TOURISM LEAKAGE ON ACCOMMODATION IN BALI.

CENTRE FOR

TOURISM PI.ANNING AND DEVELOPMENT INSTITUT TEKNOLOGI BANDUNG

ASrAN

JOURNAL

ON

HOS?TTALIW

AND

TOURIStr4

Volume

13,

Number

1,

June 2014

ISSN

T4T2-207J

CONTENTS

Editorial

I

-

2

Artef

Rosyidic, Chief

Editor

Tourism Lealmge

of

The

Accommodation Sector

in

Bali

3

-

18

I

G A.

Oka

Suryawardani,I Komang

Gde Bendesa"

Made Antara & Agung Suryawan llliranatha

Assessing

Ecotourism Economics

for

Livelihood

Intervention-

19

-

32

A

Case

in

Nameri National Park

of

Assam

(India)

Niranjan

Das

&.

Mrinmoy K. Sarma

Conceptualizing

Tburism

Relationship

Management

(Trm)

33

-

58

Framework

andAssessing

Its

Impact on

Tburism

Semice

fuality,

Tburist Satisfaction

and

Destination Loyalty

Arup

Kumar Baksi & Bivraj

"Bhusan

Parida

hsitors'Willingness

to

Payfor

hsiling

59

-

68

The

Patenga

Beach,

Bangladesh

Mo

hammad Mahfuzar Rahman

Ecotourism

in

Disaster-Prone

Conservation Areas

and

69

-

87

hs

Underlying

Govemance:

A

Case Study

in

The

Mount Merapi National

Park

Marwedhi

Nwratyo,Arief

Rosyidie

&

Constanza

Parra Novoa

TOTIRISM

LEAKAGE

OF

THE

ACCOMMODATION

SECTOR

IN BALI

I

G.

A

Oka Suryarvardeni *1, I Komang G6e Bendesat, Made Antaral, Agung Suryawan

Wnnrthal

Touriw

has hean a drivins force of economic develornrent and ha-s hecome ihe

ladinc

mnomic

secto'

in

Bali

Province.

Howa'er,

lhe

eonomic inpacls

of

wrism

development have

not

been

fultv

berclicial

for

the Balinese communitv.

Tarists'

eenditure

has not been totallv remaining in Bali's economv- Some of the expenditures bV tourists leak out of the destination. called tourism

lukase

in the form of pawents for immrted nroductt and sen,ices. nawnent of waces for foreisn ennlovas. ond nrofits

'

eansfqred to foreiSn owners . So far. tlrc anount of taurism leakaee in Bali has nol been

alailated.

Thertore

lhere is a need to ascertain the annent amount of leakare in Bali

tutrism.

This Wper ptimates the amoant of tourism lakase from the accommodalicn

s&r

ia

Bali

throush

a

micro analvsis at the induseial level There

wqe

79 holels

sdatd

as a samnle hased umn

a

narmsive nrohahilim

n

size samnlins melhotl in {our main tourist dqfinations in Bali, namelv Kuto- Nusa Dua. Sangr and ubud. Four twes of aeommodation were considered in qtimalins tourism leakaee' The

rsults

shc*red that the hiehest percentase of leakase was in the 4 & 5 Snr-rated chain hotels' Le 5 1'0

%o of tatal revenue

It

was followed bv the 4

&

5 Star-rated non'chain hotels (22.-7 %)'

and I . 2

&

3 Star-rated hotels (t 2-0 961- Meanwhile- the lowqt leakase wais on the Non

stat-rsted hotets

6.8

otil.

Overall, the average tourism leakase on accommodation

setor in

Bali was 18.8

%.

These results indicate

tha

0

the hieher the levelof hotel clossifiqtions, rte more leakase will be: and

fiil

accommodation which was ov'nei bv a -foreimer and/or manased bv an internationol chain had more leakase than other tvpes 'of

acmmmodatbt The more leakase- lherdore the l€l':s r€venue from louricm will he

direAlv received bv horel and undirectlv bv the local ammunily as tourism is the ntain source of economic da,elopment of Bali Province.

Eoeystem

Seirde,

tourism leakags, aommodation

scor,

Balil

INTRODUCTION

Bali is

one

of

the

rmst

popular

tourist

destinations

in

the world due

to its

cuftural activities and natunal scenery. Tourism has now becone the leading economic sector in

Bali. As Bali's

econom-v

has

been

developed

rmstly

through

tourisn

the focus

of

econoric

developnrcnt

in

Bali

province

has

changed

from

the

prirnary

sector (agricuhure)

to

the

tertiary sector

(tourism).

