Responsibility of stakeholdcrs in Minimizing Leakage of Tourism Industry (A Case of Accommodation in Balir lndonesia).

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lnternEtionsl (snferen(e

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Tourissn

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DAFTARISII

HALAMAN

JI]DI]L

KATA

PENGANTAR

SUSIINAI\ ACARA

DAFTARISI

Michel

Picard

Blinese

ldentity:

from Kebalian

to

Aieg

BaIi

I

lll

1-3

,l-5

Vdronique Mondou andNi

Made

Rai Erawati

Changes in

Air

Travel

in

Southeas

Asia:the Emergence

Glr

t2-16

t7-26

27-34

3$41

53-60

42-52

of Low-Cosf

tridias-Sylvine Pickel-Chevalier

and Asep Parantika

Bati,

in

The Confluence of The Domestic and Western

Tourism

Spaces

and Tourst Practices Shared?

Philippe

Violier

The

Tount

SPace

in Indonesia

I

Gede Made

Karma

The Integrated Resenation

Information

systems

of

Travel

AgencY

ComPanY-I

Ketut

Gde

Juli

Suarbawaand

M.

Yusuf

Gambelan

as

cultural

Products

in support

Tourism

Industrl

in Bali

M.

Yusuf

and Made

Anom

Santiana

Health

and Safety

Aspects

on

Agritourism in

Indonesia

Gst.

Ayu Vida Mastrika Giri, Kadek

Cahya

Dewi,

and

Ni

G.A.P. Harry

SaPtarini

Music Reccomendation

Based

On Rhythm Pattern

Using Self Organizing

Map for

Music

Selections

in

Restauranfs

A.A.Harmini,

Ni

Nyoman Triyuni,

and

I.A'K'Werdika

Damayanti

Enclaved

Tourism:

An Accurate

Alternative in

Tonrism

Management (Study

At

Nusa Lembongan,

Klungkung

Regency,

Bali Province)

Kristinayanti,

lY.S.'

Mahaputr*,

G.'

Sudiajene'

L'

ang Ardika"

D'

fyp":.."tpttoiory

of Archifecture Regarding

Tourism Development

#;"gy

in

sdiEhd -..-

61-7t

Lilik

Sudiajeng

Made

Mudhin4 Wayan

Suparta' and

Ma{g

Sudiarsa

Integrated-Ma"agement of Tuksd Badung

to Develop

Flood

CoJttof

System

and

Tourist

Destination through

Macro

Ergonomics SHIP APProach

72-79

8{t-86

vt-93

94-103

10+112

1r3-119

120-r30

131-137

138-r48

149-l5l

I

Gst

Agung Istri

Mas

Pertiwi, I

Gst' Lanang Made

Parwita'

I

Gst

Ayu

P-utu

Dewi

Paramita,

and I

Made Tapayasa

Technical Study of The

Penet

River Utilization

for Water

I

Ketut Sutama,I Ketut

Sardiana and

I

Gede Mudana

Spiritual

Tourismin Bali: How

lt's

Understood and Practised by

Tourism

Activities--Nyoman MastianiNadra, I Ketut

Sadia,

and Solihin

Ciim"

And Security

Systems

AtVilla

Indnstries

In

Badung

Regency,

Bali

-.-.._-I

Putu Astawa

and I

WaYan

Wirga

Ubud

Gets

The Customers

an

Ethnomethodolog5r

Approach

Tourism

Stakeholders

Ni

Nyoman

Triyrni,

I Wayan

Jendra and

Ni Ketut

Bagiastuti

The

rt.eadincss of

Bali

as

Spiritual

Tourism Destination

I

Gusti

Made

Wendri,

Ni

Putu Somawati and I

Nyoman

Kanca

Gunung Kawi,

Tirta

Empul, and Goa

9?jttt

Temple

ComplJxes

as

Potential

Attractions for

New-Ager Spiritual

Tourism

I Ketut Widana

and

Ni

Wayan Sadiyani

Contribution

of

Transitllotel

to the Improvement

of

Bali

Tourism

Kt.

Wiwin

Andayani, I

Wayan

Aryaand

Lilik

Sudialeng

The Impact

Of Tourism On Ground

Water

Levels

MichelPicard

Cultural

Tourism

and

Touristic

Culture Revisited

Sylvine Pickel Chevalierand

Asep Parantika

Th"

Iodoo"sian TouristPractices

of

The Beach'

Befween

Transfer

an

Invention

(Case

Study of

The Beach of

Bali'

Yogyakarta, Jakarta

and

Manado)

---xvlii Proceeding Tourism in lndonesia

I Nyoman Darma Putra

Localizing the Global and Globalizing the

Local: opportunities

and Challenges

in Bali

Island Tourism

l)evelopmelf

--I

Nyoman

Sunarta

Local

Community

Participation in

The Development

of

Ecological

Tourism

in West Bali National

Park

I Komang

Gde Bendesa

Turmoil

Beneath The Surface: The Economic

Side

of

tsGr64

t6rl72

173-180 180-188 189-203

2A+2$

2tL2l9

220-239

240-248

Bali Tourism

I

Gede Sutarya

Astrology

Tourism: From

Commodification to

A

Local

Cultural

APPreciation

--.._.-.

-

--

----Jaya Pramono

IssuesrProcess, and Benefits of Environmental management

at The Star Rated Hotel in

Bali

NararyaNarottamu

t

Spiriiual Tourism:

Case

Study of Foreigners

Participation

in the

Pitrayajfia Ceremony in Pekraman Muncan Village, Selat'

Karangasem,

Bali

Agung

Suryawan

Wiranatha and I

Gusti

Ayu Oka

Suryawardani

Responsibility of stakeholdcrs

in Minimizing

Leakage of

Tourism

Industry

(A

Case

of Accommodation in Balir lndonesia)

Putu Dana Pariawan Salain

and

I

Putu

EkaNila.

Kencana

The Relationship Between

Tourist's

Perception and Quality

of

Destination

(Case

Study in Sanur, Bali)

I

Gusti

Bagus

Rai

Utama and

Ni

Made EkaMahadewi

The

Contradiction

of Managing Tourism Objects

Based

on

Culture

and Its Heritage

Ni

Gusti

Ayu Dewi

Paramita

Arisandi

The Power of

film in

Creating

a

Positive Destination Image

to

Induce

the

Influx

of

tourist

I

Nyoman Madiun

Hotel

School Students

as

Consultants: (An Approach to

Training in

Small

llotels

which may

be

Applied in Bali)

I

Wayan Suardana

Evaluation of Sustainable Development

of

Tourism in

Bali

---249-254

25s-259

260-272

I

Nyoman

Sudiarta, I

Nyoman Astina

I

Made Patera and

I

Suardana

Cruise

Tourism:

Creating Job

Opportunity

for

The Balinese

People

Adrian Vickers

The Image

of

Ba

Wayan

273-281

282-285

28G291

Ni

Made

Ernawati

School

of

Business,

Edith

Cowan

University,

Western

Australia

Producer.marketorientationofcommunitybasedtourism(cBT)

products

for

sustainable tourism:

