain NW 98 0 0 0 0 98 Pengengat 33 SMKS Daril Amani Jelateng 0 61 0 0 0 61 34 SMKS Plus Munirul Arifin NW Praya 71 0 0 0 0 71 35 SMKS Anak Bangsa 210 0 0 0 0 210 36 SMKS Islam Al Tarbiyah 0 0 0 64 0 64 37 SMKS Darul Abor NW Kute 69 0 32 0 0 101 38 SMKS Al Hadi Tambun 72 25 0 0 0 97 39 SMKS Dane Rahil 62 0 0 0 0 62 Sumbawa 40 SMKN 1 Sumbawa Besar 132 102 67 61 46 408 Sumbawa Barat 41 SMKS YLPK Taliwang 28 0 0 0 0 28 Dompu 42 SMKN 1 Dompu 0 0 101 0 0 101 43 SMKN 1 Hu 82 0 0 0 0 82 44 SMKS Pariwisata 53 0 0 0 0 53 Total 3,080 2,040 1,104 1,204 82 7,510 Source: (AMC 2018) The table above shows the number of students in each vocational school in the province during the 2017 school year, as well as each of the programs they are in. The regency in the province with the greatest number of vocational schools is Lombok Tengah with 14 schools, with Lombok Barat coming second with 12 schools. Lombok Timur has 8 schools while Lombok Utara has only 4. The largest school with 1,146 students is SMKN 1 Praya in Lombok Barat, which is coincidently the only school that offers all five programs in the Lombok region. The smallest schools in the Lombok region are SMKN 1 Batukliang in Lombok Barat and SMKS Shofwatul Khaer Bilok Petung in Lombok Tengah, both with only 19 students. The average number of students in each vocational school is 170.68 students, with a median of 85 students. Based on the data above, there is a lot of room for growth for the schools, both in terms of enrollment as well as the number of programs that can be offered. However, quality of educators should be considered. Much like the case in Mataram University, there is not much growth and development in the number of lecturers available. Work Training Centers (Balai Latihan Kerja-BLK)

BLK Lombok Timur BLK Lombok Timur is an international work training center to produce workers who have skills and competencies within the tourism sector. Training programs available are planned for vocational hospitality and cruise ships, welding, automotive, language, food and beverage, agriculture, and applied livestock at both the domestic and international standards (beritasatu.com 2014).

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The BLK Lombok Timur building located in the village of Lenek Daya, Aikmel subdistrict has an area of 11.7 hectares and 32,060 m2 of main buildings. The buildings are comprised of a management building and classrooms for the workshop, hospitality, languages, tourism, and IT classes (beritasatu.com 2014). In addition, the BLK is also equipped with three three-story dormitory buildings with a total capacity of 234 people and buildings that are designated as canteens or meeting rooms. (beritasatu.com 2014). In 2018 BLK Lombok Timur allocated a budget of IDR 31 billion for a 1,200-person tourism training, of which 560 will be hospitality workers and 640 will be cruise ship crews. BLK Lombok Timur is the only vocational training center in the country that has a job training program for cruise crew. The work hall is equipped with luxury cruise ship facilities that are equivalent to 5-star hotel facilities, ranging from kitchen equipment to laundry rooms (bisnis.com 2018). BLK Lombok Timur has exclusive cooperation with Royal Caribbean cruise ship operators. In 2017 BLK Lombok Timur supplied 628 cruise ship workers. While in 2015 and 2016, the number of cruise ships that were distributed reached each of them reaching 650 people and 120 people (bisnis.com 2018). After undergoing the training, students graduating from BLK Lombok Timur were immediately contracted by Royal Caribbean for 7-8 months, with a total salary of up to IDR 150 million. The jobs ocuppantions are various, ranging from cleaners, cooks, room attendants, to maid assistants and many others (bisnis.com 2018). In recruiting prospective BLK Lombok Timur students, the instution does consider educational history. As long as the prospective students are unemployed, they are entitled to take part in the selection. There is, however, a maximum age limit of 30 years. The leniency in accepting students is due to the high need for labor in tourism, especially cruise ships. For example, the Royal Caribbean requires 39,000 workers each year. Of these, Indonesia is only able to provide 5% of them. While the rest is provided more by other countries such as the Philippines (bisnis.com 2018). BLK Lombok Tengah BLK Lombok Tengah does not have a strong cooperation with the industry. Proper planning and technical assistance are required for BLK Lombok Tengah (AMC 2018). BLK Lombok Tengah only delivers two training activities per year, resulting only a small number of graduates. Table 65 depicts the combined number of BLK graduates from both Lombok Timur and Lombok Tengah. There were only 48 graduates from BLK in Lombok Tengah while there were 472 graduates from Lombok Timur, for a total of 520 graduates from both regencies. This number is expected to grow from 2019 to 2022 with 1,188 students graduating each year.

Table 65 Number of Students Tourism Training Center in Lombok Timur and Tengah 2018 2019-2022 Projection Strata (non- Program of Study degree) BLK Lombok BLK Lombok BLK Lombok BLK Lombok Timur Tengah Timur Tengah Front Office 70 0 300 0 Housekeeping 150 0 300 32 Short Course F&B Service 132 0 220 0 F&B Kitchen 120 48 240 96 Total 472 48 1060 128 Total Graduates 520 1188 Source: (AMC 2018)

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BLK Mataram BLK Mataram contributes a strategic role in preparing competent workforce in hospitality tourism, as 80% of students are trained through the PBK program (Pelatihan Berbasis Kompetens) (disnakertrans 2019). In 2019, the first batch of hotel vocational hospitality classrooms had a total of 112 students. All vocational tourism hospitality work practices are carried out at the Educational Hotel (Edotel) BLK Mataram. The establishment of Edotel shows the concern of the NTB provincial government for vocational training to support the rapid development of NTB tourism with competent and qualified human resource needs. Besides that, the Edotel aims to provide practical training for hospitality tourism PBK students at BLK Mataram so that after completion they are ready to enter the real work environment (disnakertrans 2019). Private Training Centers (Lembaga Pelatihan Kerja-LPK, Lembaga Pendidikan Kompetensi Nasional-LPKN) NTB has approximately 280 private trainng centers (LPK). One of the biggest is LKPN Mataram. This institution provides one-year training program in Housekeeping, Food and Beverage Service, Food and Beverage Product, and Engineering. The program includes 3 month-intership programs in the industry, providing students with hands-on opportunities. This LPKN accepts 500 students, 200 of which has tourism competency. The students are graduated 70%-80% from general high schools and 20%-30% from non-tourism vocational high schools. 4.3.4.2.2. Worker Demand - Employment Projection

This section will analyze the current accomondation facilities available in Mataram, Senggigi, and Mandalika. From all of the hotels available, the employment ratio is calculated and with the combination of knowledge available regarding the future developments in the areas, the future employment demand is projected. Mataram is projected to have the same number of workers in 2022, while Senggigi is expected to almost double the current workforce. In Mandalika, since there is information on the maximum amount of hotels the area could fit, therefore the projected employment demand would also be maximum employment demand in the area. Kota Mataram

Hotel and Room Facilities Mataram has been experiencing an increase in employment demand within the tourism sector. There are a number of factors that have led to this increase, from the aggressive growth in visitation and a comprehensive government plan, to updates in strategy by the private sector. For example, the Golden Palace Hotel’s business development plan aims to increase the hotel’s star rating to 5 stars, meaning that new employment will be required. Currently, there are no 5-star hotels available in Mataram. However, the average hotel occupancy in Mataram was still only 24% in 2016, therefore stakeholders should plan for increasing the number of visitors and average length of stays instead of the number of hotels. Any plans for additional hotel rooms is so far unkown.

Table 66 Hotel and Room, Star and Non-Star Hotel in Mataram, 2017 Hotel No Hotel Classification # Hotel # Room 1 Star-Rated Hotel 27 2,331 2 Non Star-Rated Hotel 111 2,070 Total 138 4,401

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Source: AMC 2018

Table 67 Several Star Hotels and Rooms in Mataram Star No of Meeting Bar/Lounge/Restaura No Name of Hotel Category Rooms Room nt 1 Idoop Hotel 3 96 5 1 2 Lombok Plaza Hotel & 3 142 2 1 Convention 3 Fave Hotel Langko Mataram 3 55 1 3 4 Pratama Hotel dan Convention 3 51 4 2 5 Hotel Lombok Garden 3 227 4 4 6 Grand Madani by Prashanti 3 56 5 1 Syariah 7 Arianz Hotel 3 30 8 Santika Mataram 3 123 7 2 9 Puri Indah Hotel dan Convention 3 157 5 1 10 The Jayakarta Lombok Beach & 4 171 6 3 Resort 11 Golden Plaza Hotel 4 198 5 5 12 Lombok Raya 4 264 4 4 13 Lombok Astoria 4 165 3 3 Total 1,735 51 30 Source: AMC 2018 Employement Ratio The employment ratio of hotels in Mataram is approximately 1:1, which is typically business of city hotels (as reference, see details of Hotel Santika, Golden Palace, and Lombok Raya Hotels). Santika Hotel has 123 rooms and 112 employees, Golden Palace Hotel 198 rooms and 183 employees, and Lombok Raya Hotel 220 rooms and 260 employees.

Table 68 Staff/Room Ratio (Assumption in Mataram) No Hotel Name # Room # Workforce Staff/Room 1 Santika Hotel 123 112 0.91 2 Golden Palace Hotel 198 182 0.92 3 Lombok Raya Hotel 220 260 1.18 Total 541 554 1.02 Source: AMC 2018 Employment Projection Based on the expected number of hotel rooms in 2022 and the current staff to room ratio of 1:1, Mataram is projected to have 4,401 hotel staff working in 2022. It is important to note, however, that staff to room ratio will likely increase as development and the workforce grows. This means that the realized number will be much higher than the projected number.

Table 69 Employement Projection 2022 in Mataram Projection Number of Hotel Rooms Assumption Workforce 4,401 1 4,401 Source: AMC 2018 Sengigi

Hotel and Room Facilities Senggigi offers various type of hotel accomodation, both star- and non star-rated. The government will cooperate closer with the hotel industry to increase the quality of property and service, according to the tourism demand in Senggigi.

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Table 70 Hotel and Room, Star and Non-Star Hotel in Senggigi, 2017 Hotel No Hotel Classification # Hotel # Room 1 Star Hotel 44 1,505 2 Non Star Hotel 84 880 Total 128 2,385 Source: AMC 2018

Table 71 List of Star Hotels in Senggigi Area Star Meeting Bar/Lounge/Restaura No Name of Hotel No of Rooms Category Rooms nt 1 Hart Hotel 3 17 0 1 2 Vila Mataao 3 15 0 0 3 Sweet Peach House 3 5 0 0 4 Sunset House 3 32 0 1 5 Puri Bunga Beach Cottage Hotel 3 50 0 1 6 Kampoeng Senggigi 3 5 0 0 7 Alam Mimpi Hotel 3 14 0 1 8 Joje Bungalow 3 12 0 0 9 Diva Lombok Hotel 3 30 0 0 10 Pasific Beach Cottage 3 21 0 0 11 Puri Saron Hotel Senggigi 3 48 0 2 12 d'Oria Boutique Resort 3 14 0 1 13 Bukit Villa 3 2 0 0 14 Melasa Hotel 3 6 0 2 15 Lombok Beach Villa 3 15 0 1 16 Villa Arya Guna 86 3 2 0 0 17 Villa Guilliana 3 3 0 0 18 Dream Estate Resort 3 10 0 0 19 Two Bed Room Mangsit Suite 3 30 0 0 20 The Studio 3 4 0 0 21 Secret Garden Villa 3 2 0 0 22 Mentigi bay Dome Villa Lombok 3 5 0 0 23 Lima Satu Resort 3 14 0 1 24 Katamaran Resort 5 52 0 3 25 Batu Bolong Cottage 3 20 0 0 26 Villa Sweden 3 3 0 0 27 Sheraton Senggigi Beach Hotel 5 154 0 4 28 Villa Umbrella Lombok 3 4 0 0 29 Villa Karingal 3 2 0 0 30 Villa Cantik 3 1 0 0 31 De Cliff Villa 3 1 0 0 32 Sudamala Suites and Villas 5 35 0 1 Senggig 33 Qunci Villas Hotel 4 78 0 3 34 The Santosa Villa and Resort 4 194 0 5 35 Jaevakui 4 35 0 1 36 Holiday Resort Lombok 4 188 0 5 37 Aruna Senggigi Resort & 4 39 4 4 Convention 38 Kebun Villas Resort 4 70 0 3 39 The Puncak 4 5 0 2 40 Living Asia Resort & Spa 4 66 0 2 41 Jeeva Santai 4 2 0 0 42 Puri Mas Boutique Resort & Spa 4 36 0 0 43 Killa Senggigi Beach Hotel 4 150 0 0 Lombok 44 Pool Villa Club Lombok (belongs 5 16 0 3 to Aerowisata Kila Senggigi Total 1,507 4 47 Source: AMC 2018

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Employement Ratio According to the Hotel General Manager Association (HGMA), the ratio of number of rooms to number of employees in Senggigi is around 1:1.5. This is because most of hotels in Senggigi area are resort hotels with significant landscape areas. Resort hotels also need more staff because of more facilities. As a reference, data was taken from the four resort hotels in Senggigi. This ratio will be used for the employement projection calculation. According to the data from Lombok Barat Tourism Agency, number of employees in all star-rated hotel is 1,947 persons. While about 201 employees are working for non-star-rated hotels in Senggigi. Therefore, the ratio can be calculated in the following:

Table 72 Staff/Room Ratio (in Senggigi) based on Star and Non-Star Rated Hotel Hotel Ratio No Hotel Classification # Room # Workforce Staff/Room 1 Star-Rated Hotel 1,505 1,947 1.29 2 Non Star-Rated Hotel 880 201 0.23 Total 2,385 2,148 0.90 Source: AMC 2018 The more accurate ratio for star-rated hotels can be calculated by looking at the reference of star- rated hotels (two hotels – Kila and Sheraton Sengigi Hotels) in Sengigi. The staff/room ratio is approximately 1.4.

Table 73 Staff/Room Ratio (in Senggigi) based on Hotel Samples Hotel Ratio No Hotel Name # Room # Workforce Staff/Room 1 Kila Senggigi Hotel 166 227 1.37 2 Sheraton Sengigi Hotel 154 215 1.40 Total 320 442 1.38 Source: AMC 2018

Employment Projection By using the staff to room ratio of 1.4 and 1.5, the number of employement demand for star-rated- hotels in Senggigi until 2022 is projected to be 2,107 and 2,258 workers needed, respectively. In the best-case scenario, this would therefore double the workforce available in the Senggigi area within the next five years. However, since the staff to room ratio is based on current numbers, the final employment projection will likely be much higher.

Table 74 Employement Projection 2022 in Senggigi Employement Projection # Room Hotel Assumption # Employement 1,505 1.4 2,107 1,505 1.5 2,258

Mandalika To date, Mandalika is not fully operational yet, so there is no real employment data available as a baseline. Only the Novotel Hotel has been operating and currently, ITDC manages the Mandalika area. The ITDC has signed multiple MoU with some hotel operaters, which would increase the

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expected growth available in the land. The detail hotel name, star category, number of rooms and status is described in the following table. Hotel and Room Facilities Table 75 Hotel and Room, Star and Non-Star Hotel in Mandalika, (signed MoU) Hotel No Hotel Classification # Hotel # Room 1 Star-Rated Hotel 6 1,552 2 Non Star-Rated Hotel 0 0 Total 6 1,552 Source: AMC 2018

Table 76 List of Star-Rated Hotels in Mandalika Area (signed MoU) No Name of Hotel Star Category No of Rooms Target Year Operation 1 Novotel 3 102 in Operation 2 Pullman 3 250 End of 2019 3 Royal Tulip 3 250 End of 2019 4 Club Med 4 350 End of 2019 5 Paramount 3 400 End of 2019 6 X2 3 200 End of 2019 Total 1,552 Source: AMC 2018 Table 76 shows that there will be five new hotels in the Mandalika area by the end of 2019, increasing the total number of rooms from 102 to 1,552. Projected employment demand will most likely be the highest in Mandalika due to all the new developments.

Employment Ratio The staff to room ratio in Mandalika is about 1.65 workers for every room, based on Novotel Hotel data as below. It is unknown whether the future locations are expected to have a similar staff to room ratio, especially since the new hotels will have a considerably large amount of rooms.

Table 77 Staff/Room Ratio in Mandalika (based on Novotel) Hotel Ratio No Hotel Name # Room # Workforce Staff/Room 1 Novotel Hotel 102 169 1.66 Total 102 169 1.66 Source: AMC 2018

Employment Projection According to the ITDC master plan, Mandalika’s land use maximum capacity is 36 hotels. The number of estimated rooms is calculated below, from Table 78 to Table 81. The total employment projection in Mandalika as full operation is estimated about 15,365 persons once the area has reached its full potential investments. Again, however, the final number will likely be higher as the employment ratio will increase over time.

Table 78 Average Room/Hotel in Mandalika (Estimated for 2019) # Hotel # Room Hotel Average Room/Hotel 6 1,552 259

Table 79 Number Rooms Assumption # Hotel Average Room/Hotel # Room Hotel

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36 259 9,312 Source: AMC 2018

Table 80 Employment Projection in Mandalika When in Full Operation Employement Projection # Room Hotel Assumption # Employement 9,312 1.65 15,365 Source: AMC 2018

Table 81 Employment Projection in Mandalika When in Full Operation Mandalika Full Operation Current Data and Planned in 2019 Ratio Projection (Assumption) # # Room Average # Hotel In full Staff/Roo # # Room Hotel Hotel Hotel Room/Hotel operation m Employement 6 1,552 259 36 9,312 1.65 15,365

4.3.4.2.3. Worker Demand – Job Occupancy Projection

This section will discuss the projected worker demand in hotels within each department, based on the current composition of jobs that hotels in Mataram, Senggigi, and Mandalika have. The department with the greatest number of workers are found in the Food and Beverage department, which is also the department that demands the greatest number of new workers.

Assumption of Job Occupation Composition Rate

Table 82 Hotel Job Occupancy Ratio in Mataram and Senggigi No Job Occupation Mataram Senggigi Department Santika Mataram Golden Palace Lombok Raya Average Kila Senggigi Sheraton Average 1 Accounting & Finance 11 10% 13 7% 21 10% 9% 18 8% 9 4% 6% 2 EDP 0 0% 3 2% 0 0% 1% 2 1% 1 0% 1% 3 Engineering 12 11% 23 13% 24 11% 11% 23 10% 26 12% 11% 4 Executive Office 1 1% 5 3% 2 1% 1.6% 4 2% 3 1% 2% 5 Food & Bevarage Service 17 15% 41 23% 37 17% 18% 20 9% 34 16% 12% 6 Food & Bevarage Kitchen 15 13% 33 18% 28 13% 15% 31 14% 34 16% 15% 7 Front Office 18 16% 30 16% 21 10% 13% 33 15% 24 11% 13% 8 House Laundry 0 0% 11 6% 9 4% 4% 11 5% 11 5% 5% 9 House Keeping 17 15% 36 20% 47 21% 19% 36 16% 21 10% 13% 10 Human Capital 2 2% 4 2% 3 1% 2% 4 2% 3 1% 2% 11 Purchasing 3 3% 3 2% 0 0% 1% 4 2% 2 1% 1% 12 Spa 0 0% 0 0% 2 1% 0% 5 2% 10 5% 3% 13 Recreation 0 0% 3 2% 0 0% 1% 6 3% 9 4% 3% 14 Sales & Marketing 4 4% 11 6% 7 3% 4% 10 4% 14 6% 5% 15 Security 12 11% 3 2% 19 9% 7% 20 9% 18 8% 9% Total Employees 112 100% 182 100% 220 100% 100% 227 100% 219 100% 100%

Table 83 Hotel Job Occupancy Ratio in Mandalika No Job Occupation Mandalika Department Novotel Average 1 Accounting & Finance 8 5% 2 EDP 1 1% 3 Engineering 25 15% 4 Executive Office 3 2% 5 Food & Bevarage Service 22 13% 6 Food & Bevarage Kitchen 22 13% 7 Front Office 14 8% 8 House Laundry 3 2% 9 House Keeping 16 9%

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10 Human Capital 1 1% 11 Purchasing 2 1% 12 Spa 8 5% 13 Recreation 9 5% 14 Sales & Marketing 6 4% 15 Security 22 13% Total Employees 169 100%

The tables above depict the occupation composition rate within selected hotels in Mataram, Sengigi, and Mandalika. In all three areas, the Food and Beverage department (divided into the service and the kitchen) takes up a majority of the workforce in hotels, with 33% in Mataram, 27% in Senggigi, and 26% in Mandalika. In Mataram, House Keeping has the second largest workforce with 19%. Recreation is at 0% average for the provincial capital, indicating that programs and activities made by hotels is not in very high demand by the guests. In Senggigi, House Keeping and the Front Office take up 13% each, while the smallest workforce is the EDP and Purchasing departments, with both at 1%. In Mandalika, the second largest department is the Engineering department, while EDP, Human Capital and Purchasing are the smallest departments. These numbers demonstrate the different priorities each area has to their hospitality services, depending on demand, workforce skill, as well as other individual needs.

Number of Job Occupation Employment Based on the assumpation job occoupation in Table 82, the rates will be used to generate the employment demanded based on job occupation which can be seen in the following table below. In total, Mataram, Senggigi, and Mandalika will need 22,024 new workers based on our calculations. As expected, the Food and Beverage department is expected to demand the greatest number of workers in the future. As the table calculates employment demanded in Mandalika when it has fully operated with all the new hotels open, the area will demand the greatest number of workers, over 15,000 new workers. Interestingly, Mandalika will also demand a disproportionately large amount of Security workers compared to the other two areas, having a project need of 2,000 more workers. Overall, the employment projection shows a relatively large number of new workers needed, showing room for growth within the hospitality industry.

Table 84 Employment Projection based on the Job Occupancy (in full operation for Mandalika) No Job Occupation Mataram Senggigi Mandalika Department % Employement Demand % Employement Demand % Employement Demand 1 Accounting & Finance 8% 352 6% 136 5% 727 2 EDP 1% 24 1% 15 1% 77 3 Engineering 11% 503 11% 248 15% 2,273 4 Executive Office 1% 44 2% 35 2% 273 5 Food & Beverage Service 18% 800 12% 275 13% 2,000 6 Food & Beverage Kitchen 15% 649 15% 329 13% 2,000 7 Front Office 14% 618 13% 288 9% 1,383 8 House laundry 3% 149 5% 111 2% 273 9 House Keeping 19% 826 13% 287 9% 1,455 10 Human Capital 0% 22 2% 35 1% 91 11 Purchasing 1% 62 1% 30 1% 182 12 Spa 0% 2 3% 76 5% 727 13 Recreation 0% 22 3% 76 5% 818 14 Sales & Marketing 2% 88 5% 122 4% 546 15 Security 5% 242 9% 192 13% 2,000 16 Guest Experience - 0 - 0 4% 538 Total 100% 4,401 100% 2,258 100% 15,365

Tourism Jobs

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The table above shows the distribution of job occupation. Within the tourism sector, the Food and Beverage both service and kitchen demand the biggest portion. The more food and beverage outlets also in line with the star ranking. MICE, as a potential demand in Kota Mataram requires compentent people in MICE, which might be not fully covered by the education/training institutes. In the resort area, occupations within recreation and spa are highly demanded. Job occupation in hotel industry is growing according to the market demand and trend. Some new jobs occupations appear, such as Guest Experience, Ecommerce Sales and Marketing, etc. Non-Tourism Jobs Non-tourism job occupations the highly demanded in a big portion are Accounting and Engineering. Accounting and Engineering for hotel industry requires specific competences that need to be prepared by education/training institutes. Challenges Employment needs proper preparation and collaboration of stakeholders. There are some challenges on the employment preparation that must be discussed, including:

• No proper government planning as a base for employment preparation. Some clear indicators and targets are required to make an employment projection, such as tourism growth, education system development plan expeciallly vocational education, city/districy plan, and investment plan. • Different figure of database. The tourism database is available in the Central Bureau of Statistis and Depaterment of Tourism. However, the database is different each other, e.g. different data of BPS and the Regency Department of Tourism. This makes the data not as reliable. • No enough education institution and training centers. • Some new job training centers according the industrial standard. • Lack of proper training centers according the industrial demand. • Lack of cooperation between education institutions and industry. • Less interests from the workers candidate due to not sufficient information on employment in tourism sector especially Mandalika. Supply and Demand (per Job Occupation, in Mandalika full operation)

Table 85 Supply and Demand (per Job Occupation with Mandalika in Full Operation) No Job Occupation Supply (S) Demand (D) Gap S-D 1 Room Division 8,127 3,648 4,479 2 Food & Beverage Service 1,876 2,000 -124 3 Food & Beverage Kitchen 2,077 2,000 77 Total 12,080 7,648 4,432

Once Mandalika has fully operated with all the hotels open, there will be a total demand of 7,648 workers. However, supply is expected to increase as more graduates will be entering the market, with other 12,080 workers ready to be employed. This leaves a gap of 4,432 workers who will need employment.

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4.3.4.2.4. Stakeholders related to employment/workforce in supplying demand

The following table describes the roles the stakeholders of supplying the workforce has in Lombok. Some duties that the public sector does can also be done by private instutitions, however, governmental bodies have the power to change and enact policies that can enhance the current industry.

Institution Main Roles Ministry of • Policy and National Planning (target and strategy) on employement in Tourism, National to be brokeng down into regional/local level Development • Task and Budget Strategy creation Planning • Facilitate cooperation in the national level to support tourism development, both (BAPPENAS) technical and financial Ministry of • Policy and National Planning (target and strategy) on Tourism Tourism • Tourism Infrastructure (Kementerian Pariwisata) Ministry of • Higher education policy and system, especially vocational education Research • Synchronization of curriculum and its implementation Technology and • Capacity building of education institutions and its lecturer Higher Education (Kementrian Ristek Dikti) Ministry of • Policy on Tourism Manpower Capacity building of training centers, both BLKs Manpower and LPKs and its instructors (Kementerian • Budget for training implementation in BLKs Tenaga Kerja) • Support to the development and implementation of training in LPKs Ministry of • Education policy and system, especially vocational eduction Education and • Synchronization of 118mplementa and its 118mplementation Culture • Capacity building of teachers and education institutions (Kementerian Pendidikan dan Kebudayaan) Provincial • Provincial Policy and Planning on Tourism Employement (clear target and Tourism stragey in Renstra) Departement • Tourism Infrastructure (Dinas Pariwisata • Tourism private sector development Provinsi NTB) • Facilitate cooperation between education institutions and private sectors Infrastructure for tourism employement database Tourism • Policy and Planning on Tourism Employement (clear target and strategy in Departments of Renstra) Lombok Tengah, • Tourism private sector development Lombok Barat, • Facilitate dialogue and cooperation between education institutions and private and Kota sectors Mataram (Dinas Pariwisata Lombok Tengah, Dinas Pariwisata Lombok Barat, Dinas Pariwisata Kota Mataram) Provincial • Proper database on tourism employement and manpower Manpower • Policy, target, and strategy on tourism management Departement • Capacity building of training centers, both BLKs and LPKs and its instructors (Dinas Tenaga • Facilitate cooperation for tourism employement and work placement Kerja Provinsi NTB) Manpower • Proper database on tourism employement and manpower Department of • Support to the implementation of trainings in BLKs Lombok Tengah (Dinas Tenaga

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Kerja Lombok Tengah) Provincial • Proper database on tourism education including number of supply and Education competency Departement • Facilitate tracer study (Dinas • Policy, Target, Strategy on tourism education to prepare employement demand Pendidikan • Implementation of education including curriculum synchronization Provinsi NTB) • Faciliate dialogue and cooperation between education institutions and private sectors Education and • Provide manpower supply for tourism sector according to the demand, both Training quantity and quality Institutions • Prepare manpower of tourism according to the planning of Government and Private Sector • Institution and lecturers/instructor’s capacity building • Conduct tracer study Private Sector • Provide clear demand on employement, both quantity and quality • Facilitate capacity building for manpower candidates and teachers/lecturers/instructore • Cooperation with education and training institutions ITDC • Provide necessary input for Policy on Mandalika • Provide clear demand on employement, both quantity and quality • Provide information on tourism employment preparation to its investors • Faciliate infrastructure and facilities for the development of manpower to fulfil; Mandalika demand • Faciliate dialoge and cooperation between investors and education/training institutions Opinion Leaders • Promote tourism development • Support informal training centers in community Table 86 Main Roles of Stakeholder Institutions in Tourism Industry

4.3.4.2.5. Conclusion and Recommendation

Conclusion

Table 87 Demand and Supply Hotel Industri in Mataram, Senggigi and Mandalika Number of persons Area Demand Supply 2019 2022 Ibis and Swiss belhotel Expansion of Lombok Mataram City Raya No additional demand is projected Upgrading of Golden 11,379* per year Palace Senggigi 311 new employees Mandalika 2,561 15,362 *Study of LPKs has not been calculated Demand in Mataram and Senggigi will increase due to opening of new hotels and expansion of existing hotels. Ibis and Swissbelhotel have started construction in Kota Mataram. Lombok Island will increase its number of rooms and MICE facilities. Golden Palace will upgrade its star rating to become 5-star hotel. The following identifies the key issues and future solutions to further the employment and workforce growth of the island.

• Better planning on employment - Manpower is an essential part of tourism development. It is main asset for the ttourism sector, especially within the hotel industry. However, human capital cannot be developed instantly. It needs planning and development. Employment projection is important for a better planning on employment. The planning should include quantity and quality (qualification and compentence).

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• Collaboration private sector and education/raining institution -Understanding employment demand is important for the employment projection. The demand includes quantity and quality. Data and information should come directly from the private sector. Dialogue between private sector and education/training institution is necessary to understand better the employment demand. • Database demand and supply - A proper and integrated database is essential for the employment projection. Database includes demand and supply side. • Supply and absorption rate - To understand the supply map better, it is important to have a reliable data on the quantity of supply (qualification and competence). Quantity of supply can be estimated from number of graduates and absorption rate in the industry. Therefore, data on observation is necessary, which is not available now. This is also important to determine an exact gap on employment. • Ratio of room to employee - Ratio of room to employee can be used for the employment projection. However, data classification and further segmentation of employees may provide a better picture of the skill level that needs to be provided for each accommodation type. The projection can be classified into some industry type, e.g. city and resort, star, non-star, and othe classifications according to the industry demand. • Employment demand per job occupation based on the average percentage - Employment demand per job occupation will help education/training institutions to prepare the manpower properly according to demand. Should data of population be not available for calculating the whole demand; demand can be determined by calculating the percentage of job occupation from the selected samples. • Employment professional certification - A reliable professional certification scheme will support the employment. This scheme should be well known and accepted by industry • Anticipated Job Occupation Demand and Trend - Some new job occupation in the hotel industry are demanded in response to the tourism demand and trend. This should be anticipated by the education/training educations. Recommendation

• Develop proper planning with detailed indicators and targets on availability of supply, according to the demand in 1) Renstra Dinas Pariwisata NTB, 2) Renstra Dinas Pariwisata Lombok Tengah, 3) Renstra Dinas Tenaga Kerja NTB, 4) Renstra Dinas Pendidikan NTB • Add supply by o Adding number of education institutions and training centers in tourism o Increasing absorption rate of graduates to market o Increasing capacity of training centers including BLKs including by cooperation program with private sector o Establish “feeders” for trainings such as informal community learning group • Increase absorption rate, by o Operate program studies or training programs in accordance with the demand o Increase matching competency of students and training participants o Improve implementation of learning, both in formal education and trainings. • Increase cooporation with industry to earlier prepare human resources. MoU must be established starting now with the hotels in Mandalika, ITDC may facilitate. • Establish training centers in the Mandalika area, especially for practical skills catering to the specific demand of Mandalika.

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• Establish “Task Force Group” for Mandalika employment (valid at least from 2018-2022) to speed up the preparation. • There is only one Profesional Certification Institute (Lembaga Sertifikasi Profesi-LSP) available in NTB. Provision of LSP in the Mandalika area will increase certification rate. • Promote employment by conducting campaigns. • Increase discussion and dialogue on employment among stakeholders. • Conduct affirmation and crash program with clear targets to speed up the employment preparation by involving lectures and professional in tourism sectors. The program should cover all demanded job occupations. • Increase tracer study for a better database on supply and potential cooperation with the industry. • Establish a database for the tourism employment. This system should include demand and supply. o Database should be available not just as governmental bodies gathering statistical information, but also for the employers and the workforce. • Recommendation for further study on employment projections: o Involve more hotels to provide data and information o Deeper study on supply side; absorption rate and readiness of education/training institutes o Competence matching/decrease gap between demand and supply per occupation including new occupation in hotel industry o Availability of supply on non-tourism competences according to the demand o Analysis of demand according to the market trend and potential o Analysis of necessary instrument to support employment preparation for hotel industry o Further study on other tourism sub-sectors

4.3.4.3. Literature Review – Tourism Statistics 2018

4.3.4.3.1. NTB Tourism Business

The tourism facilities within Lombok will be further discussed in Chapter 6 Tourism Facilities, however context will be provided in order to discuss the workforce within these facilities. The following table shows the total number of tourism-related businesses in Lombok Island and Sumbawa Island in 2018, the two popular tourism sites in the province. Lombok has a considerably larger facility portfolio compared to Sumbawa, with 3,557 businesses readily available, most of which being restaurants, with hotels coming second. There are only little diving opportunities available in the island, showing a potential for growth.

