CHAPTER 1 INTRODUCTION A. The Initial Idea Tourism according to Weaver and Lawton (2010: 2): The sum of the processes, activities, and outcomes arising from the relationships and the interactions among tourists, tourism suppliers, host governments, host communities, and surrounding environments that are involved in the attracting, transporting, hosting and management of tourists and other visitors. According to Weaver and Lawton (2010: 2), tourism is the conclusion of every interactions between tourists, suppliers, government and residents of the host country, and the environment of the host country that possess a role on the effort of entertaining every visitors of the host country. Tourism industry is developing in accordance to the demand of the consumers, which is still increasing until now. Tourism industry is divided into many divisions such as accommodation, food and beverage, transport and storage, cultural and recreational services, and etc. Abraham Maslow’s hierarchy of needs according to Robbins and Judge (2013: 237): Hypothesized that within every human being, there exists a hierarchy of five needs, which are physiological needs, safety needs, social needs, esteem needs, and self-actualization needs. According to Robbins and Judge (2013: 237), every human possess five needs which is bodily needs, physical and emotional safety needs, social relationship needs, internal and external state needs, and self development needs. Every human have to fulfill their needs such as hunger, shelter, protection, belongingness, recognition, self-fulfillment, and etc. By fulfilling these needs, a human will have a decent life. Maybe 1 it will be difficult for a human to fulfill all of the needs, but more needs fulfilled will bring more satisfaction for the human. Tourism industry has the ability to fulfill all of the needs, physiological needs can be fulfilled because foods, drinks and accommodation are considered as products of tourism industry. Safety needs such as employment can also be fulfilled because tourism industry require a lot of employees. For social needs, esteem needs and self-actualization needs that require an interaction between individuals in order to be fulfilled, tourism industry may also contribute by providing a place for people to interact such as restaurant and bar. TABLE 1 Value of GDP, Rate and Source of Economic Growth in Indonesia, 2012 Source: BPS - Statistics of DKI Jakarta (2013) The statistic above shows that the income of tourism industry in Indonesia is increasing since the year of 2010 until 2012. From all of the industry, tourism industry rate of economic growth is on the second place 2 right after transportation and communication industry. Those statements show that tourism industry is developing in these recent years. It is a fact that tourism industry is making a good progress, and it is a good opportunity for business. TABLE 2 Area, Population, Population Density and Sex Ratio of North Jakarta, 2012 Penduduk / Population Luas Kepadatan Rasio Jenis Kecamatan No. Area Penduduk Kelamin District Laki-laki Perempuan Jumlah (Km2) Male Female Total Density Sex Ratio 1 Penjaringan 45,4057 150.245 139.683 289.928 6.385,28 107,56 2 Pademangan 11,9187 84.406 78.185 162.591 13.641,67 107,96 3 Tanjung Priok 22,5174 206.132 193.546 399.678 17.749,74 106,50 4 Koja 12,2544 163.686 151.263 314.949 25.700,89 108,21 5 Kelapa Gading 14,8670 63.129 63.238 126.367 8.499,83 99,83 6 Cilincing 39,6996 201.920 193.046 394.966 9.948,87 104,60 Jakarta Utara 146,6628 869.518 818.961 1.688.479 11.512,66 106,17 2011 146,6628 888.004 829.505 1.717.509 11.711 107,05 2010 146,6628 777.771 645.840 1.423.611 9.707 120,43 2009 146,6628 613.638 588.345 1.201.983 8.196 104,30 Source: Jakarta Utara in Figures (2013: 39) The population of people reside in the area of North Jakarta is having a significant increase every year since 2009 until 2011. Big number of resident in an area shows a good opportunity of business, because it can be assumed that this area possess a lot of potential customer. Penjaringan may not possess big number of population, but this area is very accessible and famous as a place for people to find leisure and to have fun, people from the area around North Jakarta reach this location easily and regularly. Therefore opening business in Penjaringan is a good opportunity for a fast breakeven point, big income, and long business life. 3 TABLE 3 Population of North Jakarta According to the Religious Affiliation, 2010 