The

contribution

of

the

printsry

sector (aEricutture)

to

the

Gnoss Dorrrcstic Product

(@P) of Ba[

has decreased drannticalty ii,om 61.21%

in

1969

to

l6.84oh

n

2012, while

the contribution

of

the

tertiary

sector (trade and tourism) has increased from9.52%

in

1969 to 30.66

%

n

2012 _{@ali Statistical}

Om"",

2013). Meanwhile, the contribution of the secondary sectof (handicraft and

othcl

indusirts)

ircreased

fiom 1.6'7"/o

in

1969

to

9.97Yo

in

2010 (Frawan, 199,4

n

Vy'imnatha, 2001; Bali Statistical

Offce,

2011).

* _{Correspording} author, email: gungdani@gnail.oom

Tounsm

m balr

has

been devenpeo slgnlucantry

as

ualr us rGGil uw[.

nunber

of

visiton

and tourism ftcilities. The nunber

of

direct anivals

of

foreign tourists

in

Bali increased dranatically from 23,340 tourists

in

1970

to

1,412'839

tourists in

2000.

Howevir, the tenorist

attack on Bali

on

12 October 2002 resulted in a decrease

in

the

nunber

of

foreign

tourist

direct arrivals only 93.029

in

2003, although

it

then increased

again

in

2004. Furthernpre, the second

tenorist

attack

on

Bali

in

2005

led

to

another

dicrease

in

foreign visitors in

2006 (see

Figure

l).

Efforts

were undertaken

by

the

govemnpnt

and

the

tourism industry

to

convince foreign tourists to

visit Bali

Cl'adual increases have been reported in the following years and reach the highest foreign tourist direct

anivals

n

2012, about 2.892.019 tourists (Bali C'ovenrnrnt Tourism Office, 2013).

During

period 2007

to

2012 the average growth rate

of

direct foreign

tourist

arrivals to

Bali

was 14.7 % peryear.

As

a

world tourism

destination,

Bali

is

supported

by

the availability

of

infrastructure,

including

an

intemational

airport

which

provides easy access

to Bali

and

nnin

roads

which provide

access

to

various tourism

facilitbs

and tourism attractions

within

the

region.

Accorrding

to

Bali

Govemment

Tourism

office

(2013),

there were

2,212

accorrrrndation establishrrpnts

with a

total

of

.116,025

roons

regbtered

in

Bali

m

2012-These

included

156 star-rated hotels (20,269 roorm), 1,031 Non star-rated hotels

(2l,ll4

roons), and

1,025 horrrcstays (d542 roons).

Developnrnt of

registered acconrncdations

in

Bali during

period

of

2W2-2012

is

shown

in

Figure 2.

However,

Bali

Hotel

and

Restaunant

Association

EHRI

Bali)

counted

3,346

acconrrndation

establishnpnts

(62407

roons) in Bali in

2011,

that

consisted

of

165 star-rated hotels (22,161 roons),

1,371

Non

star-rated hotels (28,585

roons),

1,760 hornestays (9,282 roons),

l5

condotels (1,793

roons), and

35 rental houses (586 roorm). There could be nnre acconxmdation

available

in

Bali than the above nunbers as nBny nror€ acconxrndations are unregistered or operate illegally.

NUM BER OF FOREIGN TOURTST DIREGT

ARRIVAS

o

o

L

o

F

_g

.9

o

o

l!

o

o

.ct

E

z

3.000.000

2.750.000

2.500.000

2.250.000

2.000.000

1.750.000

't.500.000

1.250.000

1.000-000

750.000

s00.000 250.000

0

O ..t (9 O N lO @ _- t l- I a'l lg O Gl

SbSSEBIEEEIEAEE

6lN$l(\l$l

Year

[image:4.476.22.371.264.531.2]

IN

BALI

YEAR

1970.2012

Figure

1.