Table 88 NTB Tourism Business 2018 Number of Tourism Businesses No Regencies Star-Rated Non Star- Tourist Restaurants Bars Spas Diving Total Hotels Rated Hotels Agen. Lombok Island 80 1,085 1,375 85 286 45 601 3,557 1 Mataram 28 122 338 0 196 7 253 944 2 Lombok Barat 37 149 271 0 46 38 241 782 3 Lombok Utara 9 566 375 85 44 0 29 1,108 4 Lombok Tengah 4 105 126 0 0 0 57 292

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5 Lombok Timur 2 143 265 0 0 0 21 431 Sumbawa Island 8 159 641 1 12 0 30 851 6 Sumbawa Barat 1 39 292 0 11 0 0 343 7 Sumbawa 7 53 200 0 0 0 1 261 8 Dompu 0 35 38 0 0 0 1 74 9 Bima 0 14 45 1 0 0 6 66 10 Kota Bima 0 18 66 0 1 0 22 107 Total NTB 88 1,244 2,016 86 298 45 631 4,408 Source: NTB Tourism Agency, 2018

4.3.4.3.2. NTB Tourism Workers

Hotel Workers

Table 89 NTB Star-Rated Hotel Workers Star-Rated Hotel Workforce Ratio No. Regencies Hotels Rooms Domestic Foreign Room/Hotel Staff/Room Lombok Island 80 7,488 7,518 5 94 1.005 1 Mataram 28 1,977 1,650 0 71 0.835 2 Lombok Barat 37 4,419 4,864 3 119 1.101 3 Lombok Utara 9 717 662 2 80 0.926 4 Lombok Tengah 4 337 319 0 84 0.947 5 Lombok Timur 2 38 23 0 19 0.605 Sumbawa Island 8 187 141 0 23 0.754 Total 88 7,675 7,659 5 87 0.999 Source: NTB Tourism Agency Table 90 NTB Non Star-Rated Hotel Workers Non Star-Rated Hotel Workforce Ratio No. Regencies Hotels Rooms Domestic Foreign Room/Hotel Staff/Room Lombok Island 1,085 9,390 5,859 0 9 0.624 1 Mataram 122 2,438 1,620 0 20 0.664 2 Lombok Barat 149 920 788 0 6 0.857 3 Lombok Utara 566 4,329 2,815 0 8 0.650 4 Lombok Tengah 105 586 283 0 6 0.483 5 Lombok Timur 143 1,117 353 0 8 0.316 Sumbawa Island 159 2,288 892 0 14 0.390 Total 1,244 11,678 6,751 0 9 0.578 Source: NTB Tourism Agency As previously seen, the hotel industry within the tourism businesses takes up a large majority of the available tourism facilities on the island. Based on the tables above, there are 7,523 workers working in star-rated hotels and 9,390 workers working in non star-rated hotels. There are only 5 foreign workers within the hospitality industry in Lombok, indicating that employment is still being demanded locally. This means that any growth in employment may lead to economic benefits for the individuals within the communities.

For the ratio of number of rooms to number of hotels, star-rated hotels in Lombok average at 94 rooms for every hotel. Lombok Barat has the greatest number of rooms per hotel, with 119 rooms, with a high staff to room ratio of 1.101 workers per room. Non star-rated hotels have an average of 9 rooms for every hotel in Lombok. This highest ratio is found in Mataram, with 20 rooms for every non-star hotel. However, the highest ratio of staff to number of rooms is at Lombok Barat, with 0.857 workers for every room. The average ratio of staff to room in all of Lombok is at 1.005, with the lowest ratio occurring in the Lombok Timur regency, with only 0.605 staff per room. This is likely due to the low number of hotels in the area. In general, the ratio of staff to rooms is relatively

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low for a growing tourism industry. For faster improvement, the ratio may need to increase, however, capabilities of supply must be considered before expansion of workers is implemented.

Table 91 Trends in Workers of Star-Rated Hotels Star-Rated Hotel Workforce Ratio No. Year Hotels Rooms Domestic Foreign Room/Hotel Staff/Room 1 2014 55 3,081 N/A N/A N/A N/A 2 2015 65 3,792 N/A N/A N/A N/A 3 2016 65 4,118 N/A N/A N/A N/A 4 2017 79 4,690 3,080 5 59 0.658 5 2018 88 7,675 7,659 5 87 0.999 Source: NTB Tourism Agency

Table 92 Trends in Workers of Non Star-Rated Hotels Star-Rated Hotel Workforce Ratio No. Year Hotels Rooms Domestic Foreign Room/Hotel Staff/Room 1 2014 672 7,328 N/A N/A N/A N/A 2 2015 829 8,809 N/A N/A N/A N/A 3 2016 882 9,147 N/A N/A N/A N/A 4 2017 848 8,899 5,303 0 10 0.596 5 2018 1,244 11,678 6,751 0 9 0.578 Source: NTB Tourism Agency, 2018

The trends from 2017 to 2018 have also shown a considerable increase in employment, therefore it is unlikely that hotels will be demanding even more foreign workers in the near future. The staff to room ratio in the province also continues to increase, signaling a possible positive improvement in the quality of service as well. More workers per room, better efficiency as well as faster service. Restaurant Workers

Table 93 NTB Restaurant Workers Restaurant Workforce Ratio No. Regencies Restaurants Tables Chairs Domestic Foreign Chairs/Restaurant Staff/Chair Lombok Island 1375 10,921 3,0763 6,209 0 22 0.202 1 Mataram 338 2,836 10,489 1,713 0 31 0.163 2 Lombok Barat 271 1,420 5,215 1,117 0 19 0.214 3 Lombok Utara 375 5,306 11,524 2,395 0 31 0.208 4 Lombok Tengah 126 818 2,496 576 0 20 0.231 5 Lombok Timur 265 541 1039 408 0 4 0.393 Sumbawa Island 641 2,485 9,315 2,042 0 15 0.219 Total 2016 13,406 40,078 8,251 0 20 0.206 Source: NTB Tourism Agency, 2018

Restaurants take up a majority of the available tourism-related businesses in Lombok. Based on the table above, for 1,375 restaurants, there are 6,209 workers, all of which are of Indonesian nationality. The most restaurants can be found in Lombok Utara, most likely due to the tourism spots of the Gili Islands. The average ratio of chairs to restaurant is at 22 chairs, while the average ratio of staff to chair is at 0.202 workers. Lombok Tengah has the smallest number of restaurants despite being the most populated regency in the island, but this may be due to the geographical terrain of the area, making it difficult for many facilities to open within the regency.

Bar Workers

Table 94 NTB Bar Workers in 2016 Bars Workforce Ratio No. Regencies Domestic Foreign Staff/Bar Lombok Island 51 158 0 3.1 1 Mataram 0 0 0 N/A 2 Lombok Barat 0 0 0 N/A 3 Lombok Utara 51 158 0 3.1

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4 Lombok Tengah 0 0 0 N/A 5 Lombok Timur 0 0 0 N/A Sumbawa Island 1 2 0 2.0 Total 52 160 0 3.1 Source: NTB Tourism Agency, 2016

The table above shows the number of workers in the bars in the Lombok and Sumbawa Islands. In Lombok, all the bars can be found in Lombok Utara, which totals to 51 bars in 2016. Of the 158 workers, all are Indonesian. The staff to bar ratio is at 3.1, as bars do not need many workers to run them. In 2018, based on Table 87, there are now 85 bars, all still located in Lombok Utara. Bars are only available in Lombok Utara as it is where the Gili Islands are located, which are popular tourist destinations for foreigners. Being a majority Muslim island, it is likely that there is no demand for bars in other parts of the island were foreign tourists are scarcely found. Spa Workers

Table 95 NTB Spa Workers in 2016 Spas Workforce Ratio No. Regencies Domestic Foreign Staff/Spa Lombok Island 238 775 0 13.7 1 Mataram 196 521 0 2.7 2 Lombok Barat 28 200 0 7.1 3 Lombok Utara 14 54 0 3.9 4 Lombok Tengah 0 0 0 N/A 5 Lombok Timur 0 0 0 N/A Sumbawa Island 12 27 0 2.5 Total 250 802 0 3.2 Source: NTB Tourism Agency, 2016

Spas are also another popular tourism facility found in many beach and water-based tourism destinations. Most of the spas in Lombok are in Kota Mataram, as it may be likely that hotels would have their own spa facility that is only available to their guests. The staff to spa ratio is relatively high, being having 13.7 workers for every spa. There is a total of 775 workers in the spa businesses, all of whom are Indonesian. No spas can be found in Lombok Tengah and Timur, likely due to lack of demand. Diving Workers

Table 96 NTB Diving Workers in 2016 Workforce Ratio No. Regencies Diving Facilities Domestic Foreign Staff/Diving Lombok Island 29 208 0 7.2 1 Mataram 0 0 0 N/A 2 Lombok Barat 0 0 0 N/A 3 Lombok Utara 29 208 0 7.2 4 Lombok Tengah 0 0 0 N/A 5 Lombok Timur 0 0 0 N/A Sumbawa Island 0 0 0 N/A Total 29 208 0 7.2 Source: NTB Tourism Agency, 2016

With limited data on diving locations in 2018, the table above depicts the number of workers in diving facilities in 2016. There were only 29 diving locations, all of which can be found in Lombok Utara, where the Gili Islands are. All of the 208 workers are Indonesian. Table 87 shows how in 2018, there are now 45 diving locations, with 38 in Lombok Utara and 7 new spots in Mataram. This shows how the high growth of diving locations within just two years, expanding to even new locations within Lombok.

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Traveling Tours Workers

Table 97 NTB Traveling Tours Workers in 2016 Traveling Tours Workforce Ratio No. Regencies BPW CBPW APW Domestic Foreign Staff/Traveling Tours Lombok Island 370 0 0 2,058 0 5.6 1 Mataram 223 0 0 1,243 0 5.6 2 Lombok Barat 61 0 0 496 0 8.1 3 Lombok Utara 23 0 0 110 0 4.8 4 Lombok Tengah 57 0 0 176 0 3.1 5 Lombok Timur 6 0 0 33 0 5.5 Sumbawa Island 27 0 0 110 0 4.1 Total 397 0 0 2,168 0 5.5 Source: NTB Tourism Agency, 2016

The table above shows the amount of workers in Tourism Agencies in Lombok and Sumbawa in 2016. From 370 BPWs (Biro Perjalanan Wisata), there are 2,058 workers, a majority of whom located in Kota Mataram. The ratio of staff to Tourism Agencies is at 5.6 workers per agency. Table 87 shows that in 2018, there are now 601 Tourism Agencies spread across BPWs, CBPWs (Cabang Biro Perjalanan Wisata), and APWs (Agen Perjalanan Wisata), with Mataram still having the most number of businesses available. Compared to the number of hotels and the restaurants, the tourism agencies are at a relatively low number to adequately facilitate for the tourism that enters the island, which may need room for growth. However, the workforce must be properly trained. 4.3.4.4. Literature Review – Project Appraisal Document

The project appraisal document provides important insights that are required when thinking of a tourism masterplan idea.

Tourism is a promising growth sector that can provide inclusive and sustainable growth across Indonesia (Point 4)

Good and Service - Visitor spending can generate significant economic impacts in tourism destinations, if mostly spent on locally-produced goods and services. Data from Indonesia’s national accounts (input-output tables) suggests that most visitor spending stays in the domestic economy. Only around 20 percent of spending goes towards imported goods and services7.

Tourism Multipier effects 1.7 and jobs (1 direct job: 2 indirect job) - The share that stays in the economy (i.e., for local goods and services) has strong multipier impacts because of indirect effects (i.e., the resulting in output and employment for other sectors supplying inputs to support the rise in tourism spending) and the induced effect (i.e., the additional spending by those deriving income from growing tourism activity). If planned and managed well, tourism can thus generate large employment and income multipliers for Indonesia. According to the World Travel Council (WTC), in Indonesia, every USD 1 million of spending in travel and tourism supports USD 1.7 million in GDP and around 200 jobs (67 of which are direct jobs).

7 Based on the tourism satellite account produced by Statistic Indonesia (Badan Pusat Statistic, BPS) and the Ministry of Tourism

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Workers - Morever, out of almost 7 million hotel and restaurant workers in Indonesia in 2017, women represented 58% and men represented 42%.8

Project Beneficieries (Point 19) – The project beneficieris are relevant ministries and agencies, the residents, local job-seekers and workers in the tourism industry, and local tourism firms in the selected destinations.

The skill development activities under compoenent 3 will help improve opportunities for local workers and job-seekers to get trained or upskilled and capture the jobs created by growing tourism demand in the key tourism areas. This is expected to benefit both women and men, who represent about 58 percent and 42 percent, respectively, of tourism sector employment. Its benefits for tourism development include better and more equitable alignment of skills to the industry’s needs and better custumer orientation, which will – in turn – improve the destination’s attractiveness.

By promoting partnerships with online platforms and introducing evidence-based capacity building, component 3 will also benefit tourism firms in the key tourism areas. It will support firms with limited online presence (primarily SMEs) to better integrate into the digital economy as a means of boosting their competitiveness and improving their market access. It will also support online firms to improve their product and service quality standards and further broaden their market reach.

Global Best Practice (Point 35) - For Component 3, several global best pratices for governments to address tourism skills constraints have been considered. The Project follow the lessons learned from Singapore and Scotland.

Singapore is regarded as exemplar for its talent policies and holistic approach to improving its tourism manpower capabilities. In 2007, the Singapore Workforce Development Agency, Ministry of Manpower, and Singapore Tourism Board collaborated to develop a Tourism Talent Plan. The plan aimed to prepare the workforce to meet a projected spike in manpower demand, driven by new toruism investments, including two integrated resorts, and new events. The three-pronged approach comprised of continuing education and training for adult workers, pre-employment training for students, and strong partnership with the industry stakeholders to attract more workers to join the sector.

Scotland’s experience with tourism skills development also highlights the importance of strong partnerships with the private sector. In 2013, Scotland developed its first Skill Investment Plan (SIP) to support tourism and address key sector constraints. Two of the SIP’s four objectives relevant to Lombok and Indonesia in general were:

• Developing skills to deliver a high-quality visitor experience • Ensuring that high-quality training was available

After 2 years, almost 90 percent of the SIP had been implemented. Whilst many contries have similar plans in place, very few get implemented and at such a pace. A critical success

8 WTTC, 2012. The Comparative Impact of Travel and Tourism; WTTC 2015. Indonesia: How does Travel and Tourism compare to other sectors?; United Nations World Tourism Organization (UNWTO) and UN Women, 2011. Global Report on Women in Tourism 2010; WTTC. 2014. Gender equality and youth employment; and BPS. 2017. National Labor Force Survey (Survei Angkatan Kerja Nasional, SAKERNAS) 2017.

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factor for the rapid implementation of Scotland’s SIP was the formation of a Tourism Skills Group, which was responsible for the development and impelementation of the plan and consisted of employers, employees, education providers and public-sector agencies.

Learning from these experiences, this Project will adopt a holistic approach for improving the supply of tourism TVET and the underlying quality control mechanism (i.e., certification and accreditation). Furthermore, the Project will incentivize stronger links between skills demand and supply, engaging regulary with industry and other stakeholders to ensure job- relevant skills are being targeted.Tracking mechanisms and improved industry collaboration via Tourism Skill Development Forum will provide information to tourism TVET institutions on the availability and evolution of skills demand in the sector.

Component 3 aims to increase participation of local firms and individuals in the tourism sector. (Point 68) - This component is implemented by Deputy Insitutional Development and Tourism Industry of the Ministry of Tourism, and its key outcomes relate to:

(i) Guaranteeing a continuous supply of relevant workforce skills for jobs in the tourism economy; (ii) Supporting local firms to capture opportunities in the increasingly-digitalized tourism economy; (iii) Improving the quality of service standards among local tourism firms; and (iv) Improving local community awareness (Sadar Wisata) and engagement in tourism development (see Table 99).

Table 98 Part 3 of the ITMP Project Components

Project Component

1 Increase institutional capacity to facilitate integrated and sustainable tourism development 2 Improve tourism-relevant road quality and basic services accessibility 3 Promote local participation in the tourism economy 3. Compentency-based vocational training and accreditation (Skill Development) 1 3.1.1 Competency-based standards, qualification frameworks and related curriculum packages 3.1.2 Training of trainers, teachers and assessors for improved delivery of CBT 3.1.3 Technical assistance for TVET institutions to align with private sector demands, and required equipment 3.1.4 Life-long learning training 3.1.5 Certification 3.1.6 Bi-annual tourism forums 3. Technical asistance to firm (Firm Capabilities) 2 3.2.1 Data 3.2.2 Training on online engagement 3.2.3 Training on service & quality 3. Community Awareness (Community Engagement) 3 3.3.1 Community awareness and empowerment programs implementation 3.3.2 re-design community awareness and engagement programs 3.3.3 community satisfication survey

Skill Development - The development of relevant workforce skills will include the provision of relevant and high-quality compentency based training (CBT) and the strengthening of the certification system of the tourism sector in selected destinations (Point 69). While the Project focuses on strengthening technical and vocational education and training (TVET)

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institutions relevant to the selected destinations, it will also help improve the system for tourism- related workforce skill development, from which other destinations will also benefit. During the Project implementation, technical assistance will increase alignment of CBT with the demands of the private sector over time. To enable this, component 3 should include:

a) Development of compentency-based standards, qualification frameworks and related curriculum packages, including holding related industry-government consultations. b) Training of trainers, teachers and assessors for improved delivery of CBT and developing related guidance materials, including inter alia: (i) consulting serices to develop guidance materials to ensure the new curriculum is understood and implemented by teachers in TVET institutions, training of trainers materials to ensure trainers can deliver curriculum guidance to teachers, and standard operation procedures and training material for assessors to be more proficient in certifying graduates of CBT program and existing tourism professional based on recognition of prior learning: (ii) workshop and training for trainers and assessors; (iii) workshop for tourism industry professional to certify them to lecture (Level 6 and 8) in TVET institutions; and (iv) teacher internships in partnership with the tourism industry. c) Provision of technical assistance for TVET institutions to align with private sector demands including provision of required TVET equipement, including inter alia: (i) consulting services for technical assistance for TVET institutions to prepare and implement work plans towards better alignment with private sector demands; and (ii) equipment and supplies/materials for selected TVET institutions’ tourism laboratories. The technical assistance is for TVET providers that have a Memorendum of Understanding, or a similar agreement, with the Ministry of Tourism (and the Ministry of Education and Culture) for use of its curriculum, and that have agreed partnership with potential employers, which are based on agreed framework (with defined occupational requirements and employment targets). TVET equipment will be provided to TVET institutions that are managed under the Ministry of Tourism budget, and for which the Ministry can procure these goods directly. d) Certification of trainees and tourism professionals, including consulting services for the development and implementation of life-long learning (upskilling) programs for a targeted number of existing tourism professionals. Certification is an ongoing Ministry of Tourism activity, which operates across Indonesia’s priority destinations, with USD 0.86 million allocated for the Project’s selected destinations in 2018. As the activities listed above are implemented, the competency levels of those certified will increase. e) Holding of bi-annual tourism skill development forums in each of the Project’s selected destinations to improve coordination and collaboration between TVET stakeholders (TVET institutions, government ministries/agencies, and the private sector).

Firm Capabilities - With regards to local firms, the Project’s support will focus on equipping the Ministry of Tourism with the means to better prioritize and more effectively deliver capacity building to these firms. Through a partnership with a travel website company, Deputy Institutional Development and Tourism Industry, the Project will identify those tourism firms that are currently offline and develop a series of workshops that will improve these firms’s online presence and engagement – ciritical for any tourism firm to remain competitive and to maximize its access to markets. Furthermore, through this partnership, the Ministry will monitor and evaluate service and quality standards of tourism firms, identify area needing improvement in each destination, and tailor practical CBT to enable tourism firms to meet higher overall standards. In practice, the component includes:

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a) Acquisition of data from a travel website company to assist in the design of policies and program aimed at increasing local firm’s linkage to global online platforms and improving their quality standards. b) Consulting services to deliver training for local tourism firms to help boost their online market access. The training delivery requires non-consulting services and operating costs. c) Consulting services for the content and delivery of targeted programs that focus on improving firm quality and service standards that the travel website data identifies as weak.

Community Awareness - To support the improved design, implementation, and monitoring of community awareness and engagement programs, this component also includes:

a) Training and operating costs for the existing Minsitry of Tourism’s Sadar Wisata awareness program, with a 2018 budget allocation of about USD 7.7 million for 68 locations, including USD 0.69 million for the Project’s selected destinations. Support will enable Deputy Institutional Development and Tourism Industry to increase the number of community participants engaged in tourism through programs, such as entrepreneur mentoring and women’s economic empowerment, in the selected destinations. b) Consulting services to redesign, using international best practice, this existing program to be more focused on, and effective in, empowering communities in the selected destinations to participate in tourism, for example, in decision-making processes or in capturing economic and social benefits. Careful planning in design and implementation to support community-oriented and inclusive tourism sector opportunities can have a positive effect on employment and incomes of women and indigenous peoples (IPs) in tourism services. However, both opportunities and constraints are likely to be context-specific, and interventions will need to be informed by gender analysis and strategies for addressing barriers to participation and the possibility of triggering an increase in gender-based violence. c) Commnuity satisfaction surveys to better assess the perceived benefit from tourism (e.g., individual and community benefits; economic and social benefits; conservation of traditions) changes in the level of engagement including changes in socio-economic conditions (e.g., prices, access to resources, and traditional values), changes in environmental conditions (improvement or degradation), and interaction with visitor, and others. Disaggregation by gender provides useful feedback on any differences between men and women in the community and potential barriers to participant in skills development and the tourism industry9. Where applicable, a considerable number of IPs will be included in the surveys, in order to monitor their statisfaction and engagement. While the surveys have the potential to provide feedback for all project components, the community awareness and engagement programs will be the first place where the issues identified in the survey can be addressed.

In promoting local pariticipation in the tourism economy, gender equity gaps can be addressed. While a little more than half of the tourism sector in Indonesia are run by women, in

9 Masyarakat Adat (Customary Communities), Masyarakat Hukum Adat (Customary Law Communities) and j(Traditional Communities), are used interchangeably for IPs in Indonesia. IPs is used as the term to encompass all.

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2017 are employed in the tourism sector in Indonesia (61%-39% in NTB province) 10 , initial assessments include two gender equity gaps in the Project’s selected destinations:

a) Data on the number of tourism graduates and professionals certified in 2017 shows that twice as many males compared to females, 67% and 33% respectively. For employers, certification is expected to decrease asymmetries of information, reducing the transaction costs of selecting workers. For the job seekers or workers, certification can help them in communicating the quality, depth, and breadth of their skills to potential employers better and quickly. Additionally, in the context of training institutions delivering expected results. Certification is thus important for labor mobility, allowing workers to seek jobs of greater quality and opportunities for advancement. By increasing certification for women, this will enable women to seek jobs of greater quality and enable them to advance from lower level position in the tourism industry. To ensure females and males are certified at the same level, the Ministry of Tourism will introduce gender equity targets in the memorandum of understanding it signs with the certifying agencies. This target will encourage the certifying agencies to identify the root causes of inequality and adjust their outreach and certification services offer accordingly.

4.3.4.5. Interview

Based on interviews with various respondents at the provincial, regency, and village level including Government institutions, NGOs, and Community Associations, there are some input related to the concerns on tourism skills and capabilities as described below, but not limited to: good tourism management, ecotourism management entrepreneurship, development management and tourism promotion, hotel management, professional standardization (especially in health sector), English language or other related foreign language, and other tourism-related skill training. From interviews with various stakeholders such as the Indonesia Islamic Tourism Association (APII), various government insitutions of the different regencies, local residents and other relevant organizations/communities, a summary of institutional and skills-related issues can be found below: Institutional Issues:

• Implementation of halal tourism not yet optimised. The concept of Halal Tourism has not been clearly defined and constrained. Therefore, its implementation is difficult and may not be to the desired extent. • Lack of initial capital for establishing businesses. The increasing trend of tourism forces citizens to participate in the business. However, some people don’t have the capital to start a business. • Lack of development control to push investors. Land owners/inverstors often leave their assets dormant for decades. A lot of local residents hope their dormant investors to develop their sites as soon as possible so that they can benefit from the increased tourism activity and job opportunities, • Limited coordination amongst the local government institutions. There is a lack of cohesion and synergy in tourism coordination amongst relevant institutions.

Skills Issues:

10 BPS. 2017. SAKERNAS 2017; and UNWTO/UNWOMEN. 2011. Global Report

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• Lack of hotel management skills for hotel owners. Hotel/homestay owners have only little knowledge about hotel management. These owners, and other tourism-related business owners, need more training in tourism. • Lack of English language skills. Almost all of the respondents mentioned that there is an urgent need for improvement in English language skills if Lombok’s tourism were going to grow rapidly. • Lack of knowledge in good tourism management practices. Lack of awareness, understanding, and skills in eco-tourism management, tourism entrepreneurship, tourism promotion, and other relevant management practices. 4.3.5. Local Businesses and Firms

In this section, we will provide a summary of the interviews conducted with a number of local business practitioners in the relevant key tourism areas. In each Kecamatan, we interviewed at least three local businesses through random sampling to get some insights to the local business climate in each area. It is crucial to note, however, that we do not claim any statistical significance in the results since the sampling method and size do not allow for a statistically conclusive result. Instead, the interviews were conducted to gain some insight about the products being sold, where are the products being sourced from, who are the main target markets, and where from and how much do these businesses generate in revenue, among others. A more structured workforce analysis will be carried out in the context of strategy development. 4.3.5.1. Kecamatan Batu Layar (Lombok Barat)

The centers of trading in Batu Layar, especially those which are tourism-related, is located in Pasar Seni Senggigi (Senggigi Art Market), close to the likes of Kila Senggigi and Sheraton Senggigi. Based on the interviews we conducted with several local businesses in Kecamatan Batu Layar, or the tourism destination of Senggigi, it is apparent that businesses in the area sell goods that are likely to attract tourists. However, there is a distinction in the products sold in the art market and the beach. The former focuses more on clothing and arts and crafts, while the latter mostly sells smaller items such as accessories. The observation that businesses in Senggigi are tourism- centric is also supported by the fact that the recent earthquake had a significant impact to the businesses’ revenues, which implies that the decreased number of visitors directly caused the decline in revenue. 4.3.5.2. Kecamatan Sekotong (Lombok Barat)

Sekotong has not developed a significant amount of tourism-related local businesses even in tourist destinations such as Mekaki Bay and Gili Nanggu. Therefore, we could not find any suitable interviewee candidates during our survey. 4.3.5.3. Kecamatan Praya Barat (Lombok Tengah)

The interviews conducted in Praya Barat are warung owners whose businesses are amongst many located along the shores of Selong Belanak Beach. Despite similarly targeting tourists with local businesses in Senggigi, the ones in Selong Belanak offer foods and beverages instead of tourism- related goods. In fact, the foods and beverages are only supplementary to their main business of renting out surfboards for tourists as Selong Belanak is famous for being a spot for beginner surfers. These warungs had started to mushroom around 2011 where Selong Belanak began to gain traction in being a tourism destination. Up until now, these warungs do not pay any retribution or any rental to anybody as they are still occupying informal spaces. According to the interviewees,

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there have been talks about the government providing a more formal space for them and start charging regular retribution, to which they do not object as long as they can keep operating their business in Selong Belanak. 4.3.5.4. Kecamatan Pujut (Lombok Tengah)

The two interviews conducted are with warung owners whose businesses are two amongst many located along the shores of Merese hill and Tanjung aan hill. Despite similarly targeting tourists with local businesses in Kuta, the ones in Merese hill and Tanjung Aan hill offer foods and beverages instead of tourism-related goods. In fact, they sell in non-permanent locations. Based on interview with head of pujut district, hotel/homestay owners have only little knowledge about hotel management. They and other tourism-related business owners need more training in tourism. An organizational consultant is required. 4.3.5.5. Kecamatan Tanjung (Lombok Timur)

The two interviews are conducted towards warung owners at Himpos Beach, Tanjung. These warungs are informal semi-permanent structures build along the shore of Himpos beach, selling light bites and meals for beach visitors. However, at the moment, Himpos Beach has yet to be a popular tourism destination. In fact, the beach is mostly visited by locals living in the vicinity; and not even local visitors. As a result, the warungs along this beach mostly cater to local residents who visit the beach for their daily entertainment. Despite that, the fact that there has been a Pokdarwis (community-based tourism awareness group) established by the local government is a statement that Tanjung is envisioned to become a tourism destination in the foreseeable future. It is also notable that the two interviewees above started their business relatively recently, which signals some degree of confidence from local residents about the tourism potential in the area. This is unsurprising since Tanjung is already home to several high-end hotel developments such as The Lombok Lodge and The Oberoi Lombok and is planned to feature a world-class marina dubbed as The Medana Bay. 4.3.5.6. Kecamatan Pemenang (Lombok Utara)

The interviews are conducted in the three Gili Islands, Gili Trawangan, Gili Air, and Gili Meno. While some businesses in Gili Air and Gili Meno are already owned by foreign nationals, there are still a number of businesses that are owned by locals in the respective islands. On the other hand, with the exception of warungs, stores in Gili Trawangan are mostly owned by foreign nationals with a 10-year rental contract priced between IDR 60 to 75 million. These stores in Gili Trawangan generally sell clothing and accessories, obtaining their products from mainland Lombok and Bali. Most of the employees working in the three Gilis are Lombok residents and are provided a place to live in the Gilis by their employers as part of their salary package which generally ranges from IDR 1.5 to 2 million per month. Skill capacity that needs to be enhanced are English language sills, standardization of human resources (including in health sector), professional workforce (including in health facitilities) around tourism area. 4.3.5.7. Kecamatan Jerowaru (Lombok Timur)

The first interviewee in Kecamatan Jerowaru was a warung owner in Desa Sekaroh. Although not directly located within any main tourism destinations in the area, it is passed through when going to the Pink Beach on road. Therefore, the clientele of this warung is a mixture between local

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residents and tourists, even though the latter holds a smaller portion. On the other hand, the second interviewee was a warung owner located directly on the shore of the famous Pink Beach. As a result, the customers are almost exclusively tourists, and mostly foreign ones. Furthermore, assuming the information provided is accurate, the business located in Pink Beach generates around 6 times the amount of revenue compared to the one in Desa Sekaroh. However, one notable observation for both of these businesses is that they still have to buy their clean water due to a lack of pipe-water infrastructure, which accounts for a significant share of their costs.

Skill capacities that need to be enhanced, the public should have more training on foreign languages and other skills relevant to tourism development. 4.3.6. Community Roles in Tourism Development

Tourism development on Lombok Island cannot be done by the government without community involvement. In many areas, community involvement is defined by the activities of the Pokdarwis (Tourism Awareness Group). Pokdarwis are a participatory institution established by the District Tourism Office through a Decree (SK) of the Village Head. The main role of Pokdarwis is to raise awareness with respect to maintaining, managing and developing tourism in the respective regions. Since the development of the Mandalika Special Economic Zone (KEK Mandalika), Pokdarwis have actively promoted tourism and raised awareness regarding the need to pay attention to and manage the tourism sector as well. This includes creating programs to promote cleanliness and holding tourism events to attract tourists. Pokdarwis also cooperates with the Badan Keamanan Desa (BKD) in maintaining security in the tourist area by patrolling in areas of tourist attractions such as the beach. Despite this, there is not a great deal of guidance from the government and the Pokdarwis program suffers from budgetary constraints. There are alo significant capacity and experience limitations. As a result, many Pokdarwis do not play an active role. In addition to Pokdarwis, local village youth groups also play a role and are involved in tourism through activities such as managing tourist parking places in areas such as Tanjung Aan and Kuta beaches in Lombok Tengah. On the Pink Beach, Lombok Timur, tourism businesses are managed by the Kelompok Tani Forest, who the determine entrance and parking ticket fees. Individual business communities also contribute to developing tourism, such as homestays, vehicle rentals, and tour guides. Although there are still some obstacles such as how to understand the concept of tourism that is friendly and does not have a negative impact on the surrounding community and the overall culture. For example, there are live music performances until midnight that are noisy and disturbs other guests. As a result, other guests complained, and currently there is nothing specifically that has received complaints from tourists. Resources derived from the tourism sector should have the potential to create jobs for communities. For example, women's groups in several villages are skilled in traditional weaving, such as in the villages of Sukarara and Setanggor, Lombok Tengah, Pringgasela, Lombok Timur. Tourism is multi-sector, so all stakeholders must be involved and play a role in its development. In Lombok there are several institutions that have responsibility for the tourism sector. In Lombok Barat, these roles are regulated in the Forum Tata Kelola Pariwisata (FTKP). Other institutions that have responsibility for tourism are the Lombok Tourism Forum (LTFNo.an Pemandu Indonesia (HPI), Asosiasi Travel Agent (ASITA), and so on. The role of ASITA is very important in tourism promotion and empowerment of local communities of the ways in which it is important is by bringing

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guests (tourists) to the community homestay or buying local products (weaving, rattan) produced by the community. Women’s capacity and the participation of women is an important component of tourism development, both in its potential and its opportunity. Women play vital roles in community life, but are also the custodians of important skills and traditions (e.g. food, weaving, ceremonial life, and material culture). Women may operate within establish political and social networks of communities, but they may also have their own specific networks. In general, according to the Lombok Market Analysis and Demand Assessments to Support the Development of Integrated No.estinations Across Indonesia, a document required by the World Bank, the following are the potentials of local communities for sustainable tourism development were identified:

• Local community specialist guides for attractions (cultural heritage guides, wildlife and trekking) and Sasak culture (performance and craft);

• Community operated water supply; and • Temporary solid waste disposal at residential area. To optimize these potentials, the Lombok Market Analysis and Demand Assessments report recommended a number of interventions to small and medium enterprises, including:

• Development of community co-operatives (e.g. village co-operatives for cultural villages) to improve the effectiveness of business development through shared access to management and development systems and product supply lines, funded to create an online platform displaying the various activities, events, routes and accommodations of the cultural villages, which can be accessed by both FITs and tour operators for enquiries and reservations;

• SME Training Support for the local communities, including hospitality training on service, language, hygiene, and culinary skills, and the use of information technology for locals at the cultural villages; and production of high-quality handicrafts using traditional skills, patterns and local materials (e.g. bamboo, cane, stones, silver, or even volcanic ash), which would increase the local products appeal to visitors; and

• Encourage young talent through study awards and government-supported internship programs. In addition to the roles of individuals and institutions mentioned above, the daily lives of Lombok people are also influenced by the role of religious (Tuan Guru) and customary leaders. A Tuan Guru is a religious leader who is trusted to make decisions related to religion, while customary leaders play a special role in matters relating to customs, such as traditional ceremonies, awik- awik (customary rules), and others. The majority of Lombok people are Muslim. The largest and most influential Islamic organization in NTB is Nahdlatul Wathan (NW). NW is a social organization that is engaged in the fields of education, social and Islamic preaching. In its development, NW also has a role in politics and government. The division in the organization into two camps (NW Pancor and NW Anjani) had an effect on the government. Based on the results of interviews with informants, in the previous government there was a difference between the Governor of NTB (Tuan Guru Bajang) and Kabupaten Lombok Timur, this had an effect on the coordination in carrying out development in the region.