A

case

study in

Bali'

Indonesia

Harold Richins,

Ph.D. Dean and Professor' John

Hull'

Ph'D'

An

Evaluation

of

Pro-Poor Tourism

Case

Intewentions

in

Communities

in

Southeast

Asia: Developing

an

Adapted

Typology

Adrian Vickers

The Image

of

Indonesia Adrian Vickers

Sidhi Turker

Voluntourism

As

An

Alternative Tourism

In

Supporting

Sustainable Tourlsm Development

In

Bali

Ni

Luh

Putu

Agustini KartaA

Gusti Kade Sutawab,

I Ketut

Putra Suarthanac

Challengs

and

Barriers;

Community

Based

Tourism

In

Trunyan

Village,

Kintamani (A

Study on the Village of

Trunyan)---Saroha

Manullang

Tourist Appraiiat

On

Service

Quality Ngurah

Rai'

Bali

International

AirPort-Putu SaroyiniPiartrini,

Faculty

of

Economics and Business'

University of

UdaYana

Relationship Among

Individual

Religiosity, Motiv

atio

n'

Spi

ritu

al

Health Experiences And

Attitude Toward

Spiritual Tourism

Case

study

of

those who were involved

in

meditation and Yoga

class

----292-295

296-299

300-306

301-317 318-324

325-335

xx

ProceedingToarism in Indonesia

RaSPONSIBILITYoFSTAKEHOLDERSINMINIMIZING

LEAKAGE

OF

TOURISM

INDUSTRY

(A

Case

of Accommodation in

Bali,Indonesia)

Agung Suryawan Wiranatha",

I

Gusti Ayu Oka Suryawardanib aDoctorateProgtaminTourism,{JdryanaUnitersity,Denpasar-Indonesia

E-mail

:

bal itru\(Atahoo. com

bstudent at Doctorate Program in Toudsrtr, udayana university, Denpasar-Indonesia

E-mail : gungdani@gnail. com

STRACT

Tourism has become the leading economic sector

in Bali Prwince of

Indonesia However, the economic

i*locts

of rouriim have not been cotwinced to be

fully

beneficial

for

Balinese community.

one'of

the-reasons is tourism leakage that acanrs when the industry

i*porr,

both

prdtcts

and

services

to

support tourism industry

in

Bali'

This study was

undertaken to examine lourism stakeholders' rale

in

minimizing tourism leakage' and to

i"outop

strateg)

that

c;

be implemented by the stakeholders

in

minimizing the tourism

leakage in Bali,

p*ti"oiorty

ot uccommodation.sector- Interpretative Structural Modelling

iiMr' .^

uni"rtoken

ti

gain the

stakeholders'

perceptioq

meanwhile

survql

wos

'undirtaken

to collect information

ftom

hoteliers'

In general,

touris*

stakeholders are willing to participate in minimizing the tourism leakage

fi,

reducing the import components used in the accommodalion sectors, as long as

local prodttcts are ayailabte

to

suistitute the importgd ptoducX. There ure severul local

ir"i.,i"tt

can

be

used

to

substitute the imported products, mostly processed

foods

and

horticultural pro&rcts. Similar to the stakeholderS, lowists are also willing ta cowume local

;;;;"-;;;d*t"g

tieir

stay in Bal!.

lt

il.susse:ted that several important strategies that gan

'ii

i*pt"*"w"i

_by involving stakeholderi. The irwotvement of stakeholders in the strategic

pi""ii"S

pro"^i

through participatory apyroach gives better understanding au'oteness, 'and _{resf,insibility to}

*iiiii"n

_{towism leaiage} of accommodation sector in Bali'

Keywords

T o u r isttt, Le a knge, A c c ommo dsti on, S ts k eh ol d er' Putticipato ry' B

ali

l.INTRODUCTION

l6'84%in20l2

while the conhibution

of

service

sector (trade,

hotels,

and

1.1

Background

restaurants) have increased from

9.52%n

Bari

is

one

or

popurar

worrd

touris,

:fltll'itlf1,f,T.1L?;tY:Hllihti:

*iffffffijtr"$,a,:tH*"fi,";

handicraft industry,-etc.) has nuctuated

driving rorce

in

the economic

H','*"ifitr:r?'"i#;t"if

fii?ltfi:

development of Bali Province. As

Bali's

En"n

though

the

contribution

of

economy

has been

developed

mostly

agricultural sector has decreased,

it

still

through tourism,

it

has

resulted

in

his

a crucial role

in Bali's

economy, as

changing

in

economic sectors

of

Bali

_sowce

ofjobs

_{and income, raw materials}

Province

from

agricultural sector

to

for

industry,

and

foreign

exchange

service

sector-

The

contribution

of

*rningr,

aJ

und tourist athactions [3]

i?ffi:fbTf:f#'T:'.'":1""',*

andtai

Tourism

in

Bali

has been

developed

significantly.

The

number

of

direct

arrivals

of

foreign visitors

to

Bali

increased

dramatically

from

23,340

visitors

in

1970

to

reach

3.278.598

visitors in 2013

[5].

However, &erewere

several downturns

in

number

of

foreign visitors visiting Bali due to Bali bombings

on l2th

October 2002 and

in lst

October

2005. The

Bali

bombs had the greatest

impact on number

of

foreign visitors to

Bali

than other

crisis

in

the

history

of

tourism

in

Bali

t6l.

Efforts

were

undertaken

by the

gov€mm€nt

to

convince foreign visitors to

vhitBali

after the Bali bombing tragedy, it was resulted

in

gradual increases

of

foreign

visitor direct arrivals since year

2007.

During

the period of2007 up to 2013, the average

growth rate

of

direct arrivals

of

foreign

visitors to Bali was 14.9 % per year

[5].

As a world-class tourist destination, Bali

is supported by the availability ofvarious

tourism facilities within the rcgion- There

were

2,212

units

accommodation with

total of 46,025 rooms registered in Bali in

20 12. These included I 56 units star-rated

hotel (20,269 rooms), 1,031 units

ofNon

star-rated

hotels (21,114 rooms),

and

1,025

unit

homestays

(4,642

rooms).

However,

Bali

Hotel

and

Restaurant

Association (PHRI Bali) accounted 3,346

units accommodation (62;407 rooms) in

Bali in

2011, that was consisted

of

165

units

star-rated

hotel

(22,161 rooms),

I

,371 units

of

Non

star-rated hotels

(28,585 rooms).

1,760

unit

homestays

(9

,282

rooms),

|

5

condotels (l,793

roonrs)- and

i5

units rental house (586

rooms).

lt

could be more accommodation

available in Bali than the above numbers

as

many-

nrore

accommodations

unregistered or operate illegally in Bali in

year 20 |

3.

In addition. the average tourist expenditure and length

of

stay had also

increased.