Number

of

Direct

Arrirals

of

Foreign

Tourists

in

Bali Yeal. 1970

-2012

(Source: Bali

Tourism

Govemnpnt Office, 2013)

(

l

I

I G. A. Oka Suryawardani" Komang Gde Bendesa, Made Annra & Agang Suryawan [iliranatha

DEVELOPMENT

OF

AGCOMMODAITON IN

BAII

YEAR

2A02-2012

(,

E

o

o

t

o

o

JI

E

z

.E

o

F

50.000 4s.000 40.000 35.000 30.000 25.000 20.000 15.000 10.000 5.000

0

r

Star+ated Hotel # Nonetar Hobl

I

Homestay [image:5.445.50.423.38.317.2]

Year

Figure 2.

Number

of Rooms ArrailaHe

in

Bali

in2002-2012

(Source: Bali Tourism Crovemnrcnt Office, 2013)

Global economic crisis

in

2008

did not

obviously have an effect

on

foreign

tourists to

Bali.

It

was proven

by

the nunber of foreign tourists to

Bali

as outlined above, as well as

the

average

their

expenditures and length

of

stay. The average

e4enditure

of

fbreign tourists

per

penon

per day

increased

fromUS$

137.90

in

20(D

to

US$ 158.87

i:r

2011. The length of stay of foreign tourists also went up from 8.75 days in 20(D to {}.?"1 ti<tys

in

2011

(Bali

Govemnrcnt

Tourism Office,2012).

Regariding

the

growtlr

o{

tt.i,:j'',,

of,

foreign

tourists

to

Bali,

it

seens

that

tourism

in

Bali

will

keep being pronrbirrg

as

a source

of

household inconp for Balinese inhabitants, contnbute to the nationa-l creharrge

nate as well as inprove

job

opportunities.

Even

though tourism brings about developnrnt

for

Bali's

econonry

for

ma-rr3'' years,

however,

the

economic

inpacts

of

tourism developnrcnt has

not

been convinced

to

be

fully

benefiiial

for

Balinese

comrunity

(Dewi,

2009; Denrnwan

in

Wiranatha, 2001). There is a phenonrcnon that

tourists'

eryenditures have not been

tota$r

beconre income

of

Bali's

economy

because sonre

portions

of

tourists'

eryenditures

leak

out

the destination in the form of

paynrnt forinported

products and services, payrnent of wages

for foreign enployees, and

profits

transier

to

foreign owners. According to I-undberg, et al. (1991), leakage occurs when industry irrports

both

consunption and resources from other countries

to

support the growth

of

industry. Bull

(1991) added that

in

economic

terns, leakage .could be defined as losses from the national inconrc flow which have been generated during

the

transition fromthe local/national consunption inconp cycle

to

the spending chain. Furthernnrc, Harrison (1992) pointed out that

inport

can be seen to be a leakage

that

limits

the positive

inpact of

tourist's ependiture

on a destination. So

that,

there is a need

to

as certain the cunent

arbunt

of leakage from tourism in Bali. Regarding the scope of tourismis relatively wide,this study focused on acconrmdation

sectoronly,

as

npst of

foreign

tourists'

eryenditures in Bali has been on acconrrpdation. Therefore,

the

objective

of

this study

is

to

calculate

the anpunt

of

the

tourbm

leakage from

Tourism

kakage

afThe Accommodation Sector in

Bali

acconrrpdation

sector

in

Bali- The results

of

this research are erpected

to

give a bett€r

understanding,

awareness,

and gaining posilive

responses

&om

govemnrnt

and stakqholders in oriilerto

inprove

economic inpacts oftourisrnonBalinese

conrrunity.

A

study

by

Rodenburg (1980) is the only reference about iriport

kaloge

from tourismin

Bali. The furport leakage was estinnted to be about 40olo forintematbnal standad hotels,

and

Zff/o

for

srnall

economy standard

hotels.

The inport

leakage

from

intemational standard

hotels

was estimated fiom the Nusa Dua Project

in

1971,

but

that from srmll economy standard

hotsls

was

assunrd .

There

has not

yet been any research about tourism leakage

in

the tourist acconnmdation sectorthat has used a conbination analysis

of

micro

(industrial)

level and nacro (regional)

level.

The focus of the analysis in this research was on the acconnndation sectorbecause the highest percentage of eryenditure

by

foreign

tourists in

Bali

is on

accomnndation, i.e. 40.5% (Bali

Cnvemnrnt

Tourism Office, 2011).