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4.4. Vulnerable Groups: Poverty and Other Social Problems

This section discusses the identification of the vulnerable groups within the study area at the provincial, regional, and district level. It was found that the NTB Province ranked 27th in poverty rate, with a rate of 14.75% in 2018. This section also describes the efforts made by the government to improve their poverty-reduction programs as well as other social problems that are still in abundance in the region. Vulnerable groups discussed in this section refer to those outlined in the Ministry of Public Works and Housing’s ESMF for Indonesia Tourism Development Program. The Ministry has particularly noted the need to pay attention to the following vulnerable groups potentially affected by the development:

• Those below the poverty line – discussed further in this section including those identified below the province poverty line and pre-welfare families. Another potential vulnerable group in this category is the unemployed people in working age category, which is identified in the previous Section 4.3 Workforce and Employment; • The landless – the Central Bureau of Statistics (BPS) established one of the definitions of vulnerable poor farming families as those having less than 500 m2 of agricultural land. Unfortunately, this data is rarely available or is not properly registered at regency or district level; • Elderly, women, and children (see Section 2 Demographic); • Indigenous people and ethnic minorities (see Section 4.5 Ethnicity and Section 4.6 Indigenous People) – although Sasak people are the predominant ethnic in Lombok Island, there are some traditional groups of Sasak, i.e. those residing in Bayan, Sade and Ende Village that can be considered as minority Indigenous People; and • Displaced persons who may not be protected through national land acquisition legislation – this may include land users or illegal settlers on government land. The Central Bureau of Statistics (BPS) defines poverty in terms of those unable to afford a basic set of goods comprised of food items (meeting a daily requirement of 2,100 kilocalories) and non- food services such as clothing, transportation, schooling, housing and household necessities (McCarthy, 2002). To measure poverty, the Central Bureau of Statistics (BPS) has used the concept of basic needs approach. Therefore, poverty is viewed as the economic inability to fulfill food and non-food basic needs which are measured by consumption or expenditure. Compared to the provinces in Indonesia, NTB Province is in the 27th position with achievement of the poverty rate of 14.75% in 2018. This rank is above seven other provinces that still have high poverty rates, which are Papua (27.74%), West Papua (23.01%), NTT (21.35%), Maluku (18.12%), Gorontalo (16.81%), Aceh (15.97%) and Bengkulu (15.43%) (Central Bureau of Statistics Indonesia, 2018). Over the past 5 years (2013 to 2017), the percentage of the poor population in NTB province has decreased; the decline during 2016 to 2017 was about 0.41%, a similar situation also occurred in urban and rural areas in NTB Province (Central Bureau of Statistic Nusa Tenggara Barat Province, 2018). Kabupaten Lombok Utara had the highest percentage of poor population in 2017 at 32.06%, being almost 2 times higher than the provincial level (16.07%). This was probably due to the unstable economic condition of the population in Kabupaten Lombok Utara, which has an impact on the increasing percentage of the poor population.

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Kabupaten Lombok Barat Kabupaten Lombok Tengah Kabupaten Lombok Timur Kabupaten Lombok Utara Kota Mataram NTB Province

36 32 28

24 % 20 16 12 8 2013 2014 2015 2016 2017 Year

Figure 67 Poverty Rate in Study Area (2013 – 2017) In 2017, the number of poor populations in NTB Province was 793,780 or 16.07% of the population, with the poverty line of IDR 345,341 per month (see Table 99). According to Central Bureau of Statistics NTB Province in 2018, of the total poor population in NTB Province, most of the poor are scattered in rural areas, amounting to 50.74% in 2017. Furthermore, the Poverty Gap Index (P1)11 of NTB Province in 2017 was 3.13, which means that the average expenditure gap of poor to the poverty line was relatively small and Poverty Severity Index (P2) 12 of 0.85 means that the expenditure inequality between poor populations is also small. Compared to other regencies in study area, the highest average expenditure gap and expenditure inequality among the poor were identified in Kabupaten Lombok Utara. Since 2014, this gap and inequality has increased until 2017, probably due to the unstable economic condition of the population in Kabupaten Lombok Utara which has an impact on the increasing percentage of the poor population as previously described in Table 99.

Table 99 Poverty Aspect in Study Area

Number of % of Poor Poverty Study Area P1 P2 Poor People People Line (IDR)

NTB Province 793,780 16.07 345,341 3.13 0.85 Kabupaten Lombok Utara 69,240 32.06 398,702 7.63 2.57 Kabupaten Lombok Barat 22,332 15.96 444,465 3.81 1.22 Kabupaten Lombok Tengah 142,142 15.31 369,645 2.81 0.75 Kabupaten Lombok Timur 215,812 18.28 369,645 2.81 0.75 Kota Mataram 44,530 9.55 428,754 1.73 0.47 Source: (Central Bureau of Statistic Nusa Tenggara Barat Province, 2018) According to Central Bureau Statistics (BPS) data, the main factors influencing poverty in Indonesia is rice prices and general inflation related to the average per capita expenditure per month for households. Also significant are the existence of social assistance i.e. prosperous rice program (Rastra) and non-cash food aid (BPNT) from the government.

11 Poverty Gap Index (P1) is a measure of the average expenditure gap of each poor person to the poverty line. 12 Poverty Severity Index (P2) provides an overview of the distribution of expenditure among the poor.

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Several poverty reduction programs have been implemented in 2017 in villages and regencies (classified as poor) in NTB Provinces, such as the development of decent homes for the poor, provision of clean water, family latrines, strengthening BUMDes (Village Owned Enterprises), Sustainable Food House Area/Kawasan Rumah Pangan Lestari (KRPL) and Waste Bank. Collectively, these programs are claimed to have had a positive impact on reducing poverty. The rate of poverty reduction in NTB Province is around one percent on average each year (Suara NTB, 2018). The BKKBN (the Government-run Family Planning Board) defines the poor as “pre-welfare families”. The data on welfare families by districts in 2017 obtained from Central Bureau of Statistic of Kecamatan Tanjung, Pemenang, Batu Layar, Sekotong, Pujut, Praya Barat, and Jerowaru showed that the largest pre-welfare families were found in Kecamatan Pujut with about 18,805 households or 51.6% of all households within the districts chosen (see Table 100).

Table 100 Number of Welfare Family by Districts Welfare Family

Kecamatan Pre- Welfare Welfare Welfare Welfare Welfare Family 1 Family 2 Family 3 Family 3+ Family

Tanjung 5,115 6,645 2,576 1,585 169 Pemenang 3,901 4,585 2,312 775 97 Batu Layar 4,434 5,661 1,096 2,793 75 Sekotong 7,482 7,313 2,407 1,013 32 Pujut 18,805 11,898 5,801 2,172 6 Praya Barat NA NA NA NA NA Jerowaru NA NA NA NA NA Source: 2018 BPS Districts in Figures of Kecamatan Tanjung, Kecamatan Pemenang, Kecamatan Batu Layar, Kecamatan Sekotong, Kecamatan Pujut, Kecamatan Praya Barat, and Kecamatan Jerowaru

Note: NA means data not available in BPS. Regarding the social problems in NTB Province from 2013 to 2017 presented in Table 101, the total people with social problems in 2017 is about 655,036 people. However, some 2017 and 2018 data from the Social Agency of NTB Province have not been updated in the table.

Table 101 Data on Social Problems in NTB Province Year Social Welfare Problems 2013 2014 2015 2016 2017 Neglected toddlers 2,563 2,563 2,373 2,308 2,308 Neglected child 120,596 120,596 113,888 99,800 99,353 Naughty child / child dealing with law 1,405 1,405 1,168 859 859 Street children 3,806 3,806 3,436 3,286 3,286 Children with disability 5,274 5,274 5,274 4,830 4,830 Children who are victims of violence / 826 826 826 471 471 mistreated Children who need Special Protection 35 146 86 49 49 Neglected elders 56,299 56,299 54,907 50,496 50,366

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Year Social Welfare Problems 2013 2014 2015 2016 2017 People with Disabilities 16,976 16,976 16,376 12,776 12,651 Prostitutes 438 438 398 43 NA Homeless people 432 432 357 245 169 Beggar 342 342 267 67 67 Scavenger 310 310 310 310 310 Minority group 55 55 55 55 55 Former prisoner 6,744 6,744 6,724 6,492 6,495 People with HIV / AIDS 306 306 283 212 212 Drug abuse victims 766 766 766 571 571 Trafficking victims 30 30 235 NA NA Victims of violence 5,422 5,422 5,263 4,177 3,950 Social troubled migrant workers 8,094 8,094 8,054 5,848 5,848 Victims of natural disasters 21,975 21,975 18,722 1,901 NA Victims of social disasters or refugees 6,947 6,947 6,602 6,334 6,318 Women who are social economic prone 105,293 105,293 105,143 105,143 105,140 Poor Family 356,568 356,568 354,869 348,722 348,325 Psychological Social Troubled Families 804 804 793 793 793 Remote Indigenous Community 3,442 3,442 2,875 2,610 2,610 Source: (Social Agency Nusa Tenggara Province Province, 2018) The Social Agency of NTB Province claimed that the achievement of Social Agency performance in handling persons with social problems in 2018 is targeted at 2.42%, while in July 2018 (Semester I) the performance achievement exceeds that targeted at 2.47% or 16,246 people who have been handled. The source of funds for this handling uses APBD (Regional Budget) and APBN (State Budget). The APBD allocation can handle people with social problems with several programs, namely the poor empowerment program, social welfare services and rehabilitation program, neglected child development programs, nursing home development programs, and coaching programs for former people with social diseases. Meanwhile, the APBN allocation can support protection and social security program (for victims of natural disasters), social rehabilitation program (for children, the elderly, and victims of trafficking), management program for the poor, and Remote Indigenous Community empowerment programs, which are in Sumbawa and Bima Regencies. According to the definition of Dinas Sosial, KAT is a group of people in a certain number who are bound by geographical, economic, socio-cultural, poor, remote and/or socio-economic vulnerable units, so that the government needs to implement economic empowerment programs to improve their welfare and survival. In addition to poverty, the social problem that also exists in Lombok Island is the high divorce rate. Based on the results of interviews, the causes of high divorce rates in Lombok are factors of poverty and many early marriages. According to data of National Population and Family Planning Board (BKKBN) NTB, out of a total of 4,821,875 households in NTB, 308,973 households or 21.55% were widows or widowers. In

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each regency, widows or widowers take up the following percentage of households: Kabupaten Lombok Timur 24.8%, Kabupaten Lombok Tengah 23.9%, Kabupaten Lombok Barat 22.0%, Kabupaten Lombok Utara 20.8%, and Kota Mataram 20.4%. Many divorced couples work as migrant workers, so their children become victims because they do not receive good parenting. This condition causes children to be vulnerable to exploitation, violence, and child trafficking. In the context of tourism development, many children become street vendors rather than those who attend school. The existence of social problems in the development area will hamper infrastructure development programs, because there must be a special approach to the community before starting the program. On the other hand, social problems become opportunities for community development programs.

4.4.1. Gender Issues

The population of women on the island of Lombok is more than that of men, but the role of men is more dominant in society.

Table 102 Population by Gender per Kecamatan in Study Area Regency District Men Women Total Lombok Barat Batu Layar 24,761 24,838 49,599 Sekotong 30,576 30,871 61,447 Lombok Pujut 50,155 54,441 104,596 Tengah Praya Barat 35,948 39,218 75,166 Lombok Timur Jerowaru 28,780 31,100 59,880 Lombok Utara Tanjung 23,838 24,573 48,411 Pemenang 18,408 17,980 36,388 Source: (Central Bureau of Statistic Nusa Tenggara Barat Province, 2018)

The Sasak community adheres to a patriarchal cultural system, where the roles of women and men are not equal. One of them is described in the Merariq tradition (marriage with elopement). In this tradition, women must be abducted by the men who will become their husbands. This patriarchal cultural system influences the role of women and men in the household. Men's superiority is institutionalized by custom, with stereotypes that are aggressive, risk-taking, and competitive. While the social structure of the community makes women as the lower class, powerless, and low understanding of religion (Halimatussakdiyah, 2016). The tradition of merariq also results in the increase of married women of young age. Data from the Women's Empowerment, Child Protection and Family Planning Agency (BP3AKB) in 2012 noted that 24.5% of women were married at the age of 18 and 5.8% of NTB women were married at the age of 15, while the average at the national level is 2.6%. In the health sector, BPS data also shows that women are more susceptible to disease. For example, in Lombok Tengah 44.25% of women experience health complaints for a month, while only 38.10% of men do. Education for women is also considered not too important, as women must be good at managing the household. Lombok Barat BPS data shows that women over the age of 15 who do not have

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literacy skills are 18.95%, while men are only 10.78%. In terms of employment, the male population who work is also more than the female population (79.88% compared to 52.96%). This is probably because men are generally financially responsible for their families.

4.5. Ethnicity and Religion

The cultural characteristics of Lombok people are very much influenced by their religion and beliefs. These characteristics are discussed in the following sub-sections:

• Brief history of Lombok people, mainly dominated by the history of Sasak ethnic group, and the introduction of Islam which influence the culture of Sasak people and their heritage, also the presence of Balinese with their Hindu belief which also influence the custom of Balinese residing mainly in the east of Lombok Island; • Ethnic groups diversity in Lombok Island, including presence of minority ethnic groups or in-migrants and few traditional groups residing in Bayan, Sade, and Ende Village; • Customs and traditiosn still being practiced in Lombok Island; and • Local languages including those predominantly used by Sasak people and Balinese language.

4.5.1. A Brief History of Lombok People

4.5.1.1. The Origins of the People of Lombok

This section provides a brief history of the origins of the people of Lombok, which is dominated by Sasak people. The Sasak people’s current customs and traditions have the potential to be promoted as tourist attractions, but methods in which should not be considered exploitation. Little is known about the history of Lombok prior to the 13th century. According to a handful of surviving texts written in sanskrit on palm leaves known as the Lontar Sasak Babad Lombok (Sasak palm leaf history of Lombok), the oldest kingdom in Lombok was known as the Kedatuan Laeq (or ancient kingdom), which is believed to have been centered around Sambelia Village in the northeastern corner of Lombok. Sometime during the 12th or 13th century, the centers of power shifted to the Kerajan Pamatan (Pamatan Kingdom), which is believed to be a relatively advanced civilization. The Pamatan Kingdom was ruled by a Shivan-Buddhist king known as Raja Manca Mantri. This king, who built his royal capital in Pamatan Village in Lombok Utara, established extensive wet rice agriculture and engaged in inter-island trade with Bali, Java, and other neighboring islands. However, in 1257 to 1258, Lombok’s Gunung Semalas (next to Mount Rinjani) erupted in one of the largest volcanic eruptions of the Holocene Epoch (i.e. the last 11,000 years). This eruption not only created the large caldera that contains the crater Lake Segara Anak, but is also believed to have triggered a long period of global cooling, which was known as the little ice age. The Babad Lombok describes how villages on Lombok were buried under ash, swept away by pyroclastic flows and people were killed by clouds of poisonous gas and falling rocks, whereas Bali and even parts of eastern Java were depopulated and destabilized. The erruption also led to massive depopulation in Lombok and Bali and major socio-political disruption, including the destruction of the city of Pamatan, the capital of a kingdom on Lombok, as well as opening the way for the annexation of Bali by King Kertanegara of Singasari (or the self-styled King Shiva-Buddha) in 1284. It remains unclear whether the modern Sasak people are primarily descendants of the people of Pamatan Kingdom and/or other groups living in Lombok prior to the eruption of Gunung Semalas, or whether they are descended from other groups who migrated into Lombok during the ensuing period of social upheaval.

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Subsequent lontar (palm leaf) historical texts such as the Babad Suwung and Babad Lombok, attest to the rise of new kingdoms some time after the abrupt collapse of the Pamatan Kingdom. The first of these was known as the Suwung Kingdom, which is said to have arisen under a king called Batara Indra. However, Batara Indra is clearly a reference to the Vedic god of lightning and of war, so it is not clear if this refers to a metaphorical god king or a real local king who emerged victorious and assumed the honorific title of Batara Indra after the eruption of Gunung Semalas and the collapse of the Pamatan Kingdom. Alternatively, Batara Indra may be a name that was applied to Gadjah Mada following his conquest of Lombok, which will be discussed further. In 1343 (i.e. around 85 years after the eruption of Gunung Semalas) Gadjah Mada, the Mahapatih or prime minister of the Majapahit empire landed in Lombok and quickly brough the island under Javanese domination. Whereas Gadjah Mada is seen by the Balinese as an invading conquerer, in Lombok he is treated as a cultural hero, particularly by the Hindu-Buddhist Sasak-Boda people, who revere the site where he is said to have first landed (and where his footprint is still visible), near the town of Tanjung in Lombok Utara, as their most sacred site. Following the death of Gadjah Mada in 1365 and King Hayam Wuruk in 1389, the Majapahit empire began slipping into decline, allowing local rulers in Lombok and other parts of the former Majapahit empire to begin reasserting their authority and independence. Sometime during the late 14th or 15th century new local kingdoms and principalities began emerging in Lombok. Four of these rose to prominence, namely Bayan in the northwest, Selaparang in the east, Pejanggik in the south and Langko in Lombok Tengah, whereas many other smaller principalities or kedatuan (villages ruled by local kings known as rajas or nobles known as Datu) also established hill forts from whence they vied for local power. The decline of Majapahit also allowed the Gelgel Dynasty in Bali and the Sultanate of Giri Kedaton, from Gresik in East Java, to begin extending their influence into Lombok. 4.5.1.2. The Introduction of Islam and Balinese Culture into Lombok

The introduction of Islam and Balinese Culture in Lombok has begun since the 1200s, however cultural influences mostly occurred after 16th century, which may be an interesting historical trail for tourists. According to some local histories during this period an Islamic teacher called AsySyaikh As-Sayyid Nūrurrasyīd Ibnu Hajar al-Haytami, or also known as Ghaus 'Abdurrazzāq or Wali Nyatoq (the true teacher) arrived in Lombok from Baghdad, thereby commencing the process of Islamization of Lombok (some accounts place the arrival of Wali Nyatoq much earlier, even as early as 1201 or 1300, though these dates seem highly unlikely). The branch of Islam spread by Wali Nyatoq and/or other early Islamic teachers appears to have been a form of Islamic mysticism (i.e. Sufism or Tasawwuf, or the inward relationship between man and Allah, and Fiqih, or the mutable interpretation or ijtihad of the Quran and the Sunnah, particularly dealing with the observance of rituals, morals and social legislation in Islam) combined with elements of the Hindu philosophy known as Advaita Vedanta (which emphasizes the unity of all things and draws heavily from the Upanishad, Bhagavad Gita, and Barhma Sutra). This form of Islam was transmitted through various local and/or Javanese inspired art forms including shadow puppet shows (Wayang Sasak), comedic plays conveying moral and religious messages (Sasak Kemidi Rudat), Bekayat or the reading moral stories (hikayat) and musical forms such as the gong orchestra (Gamelan), drum orchestras (Gamelan Rebana) and recitations and chantings. An important set of Islamic moral teachings were conveyed through the Serat Menak, a long romance story of Persian origin, which relates various moral and religious teachings through the adventures of Amir Hamzah, the Prophet Muhammad’s uncle, as he traveled from country to country spreading the word of Islam. Historically such stories and chants would have been in Malay rather than Arabic, with translations or explanations given in the Sasak language.

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Through intermarriage with the royal families of Pujut, Pejamggik, and Sasak, among others, the Wali Nyatoq is also credited with being the progenitor of the various royal lineages including the sultans and datuks of Pujut, Pejamggik, Sasak and Selaparang. However, it is not clear if these unions truly occurred, or whether the alleged descent of these royal lineages from the Wali Nyatoq were a revisionist means of sanctifying these royal houses, as after his death Wali Nyatoq went on to become a saint whose cult like worship is central to Waktu Lima muslims in Lombok Tengah and Timur. A key figure in the spread of Islam in Lombok Utara was Moh. Sunan Prapen, also known as Syekh Maulana Fatichal, who was the Sunan (Sultan) of Giri Kedaton, one of the first Islamic sultanates to be established in Indonesia, with its capital located near Gresik in East Java. Sunan Prapen invaded and subjugated Lombok Utara in the mid- to late-16th century, initiating the process of Islamization of Lombok. Whilst this region of Lombok was reconquered by the Majapahit Kingdom a few years later, and indeed the Sultanate of Giri Kedaton was destroyed by the Majapahit Kingdom, Sunan Prapen was successful in planting the seeds of the Islamic faith in Lombok and is credited with establishing the Bayan Beleq Mosque in Bayan Village, Lombok Utara, and as the founder of the Wetu Telu branch of Islam. Some accounts also claim that it was the Sunan Prapen who sent Wali Nyatoq to the south of Mount Rinjani to plant Islam in Lombok Tengah and build the old mosques at Gunung Pujut and Rembitan. Yet another version of Lombok’s history relates the spread of Islam in Lombok to Sunan Kalijaga (under the pseudonym Djaya Prana) who is said to have come from Kotagedhe, Yogyakarta during the 15th century, landing at Lembar in southern Lombok Barat then traveling east spreading Islam. Whilst this is also possible, it seems much less likely than the spread of Islam by Sunan Prapen as Islam was barely established in Central Java at this date. It seems more like a revisionist version of events, intended to establish Yogyakarta as the primary source of Islam in Indonesia. By the late 17th century there was intensifying rivalry between the Kingdoms of Pejanggik and Selaparang, with the Kingdom of Pejanggik managing to establish a local empire through unifying a number of small kingdoms or kedatuan including Langko, Sokong, Bayan, Tempit, and Pujut. In 1692 Arya Banjar Getas, the king of Selaparang, enlisted the support of the Karangasem Kingdom in East Bali, who invaded Lombok and defeated Pejanggik and their allies, with many of the Sasak nobles fleeing east into Sumbawa. Lombok was then divided into two parts, with Karangasem ruling over the western part of the island and Selaparang ruling in the east. However, these arrangements do not appear to have lasted long, with war breaking out again during the early 17th century, this time between Cakranegara or Singsari (the new kingdom established by Karangasem in Lombok) and their Lombok Barat Allies, and the Selaparang Kingdom in Lombok Timur and Tengah, whereas forces consisting of Sumbawans, Bugis/Makasarese and presumably the descendants of refuges from Pejanggik and other former kingdoms and principalities (kerajaan dan kedatuan) invaded from the east. The Sumbawan forces appear to have been reppelled, whereas Singasari appears to have been unable to achieve full control over Lombok Timur and Tengah, as it was dotted with small hill forts inhabited by fiercely resistant warrior communities, and eventually retreated to Mataram, Lombok Utara, and Lombok Barat. During the 1890s there was renewed conflict between Cakranegara and Selaparang, with a force of over 12,000 Balinese and allied troops sent to conquer Praya and occupy Lombok Timur and Tengah. However, once again the determination and skill of Sasak wariors in geurilla warfar seems to have prevented the forces of Cakranegara from consolidating control in Lombok Tengah, and after several years of protracted conflict Dutch forces intervened on the side of the Sasak forces, thereby finally bringing the Island of Lombok under the jurisdiction of the Dutch crown.

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4.5.2. Ethnic Diversity in Lombok Island

According to the NTB Province Education and Cultural Agency (2011), Sasak people are the predominant ethnicity on Lombok Island, comproising around 85% of the population. They were originally thought to have migrated from Java in the early BC. Another ethnicity which can be found residing across the island is Balinese people, particularly in Kecamatan Mataram and Cakranegara in Kota Mataram, also in Kecamatan Tanjung in Kabupaten Lombok Utara and Kecamatan Gerung in Kabupaten Lombok Barat. In addition there are other tribes scattered throughout the Lombok region, such as the Javanese, Malays, Sumbawan enclaves, as well as permanent foreigners, although there are not many in number. There are those who come because of marriage, work or business interests, and other groups include Chinese and Arabic descendants. 4.5.2.1. The Sasak (Lombok’s Dominant Ethnic Group)

The Sasak tribe is an indigenous tribe of Lombok who are Muslim, so the traditions are carried out in accordance with the religion of Islam. Although the majority (about 90%) of Lombok residents are Muslims, respect for other ethnicities or religions goes well, such as the Ngaben ceremony held by Balinese Hindus living in the Kota Mataram. The origin or etymology of the term Sasak is obscure. Some say it is derived from the word sak- sak, meaning a canoe or small boat, which may refer to the way in which the Sasak originally settled in the island. The Majapahit era text known as the Nagarakrtagama from 1365 contains a reference to Lombok Sasak Mirah Adhi, which has been variously been interpreted as meaning “the straight road” or “honest path” or even as meaning “honesty is the gem that states out goodness”. Alternatively, the term may be derived from the Sasak word Sèsèk, which means woven or to weave, which could either refer to the woven ikat cloths for which the Sasak people are famous for, or the woven bamboo they use to build the walls of their houses and fences surrounding their villages, or it may be a more metaphorical reference to the inter-wovenness of the Sasak culture. One of the characteristics of the Sasak tribe in Lombok is the weaving culture carried out by women. For the Sasak tribe, the maturity of women who are ready for a family can be seen from how clever the woman is to make woven cloth. This can be used as a reference that the women of the Sasak tribe who are good at weaving are considered to have become mature and decent family women. Weaving skills is believed to also have a good impact on family life later. By cleverly weaving, women from the Sasak tribe can help increase family income. The marriage system of the Sasak tribe is also quite unique, namely using a kidnapping system or so-called ‘meracik/selarian’. Women who want to get married must be ‘kidnapped’ by men to be taken to the family house of the male. Stealing a girl by escaping from her house into a wedding procession is more honorable than asking her parents. For men, there is a sense of knighthood that is embedded if this process is traversed. The Sasak tribe also has its own procedures in resolving a conflict in the community. Usually, each indigenous community has customary institutions to work on matters relating to adat. In conflict resolution, the Sasak tribe uses “soloh” that has very strong legal force because it is often used as a legal basis by the court. “Soloh” is a peace agreement between the two parties that was decided through customary deliberations. Conflict resolution with “Soloh” is a form of respect for the

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customary law and religious values, as well as respect for religious leaders (Tuan Guru) and traditional leaders (Keliang). The Sasak tribe community is open to knowledge and possible change. The development of tourism will certainly influence the modernization and consumption culture of the people. The pattern of farming work will also turn into part of the tourism sector. Traditions with strong philosophies within them will continue to be carried out, such as wedding processions and weaving.

4.5.2.2. The Balinese

The second largest ethnic group living in Lombok are the Balinese people, who began migrating from Karang Asem in East Bali into Lombok from the early-18th century. They now account for an estimated 5% of the entire population of Lombok. The Balinese are primarily concentrated in the suburbs of Cakranegara, Mataram, Selaparang, and Sandubaya in Kota Mataram and in Kecamatan Gerung, Lingsar, Sekotong, Lembar, Kuripan, Narmada, Gunung Sari, and other areas of Lombok Barat, where they may constitute up to 10-15% of the population. Although Balinese populations have been present in Lombok for generations, they still have a strong connection to Balinese traditions and social structures. Despite religious differences, relatively harmonious relations between Balinese and Sasak prevail, possibly because of a long- shared history. The Balinese have more economic activity in the Kota Mataram, namely in Cakranegara, which is their community base is located. Some Balinese entrepreneurs also develop a lot of business in tourist areas, in the form of inns or cafes. Some of them also become land investors. 4.5.2.3. Other Minority Ethinics and Community Groups

Other ethnic groups represented in Lombok include Bugis, Makasar and Mandar people from South and West Sulawesi, who came to Lombok as itinerant fishermen and traders. These groups have settled in some coastal areas, such as the three Gili Islands (Gili Trawangan, Gili Meno and Gili Air). A mix of Indonesian-Chinese, Javanese, Sumbawans, Dou Mbojo (from Bima, Sumbawa), Florinese, and other Indonesian ethnicities also live on the island, most of whom reside in Kota Mataram or around the tourist areas of Senggigi and Kuta. A small community of Arab (primarily Yemeni) descent is also found in Ampenan Village, in the old port of Mataram. Most of these people have intermarried with Sasak and other Indonesian peoples over many generations. In addition, due to the siting of a UNHCR asylum-seeker holding camps in Lombok from 2001, some refugees from Middle Eastern countries have intermarried with Lombok people. There are also a small number of Australians, Europeans, and Americans who either live on the island at least part time or who have interests in the tourism business, primarily as hoteliers or property speculators. According to information from interviews, many of these expatriates were married with Sasak, Balinese, Chinese, or other Indonesian citizens. Some of the tourism businesses that these expatriates have developed are self-managed, with some are only investing, while the local people manage these businesses. In the Gili Islands the business carried out by expatriates is able to absorb many local workers, for example to work in cafes and hotels. In the southern part of Lombok, however, the tourism sector has only just begun to develop so the benefits have not yet been felt by local communities. Yet, since about 10 years ago, there has been a lot of land buying and selling, both by foreigners and other Indonesians outside of Lombok. Supposedly, land ownership by foreign citizens (WNA) can create reciprocal

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relationships that are beneficial to both parties (buyers-sellers) if the land is used to build a business, so that it can absorb labor. However, the purchase of land by foreign parties with the aim of price speculation has made land prices increasingly unaffordable for locals, so the benefits will only flow to foreign investors and a small number of people (especially land transaction brokers).

4.5.3. Custom and Traditions

At first, the Sasak community was much influenced by the Hindu-Buddhist culture brought by the Majapahit Kingdom. After the entry of Islam, the beliefs of the Sasak people began to change, from Hinduism to Buddhism to Islam. The introduction of Islam reached the island of Lombok in the late 16th century until the beginning of the 17th century, one of which was carried by Sunan Giri. Sunan Giri is one of Walisongo from Gresik, East Kalimantan. Sunan Giri is a spreader of IslamKalimantanJava, whose influence even reaches Madura, Kalimantanlimantan, Sulawesi and Maluku. Based on surviving and current day Sasak beliefs, three main Sasak groups can be classified: Boda, Wetu Telu, and Wetu Lima (Islam). Sasak Boda is a small community that lives in the northern mountainous region and in the mountain valleys of southern Lombok. This group consists of ethnic Sasak people whose culture, language, and beliefs are relatively uninfluenced by Islam. They fled to the mountains to break away from Islamization in Lombok. Meanwhile, the Wetu Telu tradition originally had the same characteristics as Hindu-Bali and Kejawen. Among the general elements, the role of the ancestors wa145is hy prominent. It is based on a view rooted in beliefs about life that emphasise its character as always flowing. The customs and traditions of Sasak Wetu Lima (Sasak in general) are carried out based on their belief and religions. Customary law has been applied as an embodiment of the local culture of the Sasak tribe before Islam entered Lombok. Then adat became stronger after Islam became the belief of the majority of the Sasak tribe. This understanding means that if customary principles are to be maintained, then they must be in accordance with the teachings of Islam. This concept in the Sasak language “s referred to ”s "adat luir gama", meaning that adat can apply and be used as a guide145is hveryday life if it has relied on religion.

• Some traditional practices that are still in accordance with Islamic law and still carried out by the Sasak people on the island of Lombok include ceremonies such as: State ceremonies – mostly practiced in Bayan Village, including: a. Alif and Tilawat ceremonies, which aim to invoke blessings and salvation to God. At the Alif ceremony, residents clean the tombs that are considered sacred as a tribute to their ancestors. Then proceed with Tilawat (dzikir) and pray to God to ask for blessings and salvation. b. Ngaji Makam ceremonies to give thanks to the presence of God. This ceremony is attended by all villagers. Held once a year as a thanksgiving to God for the harvest in the previous year. There are also grave pilgrimages to honor the ancestors. c. Wiwitan ceremonies conducted in order to avoid havoc. This ceremony is carried out in the event of a disaster, with the aim of asking for protection from God. The ceremony is carried out by holding prayers at the mosque which is followed by all Kyai (religious leaders). After the ceremony is finished, then the dish is intended for the ancestors.

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• Ceremonies related to agricultural activities – the ceremony is carried out at each phase of farming, starting from clearing land, planting, pest eradication, to the harvest season. • Ceremony held by the village. Usually done once a year with the aim of rejecting reinforcements and avoiding people from disease. • Ancestral ceremony, which is a ceremony to commemorate deceased ancestors by using offerings. This tradition of ancestral ceremonies has rarely been done since Islam entered on the island of Lombok because it was considered a matter of shirk. • Based on consultations with stakeholders during the baseline study, some of the Sasak tribal ceremonies/activities can attract tourists to come to Lombok Island. Some traditional activities are deliberately packaged to attract tourists, as well as to preserve the customs and culture of the Sasak tribe. Some traditional activities that can attract tourists, include: Bau Nyale Festival. The tradition of searching for worms on the beach based on the Princess Mandalika folklore. This event is usually held in February. • Perang Topat (Ketupat War), a symbol of harmony between religious people (Hinduism and Islam). This event is usually held in February. • Nyongkolan. The bride parade ceremony uses the accompaniment of Gendang Belek music. Nyongkolan can be seen at each Sasak traditional wedding party.

Some Sasak people also still adhere to Wetu Telu traditions. This is esepcially the case in th areas around banyan village and parts of Lombok Utara. Wetu Telu is an indigenous belief system of Lombok, which combines elements of Islam, Hinduism/Buddhism, Animism, dynamism and ancestor worship. Wetu Telu is often described as meaning “Three Times” (Waktu Tiga) as opposed to the more mainstream Sunni Muslim Sasak people, who are sometime referred to as Waktu Lima (or five times). According to the Waktu Tiga interpretation, Wetu Telu people are only required to perform sholat/prayer three times per day. They also only have to fast for three days during the month of Ramadan and that they only adhere to three of the five pillars of Islam, there are creed, prayer and fasting. However, Wetu Telu informants in Lombok invariably stated that this was a misinterpretation, instead stating that Wetu Telu means “Three Elements” not three times of praying. So Wetu Telu is not a religion, but it is custom, and that there is no real split or conflict between the Wetu Telu and Waktu Lima forms of Islam in Lombok. As long as their cultural practices do not conflict with Islam then both Wetu Telu customs and Islamic religion can coexist and compliment each other.

A lot of documentation states that the Bayan people are adherents of Islam Wetu Telu. Various understandings of Wetu Telu are also still circulating in the media, especially the internet. There are those who mean that the followers of Islam Wetu Telu only carry out prayers in just three times (Magrib, Isya, Subuh). According to BPCB staff, guardians of the Bayan Ancient Mosque cultural heritage named Raden Palasari, Wetu Telu does not mean only carrying out three prayer times, but five times like Islam in general. Wetu Telu for Bayan indigenous people has several meanings: • Wetu means time. This means that humans live in three times, there was yesterday (the world of the womb), the present time (the world of action) and the time to come (the world of revenge). • Wetu means metu (out). That is three phases out laying, growing, giving birth. • Wet means guard (spirits). This means that there are three "guard" in Lombok, namely upper guard (mountain or forest), central guard (agriculture), lower guard (beach and sea). Many Wetu Telu people were killed during the communist purges of 1965-1966. During the 1970s through until the 1990s they were subjected to significant pressure to adopt a more mainstream

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form of Islam. Today the majority of Wetu Telu people are found in Lombok Utara, particularly in Kecamatan Bayan and Gangga. There are also scattered Wetu Telu communities in Kecamatan Lingsar, Sekotong, and other districts in Lombok Barat, as well as in the mountainous areas of Lombok Timur and Tengah.