The average expendifire

of

foreign

rourisr per

person

per

day

increased

from

IJSS 13790

in 2fi)9

to

tjSS I 58 87 in 201

I

The length

ofstayof

loreign tourist-s also extended from 8,75 da,vs

in

2009

to

9.27 days

in

20ll

[5].

Regarding

the

growth

of

number of

iourists. thc averase tourist expenditure,

and

ttre

length

of

stay,

it

seems that tourism in Bali

will

keep being promising

as

a

source

of

household income

for

Balinese inhabitanu, conffibute

to

the

national exchange rate as

well

as inrease the number

of

job oppornrnities.

Tourism stimulates development of other

sectors

which

has

implications

on

increasing business and job opportunities.

Income earned from visitors

will

become a source for local income. The amount

of

local income generated per unit

ofvisitor

expenditwe

will

become

multiplier for

regional's

economy

through

backrnard

and forward linkages

[7].

Even though

tourism brings about

development

for

Bali's economy for many yeani, hocrcver,

the

economic

impacts

of

tourism

development has not been convinced to be

fully

beneficial

for

Balinese communigr

[8]

and

[9].

One

ofthe

reasons could be

tourism

leakagc

that

occurs when the

industy

imports

both

consumption and

resources to support tourism industry in

Bali.

In

eonomic terms,

leakage is

defiped

as

losscs

from the

national

income

flow

which have been generated

during

the

tansition

from

the

local/national consumption income cycle

to

the

spending

chain

[0]

and

[ll].

Imports of consumption and resources to support tourism industry are the major a leakage that limits the positive impact

of

expenditure on a destination

[2].

In Bali,

tourism facilities

such as

big

accommodations

and

big

travel

agents

have been

mostly

owned

by

investors

from

outside

' Bali

(national

0r

intemational

investors). In

these cases,

tle

economic benefits of tourism is

likely

to

go

mainly outside

Bali or

other

countries,

with

a

small

proportion

trickling

down

to

the

local

Balinese

community

[8].

The

amount

of

import

leakage of intemational standard hotels in

Bali

was

estimated about 407o (based

upon Nusa Dua

hoject)

and the import

leakage of small oconomy standard hotels

was assumed about

20%

n

1977

ll3l.

Meanwhile. aresearch on tourism leakage

based

on micro

analysis

of

accommodation sector in

Bali

found that

tourism leakage of accommodation sector

in

Bali

in year 20l2werc 8.87o at nonstar

rated

hotJb,

l2-0Yn

at

1,2&3 star-rated

hotels, 22.7 % at 4&5 star-rated non-chain

hotels, and 5 1 .0% ?t 4&5 star-rated chain

hotels. The average leakage

ofall

types

of

hotels was I 8.8%'hnpublished" [14]'

1.2

Research Objective

The

amount

of

tourism

leakage from

accommodation

sector

in Bali

is

considerably

higlr particularly

at

4&5

star-rated

hotels.

Regarding the above

issues, there is a need to undertake any

effo*s

to

reduce

tourism

leakage

of

accommodation

in

Bali

therefore

the

economic benefits of tourism in Bali can

be

gained

oPtimallY

bY

Balinese

community' This study was undertaken to

examine

ihe

responsibility

of

tourism

stakeholders .

in

minimizing

tourism

leakage, and to develop stratery that c1n

be

implemented

by the

stakeholders

in

minimizing the tourism leakage

in

Bali,

particularly

on

accornmodation sector'

This study involved obtaining perceptions and points

ofview

of hoteliers on how to

minimize tourism leakage. The results

of

this research are expected to be useful and

give

better

understanding, awareness'

iesponsibility

and

gaining

positive

."rponr"t from

government

and

stakeholders

to

imProve

economlc

impacts

of

tourism

in

order

to

achieve sustainable tourism in

Bali-2.

LITERATURE REVIEW

2.1

Minimizing

Leakage

for

Optimizing

Benefits

Leakage

is

one

causes

of

unbalanced

."ono*i"

distributions

and

limit

the

positive impacts of tourists' expenditures

on

a

destination

[15].

According

to

UNEP, there are

two

main waYs

of

leakage, namelY

imPort leakage

and

export

leakage.

Import

leakage occws^

when

tourists demand standards of

equipment.

food. and

other

products

cannot be supplied

by

the host country,

especially

in

less-developed countrtes'

218 Proceeding Tourism in trndonesia

Much

of

the

income

&om

tourist

expenditures leaves the country

ag{n

t9 pay for these

imporb.

On the other hand,

ixport

leakage

arises when

overseas

investors

who

finance

the

resorts and

hotels

take their profits back

to

their

counfry

of

origin [16]-

Furthernore'

causes

of

leakage are namely:

(i)

import goods and services

for

consumption or

Lvestment

in

tourism;

(ii)

payments

for

foreign tour operators and agencies;

(iii)

payment

to

foreigrers

for

management

"ror""t

and royalties;

(iv)

profits which

are paid

to

foreign

stakeholders; (v)

interist

paid for

external credits

in

the

tourism

lector;

(vi)

exchange costs for

tourism investnent;

(vii)

advertising in international marketing

and

promotion

expenditures;

(viii)

commissions paid to

foieign banks, credit cards and for agency used by tourists;

(ix)

savings

of

foreign

employees;

(x)

education abroad and uaining costs of tourism employees;

(xi)

saving-'of

employers, employees, and

entrepreneurs;

and

(xii)

taxes

paid

to

govemment.

[l?]-

There

are

also

Iituitibl"'

_{leakages, such as} the physical

effects

of

towism,

the

dePletion or

destruction

of

a country's in&astucture'

nahrral

habitats, environments

and

historical as well as cultural heritage have

a leakage effect on tourism receipts [18]'

The average import-related leakage for most developing countries was befween 40% and 50% ofgross tourism earnings

for

small economies, and benrreen l07o

and

20%

for

most

advanced

and

diversified economies

[16]'

Meanwhile,

UN\I/TO

estimated

that on

average

of

55% ofgross tourism revenue received by

developing countries leaks

out' but

in

some cases, leakage has reached as high

as 90Vo I I

9].

Leakage tends to be hig[est

when

the local

destination economy is weak and lack of the quantity and quality of inputs required by the tourism industry

t20].

The

amount

of

leakage depends

largely on how the tourist receipts are

re-spent

within

the

economy'

The

more

riceipts

re-spent

within

the

local

""ooooty, so

the case

of

developing countries at their

initial

stage

of

tourism

development,

financial,

struchrral

and

operational

supports

from

foreign

countries

are

importanL Therefore, tourism leakage is thus unavoidable

I

l].

Reduce leakage

is

important

in

order to

increase economic benefits of tourism in

a

destination.

To

optimize

economic

benefits

of

tourism, leakage should be

minimized

[21].

Leakage

can

be

minimized

by

developing stronger links

between tourism and ottrer sectors in the

local economy.