LIIf,RAT{JRE

REVIEW

Leakage

in

Tourism

kakage

has

long

been known

as

one

of

negative economic inpacts

of

tourism (Bull,

l99L

Hudrrnn

and llawkins,

1989;

Irrndberg,

et.

al.,

191;

and

Mill

and

Monison,

2009). Hudrnan

and

Hawkins (1989) define

tourism

leakage as:

(i) inport

goods

and

services

for

consurrption

or

investnpnt

in

tourisq (ii)

paynrnts for

foreign tour

opemtors

and

agencies;

(iii)

payrnent

to

foreigners

for

nnnagenrnt contract

and

royalties;

(iv) profits

which are paid to foreign stakeholden; (v) interest paid

foresemal

credits

in

the tourism

sectol

(vi)

exchange costs for tourism investnpnt; (vii) advertising

in intemational rrarketing and pronntion expenditures; (viii) comnissions paid to foreign banks, credit cards and foragency usedby tourists; (ix)savings offoreign enployees; (x)

education abroad

and

training

costs

of

tourism enployees; (xi) saving

of

errployers,

enployees, and entrepreneurs; and (xii) tarcs paid

to

gov€mnrent. The cause of inported

products entering a destination i.s incapability of a destinatbn in producing product

wfibh

fulfill

standard

of

product quality needed by foreign tourists.In addition,lJnluonen, et. al.

(2011)

said

that

savings delayed

the

transfonration

of

new

economic values into

investnrcnt. Moreover, they agreed that although ta:<es decreased the economic inpact

of

new dollars,

they

could be spent later. Finally, they pointed out that when conpared with savings and taxes,

inport

inputs were the rnost inportant leakage itens, because

irport

includes

eryenditures

that flow out

fiom the

local

or

national economy. Furthemnre, Smith and Jenner (1992) stated that there is also anothertype ofleakage called'invisible'

leakage.

The

'invisible'

leakage is the physical effects of tourisnq including the depletion

or destruction

of

a

country's

infrastructure, natural habitats, environnpnts and historical

as well as cultural heritage that have a leakage effect on tourism receipts.

According

to

Meyer

(2N7), lealage

tends

to be

highest when

the

local destination

economy

is

weak and

lack

of

the quantity

and

quality

of

inputs required

by

tourism

industry. He said that a prevailing trend in

nnny

developing countries depends heavily on

inports.

Ther<ifore,

atterpt

had been

nade

to

reduce leakage

by

developing strong€r links between tourism and other sectors in the local economy. He added that govemnrcnt

policy needs to concentrate on strcngthening the economic linkages between tourismand

agriculture to support

inport

substitution.

M

i nimizi n g L e a k a g e s _fo r Op ti mizing To uri s m B e nejit s

Mill

and

Morrison

(2009) suggested sonrc strategies in minimizing leakage, including: (i) reducing

inported

food, goods and rnaterials, and encouraging the use of localproducts

I V. A, UKIIDUTy(aWUrUUltt, LOtLUttE VW Det,u@tt' Ntusl

using traditional architecture concept and encouraging using local goods and nraterirl;;

(O

-aoing

effective

negotiation

with

rruhinational conpanies dealing

with

travel

agencies and tour operatoa; and (iv) encouraging cultural tourbm with the authenticity

of

destinations

so

that

tourist love

local

products. Furthembre,

leakage

inpacts

on

m,rltiplier effects

(Ilughes,

194).

Therefore, reducing leakage

is

crucially

inportant

to

increase economic

benefit

of

tourism

in

a destination because leakage

will

reduce the

mrltiplier

effects of tourism(Unluonen, et.

al-

20ll)'

Dwyir

and

Fonyth

(19%)

said that

tourism rn"rltiplier

is a

ratio

rneasuring

the

irriple

efects of

tourist

spending

on

local economy.

A

higher

mrltiplier

suggests

a

greater

inpact

of

tourist

expenditure on local econony. BuU (1991) observed tourism

rnrltiplien

ranging from 2.5 (in Canada)

to

0.8 (in the Baharnas). He has found that large

divenified

economies

tend

to

have larger nultipliers, while developing countries and

snnll

island

staies tend

to

have snnller

mrltiplies

because of considerable leakage . Furthenrore,

Kim

and

Jarnal (2007) reported

that

tourism

inconp nultipliers were

1.96

(in

Turkey) and

0.39

(in

Westem

Sanna).