It is very difficult to estimate the numbers of Wetu Telu people because there is no disaggregation of Wetu Telu, Waktu Lima, and other Muslims in the census data, and also because it is often very difficult to differentiate between Wetu Telu and the more traditionalist forms of Waktu Lima, Currently the Wetu Telu community lives in the Bayan area, Lombok Utara. The oldest surviving belief system in Lombok is known as Sasak-Boda, which has its roots in the Shiva-Buddhist belief systems. These beliefs are shared with the Majapahit empire, though Shiva- Buddhist philosophies may have entered Lombok several centuries before the arrival of the Majapahit empire. They then combined with Sasak animism and ancestor worship. Traditionally, the Sasak-Boda were unorthodox in that they did not believe in the Gutama Buddha, but rather worshipped a pantheon of gods including Batara Guru, Batara Sakti and Batara Jeneng, and their wives Idadari Sakti and Idadari Jeneng (MacDougall, 2005). These appear to reflect the Hindu dieties Brahma, Shiva, Visnu, Parvati, and Lakshmi. During the New Order period, the Sasak-Boda came under intense discrimination and pressure to convert to mainstream Islam, leading to their formal adoption of Theravada Buddhism in 1972. After these events, the numbers of people identifying as Sasak-Boda dwindled to just a few thousand people. However, over the past decade these communities have undergone a cultural revival, with the numbers of people formally identifying as Sasak-Boda swelling to an estimated 16,000 people and with around 15 new Buddhist Templese constructed in the past few years alone. However, it is difficult to accurately determine their numbers from the official census data as the official statistics do not disaggregate the Sasak-Boda from other Buddhists in Lombok. The census data includes other Buddhists such as ethnic Chinese Maruyana Buddhists. It is also likely that many Sasak-Boda still do not have identity cards and therefore are not represented in the census data. The Sasak-Boda also continue to be assimilated into orthodox Therevada Buddhism, as many of their traditional ceremonies and practices were abandoned or assimilated during the New Order period. The Sasak-Boda communities are led by adat/religious leaders called Pemangku-belian. In the past these Pemangku-belian acted as warrior monks, going into battle with sacred blowpipes and magical darts. Elder women also played a key role as mediums who could communicate with the gods and spirits whilst in a state of trance. However, the role of warrior monks and spirit mediums seem to have disappeared in the mid-1960s (MacDougall, 2005). Today a number of small but thriving communities of Sasak-Boda people are found in Lombok Utara, where there are around 11,800 Sasak-Boda people, and the southern part of Lombok Barat, where there are around 4,250 Sasak-Boda people. These communities include:

• The Orong Empaq Panasan, who include around 1,000 households or 5,200 people inhabiting 9 out of the 11 hamlets of Tegal Maya Village in Kecamatan Tanjung. This community gaurds a sacred site on the coast near Tanjung called Bagek Bais, where the Gadjah Mada, Majapahit Prime Minister, is said to have first landed in Lombok, and where they hold important rituals/communal prayers twice each year (i.e. the Nunas Kaya and Mulek Kaya rituals), which are a type of thanksgiving and harvest / planting rituals. • The Jeliman Ireng, who are estimated to include around 350 families or 2,100 people living in Pemenang Timur Village, Kecamatan Pemenang.

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• The Gubuk Bebekek, who are estimated to include around 800 families or 4,200 people living inhabiting the hamlets of Lenek, Baru and Pasiran in the hilly country of Kecamatan Gangga. • A small enclave of around 310 Sasak-Boda people living in Kecamatan Bayan. • There is also another enclave of Sasak-Boda people living in the south-western corner of Lombok, including around 4,000 people in the Ganjar and Tendean hills, Mareje and Mareje Timur Villages of Kecamatan Lembar in Lombok Barat. • A small community of around 250 people living in Tangin Angin Hamlet, Buwun Mas Village in Kecamatan Sekotong, which is located in the hills near the southwest coast of Lombok between Mekaki Bay and Blongas Bay. They are said to have migrated to this isolated area around 25 years ago from the Tendean area (Mareje Timur Village in Kecamatan Lembar). In 2017-2018 they 148ulfil148ng148n a temple called Vihara Giriratana Suriyan Lenong, with donations from a national Buddhist foundation. 4.5.4. Language

Almost all of the people living in Lombok can speak “Bahasa Indonesia,” with the exception of a small percentage of elderly people and a handful of foreign nationals. Bahasa Indonesia is the primary means of communication between different ethnic groups and is used for administrative government and trade. It is also the main language used in schools and universities. Besides Bahasa Indonesia two local languages are widely spoken, these are: 1) Bahasa Sasak, which is the mother tongue for most Sasak people, who constitute over 90% of the population. The Sasak people all speak a common language, which is closely related to Javanese, Balinese, Sumbawan and other languages of western Indonesia. The Sasak language has various regional dialects including Kuto-Kute (North Sasak), Meno- Mene (Central Sasak), Mriak-Mriku (Central South Sasak), Ngeno-Ngene (Central East Sasak, Central West Sasak), Ngeto-Ngete (Northeast Sasak) and so on. Although both use the Sasak language, the Sasak people can distinguish between their residential areas based on the accent spoke; 2) Bahasa Bali is spoken by most members of the Balinese minority, who make up around 5% of the population of Lombok, and up to 15% of the population in some parts of Kota Mataram and surrounding areas of Lombok Barat and Utara. Additionally, Bahasa Bugis is still spoken by small enclaves of Bugis/Makasarese people living in the old ports of Labuan Lombok (Lombok Timur) and Ampenan (Kota Mataram), and on Gili Trawangan, Sumbawan is still spoken by some people living in the suburb of Karang Taliwang and other areas of Mataram and Labuan Lombok. Ethnic enclaves, mostly those living in Kota Mataram and Labuan Lombok, also speak other languages such as Javanese, Florinese, etc. A small percentage of the people living in Lombok can speak foreign languages. For example, many Sasak, Balinese, and other people working in the tourism industry can speak some English or other European languages. In addition, the Islamic schools (particularly Nurul Hakim College of Islamic Studies in the Kediri area of Lombok Barat) have provided instruction in Arabic. There is no clear information regarding the numbers or percentage of people who can speak foreign languages, though undoubtedly the figures remain quite low and the lack of skills in English and/or other foreign languages remains a key impediment for people wishing to gain employment in the tourism sector.

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4.6. Indigenous People

This section will review the presence of indigenous people (IP) in the Lombok Island with consideration of the following framework:

• In Indonesia, the government, through the Ministry of Social Affairs has its own definitions close to the IP criterias defined in the World Bank OP 4.10, which it is commonly referred as Remote Indigenous Community (Komunitas Adat Terpencil) observed in the President Decree No 111 Year 1999 – see further description in Task A of Indigenous People Framework. • Meanwhile, the Indonesia Archipelago Indigenous Community Alliance (AMAN), as an independent non-governmental organization (NGO) with main interest in the protection of indigenous rights, has its own criteria and definition of Indigenous Community which they used as basis to map the presence of traditional communities throughout Indonesia. • The World Bank OP 4.10 on Indigenous People stated that there is no universally accepted definition of IP. It may be referred to in different countries by other terms. The term is used in a generic sense to refer to a distinct social and cultural group possessing some specific characteristics in varying degrees. Differences in the IP definitions are as described in the table below.

Table 103 Indigenous People Definitions

World Bank OP 4.10 on Relevant Indonesia Regulation AMAN Recognition on Indigenous People (adopted in (Presidential Decree Number Indigenous Community Rights the ESMF for Indonesia 111 of 1999 about Remote (AD ART AMAN Pasal 11 Ayat Tourism Development Indigenous Communities 2) Program)

Criteria of IP: Characteristic of KAT: Indigenous Peoples are: • Self-identification of distinct • Small, solitary, and homogeny • A group of people who live indigenous cultural group and community; from generation to recognition of this identity by • Social institution based on generation in certain others; kinship system; geographical areas • Collective attachment to • Geographically remote and • Bound by cultural identity, geographically distinct difficult to reach; • Bonding to ancestral origins, habitats or ancestral • Subsistence economic • Has a strong relationship with territories; system; land, territory and natural • Customary cultural, • Primitive equipment and resources in their customary economic, social, or political technology; territories, institutions separate from • Relatively high dependence Has a value system that dominant society; and on ecosystem service and determines economic, political, • Use of Indigenous language. natural resources; and social and legal institutions. • Limited access to social, economic, and politic services. Source: World Bank OP 4.10 on Indigenous People, President Decree No 111 Year 1999, and AMAN

Review of the IP presence in the Lombok Island is presented in the following sections, which include those acknowledged in the ESMF (developed in accordance with the World Bank safeguard policies, government data (according to applicable law and regulation), and data obtained by AMAN).

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An analysis of IP presence within the priority of tourism areas is discussed in Section 4.6.4, while map indicates their location within the island is presented in Task D Section 2.1.1.5.

4.6.1. Indigenous Community Registered by the GOI

According to baseline consultation with the Social Agency of NTB Province, there are no customary communities in Lombok Island, registered as remote indigenous communities defined in the President Decree No 111 Year 1999. However, according to the interview with Head of NTB Cultural Agency, the process of data collection for indigenous peoples is currently being carried out on the island of Lombok. This suggests that the process for determining indigenous communities in Lombok is not yet complete. The following table shows data on Customary Institutions (Pranata Adat) collected by the NTB Province Culture and Tourism Agency in 2014. A customary Institution is an institution born of customary values which grows and develops on the initiative of the implementing community.

Table 104 Customary Community Registered by GOI

Community Group with Customary No Kabupaten Desa/Kecamatan Institution 1. Lombok Utara Bayan Karang Bajo 2. Bayan Sukadana 3. Kayangan Sesait 4. Gangga Bebekeq 5. Gangga Bentek 6. Tanjung Gumantar 7. Tanjung Karang Raden 8. Tanjung Sokong 9. Pemenang Menggala 10. Lombok Barat Gunung sari Nambalan 11. Gunung sari Glangsar 12. Lingsar Karang bayan 13. Lingsar Lalu 14. Narmada Batu Kumbung 15. Narmada Medain 16. Gerung Kuripan 17. Gerung Gerung 18. Sekotong Bangko bangko 19. Lombok Tengah Praya tengah Pejanggik 20. Darmaji Langko 21. Praya timur Marong 22. Pujut Sade 23. Pujut Tanaq awu 24. Pujut Ketare 25. Praya barat Penujak 26. Praya barat Mangkung 27. Praya barat Batujai

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Community Group with Customary No Kabupaten Desa/Kecamatan Institution 28. Lombok Timur Sembalun Sembalun Bumbungi 29. Sembalun Sembalum lawang 30. Sembalun Sajang 31. Lenek Maspakel 32. Suka mulia Pada mare 33. Suralaga Bagek payung 34. Terara Montong betoq 35. Jerowaru Jerowaru 36. Sakra barat Swangi 37. Kota Mataram Rembiga - selaparang Betetulak 38. Kr.tapen - cakranegara Beriuk kumpul 39. Seganteng - cakranegara Lang lang jagad 40. Mataram Dasan agung 41. Ampenan Sekar bela 42. Mataram Monjok culik 43. Mataram Punia jamaq Source: Cultural and Tourism Agency of NTB Province (2014)

4.6.2. Recognition of Indigenous Rights by AMAN

According to representatives of the Alliance for Indigenous Peoples of the Archipelago (AMAN) in Lombok consulted during the baseline study, essentially all of the Sasak people may be considered indigenous to Lombok, whereas based on the length of time they have resided in specific areas of Lombok and their ongoing adherence to customary institutions, even some of the communities of Balinese and/or mixed Bugis and Arab descent living in and around Mataram, Ampenan, Lingsar and Labuan Lombok may also be considered adat or customary communities. More specifically, there are 112 communities in Lombok who have already become members of AMAN, whereas many others are yet to be identified. These include:

• 10 communities in Lombok Barat • 27 communities in Lombok Tengah • 40 communities in Lombok Timur • 23 communities in Lombok Utara • 11 communities in Kota Mataram These communities are comprised of a range of different ethnic and cultural-religious groups including Sasak-Boda communities (in Lombok Utara and Barat), Wetu Telu communities (primarily in Lombok Utara, but also on the slopes of Mount Rinjani and other upland areas in Lombok Barat, Tengah, and Timur), Waktu Lima communities (primarily in Lombok Timur and Tengah) and even some long established Balinese Hindu and mixed Sasak-Bugis-Arab communities (i.e. customary groups with a long history of habitation of specific territories in the Mataram, Ampenan, Cakranegara, Gunungsari, Selaparang and Lingsar areas of Kota Mataram and Lombok Barat). The following table shows the indigenous communities in the districts that are the study area. However, in many cases further research is required to determine to what extent each of these

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communities can be considered to fulfill the various criteria. On the other hand, this list should not be considered complete, and unless an individual or community has clearly migrated into a given area fairly recently, then the precautionary principle should be applied, and they should be considered to be indigenous unless demonstrated otherwise.

Table 105 Members of AMAN in Study Area No. Customary community Kabupaten Kecamatan Villages

1 Jerowaru Lombok Timur Jerowaru Jerowaru 2 Wirang Sela Dendeng Lombok Tengah Pujut Ketara 3 Sengkol Lombok Tengah Pujut Sengkol 4 Tanak Awu Lombok Tengah Pujut Tanak Awu 5 Penujak Lombok Tengah Praya Barat Penujak 6 Mangkung Lombok Tengah Praya Barat Mangkung 7 Kateng Lombok Tengah Praya Barat Kateng 8 Ketrare Lombok Tengah Pujut Ketara 9 Batujai Lombok Tengah Praya Barat Batujai 10 Rembitan Lombok Tengah Pujut Rembitan 11 Paer Lauq Lombok Tengah Praya Barat Batujai 12 Pangembur Lombok Tengah Pujut Pengembur 13 Ketare Lombok Tengah Pujut Ketare 14 Sukadana Lombok Utara Tanjung Sukadana 15 Semokan Bayan Lombok Utara Tanjung Semokan 16 Gumantar Lombok Utara Tanjung Gumantar 17 Sokong Lombok Utara Tanjung Sokong 18 Menggala Lombok Utara Pemenang Pemenang Barat 19 Mandar Lombok Utara Pemenang Gili Indah 20 Orong Empaq Panasan Lombok Utara Tanjung Tegal Maja 21 Jeliman Ireng Lombok Utara Pemenang Pemenang Timur 22 Martepati Lombok Tengah Pujut Sengkol Source: Aliansi Masyarakat Adat Nusantara (AMAN) According to baseline consultation with the AMAN of NTB Province, the indigenous territories in the Sasak tradition are calle‘ 'Pay’r' or “Paer”. A Payer is an indigenous area with its own language and traditions and led by a Payer leader. The Payer leader has the authority to defend Sasak traditions and culture and issue fatwas regarding the relationship between Islam and culture. The Customary Council of Lombok divides Lombok Island into 6 indigenous territories/customary institutions: East Payer, Central Payer (Lombok Tengah), Laut Payer (Southern part of the island), Daye Payer (Lombok Utara), Bat Payer (Lombok Barat), and Bawaq Payer (Kota Mataram). The division of customary territories aims to facilitate the development of the local wisdom of the Sasak custom. The payer activity is to foster and encourage the Sasak tradition to remain sustainable. Estimated number of indigenous people in Lombok vary greatly according to which definition of “indigenous” is being used and which institution is doing the counting (Government institutions, AMAN, special interest NGOs, among others). As an example, the following table is compiled by BRWA (Bada Registrasi Wilayah Adat), a customary registration institution established by AMAN and other environmental and lad use NGOs such as Sawit Watch, and Forest WatcNo.ia, among others.

Table 106 Recognition of Indigenous People by AMAN

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Identified Indigenous No Cluster People (in Descriptions Customary Area) 1 Lombok Tengah, Batukliang Steling There is no description in the document. Utara Just explained from another source that this village is an old village on the slopes of Mount Rinjani that still upholds Sasak culture. This village along with other villages began to be developed as an entry point for climbing Mount Rinjani. 2 Lombok Tengah, Batukliang Lantan Same as above. Utara 3 Lombok Tengah, Batukliang Karang Sideman Same as above. Utara 4 Lombok Tengah, Batukliang Aik Berik Same as above. Utara 5 Lombok Utara, Tanjung Wet Sokong This Indigenous Community was originally named Sukun, but after its development phase in the 13th century, along with the arrival of Empu Nala (Majapahit kingdom), the name Sukun changed to Sokong. 6 Lombok Utara, Kayangan Wet Pengorong Amor- There is no description in the document. Amor 7 Lombok Barat, Gangga Gubuk Bebekek There is no description in the document. 8 Lombok Timur, Sembalun Krama Adat Sembalun In the 14th century, indigenous people had Bumbung grown and outsiders had settled in new villages. So that the community gradually spread and created a community with its own rules that are adjusted to the original village or made by themselves according to the new settlement. 9 Lombok Timur, Sembalun Kemangkuan Adat There is no description in the document. Tanak Sembalun

10 Lombok Barat, Gangga Wet Pemaru The origin of the Pemaru community originated from a dispute between the Bebekek community and the Pemaru Community which resulted in the ancestors making a decision to separate themselves. This separation is done by dividing the northern and southern regions. The ancestors who moved north made a new settlement called Pemaru. 11 Lombok Utara, Kayangan Wet Sesait Sesaid means ‘safety’, which comes from the name of a guardian carrying the religion of Islam, Said Rahmad, in the early 14th century. There are several historical relics in the form of t’e Holy Qur'an from that era. 12 Lombok Timur, Sembalun Kemangkuan Sajang Sajang comes from the name Sajen which means ‘giving’. The meaning is a gift from the Almighty. Sajang community was formed since the 13th century after the eruption of Mount Samalas (today known as Mount Rinjani). Initially the Sajang

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Identified Indigenous No Cluster People (in Descriptions Customary Area) people were animists before the arrival of Islam in the 14th century. Source: Badan Registrasi Wilayah Adat (BRWA) (BRWA was formed in 2010 at the initiative of the Indigenous Peoples Alliance of the Archipelago (AMAN) along with other NGOs.)

4.6.3. Indigenous People Identified in the ESMF

According to the Indonesian Ministry of Public Works and Housing’s ESMF for Indonesia Tourism Development Program, a number of Sasak groups living in traditional villages across Lombok Island potentially meet the criteria for Indigenous People outlined in the World Bank OP 4.10. Sasak is the umbrella ethnic group in the NTB Province but a number of communities still have identifiably indigenous traditions and social structures. The following communities were identified as still strongly attached to their collective traditional customs and maintain independent and self- sustaining socio-cultural institution:

• Sade customary village in Kecamatan Pujut of Kabupaten Lombok Tengah; • Ende customary village in Kecamatan Pujut of Kabupaten Lombok Tengah; • Belek customary village in Kecamatan Jerowaru of Kabupaten Lombok Timur; • Bayan customary village in Kecamatan Bayan of Kabupaten Lombok Utara; and • Traditional villages intertwine with modern settlements in Kecamatan Kayangan and Bayan, Kabupaten Lombok Utara. Of these villages, only the Sade village is located within the priority key tourism clusters that are in the focus of this study. Ende village is also located in the same district with Sade, but has not been included as the priority for development. According consultations with local guides, the Sade village has deliberately maintained the sustainability of their own particular cultural traditions. Traditional villages are still well-maintained and their cultural activities are still ongoing. Customary ceremonies and customary justice proceedings are seen as legitimate and are obeyed by the community. Material cultures such as the art of weaving continue to thrive. Although the limited examination of the Bayan area suggests that this area satisfies a number of the criteria that suggest it should be considered as an Indigenous area. Among these are:

• Possession and use of a distinct dialect of the Sasak language only partially intelligible to (understandable by) other Sasak dialects. • Presence of communally owned areas of Tanah Adat (customary land) within desa (village) areas. • Strongly articulated sense of community identity in juxtaposition to Lombok in general. • Presence of a well-defined body of traditional law (adat) specific to the Bayan area • Strong adherence to, and transmission of, a body of animistic beliefs about the local landscape. • Presence of strong beliefs about the way in which the structure and use of housing and community areas are tied to the structure of the cosmos. • Presence of adat laws which protect and enforce community membership

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• Ability of the community to enforce adat and also enforce compensation for the violation of adat laws. • Exclusivity with respect to local access to Islamic practice (Bayan community only in the Bayan mosque) • Presence of a highly localized interpretation of Islam (Wetu Telu) • Presence of an inherited cultural system that links land, localities, and families.13 4.6.4. Assessment of Indigenous People Presence within the Priority Key Tourism Area

In summary, the definitions of IP according to Indonesia Government, World Bank OP 4.10/ ESMF for Indonesia Tourism Development Program, and AMAN, are attached to the following communities residing in the two priority key tourism clusters of Lombok Island, as summarized in the following table.

Table 107 Indigenous People Presence within the Priority Key Tourism Areas

No Cluster Indigenous People Description 1 Cluster Gili Kecamatan Tanjung, ’he 'Sokong' village was a small kingdom that was part Islands and Kabupaten of the history of the Majapahit kingdom. There are still Senggigi Lombok‘Utara historical relics stored at Bale Gede. Until now the community still maintains the Sasak tradition well. 2 Cluster Southern Kecamatan Pujut, Sasak people at Sade Village. Located in South Coast Kabupaten Lombok Lombok, is a representation of traditional norms in the Tengah southern region that still strongly carry out customary norms as their identity. Kecamatan Pujut, Sasak people at Ende Village. Located in South Kabupaten Lombok Lombok, is a representation of traditional norms in the Tengah southern region that still strongly carry out customary norms as their identity. Kecamatan Jerowaru, The Jerowaru indigenous people inherited various relics Kabupaten Lombok from the Selaparang ’ingdom. Da'wah in Islamic Timur methodology combined with Sasak culture is a characteristic of the missionary journey of Tuan Guru H. MUTAWALI. Until now, his teachings were still guarded by the legacy of the BALE BELEK sites which were the spiritual centers of indigenous communities in the south of Lombok Timur. Kecamatan Sekotong, The Bangko-Bangko Indigenous Community in Kabupaten Lombok Sekotong is an indigenous community originating from Barat Lombok Barat that has been associated with KEDATUAN KEDARO in the past. The social order and customary norms in regulating community life are still valid in this place.

13 There are seven linngar or communal land owning groups. Membership of the group is inherited through the father. Understanding and knowledge of these linngar is fading amongst the younger generation, but is still well known by those in older generations. The Linngar are territories based around communities in the Bayan area. They are not marga in the same way as Batak family names.

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5. Lombok Tourism Patterns Over Time

As previously mentioned, based on the United Nations World Tourism Organization (UN-WTO), tourism as an industry will continue to grow at between 4% and 6% worldwide (projected to be approximately 4.9% in Asia over the long-term). International tourism arrivals in Asia will increase at a higher rate than the rest of the world with much of that travel coming from within the region. This growth in Asia will be fueled by solid interregional demand accounting for 80% of arrivals. Furthermore, China as a source market is also maintaining and increasing their relevance. Therefore, it is important to establish how tourism in Lombok Island has been growing in recent years and how it compares to the general world trends. The forthcoming analysis will discuss the profile and characteristics of the existing tourism climate in Lombok and will be based on data provided by various government agencies on different levels of governance, from provincial in Nusa Tenggara Barat (NTB) and down to the Kecamatan (district) government levels. The data provided will look at trends from both domestic and foreign visitors. In order to analyze Lombok Island’s tourism patterns, it is crucial to first visit the patterns of tourism within the context of the whole province that is Nusa Tenggara Barat (NTB). According to the Lombok Market Analysis and Demand Assessments document, Lombok Island captured 96.7% of the total visitor arrivals in NTB; which indicates that the patterns observed in the province may be a good reflection of the tourism patterns in Lombok. Then, it will discuss tourism patterns in each of the cities/regencies within the island of Lombok, i.e. Kota Mataram, Kabupaten Lombok Barat, Lombok Tengah, Lombok Utara, and Lombok Timur, as well as the tourism-relevant districts within them.

5.1. Nusa Tenggara Barat Province Tourism Patterns

This section explores the current tourism patterns in the NTB Province. Each sub-section further describes the following patterns:

• Number and growth of domestic and foreign visitors, which has been growing until 2017, but then demonstrated a decrease in 2018, as well as what the impact the increased visitation may cause; • Visitation into NTB by point of entry, showing that most travelers enter the province through Lombok International Airport and most of which are assumed to have Lombok as their destination; • The profile of domestic and foreign visitors, including the reasons of travel for domestic visitors and the origins of different foreign visitors, most of which arrive from Europe, with the Asia-Pacific, ASEAN, and American markets following suit; • Seasonality of visits, for both domestic and foreign visitors, both of which demonstrating similar patterns of high season during summer months and low seasons during the rainy season; • And the estimated expenditure of tourists, including the projected expenditure in the coming future.

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5.1.1. Number and Growth of Domestic and Foreign Visitors

2,500,000 50% 45% 2,000,000 40% 35% 1,500,000 30% 25% 1,000,000 20% 15% 500,000 10% 5% 0 0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Domestic Visitors Foreign Visitors Domestic Growth Foreign Growth

Figure 69 Domestic and Foreign Visitors in NTB Source: Central Bureau of Statistics – Provinsi NTB in Figures As shown in the figure above, NTB received a total of 2.8 million visitors in 2018; comprising of 1.6 million domestic visitors and 1.2 million foreign visitors. Foreign visitors, therefore, make up 42% of total visitation into NTB. 2018 showed a steep decline in visitation compared to the previous year, with a growth rate of -23% and -16% in domestic and foreign visitation respectively. This is likely due to the multiple earthquakes that struck the region in 2018, with the fear of more seismic activity decreasing demand to visit the province. However, both domestic and foreign visitation increased at a lower rate in 2017. 2.1 million domestic visitors and 1.4 million foreign visitors visited the province in 2017, showing a 2% growth of foreign visitors and a 23% growth of domestic growth compared to 2016. The growth of foreign visitors peaked in 2015 while the growth of domestic visitors peaked in 2016. However, within the period between 2007 and 2018, foreign visitation and domestic visitation have been growing at an almost equal CAGR with a growth rate of 19.66% and 20.11% respectively.

Up until 2017, the number of visitors to Lombok has increased, but this increasing number of people will decrease the quality of the environment. This is felt by Gili Trawangan island. With an average of 2,600 visitors per day, the island has been forced to increase the number of accommodations to meet visitor numbers, which has led to the violation of the zoning stated in NTB Governor Decree No. 500 of 1992. The addition of accommodation has exceeded the allocation of accommodation zones, leading to an occupancy of parts of the designated zone of protected forest, which has an impact on the balance of the ecosystem. The increase in vistors and accommodation locations may also cause an increase in waste, leading to negative impacts on the balance of the ecosystem. Usually, the waste from Gili Air and Gili Meno are transported to a dump site in the Lombok mainland, but this does not apply for Gili Trawangan. Gili Trawangan produces up to 10 tons of waste every day. This waste cannot be transported to the mainland as the transportation facilities are limited and costs are higher to transport all the waste from Gili Trawangan. Therefore, Gili Trawangan made their own dump sites located on the opposite side of the hotels.

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5.1.2. Number of Visitation in NTB by Point of Entry

1,200,000 1,000,000 800,000 600,000 400,000 200,000 - Lombok Int'l Pemenang Lembar Port Sape Port Others Airport Port Domestic Visitors Foreign Visitors Figure 70 Number of Domestic and Foreign Visitors in NTB by Point of Entry (2017)

Source: Central Bureau of Statistics – Provinsi NTB in Figures The figure above illustrates the amount of domestic and foreign visitation into NTB Province by point of entry. The first three points of entry are located in Lombok Island, while Sape Port is located in the City of Bima, on the island of Sumbawa. Overall, the most popular point of entry into NTB province is Lombok International Airport. In total, it welcomed almost 1.5 million visitors into NTB. However, as illustrated by the figure above, Lombok International Airport caters mostly to domestic visitors (1.14 million) rather than foreign visitors (320,000) in 2017. In fact, Lombok International Airport catered around 55% of the total domestic arrivals into NTB. On the other hand, 68% of foreign visitation in 2017 was facilitated by Pemenang Port, in Kabupaten Lombok Barat. Since Pemenang Port mainly caters fast-boat routes between Lombok and Bali, it is safe to say that foreign visitors in Bali use Pemenang Port to get into the Gili Islands off of the North-Western shores of Lombok. By contrast, only 22% of all foreign visitations into NTB arrive via Lombok International Airport. This may be due to the limited direct international flights into Lombok; and foreign visitors from Bali would prefer going in by boat, as suggested by the Lombok Market Analysis and Demand Assessment. Furthermore, although there is a lack of data of number of total visitation into NTB by city/regency to be able to isolate the number of visitations into Lombok Island exclusively, the data above may provide some indication of this. In total, domestic visitors coming into NTB via the three Lombok Ports in 2017 was 1,695,800 visitors; while foreign visitation was around 1,363,400 visitors. Therefore, there were a total of 3,059,200 visitors in Lombok Island in 2017, amounting to around 87.2% of the total visitation in NTB Province. Although still very significant, it is lower than that reported by the Lombok Market Analysis and Demand Assessment of 96.7% in 2015.

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5.1.3. Domestic Visitors’ Profile

MICE Leisure 42% 38%

Visiting Family/Friends 15% Educational 5%

Figure 71 Domestic Visitation by Motivation (2018)

Source: Central Bureau of Statistics – Provinsi NTB in Figures

Based on statistics published by the Indonesian Ministry of Tourism, Nusa Tenggara Barat Province ranked 15th in 2017 in terms of number of total domestic visitation out of the 34 provinces in Indonesia. This standing is topped by Jawa Timur, Jawa Barat, and Jawa Tengah.

As shown in Figure 69, it seems that a majority of domestic visitation into NTB in 2018 was for business or MICE-related reasons. This implies that NTB has established a very strong magnet for business and MICE activities from outside the province. This is rather closely followed by people who come into NTB for leisurely activities, with 38% of total visitors. This implies that although NTB is a well-known domestic tourism destination, the province is still mainly a meeting place, most likely for different governmental bodies in the region, as Mataram and Bima in Sumbawa can be considered important centers. Visiting family and/or friends accounted for 15% of total visitation, while educational reasons accounted for only 5% in 2018. Both motivations have in increased in proportion to others, as in 2017 visiting famiy/friends was only at 12% and educational reasons was only almost 3%.

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≥55 7% 45-54 <15 14% 28%

35-44 18% 15-24 18% 25-34 15%

Figure 72 Domestic Visitation in NTB by Age Group (2017) The Indonesian Ministry of Tourism

The figure above shows that visitors under the age of 15 make up for 28% of all domestic visitations which, in itself, is an interesting finding. Recalling that friends and family visits contribute 43% and leisure 46% to the overall domestic visitation, this implies that a large portion of domestic travels into NTB are families with children. As shown above, the other age groups between 15 and 54 have a similar contribution to the overall domestic visitation which ranges from 14 to 18%. Meanwhile, the chart above shows that NTB is not a popular destination for retirees and the elderly as visitors aged 55 and above only contribute 7% to the total domestic visitation. The number of visitors in Lombok is also affected by the millenial generation, people who were born in 1980-1995. Millennials tend to travel more often, with an average travel of 2.38 times compared to Generation X with 1.8 times and generation of baby boomers as many as 1.65 times, therefore traveling has become one of the lifestyle choices for millennials. For millennials, 59% choose natural tourism such as mountains, beaches, and islands as tourist destinations and those natural attractions can be fulfilled by Lombok, with its title of unspoiled paradise and a variety of natural destinations such as Mount Rinjani, Gili Islands, and beaches. (source: http://library.binus.ac.id/eColls/eThesisdoc/Bab1/BAB%20I-TS-R-2018-0049.pdf) 5.1.4. Foreign Visitors’ Profile

Visiting Others Family/Friends 3% 6% Business 10%

Lelsure 81%

Figure 73 Foreign Visitation by Motivation (2018)

Source: Central Bureau of Statistics – Provinsi NTB in Figures

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Based on the figure above, a majority (81%) of the foreign visitation to NTB in 2018 was for leisure activities. This is only a slight increase from 2017, when 78.13% of visitation was for leisure. Business the is second most popular motivation to visit NTB, however at a low percentage of around 10%. This means that NTB has been successful in attracting foreign visitation for leisurely activities to the province but are lacking in attracting international business activities. Visiting family and/or friends is the third most common motivation at 6% and other reasons are at a collective 3% of the total number of respondents. The data provided does indiciate that the NTB is well-known as a tourism destination than for any other destination internationally, demonstrating a positive outlook for the growth of the tourism infrastructure in the province.

5.1.5. Foreign Visitors’ Countries of Origin

2,500,000 Americas 2,000,000 Asia Pacific 14% 1,500,000 26% 1,000,000 500,000 Asean - 13% Europe 2017 47%

Domestic Visitors Foreign Visitors

Figure 74 Foreign Visitors’ Countries of Origin (2017) Source: Central Bureau of Statistics – Provinsi NTB in Figures Within the 1.4 million foreign visitors, as shown in the figure above, most of them were European visitors, making up 47% of the total international visitation in NTB. This is followed by Asia-Pacific with a 26% contribution, the Americas with 14%, and lastly Southeast Asia (ASEAN) with a 13% contribution. This finding is consistent with that of the Lombok Market Analysis and Demand Assessment which found that European visitors accounted for 50% of all international arrivals to NTB in 2015; which further illustrates how the international visitation makeup has not changed significantly in the past 2 years. Lombok generally remains attractive for almost all source international markets, both for large scale beach resorts markets and nature-based markets such as snorkeling, diving, hiking and surfing.

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5.1.6. European Visitors’ Countries of Origin

2% 4% 3% 4% Netherlands 11% Germany 3% Italy 4% United Kingdom France 15% Switzerland 5% Spain 5% Sweden 9% Austria 7% Belgium Denmark Norway 12% 16% Finland Others

Figure 75 European Visitors’ Countries of Origin (2017) Central Bureau of Statistics – Provinsi NTB in Figures

As the top source market of tourism in NTB by far, the European market is worth to be broken down further in order to establish a clearer pattern in terms of individual countries. The top 5 European contributors to international visitation in NTB are United Kingdom with 105,800 visitors (16%), Germany with 101,400 visitors (15%), and France with 79,200 visitors (12%), Netherlands with 78,000 visitors (12%), and Italy with 58,700 visitors (9%) in 2017. Therefore, it is safe to say that NTB’s largest tourism source market thus far is Western European. 5.1.7. Asia-Pacific Visitors’ Countries of Origin

4% 5% Australia New Zealand 7% Hongkong 8% India Japan 6% 50% South Korea 4% China 5% Middle-East 11% Other Asia Pacific

Figure 76 Asia-Pacific Visitors’ Countries of Origin (2017) Central Bureau of Statistics – Provinsi NTB in Figures The second largest source market of international visitation in NTB that follows Europe is the Asia- Pacific. Within this market, the Australian market is by far the dominant contributor with 50% of all Asia-Pacific-based visitors, or approximately 184,400 visitors; and distantly followed by New Zealand with 38,600 visitors (11%) in 2017. The remainder is made up of other Asian countries where none of them contribute more than 8% of total Asia-Pacific tourism arrivals. This is consistent with the findings from the Lombok Market Analysis and Demand Assessment, which states that there is an apparent absence of Asian visitors in Lombok. Furthermore, interestingly, the Middle Eastern market, which is looking to be a targeted priority market by the central and the provincial government as a potential source of tourism, only accounts for 4% or 12,800 tourists in

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2017. Having said that, it will be interesting to see how this source market has been growing in recent years. However, it is yet to be established due to a lack of reliable time-series data. 5.1.8. ASEAN Visitors’ Countries of Origin

8% Malaysia 10% The Phillippines 44% 8% Singapore

Thailand

23% Brunei

7% Other Asean

FigureFig. 77 AseanASEAN Visitors’ Visitors’ Countries Countries of Origin of Origin (2017) (2017) Source: RIPPARDA Prov. NTB Central Bureau of Statistics – Provinsi NTB in Figures

Rather surprisingly, as the most direct source market geographically, ASEAN countries contribute the least to NTB’s tourism market with only 181,600 visitors in total. For some perspective, it is less than the total number of tourists coming from Australia alone. As mentioned in the Lombok Market Analysis and Demand Assessment, despite Asian tourists being practically absent from the tourism market in NTB, Malaysian tourists are one of the exceptions. This statement is supported by the data in 2017 which shows that Malaysian visitors contribute 79,300 visitors (44%) to the total ASEAN visitation in 2017. This is followed by the Singaporean market which contributed 41,100 visitors (23%) to the total ASEAN visitation. 5.1.9. Domestic Visitors Seasonality

400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 -

2013 2014 2015 2016 2017

Figure 78 Domestic Visitation in NTB by Month (2013-2017) Central Bureau of Statistics – Provinsi NTB in Figures

The figure above illustrates the number of domestic visitors in NTB by month within the period between 2013 and 2017, indicating the province’s tourism seasonality. Visually, the seasonality graph of domestic tourists is a negatively-skewed distribution. As clearly shown, the month of

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September seems to be the peak season for domestic visitation in NTB, with 544,200 visitors in 2016 and 490,000 visitors in 2017. The months of July and August may be considered as high- seasons as they approach the month of September. This pattern is expected since said months coincide with the general period for school holidays in Indonesia. On the other hand, as illustrated, the months with the lowest number of domestic visitors in NTB are between October and March with around 100,000 visitors each month. This low season period is also not surprising due to the weather in Lombok, and Indonesia in general, during these months. Being a largely beach- and maritime-based tourism, the rainy season – which may start as soon as October and lasts up until April – will significantly affect incoming tourism in Lombok.