Moreover, govemment

policy

needs

to

concentrate

on

strengthening

the

economic

linkages

between tourism

and

agriculhre

to

support import substitution

[20].

A study

by Lacher and Nepal found that by using precise sfategy based on the authenticity

of a

destination,

therefore

economic

leakage

can

be

reduced,

improve

economic

development,

balance

distribution

in

all

sectors and improve

community participation

in

tourism

development

I22l.ln

addition,

it

should

be focused in usingmore local employees

to

reduce

leakage.

Even thouglr

the

capability

of

local

employees

in

developing countries are generally low in

terms of education, work experiences and

the ability

in

communicate, therefore,

tourism industry use educated employees

for special position in management [23].

2.2

Stakeholders'

Participation

Stakeholder is defined as "Any group or

individual who can afect or is afected by

the

achievemenl

of

the

organization's

objectives"

124f.

Stakeholders

can

be

individual, groups or organizations which

influence decision making

processes,

develop

strategies

to

facilitate

the

implementation of the results of decision,

to

understand

the

policy

context

and assess

th€ feasibiliry

of

furure

policy

directions [25J.

Regarding

t]re

above

definition- stakeholders ilr tourism consist

of

tourists- government.

community,

owners

of

tlre

accommodations or

services in tourisnr industries. association

in

tourism

industries

and experts who

have

experiences

in

development

of

tourism

[24].

Thc

above

defmition

presents a very broad rmderstanding

of

a stakeholders and

it

allows almost anyone

to be considered a stakeholders [26] and

[2?]. Narrowing the above definition has been made

by

Clar*son

by

stating that

stakeholders are risk-bearers, "without the

element

of

risk there

is no stake".

He

devided stakeholden

into two

groups, namely: (i) primary stakeholders, who are essential to ttre survival and wellbeing

of

the organization and who have or claim

ownership

rights

or

interests

in

a

corporation and

its

activities, either

for

present

or

future; and

(ii)

secondary stakeholden, with whom the organization

interacts

but

are

not

involve

in

lhe

transaction with organisation and who are

not

essential

to

the

suruival

of

fte

organization [28].

3. RESEARCH

METHODS

3.1

Research

Location' Period

and Respondent

This study involved two types ofresearch, nainely research in gaining points

ofview

ofhotel managers on tourism leakage, and

research

on

gaining

the

stakeholden'

points

of

view on

responsibility

of

stakeholden

in

minimizing

tourism

leakage. The research in gaining points

of

view

of

hotel

managers

on

tourism leakage

was

undertaken

at

four

main tourism destinations in Bali Province, i.e.

Kuta, Nusa Dua, Sanur and Ubud during

period

of

April

to

June

2013.

Three clusters ofhotels were chosen, namely:

(i)

Non-star rated hotels;

(ii)

1,2&3

Star-rated hotels; and

(iii)

4&5

Star-rated

hotels.

Seventy nine

of

hotel managers were interviewed regarding their points

of

view on imported and local producb used

in their hotel. They represented

of

l8%

of

all

hotels

in

these area. Meanwhile, the

research

on

gaining

the

stakeholders'

points

of

view on

responsibility of

stakeholders

in

minimizing

tourism

leakage was undertaken by interviewing 9

experts

dwing period

of

Sepember to

October

2013.

Experts

were

selected

purposively who understand the strategt

been done, however, many things need to

be addressed --.". Demand for local fruits

has increased not

only to

fulfill

demand

for

tourists, but also for making offering

by

Balinese

community.

In

other hand, there was insufficient supply tc

fuifill

the

demand. So that, imported fruits cannot

be avoided. He realized that to minimize

leakage,

cooperation

between

government, industry

and

farmer

is

crucially

needed (Personal

Communication, 4th

April

20

l3).

Sweral

efforts have been

undertaken

bY

government

of

Bali

province

to

protect

and develop local

products especially

local

fruits.

Empowerment

of

local

products has been undertaken

by

Bali

government through "Regulation of

Bali

Government

No.

312012

regarding

Empowermenl

Protection

and

Development

of

Small-scale Industry". Ketut Wija, one of key Bali Government's

offrcials said that this regulation requires

involvement oftourism industy and other related

industy to

give chance

for

local producls to be promoted to and served

for

tourists. It was realised that the quality

of

local

products was lower than imported

products. So that, some efforts have been

undertaken

to

improve

the

quantity,

quality and continuity

of

local products.

He

also revealed

that local

comrnunity

should participate

in

developing

fruit

farms

in

Bali

that can

produce fruits

similar

to

imported

fruits [45].

The

tourism

sector

could

also

be

enhanced

through stronger linkages

with

regional

handicraft

producers

and

artisans.

Building

synergies

with

such producers

could enable them to become significant

suppliers of interior desigl elements, such

as

handicrafu, paintings,

and

other

furniture. This

will

be

able

to

reduce leakage significantly [aa] and [a6].

4.2 Results of Interpretative

Structural

Modelling (ISM)

As mentioned in the research method tlrat

minimization

of

tourism leakage

in

accommodation sector in Bali consists

of

six elements, namely:

(l)

Program Goals,

(2) Program Needs, (3) Atrected Sectors,

(4)

Program Constraints,

(5)

Possible

Changes

in

the

prosaln, and

(6)

Involvement

of

Agencies

in

the poliry.

Each

element consists

of

sub-element

which has contexhral relationships among

each

other

in

accordance

to

the

minimization sfiatery for tourism leakage

in accommodation sector in

Bali.

In this

par!

among

the

above

elements, an

example ofthe results of ISM is presented

for'?rogram

Needs".

Element

of

Program

Needs

for

minimization

of

tornism

leakage from

accommodation sector in Bali consists

of

I 0 sub-elements, namelSl:

l.

Qualifiedhumanresources

(El)

2.

Good management

in

agribusiness,

livestoclg fisheries

and

handicraft

industry (E2)

3.

Participation

of

farmers, cattlemen, fishermen and craflsmen

(83)

4.

Qualrty, quantigr, continuity of local

products

(S4)

5.

Substihr0e

products (85)

6.

Good quality of seed, livestock and

.

rawmaterials

@Q

7.

Funding for _{invesfrnent @7)}

8.

Business Partnership

(88)

9-

Government's

role

_@9)

10.

Coordination between stakeholders

(810)

Analysis

of

the contextual relationships

among

the

sub-elements

of

Program

Needs

by

using

ISM

method resulted in reachability

maffix (RM) as

shown in

table

2.

Based on the RM in table 2, the

key

sub-element

of

Program Needs

for

minimization

of

tourism leakage

is

Government's

role

@9).

According to

Driver Power @P) and Dependence (D), this sub-element Government's role (E9)

is

located

at the

fourttr

mne

(Independent),

and other

three

sub-elements, namely: Good quality of seed,

livestock andraw materials @6); Quality,

quantity, continuity

of

local

products

@4); and

Substitute products

@5)

are

located at the second zone (Dependent),

as shown in figure

l.