They

argued

that

tourism

leakage weakens

llie

tc'ildsm mrhiplier.

Ilndberg,

et. al. (1991) supported these statennnts. He said that deereasing

in

m.rhiplier leads

to

decreasing

in

tourism benefit

in

economic developnent.

Mortot'er,

a

studt

by Iacher and Nepal (2010) also found that by using prccise strategic based

or'

the authenticity

ofa

destination, economic leakage can be

reduced-Mill

and

Monison

(2009) said that there are three categories of tourismbenefits, rra.,',:ely:

increasing inconre,.increasing

job

opportunity, and increasing foreign eirchange carr,ings.

Tourist's

eryenditures

will

beconp

inconrc

for

the

destination economy'

Thc inc'rne

generated from tourism sector

will

stirnuhte the infrastructure developnrcnt. Furthem:ore, iourism produces

nany job

opportunities, direct and indirect

enploynrnt.

The armrtrit

of

indirect

irryloynrcnt

depends upon the erdent

to

which tourismis integrated rvith

tl,l'

rcst

of

the local economy. The

npre

integration and divenification occurs, the

rrrre

iiidirect

enploynrnt

generated

ftIughes, 194).

HoweYeq

the

larger

hotel

properties are nrore

lnc-ti"ia

to

uie

inported

labour

especially

for

nnnagerial

position

(Fridgen, 1996).

Morcover, tourism

is

also a

way

to

increase foreign erchange earnings

to

prednc'e the

investnrent necessary

to

finance growth in other economy secto$. Fridgerr {tr99fi:'{pued that there is a danger

of oventating

thc foreign exchange eamings genetaleri

lif

ii"'i'ist,'

unless the inportant frctor, such as leakage

b

known. The tourist's elpenditunc that l:,ali.c

from destination's econony nnrst be subtracted from foreign e>change eamings i--, order

to

determine the true inpact. According to Fridgen (1996) and

Mill

and Morrison {2-009)'

foreign ei<change eamings

will

be reduced as a result

of

of leakage. In other

wcrdi,

th::

e*ent to

which a destination can

mininiu

leakage will determine the sire of the foreign

erchange eamings.

R.BSEARCH METHOD

The

research

was

undertaken

during

period

of

April-June

2013

at

four

nsin

tourist

destinations

in

Bali

Province i.e. Kuta, Nusa Dua, Sanur and Ubud.

Iocations

of

this

research were selected purposively with consideration that the above destinations are the

nrain tourist destinations in Bali. Sample

Daign

Probability Proportional

to

Size (PPS)

sanpling nnthod

proposed

by

Kish

{1955:2'-14}

Tourism Leakage ofThe Accommodation Sector in

Bali

NlF.I

where:

n = sanple size

N = population fl =

eror

Three clusters

of

acconupdation werc chosen nanrely: (r)

1,2 &.3

Star-rated

hotel

(ii) 4

&

5 Star-rated hotels either chain hotel or non-chain

hotel;

and (iii) Non-star rated hotel.

Population

of

these three types

of

hotel can be seen in Table

l.

Using an

ernrrof

20olo

(c={.2),

total

number

of

sanrples were 63 hotels (see Table

l).

According

to

Sevilla et. al. (1993)

nnxirrum

error can be tolerant forsocial science is about 2fflo.

Dua

Analyis

Method for calculating tourism leakage was constructed based on

thenndel

devebpedby

Unluonen,

et. al.

(2011),

but

it

was npdified

to

calculate touriSm

leakage on

acconrmdation

sector only. The operational equations are outlined as follow:

n

L

=tu

...(2)

i=l

where:

L

:

total leakage

Li

:

the leakage iterns in a group i.

fl :

3, where

Ll

is

the import leakage group, 12 is the delayed leakage group. and

IIi

is

the invisible leakage group.

(note:

in this study, the

delayed leakage

(I2)

and

the invisible

leakage

(3

)

were not

calculated).

In

this study, the

delayed leakage

(I2)

and the invisible leakage

0J)

are not calculated.