5.1.10. Foreign Visitors Seasonality

300,000 250,000 200,000 150,000 100,000 50,000 -

2013 2014 2015 2016 2017

Figure 79 Foreign Visitation in NTB by Month (2013-2017) Central Bureau of Statistics – Provinsi NTB in Figures

There is a slight difference in seasonality for foreign visitors compared to their domestic counterparts. Visually, compared to the domestic seasonality, the seasonality graph for foreign visitation is relatively more normally distributed. As illustrated above, even though the peak season in 2016 clearly fell on July, the peak month in general is not as apparent as the domestic visitors’ seasonality. However, it may be said that high season in NTB falls between the months of July and September with up to 200,000 visitors in a month. This is also unsurprising since it coincides with the long summer holiday of European visitors, which as previously established is by far the highest contributor of international visitation. On the other hand, similar to the seasonality patterns of domestic visitors, the low season for foreign visitors in NTB generally falls between November and March, where in the years of 2013 to 2017 the numbers of recorded foreign visitation are below 50,000 each month, coinciding with the rainy season in the region.

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5.1.11. Foreign Visitors Seasonality by Source Market Regions

120,000

100,000

80,000

60,000

40,000

20,000

Americas Europe Asean Asia Pacific Figure 80 Foreign Visitation in NTB by Region and by Month (2017) Central Bureau of Statistics – Provinsi NTB in Figures Another angle of looking at tourism seasonality in NTB is by looking at the monthly visitation differenciating between regions. In 2017, it is clear that European visitation peaked in July with 95,800 visitors. The several months approaching and following July, which is the period between April and September, also provide a significant number of total European visitation with no less than 55,400 visitors each month. On the other hand, low season for European visitors in 2017 fell between November and March, with less than 42,600 visitors each month. Seasonality patterns for the other source market regions are less clear-cut than that of the European market. However, for the American, Asia-Pacific, and ASEAN markets, the peak season for tourism in NTB in 2017 seem to have been in August. The two months from August in both directions seem to be high-seasons for each source market as well. Similarly, low seasons for these markets in 2017 also fell between the months of November and April.

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5.1.12. Estimated Expenditure of Domestic and Foreign Visitors

2,000,000 50%

40% 1,500,000 30% 1,000,000 20% 500,000 10%

- 0% 2013 2014 2015 2016 2017 2018

Domestic Visitors' Daily Expenditure (IDR) Foreign Visitors' Daily Expenditure (IDR*) Domestic Expenditure Growth Foreign Expenditure Growth

Figure 81 NTB Foreign and Domestic Visitors’ Estimated Expenditure Note: *) Converted from USD, using a constant exchange rate of 1 USD = IDR 13,500 (2018) Central Bureau of Statistics – Provinsi NTB in Figures Based on the latest data from NTB Tourism Office, in 2018, domestic visitors on average spend around IDR 1,600,000. On the other hand, foreign visitors on average spend approximately IDR 1,850,000 – around 16% higher than their domestic counterparts. As shown in the figure above, domestic visitors’ daily expenditure experienced a very significant but incidental hike in 2015 from IDR 1,225,000 to IDR 1,550,000 per day. Since then, domestic visitors’ expenditure has been maintained around IDR 1,550,000 – 1,600,000 per day. In fact, barring the anomaly in 2015, domestic visitors’ expenditure growth has been growing at a rate of 1.06% per annum. In terms of foreign visitors’ data, daily expenditure as measured by the NTB Tourism Office is represented using USD. However, the figure above shows converted data to IDR using a fixed exchange rate of IDR 13,500 per USD based on 2018 rates. This is done to allow comparison with the domestic visitors’ daily expenditure and to isolate the expenditure growth from exchange rate fluctuations. When presented in USD, based on data from 2013-2018, foreign visitors’ daily expenditure has been growing at a very subtle rate. It grew from USD 130 in 2013 to USD 137 in 2018; or approximately 1.05% per annum – very similar to the domestic expenditure growth. However, when represented in IDR using a fixed exchange rate of IDR 13,500 per USD, foreign visitors’ daily expenditure has been growing at a slightly higher pace at around 2.8%. The data above, however, has some significant discrepancies with that from the Lombok Market Assessment and Demand Analysis. Based on said document, the average daily expenditure for domestic visitors in 2015 was around USD 24.40, which is only around 18% of the amount provided by the NTB Tourism Agency.

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Daily Expenditure No. of Visitors No. Country No. Country (USD) (2016) (2017) 1 Singapore 276.4 1 Australia 184,431 2 Bangladesh 255.7 2 United Kingdom 105,777 3 Malaysia 233.6 3 Germany 101,436 4 Brunei Darussalam 224.1 4 Malaysia 79,324 5 Philippines 219.3 5 France 79,189 6 Sri Lanka 216.1 6 Netherlands 77,993 7 Taiwan 191.0 7 USA 60,120 8 Japan 184.1 8 Italy 58,686 9 India 182.7 9 Switzerland 46,366 10 Hong Kong 182.5 10 Canada 42,837 11 Thailand 181.9 11 Singapore 41,116 12 Pakistan 176.8 12 New Zealand 38,574 13 China 168.4 13 Sweden 36,404 14 Republic of Korea 163.5 14 Spain 33,991 15 Australia 119.9 15 Republic of Korea 29,942

Table 108 Daily Expenditure by Country of Origin (Indonesia) Table 109 Foreign Visitors to NTB by Country of Origin The table on the left shows the highest daily expenditure by country of origin for foreign visitors coming into Indonesia. By contrast, the table on the right lists the highest contributors of foreign visitation into NTB by country of origin. The two tables are compared with each other to simulate whether foreign visitors in NTB are generally high-spending. The rows shaded blue are the countries which appear in both tables. In other words, these are the generally high-spending visitors who currently also have strong presence in NTB’s tourism scene. As shown, only 3 countries fall into this category, namely Australia, Malaysia, and Singapore. This implies, therefore, that foreign visitors who are attracted to NTB’s tourism offerings are generally not high-spending. As shown by the tables above, the countries with the highest daily expenditure are mostly Asian and ASEAN countries; while countries with the largest presence in NTB’s tourism market are mostly European countries.

250.00

200.00

150.00

100.00

50.00

0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Europe Asia Pacific Americas ASEAN

Figure 82 Foreign Visitors' Daily Expenditure in Indonesia by Geographic Category

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Source: Indonesia Ministry of Tourism In fact, as illustrated by the figure above, visitors from Asia-Pacific countries into Indonesia generally and consistently have the highest daily expenditure. In 2016, Asia-Pacific visitors spend around USD 157 per day. This is followed by ASEAN visitors who have consistently been the second highest in terms of daily expenditure. However, in 2016, their average daily expenditure experienced a very significant and sudden hike from USD 148.5 to USD 227.1. The reason behind this hike is still unclear; and since 2017 data is yet to be available, it is unclear whether or not this is a one-off anomaly. In any case, however, Asia Pacific visitors’ daily expenditure has been growing at an annual rate of 3.1%, while ASEAN visitors’ daily expenditure has been growing at an annual rate of 4.0% (excluding 2016 data). On the other hand, the European market – which is currently most attracted to NTB tourism based on their visitation figures – have consistently been on the lowest scale of daily expenditure. In 2016, European visitors on average spend approximately USD 86 per day. Interestingly, their daily expenditure had been consistently rowing from 2007 to 2014 with an annual growth rate of 5.7%. However, ever since then, it has been significantly decreasing – from USD 145 in 2014 to USD 86 in 2016. In fact, within the period between 2007 and 2016, European visitors’ daily expenditure has been decreasing by 1.5% per annum. It is important to note, however, that even though Asia-Pacific and ASEAN visitors have the highest daily expenditure; it does not necessarily mean NTB should start to shift its focus from the European to Asia-Pacific market. This is because it may be the case that the Asia-Pacific and ASEAN markets are generally just not attracted to the mostly-natural features that NTB has to offer; and market preferences cannot be forced. Having said that, since the ASEAN market is currently under-tapped as previously established, an increase in ASEAN visitors may be beneficial to the local economy. 5.2. Kota Mataram Tourism Patterns

In this section, the tourism patterns in Kota Mataram is explored in greater depth, looking at the number and growth of tourists from all markets, as well as the seasonality of each of them. It is found that Kota Mataram has a significantly larger domestic visitation, and most of them arrive towards the end of the year, while foreign visititation showed higher numbers during the months of August and September.

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5.2.1. Number and Growth of Domestic and Foreign Tourism

700,000 600,000 500,000 400,000 300,000 200,000 100,000 - 2011 2012 2013 2014 2015 2016

Foreign Visitors Domestic Visitors Figure 83 Domestic and Foreign Visitors in Kota Mataram (2011-2016) Source: Central Bureau of Statistics – Kota Mataram in Figures As shown by the figure above, visitation in Kota Mataram has always been dominated by domestic visitors. For instance, in 2016, Mataram recorded around 607,000 domestic visitors and only around 16,800 foreign visitors. As illustrated, the gap between domestic visitation and foreign visitation has continued to widen at least since 2011. In fact, within the period between 2011 and 2016, domestic visitation has been growing at an annual rate (CAGR) of 22%, while its foreign counterpart has been growing at an annual rate of 17%. This finding is further supported by the insights gathered while interviewing hotels’ management and tourism practicioners in Mataram. One clear and apparent trend amongst these interviews is that tourism in Mataram is dominated by domestic visitors since the city caters to a lot of meetings and conferences mostly involving different levels of the local government, but also – in a smaller scale – the private sector. 5.2.2. Domestic Visitors Seasonality

90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 -

2015 2016 Figure 84 Domestic Visitors in Kota Mataram by Month (2015-2016) Source: Central Bureau of Statistics – Kota Mataram in Figures The figure above illustrates the seasonality of domestic visitation in 2015 and 2016. Compared to the overall NTB seasonality, it is apparent that visitation seasonality in Mataram is relatively stable throughout the year with a slight upward slope. A pattern that can be extracted from the two years is that number of visitations increases as it approaches the end of the year, especially in October

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to December. Considering Mataram’s prevalent visitors’ profile mostly being domestic government officials, the rise in visitation nearing the end of the year may be due to the increase in meetings scheduled at the end of each agency’s fiscal/programme year. 5.2.3. Foreign Visitors Seasonality

2,500 2,000 1,500 1,000 500 -

2015 2016 Figure 85 Foreign Visitors in Kota Mataram by Month (2015-2016) Source: Central Bureau of Statistics – Kota Mataram in Figures Similar to its domestic counterpart, the seasonality of foreign visitation in Mataram is also relatively stable throughout the year. Each month, at least for the past 2 years, Mataram has been attracting between 1,000 to 2,000 foreign visitors. However, in contrast to the domestic seasonality, foreign visitors’ peak season in Mataram clearly falls in the month of August. This finding is consistent with the foreign visitors’ peak season in the overall NTB province which falls between July and September, as previously discussed. This implies that the additional foreign visitations in Mataram in August are holiday-makers and not business tourists. This finding is also supported by our interviews with different hotel management staff in Mataram, who stated that during busy periods, Mataram acts as a supporting region to the more tourism-centric Senggigi. In other words, when Senggigi’s hotels have met its capacity, visitors tend to spillover to Mataram for a place to stay; which may explain the jump in foreign visitation in Mataram in the month of July.

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5.3. Kabupaten Lombok Barat Tourism Patterns

In this section, the tourism patterns in Kabupaten Lombok Barat is explored in greater depth, looking at the number and growth of tourists from all markets, as well as the seasonality of each of them. Two sub-sections also focus on the seasonality on two specific districts, namely Kecamatan Batu Layar and Sekotong. Interestingly, 2016 showed a significant increase in foreign visitors, surpassing the domestic visitor number, arriving mostly during the summer months as well. 5.3.1. Number and Growth of Domestic and Foreign Visitors

450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 2012 2013 2014 2015 2016

Foreign Visitors Domestic Visitors Figure 86 Domestic and Foreign Visitors in Lombok Barat (2012-2016) Source: Kabupaten Lombok Barat Tourism Agency There has been an interesting pattern of foreign and domestic visitation in Kabupaten Lombok Barat in recent years, as shown by the above figure. On one hand, foreign visitation in Lombok Barat has been consistently increasing at least since 2012 up to 2016. With compounded annual growth rate of 38%, foreign visitation in the regency reached 400,000 in 2016. On the other hand, as illustrated, domestic visitation peaked in 2014, but then experienced a decline in the subsequent years. In 2014, domestic visitation reached 264,000, but then experienced rapid decrease down to 142,000 in 2016. As a result, for the first time in recent years, foreign visitation in Lombok Barat outnumber its domestic counterpart; and by a long way. In fact, in 2016, foreign visitation is almost 3 times the number of total domestic visitation. The reason for this rapid decline of domestic visitors in 2014 may be explained by a geographical shift of domestic visitors’ preferred destination in the island to Kabupaten Lombok Tengah, which will be further explained the coming section on Lombok Tengah.

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5.3.2. Foreign Visitors’ Countries of Origin

Americas 5%

Others 10% Netherlands 15%

Asia Pacific 30%

Europe Germany 45% 26%

Asean France 11% 20% United Kingdom Italy 11% 6%

Figure 87 Lombok Barat Foreign Visitors’ Countries of Origin (2017) Source: Kabupaten Lombok Barat Tourism Agency Similar to the foreign visitors’ origin in the overall province of NTB, European visitors contribute the most to the foreign visitation in Kabupaten Lombok Barat. In 2016, Lombok Barat welcomed 133,300 European visitors, or 45% of the total foreign visitation in the regency. In terms of the individual countries, Germany contributes 26% to the total European visitation, followed by the Netherlands, United Kingdom, France, and Italy. These countries of origin are almost a perfect reflection of the profile in the overall NTB Province, where Western European countries are a vital source market.

Others Saudi Arabia 11% 6% Australia 26%

Taiwan New Zealand 22% 4% Hong Kong 7% South Korea India 16% 2% Japan 4%

Figure 88 Lombok Barat Asia-Pacific Visitors’ Countries of Origin (2017) Source: Kabupaten Lombok Barat Tourism Agency The European market is followed by Asia-Pacific which contributed 30% to the overall foreign visitation in Lombok Barat, or around 90,900 visitors in 2016. Within this market, the Australian market dominate – although not as dominant as in the overall NTB tourism profile – with 26% to

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the verall Asia-Pacific visitation, or around 23,600 visitors. Interestingly, there are a couple of significant source markets to the tourism in Lombok Barat which do not appear at the provincial level. One of these source markets is the Taiwanese market which contribute around 22% of overall Asia-Pacific visitation in Lombok Barat; and the second one is the South Korean market which contribute around 16% of the visitation. 5.3.3. Foreign Visitors Seasonality by Source Market Region

25,000

20,000

15,000

10,000

5,000

- Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Americas Europe Asean Asia Pacific

Figure 89 Lombok Barat Foreign Visitors by Region by Month (2017) Source: Kabupaten Lombok Barat Tourism Agency From the figure above, it is clearly shown that the month of August is by far the peak season for European visitors, which welcomed around 23,600 visitors in 2016. Although not to the extent of the European visitation, the month of August also looks to be the peak month of visitation for all the other source market regions. This is a slight difference to the peak season for the overall NTB seasonality which falls on August. However, the general high season is not dissimilar to that of the NTB province since it falls between June and September in Lombok Barat for all source market regions. On the other hand, the lowest month in terms of visitation for Lombok Barat seem to be November for all source market regions. There is, however, a slight pick up in visitation numbers in December to January despite coinciding with the rainy season as previously established. This may be due to said months being around the same time of year-end, Christmas, and winter holidays for the foreign visitors.

5.3.4. Number of Domestic and Foreign Visitors by Kecamatan

400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 - BATU LAYAR LINGSAR NARMADA SEKOTONG Figure 90 Lombok Barat Domestic and Foreign Visitors by Kecamatan (2017) Source:Foreign Kabupaten Visitors Lombok DomesticBarat Tourism Visitors Agency

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Kabupaten Lombok Barat’s Tourism Agency has provided visitation data on four of the regency’s Kecamatan (district), namely Batu Layar (in which Senggigi is located), Lingsar, Narmada, and Sekotong as above, which presumably are the districts with a non-zero visitation data. The two districts in Lombok Barat that will become our focus in terms of their potential as a tourism development priority are Senggigi and Sekotong. Senggigi, as one of the most established tourism destinations in Lombok, unsurprisingly recorded the highest number of both domestic and international tourists in 2017 compared to its neighboring districts. In 2017, it recorded around 637,300 visitors in total, comprising of 375,000 domestic visitors and 300,200 foreign visitors. This means that Senggigi accounts for around 93% of the total visitation in Lombok Barat. On the other hand, as a potential destination in its infant stages of tourism development, Sekotong only recorded a total of 19,200 visitors, or only 3% of Senggigi’s visitation. Interestingly, in contrast to Senggigi’s visitors’ profile, Sekotong is more popular with foreign visitors than domestic ones. In 2017, Sekotong welcomed 12,600 foreign visitors – almost double the number of domestic visitors of 6,700. 5.3.5. Kecamatan Batu Layar Seasonality

50,000 40,000 30,000 20,000 10,000 -

Foreign Visitors Domestic Visitors

Figure 91 Kecamatan Batu Layar Domestic and Foreign Visitation by Month (2017) Source: Kabupaten Lombok Barat Tourism Agency As illustrated by the yellow line above, domestic visitation is relatively stable throughout 2017 staying within the thresholds between 25,300 and 42,000 visitors each month. It does, however, expectedly experience a peak in the months of July and August; although it is slightly earlier than the peak of domestic seasonality in the overall NTB Province. Similarly, foreign visitation in Senggigi also seems to have peaked in August, exceeding its domestic counterpart with 44,600 visitors. However, foreign visitation in Senggigi is considerably more volatile than the domestic visitation. For instance, both foreign and domestic visitation’s lowest point falls on the month of November. However, foreign visitation fell as low as 15,100 in 2017 whereas domestic visitation only declined to 25,300. It is also interesting how only the foreign visitation experienced a notable hike in December 2017 due to the Christmas/year-end holidays; although this observation needs a more detailed time-series data to be established as a trend.

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5.3.6. Kecamatan Sekotong Seasonality

2,500 2,000 1,500 1,000 500 -

Foreign Visitors Domestic Visitors

Figure 92 Kecamatan Sekotong Domestic and Foreign Visitation by Month (2017) Source: Kabupaten Lombok Barat Tourism Agency The figure above further illustrates how Sekotong’s tourism climate is being dominated by foreign visitors, which gap is especially visible during high seasons, i.e. between June and September. Similar to Senggigi’s seasonality, the peak month for visitation in Sekotong also falls in the month of August for both domestic and foreign visitors although it is a lot steeper for the latter. The lowest month for both foreign and domestic visitation in Sekotong fell between February and March where their numbers do not significantly differ with 580 foreign visitors and 480 domestic visitors in 2017. However, in the low season approaching the end of the year, foreign visitation did not decline as low as its domestic counterpart. Furthermore, foreign visitation in December of 2017 experienced a more notable spike than domestic visitation, as was the case in Senggigi.

5.4. Kabupaten Lombok Tengah Tourism Patterns

In this section, the tourism patterns in Kabupaten Lombok Tengah is further characterized, looking at the number and growth of tourists from domestic and foreign markets, as well as the seasonality of these visitors. Up until 2013, there were more foreign tourists than domestic ones, however that number changed, with 114,000 domestic and 86,500 foreign visitors in 2017. High season was from July to September for all markets. There is a lack of time series data on the tourism patterns in Lombok Tengah compared to other regencies, therefore establishing final judgements regarding the state of tourism in Lombok Tengah may be misleading.

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5.4.1. Number and Growth of Domestic and Foreign Visitors

120,000

100,000

80,000

60,000

40,000

20,000

- 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Foreign Visitors Domestic Visitors

Figure 93 Lombok Tengah Domestic and Foreign Visitation (2007-2017) Source: Kabupaten Lombok Tengah Tourism Agency Kabupaten Lombok Tengah recorded a total of around 200,500 visitations in 2017, comprising of 114,000 domestic visitors (57%) and 86,500 foreign visitors (43%). As illustrated above, this trend of domestic visitation being higher than foreign visitation has only been true since 2015; and the gap is increasing over time. Recalling the earlier discussion in the Kabupaten Lombok Barat section, there was a rapid decline of domestic visitors in 2014 in Lombok Barat. As shown above, interestingly, there was a rapid increase of domestic visitation in Kabupaten Lombok Tengah since 2014. In fact, within the period between 2007 and 2013, domestic visitation has been increasing at an annual growth rate of 14% and foreign visitation by 17%. However, between 2014 and 2017, domestic visitation has been increasing by 46% annually while foreign visitation has only been increasing by 3% annually. Therefore, considering the development progress of the Mandalika area in Lombok Tengah, the decline in domestic visitation in Lombok Barat may be due to them shifting their destination to Lombok Tengah instead.

5.4.2. Domestic and Foreign Visitors Seasonality 7,000 6,000 5,000 4,000 3,000 2,000 1,000 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Foreign Visitors Domestic Visitors

Figure 94 Lombok Tengah Domestic and Foreign Visitation by Month (2015) Source: Central Bureau of Statistics – Kabupaten Lombok Tengah in Figures

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Due to a lack of data availability from Kabupaten Lombok Tengah’s Tourism Agency on monthly visitation, the above figure was based on 2015 data from the Central Bureau of Statistics. Illustrated by the blue line above, the peak month for foreign visitors fall in the month of August as is similar to the other regencies in Lombok, with a high season period falling between July and September. Furthremore, the period between October and May be categorized as Lombok Tengah’s low season. However, as illustrated by the yellow line above, the seasonality pattern of domestic visitors in Lombok Tengah is not as obvious as it has been in the other regencies as previously discussed; or at least it does not follow the expected pattern based on the available data. Therefore, a more complete dataset will be necessary to establish a more reliable conclusion on domestic visitors’ seasonality in Lombok Tengah. 5.5. Kabupaten Lombok Utara Tourism Patterns

The tourism patterns in Kabupaten Lombok Utara is described in detail in the following sub- sections by looking at the number and growth of tourists from all markets, as well as the seasonality of each of them. As with Kabupaten Lombok Barat, two sub-sections focus on two districts and their visitor seasonality, which are Kecamatan Pemenang and Tanjung. Lombok Utara has shown consistently since 2013 that it attracts more foreign visitors than domestic ones with almost all visitors concentrated in Kecamatan Pemenang, the district the three Gili Islands are part of. 5.5.1. Number and Growth of Domestic and Foreign Visitors

1,000,000 100%

800,000 80%

600,000 60%

400,000 40%

200,000 20%

- 0% 2013 2014 2015 2016 2017

Foreign Visitors Domestic Visitors Foreign Visitation Growth Domestic Visitation Growth

Figure 95 Lombok Utara Domestic and Foreign Visitation (2013-2017) Source: Central Bureau of Statistics – Kabupaten Lombok Utara in Figures As shown by the figure above, tourism visitation in Kabupaten Lombok Utara has always been dominated by foreign visitors, and the gap has become greater over the years. In fact, in 2017, Lombok Utara recorded around 844,000 foreign visitors – more than 6.5 times the number of domestic visitors at 132,000. Having said that, both domestic and foreign visitation experienced a significant hike in recent years. In 2015, domestic visitation increased by 20%, while foreign visitation saw a 21% increase a year later. Despite foreign visitation consistently outnumbering its domestic counterpart in Lombok Utara, domestic visitation has been growing at a higher pace at least in the past 5 years. Between 2013 and 2017, domestic visitation has been growing at an annual rate of 26% while foreign visitation has been growing at a slightly lower annual rate of 19%.

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5.5.2. Number of Domestic and Foreign Visitors by Kecamatan

900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 - PEMENANG TANJUNG GANGGA KAYANGAN BAYAN

Foreign Visitors Domestic Visitors

Kabupaten Lombok Utara is divided into 5 districts, namely Pemengang, Tanjung, Gangga, Figure 96 Lombok Utara Domestic and Foreign Visitation by Kecamatan (2017) Source: Central Bureau of Statistics – Kabupaten Lombok Utara in Figures Kayangan, and Bayan. As illustrated above, the districts with non-zero visitations – either foreign or domestic – are Pemenang, Tanjung, and Bayan; where the first two districts are being considered as tourism development potential in this study. Kecamatan Pemenang is by far the most popular district in terms of visitation with a total of almost 880,000 visitors in 2017, representing 88% of the total visitation into Lombok Utara. As a result, similar to the visitation profile in the overall Kabupaten Lombok Utara, visitation in Kecamatan Pemenang is dominated by foreign visitors with 764,000 (87%) compared to domestic visitation with only 114,400 (13%) visitors. Pemenang is then distantly followed by Kecamatan Tanjung which welcomed a total of 67,000 visitors in 2017. Similarly, visitation in Tanjung is dominated by foreign visitation with 57,000 visitors (85%) compared to 9,900 domestic visitors (15%). 5.5.3. Domestic and Foreign Visitors Seasonality

140,000 120,000 100,000 80,000 60,000 40,000 20,000 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Domestic Visitors Foreign Visitors

Figure 97 Lombok Utara Foreign and Domestic Visitation by Month (2017) Source: Central Bureau of Statistics – Kabupaten Lombok Utara in Figures Due to the low number of domestic visitations in Kabupaten Lombok Utara, its seasonality graph is relatively stable throughout the year. However, there is a slight hike in domestic visitation on the month of August which welcomed 16,300 visitors compared to the year-long monthly average

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domestic visitation of 11,000 visitors. On the other hand, the seasonality graph of Lombok Utara’s foreign visitation is very apparent. Similar to its domestic counterparts, foreign visitation in 2017 peaked on the month of August with 120,000 visitors. The monthly average for foreign visitation was 72,000 visitors in 2017. With that, the months which attracted an above-average number of foreign visitations are between June through to October – which may be said as Lombok Utara’s high season. Therefore, low season in Lombok Utara for foreign visitation may be said to fall between November and May. The month which welcomed the least number of foreign visitors in 2017 was February with only 30,300. 5.5.4. Kecamatan Pemenang Seasonality

120,000 100,000 80,000 60,000 40,000 20,000 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Foreign Visitors Domestic Visitors

Figure 98 Kecamatan Pemenang Domestic and Foreign Visitation by Month (2017) Source: Central Bureau of Statistics – Kabupaten Lombok Utara in Figures Similar to the overall Lombok Utara seasonality, the seasonality of domestic visitors in Kecamatan Pemenang is relatively flat throughout the year with a very slight hike in August. Even then, the month of August only attracted 13,700 domestic visitors. On the other hand, foreign visitation, which also peaked in August, attracted around 105,000 visitors – more than 7 times its domestic counterpart. Overall, since Kecamatan Pemenang accounts for a large majority of Lombok Utara’s overall visitation, and since the majority of visitation is foreign-based, the seasonality of foreign visitation in Pemenang is an almost perfect reflection of that in the overall Lombok Utara. 5.5.5. Kecamatan Tanjung Seasonality

10,000

8,000

6,000

4,000

2,000

- Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Foreign Visitors Domestic Visitors

Figure 99 Kecamatan Tanjung Domestic and Foreign Visitation by Month (2017) Source: Central Bureau of Statistics – Kabupaten Lombok Utara in Figures

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Kecamatan Tanjung, on the other hand, has a slightly different pattern of seasonality for both foreign and domestic visitation in 2017. The months of January through to March saw very minimal domestic visitation, ranging only from 92 to 107 visitors each month. Domestic visitation started to pick up in April and maintained relatively high visitation between June and October where over 1,100 domestic visitors were recorded each month. November and December saw a slight decline in domestic visitation, but not as low as the early months of the year. Similarly, foreign visitation in Kecamatan Tanjung also experienced its lowest points in the months of January to March in 2017, where it recorded not much more than 600 visitors each month. The subsequent months saw increasing numbers of foreign visitation, peaking in July and August with more than 9,000 visitors. Foreign visitation also experienced a decline in November even though the number was still maintained above 5,000 visitors. Furthermore, foreign visitation saw a slight hike in December as was the case in the other areas as previously discussed.

5.6. Kabupaten Lombok Timur Tourism Patterns

In this section, the tourism patterns in Kabupaten Lombok Timur is explored in greater depth, looking at the number and growth of tourists from all markets, at the regency and district levels. Lombok Timur has the least amount of data available, however the information we have received demonstrated an increase in total foreign visitors in 2017, with the key tourism area of Pink Beach attracting the most amount of toursts. Mount Rinjani, on the other hand, is more popular with domestic visitors. 5.6.1. Number and Growth of Domestic and Foreign Visitors

10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 - 2014 2015 2016 2017

Domestic Visitors Foreign Visitors

Figure 100 Lombok Timur Domestic and Foreign Visitors (2014-2017) Source: Kabupaten Lombok Timur Tourism Agency In 2017, Kabupaten Lombok Timur recorded a total of 11,500 visitors, comprising of 8,800 foreign visitors (76%) and 2,700 domestic visitors (24%). However, visitation data from recent years tells an interesting story as illustrated above. As expected, foreign visitation has been growing in recent years – at a staggering 41% annual growth rate between 2014 and 2017. However, domestic visitation peaked in 2015 with 9,400 visitors, and experienced rapid decline in the subsequent years. In fact, between 2014 and 2017, the compounded annual growth rate of domestic visitors was -12%.

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5.6.2. Number of Domestic and Foreign Visitors by Kecamatan

2,500

2,000

1,500

1,000

500

Domestic Visitors Foreign Visitors

Figure 101 Lombok Timur Domestic and Foreign Visitors by Kecamatan (2017) Source: Kabupaten Lombok Utara Tourism Agency Based on data provided by the Lombok Timur Tourism Agency, Kecamatan Selong welcomed the highest amount of visitation in 2016 with a total of 2,800 visitors. This figure is comprised of mostly domestic visitors with 2,200 visitors, and around 600 foreign visitors throughout the year. Kecamatan Jerowaru, which is one of the areas of study in terms of a potential key tourism area as it is the location of the Pink Beach area, only recorded a total of 1,200 visitors. However, it is important to note that Lombok Timur Tourism Agency uses the number of hotel guests in the regency as its proxy for number of visitors. Therefore, the data above does not include non-staying excursionists and may not truly reflect the actual tourism characteristics. Furthremore, based on the data above, Kecamatan Sembalun – which is one of the two entry points of Mount Rinjani – recorded a negligible amount of foreign visitation in 2016. Knowing that Mount Rinjani has consistently attracted large numbers of foreign visitors, this poses a question on the accuracy and reliability of the data provided. Therefore, additional data still needs to be collected to be able to establish a trend.

5.7. Future Visitor Market Demand Analysis

This section discusses the projection of tourism visitation in future years from 2021 to 2041. With data gathered from the Lombok Market Analsysis and Demand Assessment, as well as the NTB Province’s RIPPARDA, Lombok is predicted to have a positive steady increase in visitation, may it be in the best-case scenario or at just a business as usual state.

5.7.1. Visitor Market Growth Rate Comparisons

Domestic Visitors Market

Table 110 Domestic Visitors Projections based on Market Analysis and Demand Assessment Domestic 2015 Projections CAGR Visitors Projections 2021 2026 2041 2015-2021 2022-2026 2027-2041

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Business as Usual 952,647 1,092,800 1,202,300 1,477,800 2.3% 1.9% 1.4% Best Case 952,647 1,092,800 1,226,000 1,601,100 2.3% 2.3% 1.8% Source: Lombok Market Analysis and Demand Assessment The table above shows domestic visitation projections in Lombok up to 2041 as conducted by Horwath HTL and Surbana Jurong for the Lombok Market Analysis and Demand Assessment (MADA) report. By using 2015 data as its base, market trends and insights were used to produce 2 sets of projections, namely a business-as-usual scenario and a best-case scenario. Differing in the annual growth rate, best-case scenario projection results in 1.6 million domestic visitations in 2041 while business-as-usual scenario projection results in just below 1.5 million domestic visitations in 2041. However, recalling NTB Tourism Agency data on domestic visitation, the province already welcomed approximately 2 million domestic visitors in 2017, where 1.7 million of them are assumed to come to Lombok as their destination. These recorded figures in 2017 have exceeded the projected figure in 2041 even compared to their best-case scenario projection. Therefore, it is safe to say that the projections in the Lombok Analysis and Demand Assessment are highly understated.

Table 111 Domestic Visitors Projections based on RIPPARDA NTB Domestic 2012 Projections CAGR Visitors Projections 2013 2018 2023 2028 2012-2028

Moderate 568,229 623,915 995,720 1,589,092 2,536,067 9.8% Optimistic 568,229 657,440 1,363,086 2,826,118 5,859,453 15.7% Source: RIPPARDA NTB

On the other hand, the table above shows domestic visitation projections in Lombok up to 2028 as provided in the NTB Province RIPPARDA. It is clear that RIPPARDA’s projections are a lot less conservative than that of MADA since it shows a CAGR of 9.8% for its moderate scenario and 15.7% for its optimistic scenario instead of the CAGR ranging from 1.4% to 2.3% used in MADA. Even so, actual 2017 domestic visitation data have exceeded RIPPARDA’s projected optimistic number in 2018 and projected moderate number in 2023. This implies that RIPPARDA’s optimistic scenario does seem to be the more probable scenario in simulating real growth of domestic visitation in Lombok. However, unlike MADA’s projections, RIPPARDA’s projections do assume a static CAGR from 2012 to 2028 at 9.8% annually for its moderate scenario and 15.7% annually for its optimistic scenario; which may be improbable due to the various factors in the destinations’ carrying capacity. Therefore, although RIPPARDA’s optimistic projections do seem to resemble actual figures, projected number in 2028 may prove to be overestimated. It is also important to note that, as discussed earlier, NTB’s actual data on domestic visitation between 2013 and 2017 shows a compounded annual growth rate of 27.3%. This high growth figure may reflect Lombok’s emerging tourism market. However, considering the life cycle of tourism destinations, it is very unlikely that this high growth level will be sustained for a significant period of time and is highly likely do diminish to a lower and more stable rate; which should be put into consideration when projecting visitation numbers for the long-run.