However, there are

6 other sub-elements located at the third

zone (Linkagel namely: Qualified human

resources

(El);

Good

management in agribusiness,

livestoclg fisheries

and

for

minimization

of

tourism leakage on

accommodation

sector

in

Bali.

The

experts were representatives

of

tourism

stakeholders

in

Bali,

namelY:

Bali

Tourism Government official

(l),

tourism industry (3), communlty

(l),

professional (2), and academia (2).

3.2

Dat'a AnalYsis

Qualitative analysis

was

carried

out

rigarding

gaining points

of

view of

hotel's managers on reasons

in

choosing

imported produc8, points ofview on local

ptoducts,

as

well

as

willingness

the

irotel's

managers

in

reducing imported products and giving the

priority

on local

products.

Meanwhile,

Interpretative

Structural Modeling

(ISM)

was

undertaken

to

analyse responsibility

of

stakeholders

in

minimizing

tourism

leakage. ISM is

an interactive learning

process

which

involving

inter-Initial

process begins

with

assessment

of

contextual relationship between each sub

element

on

each element through brain

storming procels

with the experts.

In conducting

ISM

research, experts gave

their

opinion regarding

the

level

of

contextual relationship between

sub-elements

by

filling

matrix

of

the

contextual relationship

with

the alphabet

as

follow: V, A,

X

or

O.

The following

four

symbols

are used

to

denote the

relationship between variables through

the use

of

experts' ideag

opinion

and

experience

based

on

brain

storming

management techniques in developing the

contextual relationstrip

among

the

variables.

For this

pu{pose,

experts

should

be well

conversant

with

the

problem under consideration

[29]-

In this research,

six

elements

were used

to

develop

strtegy

in

minimization

of

tourism

leakage

in

accommodation in

Bali. The six elements are as

follow: (i)

Program goals

(G),

(ii)

Program needs

(|0,

(iir)

Affected community

(T)'

(iv)

Program

constains

(C)' (v)

Possible

changes

in

the prognm

(M),

and (vi)

Involvement of agencies in the policy

(A)'

Each element consists

of

sub-elements

which

has contextual relationship each

other

in

accordance

with

minimization

program

for

tourism

leakage

in

accommodation sector

in

Bali

(refer to table

l).

Table

I:

Elements and contextual relalionship between elements in minimaing lourism leakageon accommodation seclor in

Bali

ij =

t,2,3...

(ii

s

lo)

Source: modified from [30].

direction

of

relationship

beween

rwo

factors

(i

and

j).

Each alphabet has meaning as outlined below:

V

for

the relation

from factor

i

to

factor

j

(factor i

will

influence factor

i)

A

for

the relation

from

factor

j

ir>

factor i (factor i

will

be influenced

b-v-factor

j).

X for both direction relations (factors

iand

j

will

influence each other)

Elements Contextual RelationshiP

l.

Program goals (Gi) Gi contribute in achieving

Q

2.

Program needs (Nr) Ni

supports\

3.

Affected sectors (T;) Ti its role influenccs T.;

4.

Program constrains (Ci) Ci causes Cj

5.

Possible changes in the program

(Mi)

M1 results in

Mj

6.

lnvolvement of agencies in policy

(Ai)

Ai its role supPorts A; [image:11.597.86.466.393.557.2]

0

for no relation between the factors

(baniem i andj are unrelated). Based on the contextual relationships, the

SSIM (Stuctural Self-Interaction Matrix)

was developed [29] and

[31].

Computer

program

"Ever Vision

Software, dDSS

Ver.

1.0.01, developed

by

Roni Wijaya

was used in analysing the ISM model. 4. RESULTS AND DISCUSSION

4.1

Points of

View

of

llotel

Managers

and Willingness

in

Reducing Tourism Leakage

The

results show

that

most

of

hotel

managers from star-rated chain hotels said

that

imported

food

and beverages have

higher quality

than local food

and beverages, such as imported meat, dairy products and alcoholic beverages. They

also

firmly

explained that star-rated chain hotels need high quality of imported food,

alcoholic

beverages, utensils and other equipment

in

order

to

fulfill

the quality standard

of

chain

hotels.

Hov/ever,

foreign

tourists

significant$

looked

for

local

of

Balinese producB,

namely:

fisheries

products, "

fruits,

vegetables,

room decoration, furniture, building style,

and Balinese architecture'tnpublished"

[32].

Points

ofview

ofhotel managers on the importance of imported products have

not

met

the

tourists' need

on

tocal

products. The managertendsto behave by giving too much respect to the quality

of

imported products

in

comparison

to

the

local products- Therefore, they prefer to

serye

imported products

to

foreign

tourists. This

incorrect perception and

attitude

of

hotels'

managers toward

tourists' need lead

to

incorrect decision

and

actions.

Such behavior

of

hotel

managers brought about dependence on

imported products

to

fulfill

tourists'

demand.

This

led

to

increase tourism

leakage

in

Bali.

Regarding different perception between hotel managers and

foreign tourist who visited Bali, there is a

need

to

encourage

hotel

managers to

change

their

perception and attitude in order to change their behavior, especially

for them who work in the Star-rated chain

hotels. Perception and attitude influence people's _{behavior [33], [34]} and [35]. Tlrc results suggest that accommodation managers should change

their

habits in

order

to

reduce current tourism leakage

from accommodation sector, eventhough, a slight different point of view was given

by non-star rated hotels, because non-star

rated

hotels

used

very

little

imported products. Regarding

point

of

views

of

hotel

manag€rs

in

reducing

tourism leakage,

most

of

hotel

managers are

willing

to

reduce

the

use

of

imported products and

give the priority

to

local

products

as

long

as

there

are

local products and/or substitute

for

imported

products

that

can

fulfill

the

qualtty standard

requirements.

However, the recent situation in Bali shows that supply

of

most local

foods

do not

fulfill

the

quallty standard requirement in terms

of

quality,

quantity and

continuity

of

the products. Although tourism leakage could

not

be

avoided, however

it

could

be

reduced

or

minimized.

Thcre

is

opportunity

in

reducing tourism leakage

thr6ugh reducing

the use

of

imported

products. The government policy should

enoourage

the

development

of

befier

qualrty of agricultural products, inctuding

fruits, livestock and wines

in

Bali. Some

firnding techniques should be proposed to

assist local producers.

Furthermore,

the

reasons

for

tourism

leakage

in

surrounding

tourism destinations are

multifaceted.

Some

of

the

main reasons are

the lack

of

local

ownership, local employment, and local capital, as well as inability to link tourism

to the local economy. Local ownership is

crucial to be developed as the owners

of

major tourism businesses. This

will

keep a majority ofthe profits in the destination

region. In addition, tourism leakage can be reduce by employing more locals and

buying more locally produced goods as

well

as creating strong linkages

to

local

industries

[36],

I37l

and

1381.