Inport

leakage group (L1) is only leakage that is examined in this study, as follow:

Ll:tllk

...(3)

k:

I

The nurrber

of

inTort

leakage iterns (v) was 8.

where:

8

t

$

.

i$

,i

,$ ri

:,il

;

{

':l

i (1)

N

Tatle

Size

No

Cluster

Pop{ation

(N)

Samge

Size

(n)

Error

(a) Rcmarks

I

l,2&3Star-ratedhoteb

70

2t

t8%

2

4&5Star-ratedhotels

85 26 t7% 12 chain hotels

14 non-chain hotels

3 Non-star rated hotels 1,563 32

t8%

Total Sarrple 1,718 't9

t8%

I G. A. Okasuryawardani, Komang Gde Bendsa, Made Annra & Agung &tryawan Wirttnatha

Lll

=

Total

payrrrcnts

fof

the inport

of

goods and

services

for

consunqrtion atrti invesilrrcnt nnde by

accoffindation

sector-Lll

=

Total

paynrnts of

eaming ttansfers abrcad, forlicenses, technology

transfes,

roya$ies, patents, etc. in the acconrnodation soctor.

Ll3

=

Total percentage paynFnts to foreign banLrs for credit cards used by foreignem .

Ll4

=

Total

savings

of

foreign enployees

in

acconunodatbn sector and the

fiEtie)'

they send abroad.

L15

=

Paynrnts of

credit interest provided ftom abroad

L16

=

Total payrrrcnt abroad fortraining personnel needed by accorffmdation sector

Ll7

=

Paynrcnts for intemational nnrketing and prorrntion public sector

Ll8

=

Paynrnts

for international nnrketing and promotion by acconrnodation sector Assunptions of the rmdel by Unluonen, et. al. (2011) are as follow:

(i)

All inport

goods and services that are tourist-related are used in the country of

ifqiort,

(ii)

The saving tendency of expatriates is equal to the saving tendency of citiiacns,

(iif

Regadless

of

why and

by

whom

thcy

are

don€,

all

rmrketing and

profirrtion

activities

nnke

sonp contnlbution to the tourismdennnd in the country,

(iv)

The dennnd genenated fr,om one

unit of

inport

input

i;s equal for both toudsts aiid

residents

Dxription

of Variables

Basically, variables in this study consist

of

inported products, foreign enployee, ltrn:ign sewices, and inconrc

ofthe

hotels.

All

ofvariables are outlined below:

(i)

Inported

products

welr

classified into inported foods, inported beverages,

irrrlolted

equipnrcnt (utensils) and other inported goods and rnaterials related

to

design,

funiiture

and decoration used in the hotel.

(if

Foreign enployee was the nunber of foreigners who

wo*

in acconnnodation sectors as well as theirwages and salaries

(paynrnt

for foreign erryloyees)'

(iir) Foreign services inchrde

any

fees.rehted

to

the operational of hotels lttielri'1i':1:r-:;r ir.

overscas,

such as

services abroad,

and

paynrnts for

foreign prcductions,

6ircrseas education and training cos ts of touris m enployees.

Details

of

the

variables related

to

cause

of

leakage

that

were used

in this stud;'

are

outlined

in

Table 2.

All of

the above inported products, foreign enployees and foreign

sewices were

calculated

in

all

types

of

acconrrpdation,

nanrly: (i) Non-

star

rated

hotels;(ii)1,2&3Star-ratedhotels;(iii)4&5Star-ratednon-chainhotels;and(iv)4&

5 Star-rated chain hotels.

ated to Cause of

Leak

Table

2lndcators

anel Variables Re to

No Indicators Variables (unit/year)

I

Inported

foods a.

Inported

nrat

(beee chicken, podL lamb).

b.

Inported

fisheries (fish, prawn, lobsters,octopus,and squid)'

c. Inrrorted food favour

2

Inported

beverages

a.

Inported

dairy products (fiesh

mift

yoghurt, juice)-b. Irnrorted wine, beer and alcoholic drinks.

3

Inported

fruits

and vegetables

a.

Inported

varieties

of

fruits b. varieties

of

4

Inported

utensils a.

Inported

hous ehold utensib (s tove, p an,

frylng

i

3n, mixer'

*

g 3

€ E

i1

Tourism Leakage ofThe Accommodation Sector in

Bali

(201

l),

Zheng (201

l).

Another variable was total r€venue

of

the hotels. Total revenue of a hotel was calculated based on the fornnrla as follow:

n

Y=IV

i=l

Y=Yl +lA

+Y3

...

....