International Visitors Market

Table 112 Foreign Visitors Projections based on Market Analysis and Demand Assesment

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Domestic 2015 Projections CAGR Visitors Projections 2021 2026 2041 2015-2021 2022-2026 2027-2041 Business as 1,029,779 1,412,800 1,609,400 2,283,500 5.4% 2.6% 2.4% Usual Best Case 1,029,779 1,429,800 1,799,000 3,549,100 5.6% 4.7% 4.6%

Source: Lombok Market Analysis and Demand Assessment

Table 113 Domestic Visitors Projections based on RIPPARDA NTB Domestic 2012 Projections CAGR Visitors Projections 2013 2018 2023 2028 2012-2028 Moderate 438,513 471,401 676,757 971,573 1,394,819 7.5% Optimistic 438,513 497,712 937,470 1,765,781 3,325,954 13.5%

Source: RIPPARDA NTB Similar to the domestic visitor projections, foreign visitor projections in the Lombok Market Analysis and Demand Assessment report are the most conservative. Its business-as-usual scenario yields a CAGR of foreign visitation of 5.4% which then decreases to 2.4% further in the future. Its best- case scenario yields a CAGR of 5.6% which is also projected to decrease to 4.6%. On the other hand, RIPPARDA’s moderate projection shows a 7.5% annual growth, while its optimistic projection shows a 13.5% annual growth. Despite their wide differences, these CAGR figures are all significantly below real annual growth levels recorded between 2013 and 2017 where foreign visitation was increasing at a rate of 26.1% annually. As is the case with the domestic visitation, however, and considering the life cycle of tourism destinations, it is very unlikely that this high growth level will be sustained for a significant period of time and is highly likely do diminish to a lower and more stable rate. Similarly, actual recorded foreign visitation data has exceeded MADA’s projected data, even though difference is not as apparent as the domestic one. For instance, MADA’s optimistic scenario projects foreign visitation to reach 1.43 million by 2021, whereas real data shows that the figure has already been achieved in 2017. Therefore, MADA’s projections do seem to have been slightly underprojected. This is also the case with RIPPARDA’s moderate projections. It is projected that in 2028, NTB will attract 1.4 million foreign visitors in 2028, where the figure has been exceeded in 2016. Out of the four projections, therefore, RIPPARDA’s optimistic projection does seem to be the most probable one – at least in terms of figures, not the CAGR. RIPPARDA projects the CAGR to be at 13.5% between 2012 and 2028; significantly lower than the actual CAGR between 2013 and 2017. This results in an understatement of projected figures in the nearer future. However, since the actual CAGR of 26.1% is highly likely to significantly diminish in the further future while the 13.5% CAGR used in the projection stays static, projected number of 3.3 million foreign visitors in 2028 may be plausible.

5.7.2. Summary of Lombok Visitor Market Demand

The following discussion is a summary of Chapter 5, highlighting priority visitor markets which are driving and/or will likely be driving Lombok’s tourism industry in the future.

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Domestic • Domestic visitation makes up for 49% of the total visitation in NTB. • A high concentration of domestic visitors can be found in Kota Mataram, which may consist of business-related visitation, family-related visitation, or merely city tourism. • There is a significant rapid growth of domestic visitation coming into Lombok Tengah, presumably due to the development of Mandalika and its surroundings. These figures are likely to grow in the foreseeable future as Mandalika continues to develop. • At the same time, a significant drop of domestic visitation is likely to occur in Lombok Barat, especially around Senggigi area, as the gravity of tourism industry is shifting to the South. • Based on their characteristics, domestic visitors mostly consist of families. • Since most domestic visitors enter NTB from the Lombok International Airport, an improved connectivity between Lombok and other cities in Indonesia is likely to boost domestic visitation. • As Mandalika and the southern coast of Lombok continue to develop, as well as the fact that a large portion of domestic visitors enter from Lembar Port, it is likely that Lembar Port will see an increased number of domestic visitations to Lombok in the foreseeable future.

International • Almost 50% of all foreign visitations in NTB come from the European market. • This is followed by Australia which contributed 13% to the overall foreign visitation in 2017, level with the contribution of all the ASEAN countries combined. • This also shows how ASEAN, considering its proximity to Lombok, is an undertapped source market. Thus far, Malaysia and, to a lesser extent, Singapore are the only ASEAN countries which contribute a significant amount of tourism into NTB. • Having said that, Air Asia is said to be considering a plan to make Lombok as their airline hub for both domestic and international flights (TEMPO, 18th January 2019). If this plan is realized, Lombok is highly likely to see a boost of ASEAN visitors. • As indicated by the most popular point of entry (Pemenang Port) and the number of foreign visitors, Lombok Utara is still the most popular destination for foreign visitors, especially for people going to the three Gilis by boat from Bali. • In response to the NTB Province’s development of a Halal Tourism branding strategy for Lombok (will be further discussed in Section 8.3), with the available data, it is premature to say whether or not the Middle Eastern market can prove to be a substantial source market in the future. In terms of numbers, the region currently only accounts for around 1% of all foreign visitations. • Having said that, based on the Lombok Market and Demand Analysis report, Middle Eastern visitors have the highest average daily expenditure compared to any other segments of international source markets. Therefore, this source market may not need to compete in terms of number for it to be a significant market in Lombok.

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6. Tourism Facilities

The forthcoming analysis will discuss the distribution of accommodation, meeting, food and beverage, retail, and traveling support facilities; as well as spas and salons, financial services, support services, and internet provision. Supply and demand analysis in key destination areas in Lombok based on data provided by various government agencies, including the Central Bureau of Statistics and Cultural and Tourism Agency in NTB and city/regency level in Lombok, and also direct interviews with general managers and marketing managers in selected hotels in key tourism destinations and tourism-related associations. The main understanding that has been collected is that Lombok has an abundance of facilities, and many coming soon, however many be underserviced in the quality or accessibility of its facilities.

6.1. Accommodation

This section will discuss the accommodation distribution by type and operator, supply and its growth for the past five years and estimated performance which include average occupancy and average length of stay (ALOS) in some of key tourism areas. Considering limited data available on the accommodation performance, some of the analysis are based on interviews with selected notable hotels in the area; which are expected to give a representative picture of accommodation performance. Based on Ministry Regulation of Tourism, Post and Telecommunications No. KM. 37/PW.304/MPPT-86, accommodation is a facility that provides lodging services that can be equipped with food and drink services as well as other services. There are 3 types of accommodation: 1. Commercial accommodation: accommodiation built and operated solely to gain profit, this includes: a. Hotel: an establishment whose primary business is providing lodging facilities for the general public and furnishes one or more of the following services. The Ministry of Tourism used star-rated system to classify hotels, but hotels that do not fullfill the criteria for starred hotel services are usually called as hotel melati or non-star rated hotels.

Table 114 Classification of Star-Rated Hotels Facilities 1 star 2 star 3 star 4 star 5 star Rooms At least 15 At least 20 At least 30 At least 50 rooms At least 100 rooms rooms rooms rooms Suite Rooms - At least 1 suite At least 2 suite At least 3 suite At least 3 suite room, 44m2 rooms, 48m2 rooms, 48m2 rooms, 58m2 Double Room size 20 m2 20 m2 26 m2 28 m2 52 m2 Single Room Size 18 m2 18 m2 22 m2 24 m 26 m2 Public space Lobby, dining Lobby, dining Lobby, dining Lobby, dining Lobby, dining room (>30m2) room (>75m2) room (>75m2) room (>100m2) room and bars and bars and bars and bars (>135m2) and (>45m2) bars (>75m2)

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Facilities 1 star 2 star 3 star 4 star 5 star Public space size 3m2 x the 3m2 x the 3m2 x the 3m2 x the 3m2 x the number of number of number of number of number of sleeping sleeping sleeping sleeping sleeping bedrooms bedrooms bedrooms bedrooms bedrooms Accommodation Safekeeping Safekeeping Safekeeping Safekeeping of Safekeeping services of valuable of valuable of valuable valuable goods, of valuable goods. goods, money goods, money money changer, goods, money changer, changer, postal service changer, postal service postal service and shuttle. postal service and shuttle. and shuttle. and shuttle. Support facilities - - - A linen room, A linen room, laundry room, laundry room, dry cleaning, and dry cleaning, kitchen. and kitchen.

b. Resort: a full-service lodging facility that provides access to or offers a range of amenities and recreation facilities to emphasize a leisure experience. c. Bungalow: a type of accommodation in the form of houses located in mountainous areas, which is rented out to families, groups of employees for seminars or workshops, and as a vacation resort. d. Cottage: a type of accommodation located around the beach or lake with separate buildings or lodges, equipped with recreational facilities such as the beach. 2. Semi-accomodation: accommodation built and operated not for commercial purpose but also for social purpose (for those who less fourtunate). For example: homestay. 3. Non-accomodation: accommodation built and operated not for commercial purpose nor social purpose, but for certain purpose or groups. For example: guesthouse, villas (owned by individual). 6.1.1. Comparison with Other Destinations

In this section, we will provide tourism market overview by comparing Nusa Tenggara Barat with other province known for their tourism in Indonesia such as, Bangka Belitung, Nusa Tenggara Timur (NTT), D.I. Yogyakarta, and Bali. The results show that although the NTB demonstrates promising numbers and growth, the province is still behind and must develop its accommodation services further.

9,000,000 8,000,000 7,000,000 Nusa Tenggara Barat 6,000,000 5,000,000 Nusa Tenggara Timur 4,000,000 Bali 3,000,000 DI Yogyakarta 2,000,000 Bangka Belitung 1,000,000 - 2010 2011 2012 2013 2014 2015 2016

Figure 102 Number of Domestic Tourists Source: Central Bureau of Statistics (BPS)

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As illustrated by the figure above, NTB sits in third place in terms of number of domestic tourists amongst the five provinces above, with almost 1.7 million visitors in 2016. NTB comes behind Bali in first place with 8.6 million domestic visitors and D.I. Yogyakarta with 4.2 million domestic visitors in 2016. However, Bali and Yogyakarta’s domestic tourism has only been increasing at an annual rate of 9% and 6%, respectively, between 2010 and 2016; while Bangka Belitung leads with 28% annual growth rate and NTB comes second with 21% annually within the same period. In contrast, the neighboring NTT Province recorded a negative annual growth.

6,000,000

5,000,000 Nusa Tenggara Barat 4,000,000 Nusa Tenggara Timur 3,000,000 Bali DI Yogyakarta 2,000,000 Bangka Belitung 1,000,000 Sumatera Utara - 2010 2011 2012 2013 2014 2015 2016

Figure 103 Number of International Tourists Source: Central Bureau of Statistics (BPS) Similar to domestic tourism, Bali leads in terms of number of international visitors with almost 5 million international visitors recorded in 2016; while Nusa Tenggara Barat came second with 1.4 million international visitors. However, similarly as well, Bali’s international tourism has only been increasing at a rate of 9% annually between 2010 and 2016. Moreover, international tourism in the other three provinces, namely Yogyakarta, Sumatera Utara, and Nusa Tenggara Timur, are below 10%. In contrast, as it is the case with domestic tourism, Bangka Belitung and Nusa Tenggara Barat also lead in terms of international tourism growth by a significant margin with 33% and 31% annual growth. This is a highly encouraging figure for the tourism market in NTB as a whole, and also in Lombok Island specifically as it is currently the most well-known tourism destination in the province.

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2,500 20%

2,000 15%

1,500 10%

1,000 5%

500 0%

- -5% Bangka Nusa Sumatera Nusa DI Bali Belitung Tenggara Utara Tenggara Yogyakarta Timur Barat

Berbintang Non-Bintang Pertumbuhan Hotel Berbintang Pertumbuhan Hotel Non-bintang

Figure 104 Number of Star-rated and Non-star-rated Hotels Source: Central Bureau of Statistics (BPS) Unsurprisingly, Bali also leads in terms of number of hotels with 281 star-rated hotels and 1,800 non-star rated hotels in 2016 to accommodate its 14 million tourists. In terms of star-rated hotels, NTB has 75 hotels in 2016; still behind Bali, D.I. Yogyakarta, and Sumatera Utara with 281, 89, and 89 hotels respectively. In terms of non-star rated hotels, NTB sits in third place with 814 hotels, behind Bali and D.I. Yogyakarta with 1,800 and 1,076 hotels respectively. Having said that, the number of star-rated and non-star rated hotels in NTB have each been growing at a rate of 15.3% annually between 2010 and 2016. In perspective, Bali’s growth of star-rated hotel development is at a rate of only 6.8% annually within the same period, which may indicate a saturating tourism market. On the other hand, the 15.3% growth for non-star rated hotels in NTB is highest compared to the other five provinces, which may indicate a tourism market in its infancy of growth.

5 4.5 4 3.5 3 Domestic Star- rated Hotel 2.5 International Star- rated Hotel 2 Domestic Non Star- 1.5 rated Hotel International Non 1 Star-rated Hotel 0.5 0 Sumatera Bangka DI Bali Nusa Nusa Utara Belitung Yogyakarta Tenggara Tenggara Barat Timur

Figure 105 Average Length of Stay (ALOS) in Selected Tourism Destinations in Indonesia Source: Central Bureau of Statistics (BPS), 2014

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The figure above illustrates visitors’ average length of stay in several selected tourism destinations in Indonesia. Generally, domestic tourists’ average length of stay between the selected Indonesian provinces mostly under 2 days, while foreign tourists on average stay for around 2.5 days, which is a recurring pattern where foreign tourist tend to stay longer than their domestic counterparts. NTB has the highest length of stay of foreign tourist in star-rated hotel, while domestically NTB in third place after Bali in first and NTT in second place. 6.1.2. Lombok Accommodation Overview

Figure 106 Accommodation Distribution Map by Type

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Source: Cultural and Tourism Agency of NTB Province, 2016; with additional desk research by AECOM, 2018

400 350 300 250

200 371 150

100 126 79 50 94 33 55 - 27 8 3 - Kota Mataram Kab. Lombok Kab. Lombok Kab. Lombok Kab. Lombok Utara Barat Tengah Timur

Star-Rated Hotels Non Star-Rated Hotels

Figure 107 Number of Star and Non-Star Rated Hotels by City/Regency in Lombok Source: Cultural and Tourism Agency in City and Regency in Lombok, 2017

The map and figure above present the distribution of accommodation providers in the island, classifying them by their star ratings as well as their typologies (bungalows, homestays, villas and non-starred hotels). It is evident that Kabupaten Lombok Utara has the highest number of hotels in Lombok. However, most of these hotels are non-star rated hotels, which indicate an existing lower segment tourism market. From the map, it is also shown that most starred hotels are in Kabupaten Lombok Barat and Kota Mataram and are often found to be clustered with each other in Senggigi and Kota Mataram. The fact that Kota Mataram is the capital city, comprising of many government institutions, may be an indication of a strong hotel demand coming from government institutions and other business-based activities. While Kabupaten Lombok Barat is where most of the current established tourism activities are located, such as Senggigi. As shown in the map, there are currently only a few starred hotels in Kuta, Pujut albeit the ongoing development of the Mandalika complex. The absence of the development of accommodation infrastructure around Mount Rinjani and its surroudings is attributed to the steeper elevation, lack of accessibility, and high seismic activity. Land use regulations in the Gili Tramena national strategic tourism area regulate development to a minimal impact, and for that reason there is a low number of starred hotels and high number of villas in the Gili Islands. The 4- and 5-star hotels on the island can be mostly clustered in the Senggigi area and near Gili Trawangan, with another small cluster found by Gili Kedis, another popular tourist area in Kecamatan Sekotong. There are outliers in Lombok Timur and Lombok Tengah, while Mataram currently has none.

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Figure 108 Accommodation Distribution Map by Operator Source: Cultural and Tourism Agency of NTB Province, 2016; with additional desk research by AECOM, 2018 The map above presents the distribution of accommodation providers in the island, delineating them as either international or local operators. International hotel developments are generally clustered in areas of high accessibility. The development of the Mandalika closed complex in Kuta, Pujut is expected to increase the island’s supply of starred hotel rooms by 3,026 within the next five years. In addition to Novotel, currently the sole international hotel operating in the gated complex, other well-respected international hotel chains including Pullman, Paramount, M Gallery by Sofitel and Mercure are expected to launch in the Mandalika. The Pullman is expected to reach completion by Q4 2019, and the Club Med by Q2 2020. Mandalika’s viability as a complex of reputable and international hotels is largely attributed to its accessibility from the international airport via the proposed bypass. Most of Lombok’s internationally-operated accomodations are in Senggigi, a major tourist strip and Tanjung, a popular beach town. For the same reason in which Mandalika is presumed as a viable resort complex, Tanjung’s proximity to a port and Senggigi’s accessibility to the island’s capital has established them as Lombok’s present tourist development appeal for international hospitality operators. Nowadays, the sharing economy is giving a significant impact on many sectors, especially accommodation and transportation. Millennials mostly use the sharing economy in order to save more money while traveling and the tendency of millennials to experience new things. People can feel the benefit of sharing economy with their smartphones and use Airbnb as one of platform for

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sharing economy. There is some accommodation in Lombok has been registered in Airbnb for sharing economy, it helped visitors to find accommodation with feasible price.

6.1.2.1. Number and Growth of Hotels and Rooms in Lombok

In 2017, there are a total of 796 hotels and 11,582 rooms (both star-rated and non-star rated) which represents a 9% and a 4% growth respectively compared to the previous year. Generally, between 2011 and 2017, hotel developments have been increasing at a Compound Annual Growth Rate (CAGR) of 6% per year, while the number of rooms have been increasing by 7% annually within the same period. The period between 2012 and 2014 saw the highest growth in terms of the number of rooms, but it experienced a slow-down in 2015 where the growth decreased to 4%. Although it immediately bounced back to approximately 8% in the following year, the recent growth in 2017 decreased again to 4%. Data in 2018 is not yet available but it is predicted to slow down due to the recent earthquakes.

14,000 12.00%

12,000 10% 10% 10.00% 9% 10,000 8.00% 8% 8,000 6.00% 6,000 4% 4% 4.00% 4,000

2,000 2.00%

- 0.00% 2011 2012 2013 2014 2015 2016 2017

Hotel Number of Room Room Growth

Figure 109 Number and Growth of Hotels and Rooms in Lombok Source: Cultural and Tourism Agency in City and Regency in Lombok, 2017. The numbers are extracted from total hotel and room count for 5 City and Regency that make up Lombok.

Updating the accommodation data from Market and Demand Assessment, the growth of both star- rated and non-star-rated hotels in Lombok tend to increase in 2016 and 2017 with CAGR of 12% and 6% respectively. New urban hotels significantly contributed to this growth with the opening of Aston Inn and other properties in Mataram.

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800 9,000 700 8,000 600 7,000 6,000 500 5,000 400 4,000 300 3,000 200 2,000 100 1,000 - - 2011 2012 2013 2014 2015 2016 2017 Star-Rated Hotels Non Star-Rated Hotels Star-Rated Rooms Non Star-Rated Rooms

Figure 110 Number of Star-Rated and Non Star-Rated Hotels and Rooms in Lombok Source: Cultural and Tourism Agency in City and Regency in Lombok, 2017. The numbers are extracted from total hotel and room count for 5 City and Regency that make up Lombok. 6.1.2.2. Estimated Performance of Lombok Hotels

Based on a report in 2015 named the Indonesia Hotel Watch by HVS, the beaches in southern Lombok have many upscale resorts, one of the reasons behind the island being earmarked as one of the 88 Indonesian Strategic Areas by Ministry of Tourism. Average Daily Rate of Lombok has been increasing significantly, increased by 13% from 2012 to 2013. From HVS research in 2012, it was expected this high level of rate growth is expected to continue through 2015 and 2016 as demand for good quality resort products in Lombok continues to rise with the absence of new hotel supply.

Figure 111 Luxury and Upscale Hotel Market Performance Source: HVS Research

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60% 55.8% 50.1% 49.2% 50% 44.5% 42.3% 40% 36.2% 31.6% 28.9% 30% 24.6% 24.5%

20%

10%

0% 2013 2014 2015 2016 2017

Star-Rated Hotels Occupancy Non Star-Rated Hotels Occupancy

Figure 112 Occupancy Rate of Star-Rated and Non-Star-Rated Hotels in Lombok

Occupancy rate data in each city/regency in Lombok is very limited. However, star-rated and non star-rated room hotels in Lombok represent 96% and 80% respectively of the total supply of hotels in NTB. Figure 112112110 is therefore appropriate to represent the occupancy rate of hotels in Lombok.

Based on the above figure, star-rated hotels have higher occupancy rate compared to non star- rated hotels in Lombok. The star-rated hotels’ occupancy rate has been decreasing in 2015 and 2016 but started to bounce back in 2017. The recent earthquake that occurred in Lombok is predicted to have a major impact on the 2018 occupancy rates in Lombok, which will vary based on their location and target market.

2.84 2.9 2.64 2.7 2.50 2.5

2.3 2.22 2.08 2.03 2.26 2.1 1.96

1.9 1.74 1.7

1.5 1.6 2014 2015 2016 2017 Star-Rated Hotels ALOS Foreign Visitors Star-Rated Hotels ALOS Domestic Visitors Non Star-Rated Hotels ALOS Foreign Visitors Non Star-Rated Hotels ALOS Domestic Visitors

Figure 113 Avarage Length of Stay of Domestic and Foreign Visitors in Lombok Source: Central Bureau of Statistics NTB Province, 2017

There is no available Average Length of Stay (ALOS) data at the city/regency level, therefore identical with the occupancy rate, ALOS will be explained at the provincial level with some additional information for selected major projects located in tourism areas. As previously mentioned, according to the Market Analysis and Demand Assessment provided by the World Bank’s consultant in 2016, ALOS in Lombok’s individual hotels decreased in 2014 and

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2015 as more tourist destinations across the island became more popular, tourists tend to spend fewer nights in just one location. This trend continued until 2016, indicating a decline in ALOS for both star-rated hotels (from 2.64 to 2.08 nights) and non star-rated hotels (from 2.03 to 1.74 nights). However, in 2016 the NTB Provincial Government began to provide a more appealing cultural attraction packages for tourists so that they are not only visiting the mainstream tourist destinations, but also will enjoy Lombok’s cultural attractions in other regions. This has succeeded in raising Lombok hotels’ ALOS numbers, especially in star-rated hotels for both foreign and local tourists, from 2.08 to 2.50 for foreign tourists and from 1.74 to 1.96 for domestic tourists. However, both ALOS of foreign and domestic visitors in Lombok are still below its neighboring island, Bali, who’s foreign ALOS was 2.9 nights and domestic ALOS was 2.3 nights in 2017 (Central Bureau of Statistics of Bali Province, 2018). 6.1.3. Kota Mataram Accommodation

6.1.3.1. Number and Growth of Hotels and Rooms in Kota Mataram

3,000 80% 69% 70% 2,500 60% 50% 2,000 40% 25% 28% 1,500 30% 20% 8% 1,000 10% 18% 10% 15% 11% 4% 8% 10% 0% 500 -15% -10% - -20% 2011 2012 2013 2014 2015 2016 2017

Star-Rated Rooms Non Star-Rated Rooms Star-Rated Growth Non Star-Rated Growth

Figure 114 Number and Growth of Hotels and Rooms in Kota Mataram Source: Cultural and Tourism Agency of Kota Mataram, 2017

The number of hotels in Mataram have significantly increased since 2011 to 2016. The number of non-star hotel accommodation facilities in 2011 was only 64 hotels (1,255 rooms) and rose sharply to 126 hotels (2,438 rooms) in 2017, with a CAGR of 12%. The increase has doubled supply in just six years. The star-rated hotels in Mataram also have grown significantly from 10 units in 2011 to 27 units in 2017, with a CAGR of 18%. Aston Inn has been significantly contributed to the additional supply of star-rated hotel rooms in Kota Mataram in 2016.

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6.1.3.2. Estimated Performance of Hotels in Kota Mataram

40% 35% 34% 35% 30% 24% 25% 18% 20% 16% 16% 15% 10% 5% 0% 2011 2012 2013 2014 2015 2016

Occupancy Rate

Figure 115 Occupancy Rate of Hotels in Kota Mataram Source: Central Bureau of Statistics of Kota Mataram, Kota Mataram in Numbers, 2017 There is only a combined data of occupancy rate for both star-rated and non star-rated hotels in Kota Mataram. Therefore, the above figure indicates a low occupancy rate in Kota Mataram which ranges between 16% and 35%. A few selected big player star-rated hotels in Mataram reveal that their average occupancy rate in 2017 reached around 70% in 2017 but plummet to as low as below 5% occupancy rate in the week of the earthquake in 2018. However, some of the hotels’ occupancy was helped by contract long-stays with corporations. MICE-driven hotels such as Santika Hotel and Aston Inn Hotel, however, have successfully recovered its occupancy to around 40% one month after the earthquake. One of the most common strategies to overcome the impact of the earthquake was to lower the room rates in September to December during the low season. This period was also used as a recovery period and building refurbishment. Being heavily dependant on the business/MICE activities, occupancy rates of hotels in Kota Mataram are generally lower in the weekends.

3.50 3.12 3.14 2.94 3.00 2.65 2.74 2.54 2.54 2.50 2.42 2.00 2.24 1.91 1.89 1.95 1.50 1.74 1.74

1.00

0.50

- 2011 2012 2013 2014 2015 2016 2017

Foreign Visitors Domestic Visitors

Figure 116 Average Length of Stay of Domestic and Foreign Visitors in Kota Mataram

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Source: Central Bureau of Statistics of Kota Mataram, Kota Mataram in Numbers, 2017

ALOS in Kota Mataram tend to decrease due to the increasing numbers of guest with business purposes. These business tourists are 90% domestic tourists with the purpose of meetings in star- rated hotels in Kota Mataram for around two nights. 6.1.3.3. Hotel Opportunities and Demand in Kota Mataram

As stated in Kota Mataram’s Ripparda, the main tourism sectors in Kota Mataram is MICE business, but Mataram does have other tourism attractions like Ampenan Old Town and Taman Mayura as the Mataram Heritage and Islamic center for religious purpose. As the capital city of Nusa Tenggara Barat, most of the meetings related to the province governmental affairs is held in Kota Mataram. Some big player hotels provide meeting rooms or even ballrooms to accommodate this demand. According to the interviews with several hotel general managers in Kota Mataram, business guests represent 65% of the total guests in their hotel. Hotel general managers in Kota Mataram are confident that their hotels have strong demand for hotel development. MICE facilities remain the main business in the197ulfil, catering government and corporate visitors. There is also demand for domestic tourist for its city-tour package, thefore they also expect airlines to increase direct flights from various cities such as Palembang and Banyuwangi. Demand for leisure guests in Kota Mataram sometimes occur during high seasons. During this period, Mataram acts as a back-up to Senggigi. When hotels in Senggigi are booked up, people will start to trickle down to Mataram for hotels. Prime Park Hotel & Convention Lombok is the one future 4-star supply of hotels with convension facilities in Kota Mataram in close proximity to government offices. The hotel will be managed by PP Hospitality, featuring 168 rooms and ballrooms with maximum capacity of 1,200 persons. 6.1.4. Kabupaten Lombok Barat Accommodation

6.1.4.1. Number and Growth of Hotels and Rooms in Kabupaten Lombok Barat

2,000 37% 40% 1,800 30% 1,600 21% 34% 1,400 20% 1,200 12% 11% 1,000 10% 800 0% 5% 0% 600 3% 1% -10% 400 -2% -10% 200 - -20% 2011 2012 2013 2014 2015 2016 2017

Star-Rated Rooms Non Star-Rated Rooms Star-Rated Growth Non Star-Rated Growth

Figure 117 Number and Growth of Hotels and Rooms in Kabupaten Lombok Barat Source: Central Bureau of Statistics of Kabupaten Lombok Barat, Kabupaten Lombok Barat in Numbers, 2017

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Star-rated hotels in Lombok Barat grew significantly in the last six years with a CAGR of 7%, accumulating to 33 hotels in 2017; while the CAGR of non star-rated hotels from 2011 to 2017 is 10%. Around 117 hotels in Lombok Barat, mostly in the Senggigi area, were temporarily closed in the weeks following the earthquakes as owners and management assessed the damage to their properties. Sheraton Senggigi, one of the big-player hotels in the area, was not accepting bookings at the time of our survey as it was rebuilding. It was also mentioned that the Sheraton took the opportunity to undergo some renovations and are planning to open in December 2018.

120 1,600 1,400 100 1,200 80 1,000 60 800 600 40 400 20 200 27 101 7 23 2 19 - 6 - 1 - 1 - 3 ------

Star-Rated Hotels Non Star-Rated Hotels Star-Rated Rooms Non Star-Rated Rooms

Figure 118 Number of Star and Non-Star Source: Central Bureau of Statistics of Kabupaten Lombok Barat, Kabupaten Lombok Barat in Numbers, 2017

Kecamatan Batu Layar is the most established area in Kabupaten Lombok Barat in terms of hotel development since it is where Senggigi is located. In 2017, there are 27 star-rated hotels and 101 non-star-rated hotels in the district. As one of the developing tourism areas, Kecamatan Sekotong has 7 star-rated hotels and 23 non-star-rated hotels. Wyndham has just landed its upscale hotel in Sekotong area in August 2018 right before the earthquakes, namely Wyndham Lombok Sundancer. This hotel is set on 48 hectares of beachfront land and offers close proximity to one of the world’s most famous surfing breaks, Desert Point. It provides 66 one- and two-bedroom suites with a living area overlooking the Lombok Straits and its surrounding islets. 6.1.4.2. Estimated Performance of Hotels in Kecamatan Batu Layar

As the most established resort destination, Senggigi offers a wide range of accommodation segments, from budget and non-star rated hotels to upper upscale resort developments. Hotels in Senggigi provide beachfront access or private beaches, spa facilities, recreational activities, and other activities. The average occupancy level of selected big player hotels in Senggigi areas are around 70% in 2017 but predicted to decrease as an impact of the earthquake. Domestic tourists have significant share, especially in hotels with MICE facilities. Different to Kota Mataram, the ALOS of hotels in Kecamatan Batu Layar is slightly higher with 3-4 nights in average.

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Similar with the other areas in the island, seasonality in Kecamatan Batu Layar is considerably high between July and August and slow between February and March. This is mainly due to the local and international holiday seasons and weather in Lombok. Although still in a healthy condition, demand in Senggigi area is relatively stagnant for the past years. This may be due to relocation of the airport and government policy to develop Mandalika as the new international tourism destination. 6.1.4.3. Estimated Performance of Hotels in Kecamatan Sekotong

Unlike the northern part of the island, Kecamatan Sekotong was not directly impacted by the earthquakes. The occupancy rates have started to recover just weeks after the tragedy since there are no significant damages to the buildings. The average occupancy of the selected major hotels in Sekotong is around 60% to 70% with a slight decrease in price. The ALOS in the area is around 4 nights since there are a lot of foreign tourists who stay longer than the domestic ones. The seasonality in Kecamatan Sekotong highly relies on the weather which tends to peak during July to September period and going down between February to March. Accommodation in Sekotong area started to emerge since around 2015, indicated by some addition in villa units, mainly along the main road of Jl. Raya Sekotong. The types are more low- density accommodations such as villas and boutique hotels. Visitors are mostly Europeans and typically surfers as many of these accommodations are located in close proximity to several well- known surfing spots. The domestic market can only be seen on special days, e.g. Eid holidays and school holidays in July to August. The local government has seen this area to be one of the destinations with a very good opportunity, so that they held an annual event of Mekaki marathon that attracts a wider type of tourists. The Southern Gilis, e.g. Gili Nanggu, Gili Kedis, Gili Gede, are also considered to be a magnet for tourists. 6.1.5. Kabupaten Lombok Tengah Accommodation

6.1.5.1. Number and Growth of Hotels and Rooms

The development of tourism sector in Kabupaten Lombok Tengah showed significant progress, marked by the development of Mandalika area as a Special Economic Zone and development of the State Tourism College (Politeknik Pariwisata Negeri Lombok/Poltekpar). Although there is very limited historical accommodation data, Lombok Tengah’s Cultural and Tourism Staitstic Publication in 2017 stated that the development of the number of hotels in Kabupaten Lombok Tengah continues to increase along with the number of tourist visits. The highest surge occurred after the operation of Lombok International Airport in 2011 and the commencement of Special Economic Zones in the Mandalika area in 2017. Currently, there are 1,447 rooms in both star-rated and non star-rated hotels within Kabupaten Lombok Tengah in 2017. The development of these hotels is still concentrated on the Kuta beach area and its surroundings. Various types of accommodation, however, also began to spread to the western and eastern parts of the Kuta beach area. Furthermore, recently there are also some star-rated hotels starting to be developed around Lombok International Airport.

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6.1.5.2. Estimated Performance of Hotels in Kecamatan Pujut

As the other part of Lombok island is home to a more low-density type of accommodation (Kecamatan Pujut), the Mandalika area is intended to develop more mid-high-density hotels with upscale to luxury-class hotels and resorts. With the total planned development area of 1,035 hectares, Mandalika is expected to be one of the most interesting investment areas, both for major local investors and foreign investors. From several samples of major hotel development in the area, the average occupancy in Kecamatan Pujut reached around 70% to 75% before the earthquakes. There is still indirect impact to the room occupancy after the earthquakes, so it is predicted to decrease to around 60% by the end of 2018. Room rates were decreased by approximately 30% after the earthquakes to attract guests. Novotel Kuta with its MICE facilities tend to attract more domestic guests since there is no significant competitor in the area, while the other hotels have more foreign visitors who come for leisure purposes. Similar to other areas, ALOS in Kecamatan Pujut is relatively shorter for the domestic market (around 2 nights) and longer for the international market (3-4 nights). Aside from business purposes, the nearest tourism attractions are Selong Belanak beach, Mawun beach, Mawi beach, Tanjung Aan beach, Marese Hill and Kuta beach. By having a mixed guest profile, Kecamatan Pujut has a more stable weekly-seasonality but have a slightly longer low season which usually occurs between February and April. 6.1.5.3. Estimated Performance of Hotels in Kecamatan Praya Barat

One of the significant tourism developments in Kecamatan Praya Barat is Selong Belanak area which has started to have several midscale to upperscale villas. It is well-know for its beach and surfing tourism mostly from the European market. The nearest tourist attractions are Selong Belanak beach and Mawun beach, both popular surfing spots in the area. In recent years, especially during special days such as the Chinese New Year, there are some Chinese, Singaporean, and Malaysian tourists staying in the area with an average ALOS of around 2-3 nights. European visitors mostly have a longer ALOS, ranging from 3-5 nights, while domestic visitors only stay for 1-2 nights. Similar to Kecamatan Pujut, there is no significant physical damage caused by the earthquake, though it is confirmed that there is an impact on the occupancy and room rate during the post- earthquake period.