Unfornrnately,

local

entrepreneurs

frequently lack

of

capital, education and

experience

[39].

As a

result,

foreign

investors

will

dominate the owner of large

tourism firms, therefore profits are kept

by

the

outsiders

who own the

firms-Management and marketing may also be

a

major problem

for

local ownership as

local entrepreneurs typically do nothave

the

experience

or

education

to

market products to foreigners, and their ability to

educate themselves is often limited [40].

Local employment

will

also have a strong

effect on reducing tourism leakage [23].

However,

local

residents

are

often not

ideally suited for the jobs as they lack

of

proper

education, exPeriences

and

ianguage

skills.

Therefore, large chain

firms

frequently import more

skilled

labour

from

urban

areas

to

fill

these

positions

[41]

and [a2]. Many

studies

found that the majority

of

locals worked

as unskilled labour and

earned fewer

wage,

while

expatriates we re employed

in management positions and eamedvery

high wages [37].

Another important

aspect

in

reducing

leakage

is

linkages ..between tourism

industry

and local

economy. Tourist

destinations

that

do

not

promote high multipliers and high levcl of linkages

will

not

produce

substantial

economic

development. So that, linkages between

tourism industry and local economy are

very important which lead to increase the

multiplier effects

IS],

[43] and

[44].

It is

crucial

to

increase the amount

of

locally

produced goods

which

can

increase

multiplier

effect-

To

maximize

the

economic impact

of

tourism,

it

is

suggested that region should attempt to

increase

the

amount

of

connections

between

tourism and local

businesses rather than depend on imported goods and

services

[9].

Bagus Sudibya as one

of

the representatives of tourism

indusfy

in

Bali

supported the finding

of

the above

statement.

He

revealed

that

synergy

between tourism and

agriculture

is

crucially needed to keep tourism in Bali

sustained. He said:

"

... Tourism and agriculture cannot be

separated. It relates each other. Tourism

without

agriculture

will

be

paralyzed,

whereas agriculture without tourism

will

die

.."

{Personal Communication,

l2th

May 2013).

Another person

from tourism

industry,

Made

Suryawan

(a

Professional

in

tourism) said:

" ...

Integrated

eommunication and

coordination

between

gov€rnment'

industry and communities

are

urgently needed. They must understand

in

depfit

about leakage, must se€ that

we

can get more income by reducing leakage .-."- He

also said that there

is

a crucial need to improve the quality

of

human resources

through better

education.

He

also

emphasized that hotel association need to

irnprove

the

Human

Resource

Development

(HRD) division

at

each

hotel

by

working

together

to

enhance

quality

of

human resources. Moreover, hoteliers and government need

to

work

together to create and improve the quality

oftourism

products, especially food and

beverage- This

requires

such

improvement the quality

of

agriculnral

products

and

livestock,

as

well

as

increasing the supply

of

local wines and

liquors.

There

is

also

a

need

to

create substih*e products for imported products

in

order

to

firlfill

tourist's demand. He

f,rmly

said

that

government

should

support farmers

to

produce agriculhral products

that meet the tourists'

need

(Personal Communication,

30th

April 20l3).

Government also play an importantrole in

minimizing tourism

leakage.

However,

Head

of

Bali

Governnrent

Tourism

Office,

Ida Bagus Kade Subhiksu, said

that there

is

no

regulation

regarding import restrictions of goods, such as food,

beverages,

furniture and other

items.

Government

of

Bali

Province has only

appealed to hot€liers to optimize the use

of

local

products

such

as

fiuits

and

vegetables. Problenr has emerged, that

the availabiliry

of

tropical

fiuits

cantrot

fulfill

the

demand

due

to

seasonal itr

nature- He

said "

.-.We lose

the

oppomrniry

to

suPPlY

foods

and

beverages to tourists due to inappropriate

quality ofthe local products. Efforts have

been done, however, many things need to

be addressed --.". Demand for local fruits

has increased not

only to

fulfill

demand

for

tourists, but also for making offering

by

Balinese

community.

In

other hand, there was insufficient supply tc

fuifill

the

demand. So that, imported fruits cannot

be avoided. He realized that to minimize

leakage,

cooperation

between

government, industry

and

farmer

is

crucially

needed (Personal

Communication, 4th

April

20

l3).

Sweral

efforts have been

undertaken

bY

government

of

Bali

province

to

protect

and develop local

products especially

local

fruits.

Empowerment

of

local

products has been undertaken

by

Bali

government through "Regulation of

Bali

Government

No.

312012

regarding

Empowermenl

Protection

and

Development

of

Small-scale Industry". Ketut Wija, one of key Bali Government's

offrcials said that this regulation requires

involvement oftourism industy and other related

industy to

give chance

for

local producls to be promoted to and served

for

tourists. It was realised that the quality

of

local

products was lower than imported

products. So that, some efforts have been

undertaken

to

improve

the

quantity,

quality and continuity

of

local products.

He

also revealed

that local

comrnunity

should participate

in

developing

fruit

farms

in

Bali

that can

produce fruits

similar

to

imported

fruits [45].

The

tourism

sector

could

also

be

enhanced

through stronger linkages

with

regional

handicraft

producers

and

artisans.

Building

synergies

with

such producers

could enable them to become significant

suppliers of interior desigl elements, such

as

handicrafu, paintings,

and

other

furniture. This

will

be

able

to

reduce leakage significantly [aa] and [a6].

4.2 Results of Interpretative

Structural

Modelling (ISM)

As mentioned in the research method tlrat

minimization

of

tourism leakage

in

accommodation sector in Bali consists

of

six elements, namely:

(l)

Program Goals,

(2) Program Needs, (3) Atrected Sectors,

(4)

Program Constraints,

(5)

Possible

Changes

in

the

prosaln, and

(6)

Involvement

of

Agencies

in

the poliry.

Each

element consists

of

sub-element

which has contexhral relationships among

each

other

in

accordance

to

the

minimization sfiatery for tourism leakage

in accommodation sector in

Bali.

In this

par!

among

the

above

elements, an

example ofthe results of ISM is presented

for'?rogram

Needs".

Element

of

Program

Needs

for

minimization

of

tornism

leakage from

accommodation sector in Bali consists

of

I 0 sub-elements, namelSl:

l.

Qualifiedhumanresources

(El)

2.

Good management

in

agribusiness,

livestoclg fisheries

and

handicraft

industry (E2)

3.

Participation

of

farmers, cattlemen, fishermen and craflsmen

(83)

4.

Qualrty, quantigr, continuity of local

products

(S4)

5.

Substihr0e

products (85)

6.

Good quality of seed, livestock and

.

rawmaterials

@Q

7.

Funding for _{invesfrnent @7)}

8.

Business Partnership

(88)

9-

Government's

role

_@9)

10.

Coordination between stakeholders

(810)

Analysis

of

the contextual relationships

among

the

sub-elements

of

Program

Needs

by

using

ISM

method resulted in reachability

maffix (RM) as

shown in

table

2.