No. Religion Number of Population 1. Islam 1.311.198 2. Christian 154.303 3. Catholic 67.537 4. Hindu 4.838 5. Buddha 103.919 6. Taoism 1.292 7. Others 296 8. Not Answered 63 9. Not Asked 2.213 TOTAL 1.645.659 Source: BPS - Statistics of DKI Jakarta (2013) Based on the table above, it can be seen that the majority of people who live in North Jakarta are muslims who are strictly prohibited to consume alcoholic beverages. However there are still 332.185 people of other religion who are able to consume alcoholic beverages, and 2.276 people who have the potential to do so. It may only be 25% of the muslim people, but that number alone is high enough because HOGSBARREL’s seating capacity is 102 seats with maximum consumer per year is 260.610. Therefore the number of people who reside in North Jakarta alone is even higher than the number of consumer that can be obtained per year, regardless the potential consumers who reside at other area beside North Jakarta, and that means this business has a good chance of success. 4 TABLE 4 Number of Industrial Tourism Based on District in North Jakarta, 2012 Kecamatan Rumah Makan & Kantin Bar Bakery Jumlah Total District Restaurant & Canteen Bar Bakery Penjaringan 133 14 10 157 Pademangan 30 - 3 33 Tanjung Priok 61 5 3 69 Koja 21 - - 21 Kelapa Gading 275 35 26 336 Cilincing 2 - - 2 Source: Jakarta Utara in Figures (2013: 270) In Penjaringan district, there are not that many bar. The number of bar is the highest after Kelapa Gading district, which is still part of North Jakarta but located far away from the other area of North Jakarta. But Penjaringan district is located very close with other part of North Jakarta like Pluit and Muara Karang, and the access is good enough. The statistic above shows that not many people run the bar business in Penjaringan district, it means that there will be less competition between bars around this area. TABLE 5 National Average Consumer Price Index for Beverages of 2013 Month No Commodity Average Jan May Sept Dec 1 Juice 7.725 7.797 7.892 8.222 7.898 2 Coffee 32.099 32.323 32.486 31.921 32.388 3 Softdrink 3.781 3.846 3.927 3.981 3.880 4 Syrup 12.414 12.476 12.637 13.256 12.602 5 Tea 4.151 4.224 4.339 4.389 4.274 6 Beer 19.095 19.267 19.629 19.755 19.401 Source: National Consumer Price of Selected Goods and Services (2013: 5) From the table above it can be seen that the price of beer is increasing throughout the year of 2013 along with other beverages. The price that has to be paid by consumers for the purchase of beer is increasing, 5 it can be caused by many factors such as inflation, low power of supply which is unable to balance the high number of demand from the market. TABLE 6 Proportion of Alcohol Beverage Types Consumed by Male Population 15+ Years in 2007 Alcohol Beverage Types Province Total Beer Liquor Wine Trad DKI Jakarta 37,9 10,8 41,4 9,9 100,0 Source: Suhardi (2011: 159) According to the table above, beer is the second most popular type of alcohol beverage after wine, that is consumed by male population which is older than 15 years old. Alcohol beverage is the main product of a bar, therefore establishing a bar with beer as the main product shows a good promise of success and good opportunity in earning profit. Benefit of owning a beer bar according to Shelton (2009: 8): Another benefit to owning a beer bar or beerpub is that men and younger adults drink beer more often than any other alcoholic beverage, which cantranslate into a profitable business for you. HOGSBARREL is a business with the concept of beer bar that is located in the area of Pantai Indah Kapuk at Penjaringan District. The target market of HOGSBARREL are men and younger adults that are looking for a perfect place for them to enjoy beer. The business plan of HOGSBARREL is created from the fact that beer is very popular among young and middle-aged people, which means the market demanded a place where they can enjoy the beer while having a good conversation with friends on their free time. There are three options for people who are looking for a place where they can enjoy their beer in Pantai Indah Kapuk. The first option is going to a restaurant that has beer as one of their product, but usually the price is relatively high and the option is very 6 limited. The second option is going to a small scale club that also has beer as one of their product, but the place is very noisy with the big scale sound system that makes it hard to have a conversation, and the price of beer is normal.