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6.1.6. Kabupaten Lombok Utara Accommodation

6.1.6.1. Number and Growth of Hotels and Rooms

4,000 600% 476% 3,500 500% 3,000 400% 2,500 300% 2,000 200% 1,500 78% 100% 1,000 0% 0% -27% -44% 500 0% 9% 9% -4% - -7% -11% -100% 2011 2012 2013 2014 2015 2016 2017

Star-Rated Rooms Non Star-Rated Rooms Star-Rated Growth Non Star-Rated Growth

Figure 119 Number and Growth of Hotels and Rooms in Kabupaten Lombok Utara Source: Central Bureau of Statistics of Kabupaten Lombok Utara, Kabupaten Lombok Utara in Numbers, 2017 The growth of star-rated hotels in Kabupaten Lombok Utara has been growing rapidly from 2011 to 2017, with an indication of a CAGR reaching 27%. Meanwhile, after a significant growth from 2011 to 2013, the development of non star-rated hotels was not as fast as the star-rated ones, with only a slight difference in terms of number of hotels in 2011 and 2017. 6.1.6.2. Estimated Performance of Hotels in Kecamatan Pemenang and Tanjung

Kecamatan Pemenang’s main tourism spot is undoubtedly the three Gilis, commonly called Gili Tramena (Trawangan-Meno-Air). Accommodation in Gili Trawangan, Meno and Air is mostly low- density, i.e. villas and cottages. The islands are well-known for its tourism attractions such as water sport tourism (snorkeling and diving), nightlife (Gili Trawangan), and as a honeymoon destination (Gili Meno). Around 80% of its visitors are foreign, while 20% are domestic guests who are mainly from Jakarta, usually occupying the island during weekends. Foreign visitors’ ALOS are longer than their domestic counterparts, recorded at around 3 nights and 1 night (weekend market from Bali) for foreign and domestic tourists respectively. Similar to most areas in Lombok, the high season in Gili occurs in July to August period, while the low seasons are between February and March. Accommodations in the three Gilis were quite heavily affected by the recent earthquakes. Ombak Sunset is one of major hotels in Gili Trawangan that was significantly impacted by the earthquake as almost all of its villas were damaged. Average occupancy during high seasons before the earthquake are between 70%-80%, while during the low seasons are only around 30%. Some rooms in the hotels were also closed due to very low visitation within the post-earthquake period. Similar to the Gilis, Kecamatan Tanjung is one of the most impacted areas by the earthquakes that made some market leader hotels in the area to be temporarily closed. However, since most of these big player hotels are in an upper upscale to luxury-segment, the hotel businesses are expected to quickly bounce back to a normal condition by early 2019, while during the end of 2018 will be the rebuilding and reconstruction period.

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6.1.7. Kabupaten Lombok Timur Accommodation

6.1.7.1. Number and Growth of Hotels and Rooms

600 25% 30% 23% 500 25% 20% 400 13% 15% 300 10% 200 3% 5% 0% 0% 100 0% - -5% 2011 2012 2013 2014 2015 2016 2017

Star-Rated Rooms Non Star-Rated Rooms Star-Rated Growth Non Star-Rated Growth

Figure 120 Number and Growth of Hotels and Rooms in Kabupaten Lombok Timur Source: Central Bureau of Statistics of Kabupaten Lombok Timur, Kabupaten Lombok Timur in Numbers, 2017 There is only one star-rated hotel in Kabupaten Lombok Timur, namely Jeeva Beloam which is located in Kecamatan Jerowaru. This hotel was opened in 2016, made up of 11 rooms. Another prominent hotel in Kabupaten Lombok Timur is Heaven on the Planet, also located in close proximity to Jeeva Beloam within the Pink Beach area. Non-star-rated hotels, however, have grown quite rapidly from 2011 to 2017 with a CAGR of 10% which is spread throughout the regency, including in Sembalun area. Due to the difficulty of access to Jerowaru, guests visiting hotels in the district are those seeking a remote location and serene ambiance, appropriate as the closest tourism destinations are Pink Beach and Surga beach (or Pantai Surga). To address the lack of accessibility, it is commonplace for accommodation operators in Jerowaru to provide free airport transfers for guests. The average length of stay for guests in the district is 3-4 days, with international guests often staying longer compared to local travelers, often for more than a week. There has been relatively insignificant damage to infrastructure and buildings in Jerowaru compared to Lombok Utara. However, average occupany figures have seen a significant drop. Regular off-season occupany rates ranges from 40%-50%, while occupany rates in Jerowaru have dropped to 20% after the August 2018 earthquakes. As a result, hotels in the district have lowered their nightly rates by 25%-30% to increase occupancy level. This is attributed to the decreased perception of safety by both local and international travelers, together with travel warnings issued by foreign governments.

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6.2. Meeting Facilities

Priority KTA

Potential KTA

Figure 121 MICE Facilities Distribution Map The meetings, incentives, conferences and exhibitions (MICE) business-oriented segment, valued globally at USD 750 billion in 2016, contributes a significant portion to a hotel’s revenue. In Mataram, the provincial capital, the MICE segment contributes 30%-50% to the revenue of several hotels. The demand for MICE services and facilities in Lombok are largely from the government and corporations, and is predominantly met by accommodation operators in Senggigi, Mataram and Kuta. MICE facilities in Lombok are operated by hotels; most of them are in the city due to its relatively better infrastructure. The saturation of these facilities in the city, which accounts for 70% of the island’s total, has seen a greater provision of MICE facilities in neighboring Senggigi as well as Kuta; international hotel operators make up 15% of the total number of MICE providers, all of which are located outside Mataram.

While all MICE providers offer meeting rooms, 62% of them have ballroom facilities with capacities ranging from 175 to 2000. These MICE providers offer single, modular ballrooms where partitions are used to subdivide the ballroom into an average of 4 smaller meeting rooms. These meeting rooms range in capacities from 15 to 175 people in a theater arrangement.

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6.3. Food and Beverage Facilities

Priority KTA

Potential KTA

Figure 122 Food and Beverages Facilities Distribution Map Source: Cultural and Tourism Agency of NTB Province, 2016; with additional desk research by AECOM, 2018 Table 115 Number of Restaurants in Lombok by City/Regency

No Kabupaten / Kota Number of Restaurants 1 Kota Mataram 272 2 Kab. Lombok Utara 281 3 Kab. Lombok Barat 115 4 Kab. Lombok Tengah 99 5 Kab. Lombok Timur 139 Lombok 906

Source: Cultural and Tourism Agency of NTB Province, 2016 The figure above provides a spatial representation of Food and Beverage facilities as provided by the NTB Tourism Agency. F&B Facilities are divided into 3 categories: Local F&B, which refers to local and often less formal establishments; Fast Food establishments; and Cafes/Restaurants, which refer to more upmarket establishments. As illustrated, local F&B facilities are mostly concentrated within Kota Mataram, with some spread across the other regencies. Local F&B facilities in Kabupaten Lombok Tengah are concentrated close to the Lombok International Airport, while a less intense concentration is located in the southern coast in Kuta as it is a relatively

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established tourism area. On the other hand, Fast Food establishments are only located in Kota Mataram, including international brands such as Kentucky Fried Chicken. As expected, more upscale cafes and restaurants are highly concentrated in already-established tourist areas. For instance, the most apparent concentration of cafes and restaurants is located along the coast of Senggigi in the western coast of the island. Another concentration is located in the famous Gili Islands, especially in the main island of Gili Trawangan. In the southern part of the island, there is also a small concentration in Kuta, as well as one facility in Selong Belanak, namely Café Laut Biru. Interestingly, based on data provided by the Central Bureau of Statistics (BPS), Kabupaten Lombok Tengah has the least number of restaurants despite being an emerging tourism destination. However, there is some uncertainty of the criteria used by the BPS to inventorize restaurants.

6.4. Retail Facilities

Priority KTA

Potential KTA

Figure 123 Retail Facilities Distribution Map

Retail facilities in Lombok can only be found in Kota Matarm, Kabupaten Lombok Barat, Lombok Tengah, and Lombok Timur. This demonstrates possibility of growth in the two other regencies, however there may be a lack of demand. Lombok has two shopping centers namely Mataram Mall and Lombok Epicentrum Mall and other modern retail such as Transmart Carrefour, Giant and Smart Club. These modern markets are located and centered in Mataram as the centers of

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government and economic activities. Local supermarkets such as Ruby, Niaga, and J-Mart also accommodate some necessities to the Lombok community. Shopping Mall Mataram Mall is the first shopping mall in Lombok with a family mall concept, which started to operate in 2005. The mall’s strategic location in the center of Kota Mataram has caused a very healthy crowd of around 60,000 visitors during the weekdays and 100,000 during the weekends, mostly comprised of families and youngsters. There are two buildings in this mall, which are Mataram Mall 1 and Mataram Mall 2. Mataram Mall 1 features small fashion retailers, toy stores, shoe shops and some small stands selling local jewellery and cosmetics. Some of its anchor tenants are Hero Supermarket, Tirta Department Store, Karisma Bookstore and F&B (KFC and McDonald’s). Leasing rate ranges from IDR 80-240 million per year for a 120 sqm space located near the entrance.

Figure 124 Mataram Mall Source: TripAdvisor

Lombok Epicentrum Mall was opened in October 2015 as the second mall in Lombok. This is the largest mall with leasable area of 68,464 sqm and a very high occupancy of 97%. Some notable tenants are Hypermart, Matahari, Informa, Ace Hardware, Cinema XXI and F&B, which help the mall successfully attract 15,000 visitors on weekdays and 20,000 visitors on weekends. The leasing rates are around IDR 225,000 to 350,000 per sqm per month for a 135 sqm area. As the largest mall with a lifestyle concept, Epicentrum Mall has attraced most of the Lombok’s residents as well as tourists from other parts of the island.

Figure 125 Lombok Epicentrum Mall Source: www.arsitag.com

As the fast demand on retail centers in Lombok grows, Lombok City Center opened in the end of 2015 and became the first mall located outside of Kota Mataram, on Ahmad Yani Road, Lombok

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Barat. Unlike the other two existing malls in Kota Mataram, this mall has yet to successfully attract a good number of traffic, thus tends to have a very low occupancy. Though the low visitor numbers are mainly due to the location, two competition projects which are Lombok Epicentrum Mall and Transmart (opened in June 2017) forced this mall to close its operation in early 2018.

Figure 126 Lombok CIty Center Source: http://www.blacksteelconstruction.co.id

Hypermarket dan Supermarket Giant Supermarket, which opened in August 2015, is one of the most attractive supermarkets in Lombok. A year later, Giant opened its second outlet with a larger concept, Giant Extra), in August 2016. Due to its location, this mall still struggles to attract visitors. Smart Club opened in December 2016, which is a wholesale retail concept which supplies hotels, restaurants, catering, shop, stall and kiosk. Meanwhile, the most recent hypermarket in Lombok, Transmart Carrefour, provides a one-stop shopping destination which consists of hypermarket, department stores, Trans Home Living, F&B facilities, and even a CGV Cinema. This retail facility was opened in January 2017 and instantly became a new retail destination for family entertainment.

Figure 127 Transmart Mataram Source: http://exkortima.co.id Other than the well-known brand supermarkets and hypermarkets, Lombok also has several famous local supermarkets with are relatively cheaper than the branded supermarkets. There are three popular local supermarkets in Lombok, namely Niaga, Ruby and J-Mart. Different with the branded ones, these local supermarkets target local residents, with very few tourists. Traditional Market Generally, Lombok residents still have a high dependency on traditional markets to meet their daily needs. Central traditional markets are available in every regency in Lombok. Even some budget

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hotels are sourcing their supplies from the traditional markets due to limited access to the modern supermarkets/hypermarkets.

Figure 128 Traditional Market 6.5. Travel Agent and Tourism Information Services

Priority KTA

Potential KTA

Figure 129 Tour and Travel Agents Distribution Map Tour and travel agencies in Lombok are generally clustered around Kota Mataram, areas popular to tourists, ports of entry, as well as along main roads. The regencies of Kota Mataram, Lombok Barat and Lombok Tengah have the highest number of travel agencies while Lombok Utara and Timur have the least. While the map exemplifies the distribution of tour and travel agencies across Lombok, it does not capture the small and informal tourism industry prevalent throughout the

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island. Hotels and other accommodation providers often in some instances offer tour packages to guests either for an additional fee or as part of an all-inclusive package.

No. Kabupaten / Kota Number of Travel Agents

1 Kota Mataram 223 2 Kab. Lombok Utara 23 3 Kab. Lombok Barat 61 4 Kab. Lombok Tengah 57 5 Kab. Lombok Timur 6 Lombok 370 Table 116 Number of Travel Agents in Lombok Notes: BPW: Tour and travel agent

Tourist information centers in the island have the capacity to provide visitors with information on attractions and lodging as well as maps within their regency. The distribution and provision of infrastructure of these centers in Lombok are inadequate, with most tourist information centers being located in Mataram. Tourist information centers in the other regencies are found in local Government Tourism Offices (Dinas Pariwisata); hence the provision of only one center per regency. These tourist information centers are located in either main roads or in proximity to ports of entry (ferry ports or airports) in the island. Apart from Lombok Utara, where its tourist information centers are in proximity to a port, other information centers in the island are located in major districts in their respective capital towns. The tourist information centers in Lombok Tengah is located both inside the airport arrival terminal as well as the regency’s capital.

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6.6. Spas and Salons

Priority KTA

Potential KTA

Figure 130 Spas and Salons Map by Type Source: NTB Tourism Agency There are a total of 145 spas and salons in Lombok, according to the Tourism Agency’s database. This database categorizes spas and salons into two: Local – ones that stands on its own; and Hotel Facilities – ones that are part of a hotel establishment. 95% of these are Local spas and salons, while the remaining 5% are Hotel Facilities. However, based on our primary survey, we noticed that there are a much more significant number of spas located within hotels than there are listed on the Tourism Agency’s database. Therefore, we matched up our hotel database to add onto the list of spas and salons; which resulted in the figure above. Overall, there are 173 spas and salons where 80% of them are Local spas and salons while 20% are in Hotel Facilities. The figure above illustrates a spatial representation of spas and salons in Lombok; departing from those listed in the NTB Tourism Agency’s tourism-related enterprises database. As illustrated, Kota Mataram is home to a dense concentration of local spas and salons, while most of the spas and salons in hotels are in Gili Trawangan.

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6.7. Immigration Facilities and Clearance Systems

There is one major immigration office in the island, located in Mataram. The office services residents the whole NTB province, since it is a First-Class immigration office. A First-Class immigration office offers passport services and bordering crossing permits. For international visitors, KITAP and KITAS administration is offered. Mataram is also where the only customs office is located. As discussed in Section 5.1.2, Lombok International Airport, Pemenang Port, and Lembar Port are the three most popular points of entry into Lombok Island. Lombok International Airport, as of May 2016, has become one of 124 points of entry in Indonesia that provides visa-free entry for 169 countries (Jakarta Post 2016). Foreign tourist visitors need only passport valid for 6 months and a return or continuing ticket and will be granted a “Visit Stay Permit” for 30 days. Currently, the only international flights from the airport are to Singapore, Kuala Lumpur, and Perth. Therefore, most flights coming into Lombok are domestic, hence the higher rate of domestic visitors entering the island from the airport. Pemanang and Lembar Ports have only docked domestic boats and ferries, but Pemenang Port have mainly serviced foreigners coming in from Bali.

6.8. Financial Services including ATMs

Banks and auto-teller machines (ATMs) in Lombok are generally distributed equally, despite a significantly higher density in the Kota Mataram. Except for a Commonwealth Bank ATM in the island of Gili Trawangan where there is a more prominent international tourist market, banks and ATMs in Lombok are of local origin. These local banks and ATMs are predominantly Bank Nasional Indonesia (BNI), Bank Republik Indonesia (BRI), Mandiri, Bank Nusa Tenggara Bank (NTB) and CIMB Niaga; these banks are largely government-owned, with only the last being privately-owned. Money changer services are concentrated in Mataram and tourist nodes and are sparsely distributed in Kabupaten Lombok Timur and Utara. 6.9. Support Services: Laundry, Barber and Car Rental

Laundry services and hairdressers can be found across the island’s populated areas. These support service operators are chiefly local, and generally lack adequate infrastructure. It is, however, commonplace for starred hotels to provide laundry and ironing services. Car rental services in Lombok are concentrated in tourist areas, the international airport, and Mataram. These service providers are local operators and generally provide 12-hour services inclusive of a chauffeur. Smaller, standard vehicles are priced at IDR 450,000 (USD 32) per 12 hours while larger, luxury vehicles typically range from IDR 1,300,000 (USD 90) to IDR 2,250,000 (USD 158). In comparison to Bali, in which several international providers operate, Lombok’s car rental services are higher by a 10% margin.

6.10. Internet Provision

The provision of internet in Lombok varies by its distribution and network provider. Higher internet connectivity is attributed with the level of development in the area; 4G internet services are only available in Kota Mataram, developed resort areas, as well as along major roads. Isolated tourist and nature destinations, however, unless in proximity to a cell tower, have little to no reception.

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Telkomsel, Smartfren and XL Axiata are by far network providers with the best network coverage and distribution; Indosat Ooredoo and 3 (Tri) in contrast have the poorest network coverage across the island.

Figure 131 Indosat Ooredoo’s Cellular Network Coverage in Lombok

Figure 132 Telkomsel’s Cellular Network Coverage in Lombok

Figure 133 XL Axiata’s Cellular Network Coverage in Lombok

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7. Capabilities and Skills of Local Businesses and Employees

Lombok–Workforce - Nearly three-quarters of Lombok’s workforce were employed in the informal sector (69%) in 2017, while some 41% categorized themselves as self-employed, 38% identified themselves as employed in agriculture and approximately 38% in the service sector (trades, restaurants and hotels 22%; community and social services 16%). The situation was somewhat different in the NTB capital of Mataram with far more formally employed (58%) and more also working in trades (39%) and services (27%). In terms of educational qualifications in the same year, approximately 68% of the productive population (15 years old and over) of the province either had no qualifications (approximately 22%) or were only elementary school (27%) or junior high school graduates (19%). Approximately a third of NTB’s productive population (35%) however were either senior high school graduates (27%) or graduates of an educational academy (1.3%) or university (6.5%)14. Further, although specific employment and workforce education qualifications are not available for the eleven (11) Lombok communities that have been prioritized by the ITMP Project (Table 117) it is highly likely that they too have low levels of education and work informally in agriculture or in informal tourism businesses. Clearly the local workforce needs to have training in tourism-related subjects to enable them to participate in and effectively contribute to the Lombok tourism industry.

Table 117 Key ITMP Tourism Destinations

Priority Key Tourism Areas No Tourism Destination Kecamatan Kabupaten Gili Island-Senggigi Area 1 Tanjung Tanjung Lombok Utara 2 Gili Island Pemenang Lombok Utara 3 Senggigi Batu Layar Lombok Barat Southern Coast Area 4 Sekotong Sekotong Lombok Barat 5 Area Guling Sekotong Lombok Barat 6 Mandalika Pujut Lombok Tengah 7 Mekaki Bay Pujut Lombok Tengah 8 Tanjung Aan Pujut Lombok Tengah 9 Jogo Hills Praya Barat Lombok Tengah 10 Selong Balanak Praya Barat Lombok Tengah 11 Pink Beach Jerowaru Lombok Timur

Overview of Lombok Tourism–Training - Project documents recommend that tourism training should be provided in languages, food and beverage, service systems, service excellence, the environment and conservation, the tourism market, tour guiding and transport services (Table 118).

14 Central Bureau of Statistics NTB Province, 2018

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In 2017 Lombok had approximately 47 vocational schools (SMK - Sekolah Menengah Kejuruan) and many of them provide courses or programs relevant to tourism. There were also a number of tourism institutes on the island providing diploma level courses, including Sekolah Tinggi Pariwisata (STP) Mataram (Mataram Tourism Institute) and the Lombok Tourism Polytechnic (Politeknik Pariwisata Lombok/PPL). The GoI funds and manages the latter, while the Ministry of Co-operatives and SMES offers a beginner’s training program for entrepreneurs. Despite the relatively large number of tourism educators and courses available on Lombok Project, studies indicate that many tourism training providers lack the capacity to provide high quality and relevant courses. Documents additionally reveal that many Lombok-based international hotels provide lower level on-the-job staff training and that these positions are typically taken by less educated locals. In comparison middle and senior level hotel positions are usually staffed by higher qualified and better experienced outsiders, often from the neighboring island of Bali16.

Table 118 Key Project Document Findings CBTPP ESMF (Capacity- Building Guidelines), Final, Jan. 19, Lombok Market Demand and Assessment Study (World Components 2018 Bank, 2016)

Government • facilitate integrated sustainable tourism development • tourism institutions • facilitate community grievance redress mechanism (MPWH, MoT, Min. • can effectively engage with stakeholders, including of Environ. & disclosure and consultation Forestry Tables • able to do M&E and report on ESMF implementation and 10-12, ESMF) effectiveness, including social and environmental impact studies, and monitoring of indigenous peoples (IPs), vulnerable groups, social and cultural assets, and sustainable tourism indicators • understand World Bank Environmental, Health and Safety Guidelines for tourism and hospitality development • able to enhance plan implementation and identify opportunities, activity risks and risk mitigation (social, environmental, socio-economic, and cultural heritage Local communities • empowerment and tourism and environmental awareness • Training for community cooperatives recommended raising programs for tourism participation especially for service quality in tourism and handcrafts • IP communities understand their rights re ITMP Lombok and the market and grievance mechanism (GRM) • Local community specialist guides needed for cultural • Inclusion of sufficient IPs in community satisfaction heritage, wildlife, trekking and the Sasak culture surveys • Develop community/village co-ops to improve efficiency through shared access to management and development systems and product supply lines, develop their IT knowledge, skills and provide funds to create an online platform of tourism and cultural events etc plus enquiries and reservations online; also help to develop high quality cultural products from local materials to appeal to tourists Priv–te sector - • environmental awareness in programs to upgrade skills • Employee ski–ls needed - (i)culinary, language, service SME and skill of job-seekers tourism workers/professionals (up-skilling) systems, and basic service excellence, plus environment, development and their trainers/teachers conservation; and market understanding, including for program • tourism firms improve their services and quality standards non-star hotels, taxi drivers, boat captains, and home- • awareness of World Bank Environmental, Health and stays Safety Guidelines for tourism and hospitality development • Hotels–in Lombok - locals hold lower level positions, and investment while managers are typically sourced from nearby Bali. While junior staff get on-the-job-training there is inadequate training for senior staff. • Growth areas for –mployment - accommodation, food and beverage, tour guides, transport. • Trainin– for SMEs - needed in tourism service quality, handcrafts and the tourism market; hospitality, languages; hygiene, culinary ; IT for business, • Tourism–education - (i) lack of local capacity to provide quality and relevant training, (ii) Ministry of Co-ops & SMES has beginners entrepreneur training funded by GoI; (iii); and (v) Lombok has 47 vocational schools

16 Indonesia Tourism Development Program: Environmental and Social Management Framework, Ministry of Public Works and Housing Regional Infrastructure Development Agency (Final), January 19, 2018, and Lombok Baseline and Supply, Market Demand Forecasts, and Investment Needs: World Bank, 2016.

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(Sekolah Menengah Kejuruan or SMK) and many provide some tourism training. . • Other • –Inclusive - equal opportunities to participate in training for men, women, large and small businesses, poor, disabled and IPs • Loca– trainers - prioritize their strengthening

ITMP Lombok Workforce Skill Development and Swiss Co–tact STED - Both AECOM Indonesia and Swiss Contact, a Swiss international development foundation 17, began projects with the Ministry of Tourism in Lombok in 2018 with the aim of strengthening the qualifications of the local workforce so they can participate in future tourism opportunities on the island. Both Projects also include interventions to provide capacity-building and institutional development support to tourism educator institutes and trainers (Table 119).

Table 119 Lombok Tourism Educators, ITMP and STED Description ITMP Lombok Component 3 Swiss Contact STED Expected Impact • ITMP Lombok aims to strengthen • Contribute towards a better qualified local local economies sustainably and workforce with skills needed by tourism inclusively. sector. General • Component 3 focuses on CB of local • Strengthen relevance, delivery quality of Capacity- firms and communities, especially TVET/Polytechnic tourism curriculum building (CB) SMEs, indigenous communities, and Focus women. Training and • Supported to capture opportunities in • Strengthen TVET teacher capacities Support to the increasingly-digitalized tourism including their practical, demonstration and Tourism economy, including workshops to coaching skills and abilities, Educators improve local firms’ online presence • Strengthen teacher relationship with industry and engagement and their practical exposure. • Improve quality of service standards • Network and policy development, focusing of tourism firms on knowledge exchange between different • Development of tailored and practical tourism institutions, Competency-based Training (CBT) to enable them to meet higher overall standards.

Overview of Indigenous Peoples, Communities and–Languages - Sasaks are the predominant ethnic group in Lombok (about 85% of the population) and the most common ethnic language. Sasak culture is strongly influenced by a mix of local customs (adat) and Islamic laws, with customary principles maintained if they conform to the teachings of Islam. The remainder of the island’s population is made up of Balinese Hindus (10%) and newer Muslim arrivals from other parts of Indonesia (approximately 5%). Most of the population also speaks Indonesian. The ITMP Project strongly supports inclusiveness development, especially for Indigenous Peoples (IPs). Sasak communities should be a vital part of the Capacity Building, if one adopts the Project’s Environment and Social Management Framework (ESMF). In Lombok these traditional communities are led by a 'Payer' or “Paer” who has the authority to defend Sasak traditions and issue rulings (fatwas) about the relationship between Islam and adat. Further, an Adat Assembly divides Sasak communities on the island into six (6) indigenous territories - East Payer, Central Payer, Laut Payer, Daye Payer, Bat Payer, Bawaq Payer18 (see Table 120).

17 https://www.swisscontact.org/en/news/news/news-detail/news/indonesian-swiss-tourism-education-project-will- help-lombok-tourism-polytechnic-address-skills-mismatch.html and https://www.swisscontact.org/nc/en/country/indonesia/projects/projects-indonesia/project/-/show/sted-en.html 18 Indonesia Tourism Development Program: Environmental and Social Management Framework, Ministry Of Public Works and Housing Regional Infrastructure Development Agency (Final), Table 11, January 19, 2018.

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Table 120 Indigenous Communities in ITMP Priority Destination Areas

No Cluster Indigenous People Description 1 Cluster Gili Islands Kecamatan Tanjung, ’he 'Sokong' village was a small kingdom that was part of the and Senggigi Kabupaten Lombok‘Utara history of the Majapahit kingdom. There are still historical relics stored at Bale Gede. Until now the community still maintains the Sasak tradition well. 2 Cluster Southern Kecamatan Pujut, Sasak people at Sade Village. Located in South Lombok, is a Coast Kabupaten Lombok representation of traditional norms in the southern region that still Tengah strongly carry out customary norms as their identity. Kecamatan Pujut, Sasak people at Ende Village. Located in South Lombok, is a Kabupaten Lombok representation of traditional norms in the southern region that still Tengah strongly carry out customary norms as their identity. Kecamatan Jerowaru, The Jerowaru indigenous people inherited various relics from the Kabupaten Lombok Timur Selaparang ’ingdom. Da'wah in Islamic methodology combined with Sasak culture is a characteristic of the missionary journey of Tuan Guru H. MUTAWALI. Until now, his teachings were still guarded by the legacy of the BALE BELEK sites which were the spiritual centers of indigenous communities in the south of Lombok Timur. Kecamatan Sekotong, The Bangko-Bangko Indigenous Community in Sekotong is an Kabupaten Lombok Barat indigenous community originating from Lombok Barat that has been associated with KEDATUAN KEDARO in the past. The social order and customary norms in regulating community life are still valid in this place.

Overview of Small Businesses in Targeted Tourism Destinations - fifteen case study interviews were conducted (Appendix 3) with the owners and employees of small formal and informal businesses in the Lombok tourism destinations targeted by the ITMP (Table 117). Three quarters of those interviewed had both local and foreign buyers and were sole traders that purchased supplies from nearby or elsewhere in Lombok. Approximately half of all of those interviewed were based in the two main tourism areas, Senggigi and the Gilli Islands, and at least half of this group that were interviewed (4) were foreign-owned businesses, staffed by between one to five employees. These businesses also rented their premises for ten years and mainly sourced their products more widely than smaller local businesses, including from Bali. The selling price of their products and services, their costs and their profits were typically higher than those of smaller sole trader firms (Appendix 3). The CBTPP should thus be designed with the educational background and business experience of local small formal and informal traders in mind, as the needs of the tourism market. Overview of Key Community Groups

• Tourism Awareness Groups (Pokdarwis) - These are community groups consisting of a mix of individuals, businesses and other community organizations set up by the government to promote tourism and raise the awareness of locals about the importance of effectively managing tourism. Pokdarwis also work alongside local village government (Badan Keamanan Desa or BKD) to help maintain security in tourist areas.

• Village youth groups - They also play a role in tourism by, for example, managing tourist entry fees and parking places at popular tourism sites.

• Women’s Weaving Groups - There are a number of women’s traditional weaving groups in Lombok including in Sukarara and Setanggor in Lombok Tengah and in Pringgasela in the east of the island that could be developed further for tourism and for socio-cultural and economic benefits for their members.

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• Tourism Forums and Associations - There are a number of tourism organizations in Lombok, including Forum Tata Kelola Pariwisata (Tourism Management Forum or FTKP), the Lombok Tourism Forum (LTF), Himpunan Indonesia (Guides Association or HPI) and Asosiasi Travel Agent (ASITA). The latter has a particularly important role to promote tourism and to empower local communities. Its activities include bringing tourists to community homestays and buying products produced by locals.

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8. Marketing and Branding

The marketing and branding dimensions of the overall baseline study are examined from a regional, national, and local level. Clearly each must work with the other in order to provide an integrated view of the marketing and branding activities, policies, and plans that are relevant to the development of the ITMP.

8.1. ASEAN Marketing Strategy – Summary

Indonesia is an active member of the tourism development activities of ASEAN and recognizes that the ASEAN strategic plan as well as ASEAN marketing strategy are designed to help guide tourism development throughout the region within the member states. As part of its development activities, the ASEAN National Tourism Organizations (NTOs) have developed the ASEAN Tourism Marketing Strategy (ATMS) 2017-2020 with a recognition that the marketing strategy will not only impact tourism but position ASEAN in other capacities. The ASEAN marketing efforts are based on the guiding principles of innovation, creativity, transparency, mutual respect, and responsible development. The strategy has been developed within the framework of the ASEAN Tourism Strategic Plan (ATSP) 2016- 2025 and is designed to support the overall tourism activ218ulfil218n the ASEAN NTOs. The ATMS 2017-2020 is built on the understanding that resource availability is an essential factor in determining the directions that can be pursued within the strategy. Given the budget constraints for ASEAN marketing opportunities, the knowledge and resourcefulness of those implementing the strategy are vital to its success. While the budgets and human resources can be seen as a constraint, they in fact provide opportunities for innovation and creativity. Considering the resource constraints of the ASEAN Tourism Competitiveness Committee (ATCC) and developments in the distribution landscape, the ATMS’s primary focus is not on traditional marketing that requires media spend but on exploring opportunities that provide the most value and allows the story of the region to be told in a creative and engaging manner. The ATMS recognizes that public relations and social media are effective approaches to reaching target markets with the right message on the right channel at the right time. The strategy is based on the ability of the NTOs to establish strong and effective partnerships to carry out many of the strategic actions. As the effectiveness of specific marketing channels to reach travelers evolves, so does the ASEAN approach to marketing. As peer-to-peer advocacy becomes a key influencer of people’s travel decisions, as seen in the changes in the traveler journey, the focus of the ATMS 2017-2020 is not on paid media but on engaging the most influential audiences (travelers) through social media networks who are likely to become effective advocates for Southeast Asia. Additionally, the boom in digital technology enables the focus to shift from traditional marketing tactics (which deliver messaging to a broad audience) to a more targeted approach using content marketing, enabling the delivery of highly customized content relevant to individual travelers in target markets. The recurring themes seen throughout the strategy address the changing digital landscape with a sound understanding of the traveler’s journey and the nature of the experiences the region supports. These themes are shown in Figure 132.

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Figure 134 Recurring Themes for ATMS 2017-2020 Inspire and Intercept: The need to build and leverage relationships with potential partners and travelers by using digital and traditional channels as a platform. Connect and Engage: The necessity of capitalizing on interaction with potential travelers by connecting digital media to measurable goals while embracing and facilitating the sharing of information. The NTOs recognize their responsibility to create experiences across social and digital platforms that help drive travelers to Southeast Asia. Measure and Optimize: The NTOs working with their stakeholders continue to discover how to effectively leverage all the options available in digital and social media, provide travelers access to the region, and integrate consumer feedback and analytical data in order to develop insights into traveler communication across media. The ATMS 2017-2020 recognizes that successful marketing is based on the need to tell stories and create narratives that evoke a positive image of the lifestyle, culture, adventure, and romance of the region. While the marketing strategy is a living document there is an ongoing set of activities designed to implement the strategy under the leadership oNo.time marketing coordinator.

8.2. Indonesia Branding

Indonesia has been very active in promoting the country and in helping to develop a brand for the country and its various destinations. In the Appendix, a full list of the various initiatives are catalogued. There is presently no information that has been made available to the project team that assesses the impact and successes of various initiatives. Without this impact information it is difficult to assess the effectiveness of the various strategies and programs that have been put into place. As with many destinations one of challenges is for the various stakeholders to agree on an overall brand for the destination and unique attributes. An important part of the ITMP will be to develop an overall brand and marketing strategies to ensure the island is well-positioned to achieve tourism’s p219ulfiial to improve the quality of life of the residents. It fulfill recognized that Lombok lies in the shadow of Bali and it will take some time and a major effort to help the island to achieve its full potential. Brief History of Indonesia Tourism Marketing and Branding Activity A brief history of various marketing and branding initiatives is useful in setting the context for the development of the ITMP. It is well accepted that the overall reputation and attractiveness of Indonesia has an important impact on the development of Lombok as a competitive and sustainable tourism destination.