Based on the RM in table 2, the

key

sub-element

of

Program Needs

for

minimization

of

tourism leakage

is

Government's

role

@9).

According to

Driver Power @P) and Dependence (D), this sub-element Government's role (E9)

is

located

at the

fourttr

mne

(Independent),

and other

three

sub-elements, namely: Good quality of seed,

livestock andraw materials @6); Quality,

quantity, continuity

of

local

products

@4); and

Substitute products

@5)

are

located at the second zone (Dependent),

as shown in figure

l.

However, there are

6 other sub-elements located at the third

zone (Linkagel namely: Qualified human

resources

(El);

Good

management in agribusiness,

livestoclg fisheries

and

handicraft

industy

(82); Participation

of

farmers,

cattlemen, fishermen

and

craffsmen

(83);

Funding

for

inveslnent

(87);

Business Parfitership

(88);

and

Coordination

between

stakeholders

(E10).

This finding states that the

sub-element of Govenrment's role

will

have a

major driver power for Program Needs in

order to minimize tourism leakage from

accommodation sector in Bali. Therefore,

focus

should

be

given

to

the

Government's role.

Table 2: Reachability matrix of Program Needs

for

minimization of tourism leakage [image:15.600.74.468.209.679.2]

lZntc2l

Figure

l:

Relationships between driver power (DP) and dependence (D) of sub-elements

of

Program Needs for minimizatim of tourism leakage

E7

E3 E4 E5

E6

NlO

DP

No. El

E'2

ET

E9

El

1111111

r019

I

E2 1l11ll

l0l9

I

I

111

l9

E3 ll

10

01100

02

8400

00

0

85000010

0001

01110

03

E600

00

E7 lllllll

1019

tlll1

l9

EStl

l0

E9 lllllll

llll0

llllll

019

E10

I

I

'1

8

t0

D7779

717

Et,EZFr, E ,E&[1O

Furthermore,

the

structural hierarchy

of

all

sub-elements

of

Program Needs

for

minimization

of

tourism

leakage

is

presented

in

figure

2.

Based

on

this

figure, the

sub-elements

at

the higlrcst

The results of the other elements are

summarized as follows:

Prograni

Goals:

the key

sub-elements

that

have strong

influences

to

oher

elements are: To optimize the potential

of

local

products;

To

develop agrioiltme,

livestock, fisheries

and

handicraft

industry;

To

empower community; To

reduse the use

of

imported prnducts

for

tourists; and

To

increase export

of

local

products. Therefore,

focus

in

Progrun Goals is given to these key subelements

in order to minimize towism leakage.

Affected

Sectors: the

key

sub-elements

(independent)

are: Community

leade4

Community

organization;

and

Government. Therefore,

focus

in

Affected

Sectors

is

given

to

lhese key

sub-elements

in

order

to

minimize

tourism leakage. The

most dependent

sub-elements are fisheries industries, and

Local employees. This finding means that

Community

leader,

Community

organization.

and

Government strould

work

together

to

develop agriculture,

animal

husbandry,

and

fisheries

industries,

and.

to

improve

local

employees.

Program Constraints:

the key

sub'

el ements (independent) are: Intcrnational

trade

policy

and Foreign

currencies

fluctuation.

The

most

dependent

sub-el ement is Lack of availability and quality

level have strong influences to the lower

level sub-elements. In this case, the sub-element E9 has strong influence to ofher subelements

El,82,

E3,EA,E5, E6, E7, E8, andElO.

of local products. This finding means that

the

constraints

on

intemational trade

policy, and foreigr currencies fluchration

should be worked out in order to improve

the

availability and quality

of

local

products.

Po$sible Chanses: the key sub-elements (independent) are Policy on restriction

of

foreigrr

invesunenl and

Public-private parErership

on invesfinent. The

most dcpendent sub+lement is to increase and equalize income distribution. In this case,

policy

on

restriction

of

foreigrt

investrnent,

and

Public-Private

partnership

on

invesfinent should

be

utilized

in

order to increase and equalize income distribution amongst community. Involvement

of

Asencies: the

key

sub-elements (independent) are: the Ministry

of

Foreign Affairs, and the

Minisny

of

Tourism and Creative Economy. Focus in

Involvement of Agencies is given to the

Ministry

of

Foreign

Affairs

and

the

Ministry

of

Tourisrn

and

Creative

Economy

in

order

to

minimize tourism

leakage.

These

two

agencies influence other agencies involved

in

minimization

oftourism leakage.

4.3

Responsibility

of

Stakeholders in

Minimization

of

Tourism

Leakage at

Accommodation Sector

LEVEL I LEVEL2 LEVEL3 LE1/EL{ LE1'EL5

E5

i

r-*-E-

t

-l

l---- E6---l

a

EI E? E3 E? E8 EIO

t

[image:16.594.111.461.83.280.2]

l--

E

---l

Figure 2: Structural hierarchy of zub-elements of Program Needs for minimization

of

tourism leakage

Furthermore,

the

structural hierarchy

of

all

sub-elements

of

Program Needs

for

minimization

of

tourism

leakage

is

presented

in

figure

2.

Based

on

this

figure, the

sub-elements

at

the higlrcst

The results of the other elements are

summarized as follows:

Prograni

Goals:

the key

sub-elements

that

have strong

influences

to

oher

elements are: To optimize the potential

of

local

products;

To

develop agrioiltme,

livestock, fisheries

and

handicraft

industry;

To

empower community; To

reduse the use

of

imported prnducts

for

tourists; and

To

increase export

of

local

products. Therefore,

focus

in

Progrun Goals is given to these key subelements

in order to minimize towism leakage.

Affected

Sectors: the

key

sub-elements

(independent)

are: Community

leade4

Community

organization;

and

Government. Therefore,

focus

in

Affected

Sectors

is

given

to

lhese key

sub-elements

in

order

to

minimize

tourism leakage. The

most dependent

sub-elements are fisheries industries, and

Local employees. This finding means that

Community

leader,

Community

organization.

and

Government strould

work

together

to

develop agriculture,

animal

husbandry,

and

fisheries

industries,

and.

to

improve

local

employees.

Program Constraints:

the key

sub'

el ements (independent) are: Intcrnational

trade

policy

and Foreign

currencies

fluctuation.

The

most

dependent

sub-el ement is Lack of availability and quality

level have strong influences to the lower

level sub-elements. In this case, the sub-element E9 has strong influence to ofher subelements

El,82,

E3,EA,E5, E6, E7, E8, andElO.

of local products. This finding means that

the

constraints

on

intemational trade

policy, and foreigr currencies fluchration

should be worked out in order to improve

the

availability and quality

of

local

products.