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Visit Indonesia Year 1991 In the early 1990s the Indonesian government developed programs to promote Indonesia with the Visit Indonesia Year campaign and launched integrated efforts to promote Indonesian tourism worldwide. Visit Indonesia Year 2008, 2009, 2010 The Indonesian Ministry of Culture and Tourism declared 2008 as a Visit Indonesia Year. The campaign was designed in part to commemorate 100 years of national awakening in 1908. Each of these years was accompanied by the Tourism Indonesia Mart and Expo (TIME) organized by the Indonesian Tourism Promotion Board which were supported by a considerable number of stakeholders in the country. It is interesting to note that some of the TIME were hosted in Lombok Wonderful Indonesia In late January 2011, the Culture and Tourism Minister announced that “Wonderful’Indonesia” would replace the Visit Indonesia Year campaigns. This campaign was based on an identification of Indonesia’s unique selling proposition: “the country’s beautiful nature, unique culture, varied food, hostipitable people, and price competitiveness.” Pesona Indonesia (since 2014) In December 2014, the Minister of Tourism, launched the new brand Pesona Indonesia designed to target the domestic tourism market.

8.3. Social Media Sentiment: Lombok Island’s Tourism

There has not been a great deal of activity assessing the visitor’s satisfaction and experience in Lombok. Increasingly on an international basis social media sentiment analysis has been employed to determine how a destination is viewed. This becomes increasingly important as more and more people make their consumer decisions on the Internet. Based on data from Infotourism.id which describes the sentiment of tourists towards several tourism destinations in Indonesia, Lombok Island is often mentioned on social media but still ranks far below Bali as one of the tourism centers in Indonesia. Infotourism’s sentiment analysis produces some interesting results, as seen in the figures below.

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Figure 135 Lombok Sentiment Analysis Based on the sentiment analysis, the issue with the highest negative level is security, with 40% expressing negative impressions. This is in line with the condition of Lombok Island where the crime rate is still quite high. Other issues with high negative levels (26%) are accessibility and cleanliness (25%). Accessibility From the point of view of accessibility Customs, Immigration, and Quarantine Points (CIQP) Port is the factor that gets the most negative sentiment, reaching 57.14%. The concerns relate to the arrival experience especially by water. On the other hand, the quality of land transportation is 96%, which is likely due to the availability of a range of transportation modes and a good road network.

Figure 136 Lombok Sentiment Analysis - Accessibility

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Attractions Negative sentiments are more influenced by cleanliness (30%) and attraction (19%) clearly identifies that cleanliness and better information are essential to the visitor experience and levels of satisfaction.

Figure 137 Lombok Sentiment Analysis - Attractions

8.4. Lombok Island Tourism Strategies

Lombok Island has several campaigns, programs taglines and images slogans such as the Pesona Lombok Sumbawa and Friendly Lombok. It is interesting that the Persona Lombok image stresses the natural environment especially with the use of a wildlife image. The “Friendly Lombok” tagline and its image, on the other hand, is promoting a different type of destination based on what can be assumed as the warmth of the climate and people, and its marine-based activities.

Figure 138 Examples of Taglines and Images for Lombok

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Mandalika When it is fully developed, Mandalika will have a major impact on the island. This will be particularly true of marketing and branding activities given that it will be responsible for its own promotion and branding. The positive attributes that are identified on Mandalika’s website are very much in line with the overall assessment of the baseline study. From the website there are two major messages: one based on the island’s exquisite white beaches and unspoiled environment; and the other the cultural richness of Mandalika. The term ecotourism destination that has been employed, however, is not appropriate. Ecotourism is defined by the international ecotourism society as "Responsible travel to natural areas that conserves the environment and improves the well-being of local people." (TIES, 1990). When it is fully developed, Mandalika well not be a natural area. However, with the initiatives being taken by the ITDC have indicated it will be a very green and sustainable destination. Lombok Halal Tourism Strategies Halal tourism has been a major focus of tourism development activities on the island. Indonesia introduced 12 provinces as halal tourism destinations. Throughout the 12 provinces, Indonesia was successful in getting two awards (The 1st World’s Best Halal Honeymoon Destination and the 1st World’s Best Halal Tourism Destination) in Lombok. Halal tourism is seen as a vital component of tourism development on the island. The Indonesian government has identified halal tourism as an important dimension designed to attract tourists from Muslim populated countries such as Middle Eastern countries, Malaysia, Brunei Darussalam and others. The plan is for Indonesia to become the world’s best halal tourism destination in 2019.

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Figure 139 Diagram of Lombok Island Image Formation Factors Source: ICHSSE-17 Based on the 2018 Global Muslim Travel Index (GMTI), Indonesia is currently ranked second in relationship to halal tourism services in the world. The GMTI is identified as the key drivers of halal tourism.

Figure 140 Key Halal Tourism Drivers Based on The Global Muslim Travel Index

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Halal tourism plans are listed in the NTB Provincial Regulation No. 2 of 2016 as the basis for the development of halal tourism, but there are no documents, regulations, or other policies that really direct halal tourism on the island of Lombok. The regulation also only provides policies regarding the provision of accommodation and facilities that support the convenience for Muslims. This regulation also has not been accompanied by any strategic directions carried out by the Ministry of Tourism. In the Indonesian RIPPARNAS and RIPPARDA NTB province, halal tourism has not become a priority focus. Halal tourism is a priority and supported by several halal accommodations and facilities that are still available.

8.5. Benchmark Tourism Strategies 8.5.1. Bali Province

It is useful to look at the strategies that Bali is taking to position itself. (Figure 141141139) Given that Bali is seen as a competitor by some, understanding the approach it is taking and helping to complement that approach would benefit tourism interests in the region.

Figure 141 Bali Marketing and Branding Strategy 8.6. Marketing and Branding Summary

There has been a great many marketing and branding activities carried out in Indonesia and to some extent in Lombok. The challenge now is to bring these initiatives together into a coherent whole especially in light of the earthquakes and the uncertainty these earthquakes as well as other events in Indonesia create in the mind of the visitor. Ensuring a coordinated approach between the island and Mandalika will be imperative in the ongoing development of Lombok.

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9. Summary of Situational Analysis and Identification of Opportunities

Opportunities Constraints

OVERALL LOMBOK

Demographic • Population in Lombok has consistently • Kota Mataram’s population density is been increasing at an annual growth relatively high, which may create some rate of around 1.38% since 1990; spatial and capacity constraints for any higher than the national average future developments. growth rate of 1.2%. • Kota Mataram’s population is growing at ▪ With the exception of Kota Mataram, an annual growth rate of 2.4% - density levels in Lombok Island are significantly higher than the Lombok relatively low. This may pose average of 1.4%. If not managed opportunities for future development. properly, this may pose issues of overpopulation, especially if there are additional tourism activities.

Economic • The economy has consistently been • The Accommodation and F&B industry growing above 6% annually, much only contributes 3% to Lombok’s total higher than the national average of GRDP despite the recent tourism 5.1%. developments especially in Kabupaten Lombok Tengah. For persepective, • The Accommodation and F&B sector, Bali’s Accommodation and F&B industry which is used as a proxy for the is contributing 23% to the island’s total tourism industry, has been growing at GRDP. an annual rate of 7.6% - higher than the total economic growth. • Up to Q3 2018, Foreign Direct Investment into Lombok Region has only • Lombok Regional area has 15 basic contributed 29% to the total Direct sectors from 17 sectors; this means Investment. that 15 basic sectors can help economic development in the Lombok Region. The Accommodation and F&B sector is in the Top 3 basic sectors, which imply that this industry may be pivotal in improving Lombok’s economy. • The largest foreign investment ranked first is from Singapore with a contribution of 58%, followed by France with 16%, and South Korea with 11%. • The tourism industry has attracted significant investment in Lombok in 2018. It contributed 17% to the total direct investment in Quartal I 2018, 42% in Quartal II, and 8% in Quartal III.

Socio-Economic • Although agricultural still the dominant • Quite high poverty level in Lombok job sector in the five regencies/ cities Island, generally above the NTB of Lombok Island, employed majority Province poverty rate, and the of working age population, however highest in Lombok Utara. In the there is an increased trend of meantime, some of the most popular population working in tourism sector and visited tourism area in Lombok, (i.e. trading, restaurant and hotel). i.e. the three Gili Islands, is located in This describes an opportunity in Lombok Utara. This is a constraint in tourism development to have large planning the development of tourism portion of the island population familiar in the area, indicates the need to with tourism-related sector. identify how tourism can lift up the welfare of local communities in • Decrease unemployment rate in NTB Lombok Utara. Province, while the five regencies/ city contribute to over 70% of workforce in

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the Province, describe the • Government set a quite low regional opportunities of available workforce to minimum wage compare to the NTB support tourism development in the Province level or even its Island. neighborhood island of Bali – this provide less opportunity for locals to • Other opportunities in socio-economic improve their welfare, resulting to sector found are the potentially high minimum benefit of tourism level of participation from women development for local economy. groups in tourism development, having highly aboserbed female • Although women participation in workers, also participation of local tourism-related sectors are quite small business, as the baseline high, their education level is relatively identified most workers in trading, low. Similarly, with general university restaurant and hotels are self graduates of Lombok population and employed. the NTB province in general are still quite low, less than 10% of total working age population. This may contribute to low levels of local welfare and present some constraints for highly-skilled tourism workers.

Indigenous People • Indigenous groups in Lombok still hold • Although the presence of traditional strong their customs. They are divided villages and indigenous communities into indigenous territories, where in Lombok Island have the some traditional rituals are still carried opportunity for cultural-based out. Safeguarding the customary tourism development, there are still territory that belongs to them. This is some constraints e.g. likely require an opportunity for tourism to be communal consent in any decision developed along with the development related to local development either of their culture. In addition, presence physical development or to introduce of a number traditional village new tourism program, and likely identified in the NTB Province Culture limited use of communal/indigenous and Tourism Agency – as well as land, if any. acknowledged by AMAN as having indigenous community rights – • There are still views from the public represent some opportunities for who see tourism activities having a cultural-based tourism development. negative impact, primarily related to the decline in local values replaced • Although dominated by the Sasak by external cultural values. ethnic group, other ethnic groups are Indigenous leaders need to be found on the island, including Balinese involved in tourism development people in some parts of Mataram, planning and involving indigenous Lombok Utara, and Lombok Barat. peoples in implementation to avoid These multi-ethic groups with their these misconceptions. own identities (either in their religion presentation e.g. Pura or ancient • In some areas, different ethnic mosque, or cultural practices such as groups live together in a mix-ethnics cultural dances or ceremonies) are area, however, some still live opportunities for a cultural-based separately due to lack of acceptance tourism development in Lombok. of each culture. For example, there are Balinese traditions that cannot be • In some parts of Lombok, tourists can accepted by the Sasak (Muslim) tribe see Balinese culture that is still e.g. cockfighting, gambling, or practiced by the Balinese tribes, such alcohol drinking. This would be a as Ngaben, and Balinese villages with constraint that must be considrerd in its specialty of Balinese architectural planning tourism development. As characteristics. On the other parts of long as everything is done according the island, traditional Sasak houses to the place and portion, friction can can be seen in cultural villages of be avoided. Sade or Ende – these have the potential to increase cultural-based • Another constraint is related to the tourism development in Lombok. concern of impact from tourism development to local culture, due to unfamiliarity with tourism activities and the locals’ preference to maintain their enclosed living space.

Tourism Pattern • Lombok is responsible for almost 90% • The rate at which number of visitors of the total visitor arrivals in the NTB increases has been declining for both Province. domestic and foreign visitors in 2017. • Domestic and foreign visitation has • ASEAN is a relatively untapped market been growing at an annual rate of 26% considering its proximity to Lombok, and 27% respectively between 2013 since it only accounts for 13% of the total and 2017. visitation.

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• Lombok has successfully tapped into • November-January is low-season for the European market since European both domestic and foreign visitors visitors account for almost half of the despite coinciding with year-end/winter total visitation to the island. holidays. • June-September is clear high-season for both domestic and foreign visitation.

Tourism Facilities • Number of hotel growth has been • Recent earthquake is predicted to slow increasing at a 6% CAGR from 2011 down the hotel supply growth, as well as to 2017. the average occupancy and daily rate in Lombok hotels, especially those in • ALOS growth of Lombok hotels rose at higher impacted areas. a healthy rate due to provincial government support on promoting • ALOS of Lombok hotels (foregin 2.50 cultural attraction packages, 2.08 to nights and domestic 1.96 nights in 2017) 2.50 nights for foreign tourists and is still considerably low, especially from 1.74 to 1.96 nights for domestic compared to its neighboring island, Bali, tourists in 2017. with a foreign ALOS of 2.90 nights and domestic ALOS of 2.30 nights in the • More upscale cafes and restaurants same period. are highly concentrated in already- established tourism areas. • The distribution and provision of infrastructure of tourism information • The regencies of Kota Mataram, centers in Lombok are inadequate. Lombok Barat and Lombok Tengah There is only one appropriate tourism have the highest number of travel information center in Lombok, located in agencies while the Northern and Lombok airport terminal Eastern regencies have the least. • Most of spas and salons are locally managed with standard quality. Better quality spas and salons facilities in Lombok are mostly located in middle to upper scale hotels which only represents 5% of the total supply. • Laundry services and hairdressers can be found across the island’s densely populated areas. These support service operators are chiefly local and generally lack adequate infrastructure. • In comparison to Bali, in which several international providers operate, Lombok’s car rental services prices are higher by a 10% margin.

Local Businesses and • Tourism-related local businesses are • Some products are sourced from the Skills (related to mostly owned and run local residents neighboring island of Bali, which may community roles) of each tourism area. suggest that the local skills and capacity in Lombok has not fully met the existing • Products sold in tourism areas can be demand. categorised into two categories: (a) tourism-related goods, such as • A lot of local businesses in the more accessories and arts and craft; and (b) established tourism areas are owned by food and beverages. The latter is foreign residents. However, they do still mostly seen in beach destinations. hire local Lombok employees. • Presence of local institutions/ • In some areas e.g. Senggigi, most organiz’ations established at village tourism development activities are level e.g. Pokdarwis (local tourism encouraged by province government as awareness group), youth group part of their tourism development (Karang Taruna), and women group program, minim local participation/roles (PKK) would be beneficial in tourism in development as well as minim benefit development to ensure positive impact for locals. Application of similar of development to locals. For approach presents a constraint in the example, women's groups activities effort to optimise the benefit of tourism exist in several tourist villages e.g. development for local economy. make woven fabrics, such as in some villages in Lombok Tengah dan • Different participation level of local Lombok Timur. communities/groups in each tourism area may be a constraint e.g. unequal • Community also participated in economy benefit between areas. tourism through different existing channels e.g. FTKP, LTF, HPI, and ASITA – can be alternative channel in

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empower local participation in tourism development of the island.

MATARAM Demographic • Kota Mataram had the highest growth • Kota Mataram’s population density is rate of 4.35% in 2014 and had the relatively high, which may create some lowest growth rate of 1.55% in 2012. spatial and capacity constraints for any future developments. • Kota Mataram’s population is growing at an annual growth rate of 2.4% - significantly higher than the Lombok average of 1.4%. If not managed properly, this may pose issues of overpopulation, especially if there are additional tourism activities.

Economic • Since 2013, Mataram’s GRDP growth • The Accommodation and F&B industry has been floating around the 8% mark, only contributed 2% to the city’s overall which is significantly higher than the GRDP, which implies that the tourism national and provincial average. industry has yet to play a pivotal role in the economy. In fact, it is ranked 13th out of 17 sectors. • Mataram’s Accommodation and F&B industry’s LQ value of 0.91 in 2017 implies that there is no significant concentration of tourism activities in Mataram relative to the NTB Province

Socio-Economic • Mataram has complete education • The Open Unemployment Rate is the facilities from primary school to higher (5.35%) than the provincial level university, including Mataram Tourism (3.32%). Vocational High School, Mataram Tourism Institute, and Lombok • The Labor Force Participation Rate is Tourism Polytechnic. lowest (64.53%) compared to provincial level (68.49%) and other regions in study • Literacy rate is the highest in the area. region (about 91.71%) above the province rate (87.14%) in 2017. • Minimum wage in Mataram in 2017 (IDR 2,938,116) is the highest compared to • The average expenditure per capita is provincial level (IDR 2,361,821). the highest (IDR 1,369,212) above the province level (IDR 821,052) in 2017. • Lombok tourism development destinations mostly go to the beach • The line of poverty is above the sector, not city tourism offered by Kota provincial and other regions in study Mataram. area (IDR 428,754) in 2017. • Number of university graduates in Mataram is the highest in the province, in which 11.49% of total working age population in Mataram have a degree. • As the capital city of NTB, Mataram is the most multicultural region and can be an example of good harmony to attract tourists.

Tourism Pattern • Kota Mataram’s visitation is • Mataram has not been an attraction in dominated by the domestic market itself to foreign visitors. In fact, the total due to demand generated by the number of domestic visitations in MICE industry. Mataram in 2017 was almost 40 times that of the number of foreign visitation. • Mataram acts as a supporting area to Senggigi during high seasons to accommodate overflow of visitors. • Seasonality for domestic visitors especially is relatively stable throughout the year, concentrating at the end of the year. • Kota Mataram is home to a dense concentration of local spas and salons.

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Tourism Facilities • As the capital city of NTB, Mataram • Limited leisure visitors as most of visitors has strong demand on business- in Mataram are doing business-based based activities, including business activities, resulting in shorter staying hotels and MICE; which is also stated period (average 2 nights). in the city’s tourism planning documents. • Largest number of local F&B facilities is located in Mataram, but the city is lacking • Star-rated hotels CAGR from 2011 to upscale cafes and restaurants. 2017 is 12%, while non-star-rated CAGR in the same period is 18%; which are above the Lombok figure. • Demand from leisure guests in Kota Mataram is sometimes occurred during high seasons. During this period, Mataram acts as a back-up to Senggigi. When hotels in Senggigi are booked up, people will start to trickle down to Mataram for hotels. • As the centers of government and economic activity, shopping malls and branded supermarkets/hypermarkets are located in Kota Mataram. • Tour and travel agencies in Lombok are generally clustered around Kota Mataram, areas popular to tourists, ports of entry, as well as along main roads. • Car rental services in Lombok are concentrated in Mataram, tourist areas, and the international airport. • Higher internet connectivity is attributed with the level of development in the area; 4G internet services are only available in Mataram.

LOMBOK BARAT Demographic • Kecamatan Sekotong, which is • included as one of the key tourism areas in Lombok, has the lowest population density of 133 inhabitants/km². This low density may be desirable to maintain and help define the tourism character of the area.

Economic • The Accommodation and F&B • Lombok Barat’s economy has been Services sector in Kabupaten Lombok growing at an annual rate of 5.9% Barat contributes 9% to the overall between 2010 and 2017; lower than GRDP – the highest amongst the the Lombok Regional average of other cities/regencies in Lombok. This 6.4%. implies that the tourism industry in Lombok Barat is most established in the island. • Based on the LQ analysis, The Accommodation and F&B industry is by far the industry with the highest LQ value of 3.83 in Lombok Barat. This indicates that there is a high concentration of tourism activities in Lombok Barat relative to the NTB Province.

Socio-Economic • The workforce population in 2017 is • Lombok Barat contributes about 12.8% about 327,576 people or about of total migrant workers in NTB Province 13.67% of total workforce in NTB Province • Public awareness of the potential they have is still lacking.

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• Well-packaged cultural attractions have the potential to attract tourists and become an added value of tourism in the coastal sector.

Tourism Pattern • Foreign visitation has been • Domestic visitation peaked in 2015 and consistently increasing in recent experienced some decline in the years, with a compounded annual subsequent years due to a possible shift growth rate of 38% between 2012 and towards Lombok Tengah. 2016. • Batu Layar is currently the only • Lombok Barat has also successfully established district in terms of tourist tapped into the European market visitation. since it made up for almost 50% of the total visitation.

Tourism Facilities • Senggigi is where most of the • Land use regulations in the Gili Tramena established tourism activities are national strategic tourism area regulate located, has the highest number of development to a minimal impact. star-rated hotels and the highest Therefore there is a low number of internationally-operated starred hotels and a high number of villas accommodation. in the Gili islands. • Star-rated hotels in Lombok Barat • Most hotels in Lombok Barat, mostly in grew significantly for the last six years Senggigi areas, were temporarily closed with CAGR of 7%, totaling of 33 hotels in the weeks of the earthquakes as in 2017, while the CAGR of non star- owners and management assessed rated hotels from 2011 to 2017 is 10%. damages. • Accommodation in Sekotong area • Although still in a healthy condition, started to emerge since around 2015, demand in Senggigi area is relatively indicated by some addition in villa stagnant for the past years. This may be units, mainly along the main road of Jl due to relocation of the airport and Raya Sekotong. A new 5-star hotel government policy to develop Mandalika managed by Wyndham has just as the new international tourism opened its first resort in Sekotong destination. area, indicating a growing tourism development potential in the area. • The seasonality in Kecamatan Sekotong highly relies on the weather which tends • As the most established resort to peak during the months of July to destination, Senggigi area located in September and goes down between Kecamatan Batu Layar offers a wide February to March. range of accommodation segments, from budget and non-star rated hotels • to upper upscale resort development. • The average occupancy level of selected big player hotels in Senggigi areas are around 70% in 2017 but predicted to decrease as an impact of the earthquake. • ALOS of hotels in Kecamatan Batu Layar is slightly higher than the average Lombok, which is around 3-4 nights in average. • Unlike the northern part of the island, Kecamatan Sekotong was not directly impacted by the earthquakes. The occupancy was started to stable just in weeks after the tragedy since there are no significant damage to the buildings, recorded at around 60-70% in August 2018. • ALOS in Sekotong is around 4 nights since there are a lot of foreign tourists who stay longer than the domestic visitors. • Local government held an annual event of Mekaki marathon that attracts a wider variety of tourists. The Southern Gilis, e.g. Gili Nanggu, Gili Kedis, Gili Gede are also considerably to be magnet for tourists.

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• The most apparent concentration of cafes and restaurants is located along the coast of Senggigi in the western coast of the island. • Banks and auto-teller machines (ATMs) in Lombok are generally distributed equally, despite a significantly higher density in the city of Mataram. • Money changer services are concentrated in Mataram and tourist nodes and are sparsely distributed in the North and Lombok Timur regencies.

Local Businesses and • Tourism-related businesses in • Many practitioners of local businesses Skills Senggigi are centralized in the in Lombok Barat are from other areas Senggigi Art Market which generally in Lombok, such as Mataram and sells clothes and arts and crafts, Lombok Timur. targeting both domestic and foreign tourists as their main customers. • Products are mostly sourced from within Lombok Island, with some from the neighboring island of Bali. Therefore, the increase in tourism may have either of the following outcome: o Increase in employment due to higher demand of tourism-related products o More products are being imported from Bali if the local economy cannot fulfill the additional demand

LOMBOK TENGAH Demographic • Population density in the key tourism • areas, namely Kecamatan Praya Barat and Kecamatan Pujut, are relatively low 492 and 448 inhabitants/km² respectively. As said areas are neighbors to the development of Kuta Mandalika, it implies that there is still space available for future development.

Economic • Lombok Tengah’s GRDP has been • Despite the recent developments taking growing at a rate significantly higher place in Lombok Tengah, such as the than the Lombok Region’s average, at flagship development of Kuta Mandalika, 8% per year (CAGR). the Accommodation and F&B industry only contributes 1% to the overall GRDP. • GRDP per capita in Lombok Tengah This implies that even though the was recorded at IDR 66 million in 2017 infrastructure for tourism development – much higher than the Lombok has begun, it has yet to attract significant Region average of IDR 24 million. tourism activities. • The basic and non-base sectors, the • The LQ analysis tells a similar story as sectors Accommodation and F&B in above, as the Accommodation and F&B Sectors basis in Kabupaten Lombok industry in Lombok Tengah shows an LQ Tengah are the Basis which means value of 0.61; which means that there sectors that can help economic currently is no concentration of tourism development in Kabupaten Lombok activities in Lombok Tengah relative to Tengah. NTB Province.

Socio-Economic • The workforce population in 2017 is • Literacy rate in this region is the lowest about 459,584 people or about compared to cities/regencies in study 19.18% of total workforce in NTB area as well as province, which is Province. 81.74% in 2017. • There is a tourist village of Sade as a • Lombok Tengah contributes about symbol of Sasak culture in Lombok 26.79% of total migrant workers in NTB Tengah. Many other village potentials Province can also be managed well for tourism.

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• Economic business competition between communities that has not been contained in cooperatives, has the potential to create social friction.

Tourism Pattern • Domestic visitation has been • Between 2014 and 2017, foreign significantly increasing in recent visitation has only been increasing at an years. It is predicted that this increase annual growth rate of 3%. is caused by a shift of domestic visitors from Lombok Barat (Senggigi) to Lombok Tengah (Kuta Mandalika). In fact, between 2014 and 2017, domestic visitation has been increasing by 46% annually.

Tourism Facilities • The development of tourism sector in • There are currently only a few starred Kabupaten Lombok Tengah showed hotels in Kuta, Pujut albeit the ongoing significant progress, marked by the development of the Mandalika complex. development of Mandalika area as a Special Economic Zone and • International hotel developments development of the State Tourism generally cluster in areas of high College (Politeknik Pariwisata Negeri accessibility; the development of the Lombok/Poltekpar). Mandalika closed complex in Kuta, Pujut is expected to increase the island’s • The development of these hotels is supply of starred hotel rooms by 3,026 still concentrated on the Kuta beach within the next five years. area and its surroundings. • Room rates were decreased by • Recently there are also some star- approximately 30% after the rated hotels that are started to be earthquakes to attract guests. developed around Lombok International Airport. • From several samples of major hotels development in the area, the average occupancy is Kecamatan Pujut reached around 70% to 75% before the earthquakes. There is still indirect impact to the room occupancy after the earthquake, so it is predicted to decrease to around 60% by the end of 2018. • ALOS in Kecamatan Pujut is relatively shorter for domestic market (around 2 nights) and longer for international market (3-4 nights). • By having mixed guest profile, Kecamatan Pujut has a more stable weekly seasonality but have a slightly longer low season which usually occur between February to April. • The saturation of MICE facilities in Kota Mataram, which accounts for 70% of the island’s total, has seen a greater provision of MICE facilities in neighboring Kuta, due to its proximity to airport.

Local Businesses and • Local businesses in Selong Belanak • Warungs in Selong Belanak are still Skills are spread along the shore of Selong occupying informal spaces with no Belanak Beach, offering food and retribution to the local government. beverages instead of tourism-related Therefore, they currently have very little goods. tenure security in occupying the spaces, and the local government is not generating any revenue.

LOMBOK UTARA Demographic • • Kecamatan Pemenang, in which the three Gilis are located, has the highest population density in Lombok Utara with 449 inhabitants/km². If not managed properly, this may pose

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some threats of overpopulation in future, especially since tourism activities are concentrated in the three small islands.

Economic • Lombok Utara’s GRDP growth rate • Lombok Utara’s GRDP annual growth has consistently been increasing since rate between 2010 and 2017 was at 2012. In 2012, GRDP growth was at 4.9% per year; smaller than the Lombok 4.1% and kept increasing until it Region average. reaches a rate of 6.2% in 2017.

• Just slightly behind Lombok Barat, Lombok Utara’s Accommodation and F&B Services industry is contributing 8% to the overall Lombok Utara GRDP. Knowing the spatial distribution of hotels and F&B, it is safe to assume that the tourism industry in the three Gilis accounts for the majority of said 8% contribution. • Based on the LQ analysis, The Accommodation and F&B industry is by far the industry with the highest LQ value in Lombok Utara with 3.41 – slightly lower than that of Lombok Barat. This indicates that there is a high concentration of tourism activities in Lombok Utara relative to the NTB Province, but still less than in Lombok Barat.

Socio-Economic • The Open Unemployment Rate is • There are limited junior high school in lowest than other regions in study area this region. (1.74%). • Percentage of poor population is the • The Labor Force Participation Rate is highest in the NTB Province, which is the highest (70.90%) compare to 32.06% or almost 2 times than the provincial level (68.49%). provincial level (16.07%) in 2017. • In Lombok Utara, coastal tourism has • The number of workforce in 2017 is the long been developed and has become lowest compared to other a favorite destination for foreign cities/regencies in study area about tourists. There are indigenous people 107,920 people or about 4.5% of total who are still strong in the Kayangan, workforce in NTB Province. Bayan, etc. This indigenous community has not been optimized to • The large number of large capital support tourism in the Gili region. investors actually removes the role of local indigenous people. • The tourism sector is starting to attract a lot of people to improve the • Kabupaten Lombok Utara has limited economy. school and teacher, where one junior high school building should accommodate around 899 students and one teacher should teaches around 8 students.

Tourism Pattern • Foreign visitation has consistently • Domestic visitation is very low compared dominated tourism in Lombok Utara. to foreign ones; almost 1/7 of the amount in 2017. • Despite being low in number compared to the foreign counterpart, • Other districts in Lombok Utara are far domestic visitation has been growing behind Kecamatan Pemenang in terms at an annual rate of 26% between of tourist visitation. 2013 and 2017 - higher than foreign visitation with 19%. • Pemenang Port is by far the most famous point of entry for foreign visitors into Lombok.

Tourism Facilities • One of significant tourism • Based on the spatial distribution of development in Kecamatan Praya tourism facilities in Lombok Utara, the Barat is Selong Belanak area which regency’s tourism activities seem to be starting to have some midscale to focused solely on the three Gilis. This upperscale villas. It is well-know for its may pose some over-reliance issues in

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beach and surfing tourism with mostly the future, making the regency’s European market. economy to be volatile. • European market mostly has a longer • Accommodation in three Gilis has a quite ALOS which ranges from 3-5 nights, significant impact from the recent while domestic market only stays for 1 earthquakes. Ombak Sunset is one of to 2 nights. big hotels in Gili Trawangan that largely impacted by the earthquake as almost all • Similar to Kecamatan Pujut, there is of its villas are damaged. no significant physical damage caused by the earthquake, though it is • Average occupancy during high seasons confirmed that it still impacting the before the earthquake are between 70%- occupancy and room rate during the 80%, while during the low seasons are post-earthquake period. only around 30% occupancy. Some rooms in the hotel establishment were • The growth of star-rated hotels in also closed due to a very low visitation Kabupaten Lombok Utara has been within the post earthquake period. growing rapidly from 2011 to 2017 period, with an indication of a CAGR • Like Gili market, Kecamatan Tanjung is reaching 27%. one of the most impacted areas due to the earthquakes, that made some of • Around 80% of its visitors are foreign, market leader hotels in the area while 20% are domestic guest who are temporarily closed. mainly from Jakarta and usually occupied the island during weekends. Foreign visitors’ ALOS are longer than the domestic’s, recorded at around 3 nights and 1 night (weekend market from Bali) for foreign and domestic tourists respectively. • Concentration of cafes and restaurants is located in the famous Gili Islands, especially in the main island of Gili Trawangan. • Most of the spas and salons in hotels are located in Gili Trawangan.

Local Businesses and • Local businesses in Himpos Beach in • The warungs along Himpos Beach Skills Tanjung have recently been emergin mostly cater to local residents who visit in informal semi-permanent structures the beach for their daily entertainment. built along the shore, selling light bites and meals for beach visitors. • Stores in Gili Trawangan are mostly owned by foreign nationals. • While some businesses in Gili Air and Gili Meno are already owned by • Employees in the three Gilis are mostly foreign nationals, there are still a mainland Lombok residents. number which are still owned by locals in the respective islands. • Stores in Gili Trawangan generally sell clothing and accessories, obtaining their products from mainland Lombok and Bali.

LOMBOK TIMUR

Demographic • Kabupaten Lombok Timur has the • Kecamatan Jerowaru, in which the lowest population density compared to famous Pink Beach and several other the other cities/regencies in Lombok tourism destinations are located, has a Island, thus allowing any potential population density of 419 tourism developments. inhabitants/km². Considering that visitors look for pristine and untouched beaches in Jerowaru, and that the Pink Beach area is a protected forest area, population density may want to be maintained at a similar level. • Kecamatan Sembalun, which is one of the two major entrances to Mount Rinjani, has the lowest population density with only 92 inhabitants/km². This may want to be maintained to preserve the environment surrounding Mount Rinjani.

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Economic • Lombok Timur has the highest GRDP • Lombok Timur’s economy has been compared to the other cities/regencies growing at an annual rate of 5.8% in Lombok Island, mostly supported by between 2010 and 2017; lower than the the Agricultural, Fishery, and Forestry Lombok Region average of 6.4%. industry (28%). • Lombok Timur’s Accommodation and • Due to the high GRDP, Lombok Timur F&B Services industry only contributes has the highest GRDP per capita 1% to the overall GRDP. This shows how amongst all the cities/regencies in the regency’s tourism industry not yet Lombok with IDR 66.4 million per well established. annum. • The Accommodation and F&B Services industry in Lombok Timur has the lowest LQ value compared to the same industry in the other cities/regencies in Lombok. With an LQ value of 0.5, it indicates that there is no significant concentration of tourism activities in Lombok Timur relative to NTB Province.

Socio-Economic • Educational facilities are completed • The average expenditure per capita is from primary school to university. the lowest (IDR 665,910) compared to other regencies in study area. • The workforce population in this region is highest compared to other • The Open Unemployment Rate is higher regions in study area, abour 560,935 (3.64%) than the provincial level people or 23.41% of the total (3.32%). workforce in NTB Province. • Lombok Timur has the highest • Regional Minumum Wage is lowest contribution on migrant workers about than other cities/regencies in study 44.03% of the total migrants in NTB area, about IDR 1,691,678. Province. • In Lombok Timur there are indigenous • There is no public awareness of the people who still uphold Sasak culture cultural potential they have. and customs, namely in the village of Sembalun located on the slopes of Mount Rinjani. In Kecamatan Jerowaru also has the same potential, but its development as a tourist destination has not been done as in Sembalun.

Tourism Pattern • Foreign visitation has been growing in • Domestic visitation peaked in 2015 with recent years – at a staggering 41% 9,400 visitors, and experienced rapid annual growth rate between 2014 and decline in the subsequent years. 2017.

Tourism Facilities • The average length of stay for guests • The absence of the development of in the district is 3-4 days; international accommodation infrastructure around guests often stay longer in comparison Mount Rinjani and its surroudings is to local travelers, often for more than a attributed to the steeper elevation, lack week. of accessibility and high seismic activity. • There has been relatively insignificant • There is only one star-rated hotel in damage to infrastructure and buildings Kabupaten Lombok Timur, namely in Jerowaru as compared to Lombok’s Jeeva Beloan which located in north, average occupany figures have Kecamatan Jerowaru. seen a significant drop; while regular off-season occupany rates range from • As a result, hotels in the district have 40%-50%, occupany rates in lowered their nightly rates by 25%-30% Jerowaru have dropped to 20% after to increase occupancy level. This is the August 2018 earthquakes. attributed to the decreased perception of safety by both local and international travelers, together with travel warnings issued by foreign governments.

Local Businesses and • Customers of warungs in Pink Beach • Businesses – as well as residents – in Skills are almost exclusively tourists, and Jerowaru still have to buy their clean mostly foreign ones. water due to a lack of pipe-water infrastructure, which accounts for a significant share of their costs.

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