Po$sible Chanses: the key sub-elements (independent) are Policy on restriction

of

foreigrr

invesunenl and

Public-private parErership

on invesfinent. The

most dcpendent sub+lement is to increase and equalize income distribution. In this case,

policy

on

restriction

of

foreigrt

investrnent,

and

Public-Private

partnership

on

invesfinent should

be

utilized

in

order to increase and equalize income distribution amongst community. Involvement

of

Asencies: the

key

sub-elements (independent) are: the Ministry

of

Foreign Affairs, and the

Minisny

of

Tourism and Creative Economy. Focus in

Involvement of Agencies is given to the

Ministry

of

Foreign

Affairs

and

the

Ministry

of

Tourisrn

and

Creative

Economy

in

order

to

minimize tourism

leakage.

These

two

agencies influence other agencies involved

in

minimization

oftourism leakage.

4.3

Responsibility

of

Stakeholders in

Minimization

of

Tourism

Leakage at

Accommodation Sector

LEVEL I LEVEL2 LEVEL3 LE1/EL{ LE1'EL5

E5

i

r-*-E-

t

-l

l---- E6---l

a

EI E? E3 E? E8 EIO

t

[image:17.594.111.461.83.280.2]

l--

E

---l

Figure 2: Structural hierarchy of zub-elements of Program Needs for minimization

of

tourism leakage

Efforts

in

minimization

of

tourism

leakage can be undertaken based upon the

key

sub-elements

of

every

elemer$s

reiulted by the ISM, as mentioned above' These efforts can be developed into some strategies, as follows:

(l)

irogram

goals:

(i)

to

optimize the

potential

of

local

products,

(it)

T"

develoP

agriculture,

livestock,

fisheries and handicraft industry,

(iii)

to

emPower communitY,

(iv)

to

reduce the use

of

imported products

for tourists, and (v) to increase export

of local Products.

(2)

Program needs:

(i) to

imProve

government's role

in

every stratery ielated to minimize tourism leakage'

(3)

Affected

sectors:

(i) to

involve

communitY leaders

in

communitY

€mpowefinenq

(iD to

emPower

communitY organization

in

developing agriculhue,

livestock'

fisheriis and handicraft industry, and

(iii)

to

wge

government to develoP and implement supporting policies in

order to minimize leakage'

(4)

' '

Program constraints:

(i) to

establish International Trade Policy that gives

prioritY

to

reduce

imPort and

t9

increase export oflocal products, and

(ii)

to stabilize the foreign currencies

fluctuation bY

Indonesian

Government-(5)

Possible changes:

(i) to

establish

policY

on

restriction

of

foreign

investment on accommodation sector

in Bali,

and

(ii)

to

lacilitate public-private partnership on investment in tourism'

(6)

Involvement

of

agcncies:

(i)

to^

imProve

the role

of

MinistrY of

Foreign

Affairs

and

Ministry

of

Towism

and Creative EconomY in

promoting

Bali

tourism worldwide

and to encourage towists to consume

local Producs in PrioritY.

Regarding the above strategies, therefore

all

stakeholders

will

have

their

own

responsibility.

Tourism leakage

on

accommodation sector

in

Bali

can

be minimised through optimizing the use

of

local

products and reduction

in

using

imported Products

and

foreign

employees. To optimize these efforts, the roles ofprovincial and local govemments,

community oryanization,

communitY

leaders, and the

cental

governrnent such as

Ministry of

Foreigrr

Affair

as

well

as

The Minisbry

of

Tourism and Creative

Economy

are reallY

imPortant'

Community leaders

and

communifY

organization

have

crucial

role

in

encouraging

the

develoPment

_-of

agriculture

and

handicraft

indushies

through

emPowerment

of

local

communitY.

EmPowerment

of

local communi$r can

be

gained also through

involvement

of

provincial

or

local

government. The roles of government are

ilso

really

important

in

restriction on

development

of

new

accommodation,

international trade

poticy

as

well

as in

supporting public andprivate partnership

on investment. Furthdrmore, the Central

Government

of

Indonesia

through

the

MinistrY

of

Tourism

and

Creative

Economy has a major role in promoting

tourism. However,

the

Ministry

of

Foreigp

Atrairs

can also play

a

crucial

role

in

encouraging

more quality

of

foreign tourists in visiting Indoneisa

and-Bali particularly by improving the role

of

the

-Economic

Attache

of

lndonesian

Embassy

at

every

country-

This

minimize

tourism

Promotion

overcome

bY the

government

Indonesia.

can cost

of

Considering

that

foreign

tourists

significantly looked

for

local

products,

Grefore

the use of local products can be

encouraged

iIr

accommodation sector

through hotel managers who in charge in the operational ofthe acconrnrodation ln

this point. "push marketing strateg-Y"" is

needed, which mean that optinrizing to

offer local

foods

in

the

hotel's

and

restawant's menu is very

important'

As

push nrarketing

strateg\

focuses

on

offering

of

local

products'

then

hotel managers nlust put more local ntettu- such as foods made fionr tlsherics products as

Bali

has

abundant

fiesh

f rsheries

products. On thc othcr hand

fortign

iourists prefer inlponed beveraees i n tlris

point, "pull marketing strategy" is crucial

to be implemented by offering zubstitute

products.

The availability

of

substitute

products arereallyimportant. In frct,

Bali

has some beverage products which can be

used as substitute products, particularly

wines and

alcoholic

drinks which

are

locally

produced in

Bali.

Other types

of

produits need to be developed in order to

fulfill

tourise'need.

lnternational

tade

policy

regarding

protection

of

local

products

is

crucial. Govemmentneeds to give subsidies to the

local indushies as

well

as

to

the farmer,

cattlemen,

fisheries and

craftsmen to

improve competitiveness and quality

of

local products. Subsidies are also needed in term of improvement of quality of local

employees through a better education and

training.

With the

quality

of

some

products are

still

below the standard

of

international products, there is a need to

develop strategies regarding improving the quality of local products to be able to

compete with imported products. It is also

crucial to improve quality of local human resource in order to support a better local

product

quality.

Central government

of

Indonesia also needs to stabilize foreign crurency fluchration. This can influence

export performance and reduce imported products.

The results

of

this study also shorv that

payment of foreign employees was one

of

main sources of tourism leakage. As one

of the

member

of

World

Trade

Organization

(V[TO)

and the impact

of

globalization,

Indonesia

is

obligated to

open

the

opportunity

for

foreign

employees

to

work

in

lndonesia.

To

anticipate

the

increasing number of

foreign employees who intend to work in Indonesia,

the

government

of

Indonesia

should protect

the local

employees by having complete regutations in managing

foreign employees

in

Indonesia- The use

of

foreign

employees

need

to

be

undertaken selectively through

strict

mechanism and procedures and by giving

the priority for local employees.

5.CONCLUSION

Stakeholders

of

tourism industry

in

Bali

include local and provincial govemment,

cental

government

of

Indonesia, Balinese community, tourism industry in Bali, hotel managers

in

Bali,

as

well

as

forergn tourists

who

visit

Baii.

Their involvement in reducing tourism leakage

in the accommodation sector are crucial.

So that, optimum results

will

be gained

if

each

stakeh