(4)

where:

Y

= Annual revenue

ofan

hotel

Yl

=Revenue from roons

Y2 = Revenue from selling foods and beverages

Yi :

Revenue from others (laundry, spa, telephone, intemet, business centre, etc.) Revenue from

roorns :

Room night sold x Room rate (Rupiah/day)

Room night

sold

:

Average occupancy ra;te (%) x number

of

roons

x number

of

days in a year

Therefore, the percentage

of

tourism leakage of one hotel can be calculated as the total amount

of

inported

products

and services divided

by

total

revenue

of

the hotel, as equation below.

10

No Indicators Variables (unit/year)

bhnder, coolg

ricrowave)

b. Inported plates, glass, cups, cutbries, and nugs.

5

Inported

goods

and materials

a. Lrported fu rniture (beds, tables, des*s, chairs, shelves, wardrobes).

b. Irmorted nnterials for buildins accessories.

6 Services abroad a. Pronption and advertising Indirect Pronntion and advertisenrent throu gh Media Channels (Televis ions, broadcas ting)

Direct prormtion through visiting

sonr

countries. b. Public Relation, publicity payrrents, foreigner operational

Davnronts

'l

_Foreign

paynrnts

for foreign productions.

a. Transfer paynrent for conrnission of travel agents and

tour

operators. b.

Inport paynrnt.

c. C-ovemnrnt tax paynrcnt for

inpoded

goods and s ewices.

d. Bchange costfor tourism

investnrnt.

e. Interest payment for extemal credits

in

the tourism sector.

8

Payrrnt for

foreign enployees

a.

Nun$er

of forcign enployees

b. Total paynrnts for foreign enployees c. Transfer paynrnts for foreign enployees 9 Saving

of

foreign

enployees

a.

Annunt

of foreign saving

l0

Education abroad and training costs of tourism

employees

a. The nurnber ofoverseas training

staff

b.

Paynrnt

for overseas training

staff

I V. A. VKC DUtyAWUrAUnq LOmAnt ItUg DVIaA6U, MUge aftturu g A6Unt Dqt)/qwutt _'f .r u.tttttttt Peicentage ofleakage

Totalleakagc

x

100%

...(5)

Total Rsvenue

Dmit$on aflhe

Modd

tinitatbn of

rmdel

in

this

study

is

that dehyed

leakage and

invisible

leakage were erchrded ftom this study due to difficulties on obtaining data related

to

delayed leakage

(ta:cs, and savings of entrepreneurs and enployees) and calcuhting the invisible leakage

(physical negative impacts

of tourisnl

destruction

of

a country's infrastructure, natural habitats, environrnents and historical as well as cultural heritage).

Another

limitation

of

calculating leakage in this study is that saving of foreign enployees and the rmney they send abroad

could

not

be

obtained

in

this study.

So that,

the above

variables were eycluded

ftomthe

nndel. Even though these variables were not included in the nodel,

it

was

not

significantly affect

the

result (the

percentage

of

tourism leakage), as

all

of

wages/sahries

of

foreign enployees were already included in the hotels'erpenditure.

It

was real situation that

the

sanpling hotels had never known about savings

of

foreign enployces as this kind of data was really confidential and

rrpolrte

to be asked.

RESTJUTS AI{D DISCUSSIONS Sourca ofTouism

Lufuge

In geneial the sources of leakage

in

acconnndation sectorwere as follow:

(i)

Inported foods:

all

inported foods that were used in hotels to serve theirguests.

(it)

Inported

beverages: all

inported

beverages that were used in hotels

to

serve

their

guests.

(iii)

Inported of fruits and vegetables: all inported fruits and vegetables that were used

in hotels to serve their guests.

(iv)

Inported

utensils and equipnrcnt:

all inported

utensils and

equipnrnt

that

were used in hotels.

(v)

Overscas nnrketing and education:, all overseas activitics that were trndertaken

by

hotel's penonnel

to

inprove the ability

of

stafis and/or to inprove the perfonrnnce

of

hotels. These activities include

pronntion

and

othernnrkcting

activities as well

as training

for

stafrs and hotel nnnagenrnt that was done in overseas.

(vi)

Profit

transfer

for

foreign

owners:

profit which

was

transferred

to

owners

in overseas.

(vii)

Paynrnt

for foreign enployees.

(viii)Paynrnt

for booking fees that was paid to overseas travel agents.

(ix)

Paynrnt

for online fees that was paid

foronline

agent in ove$eas.

(x)

Managenrcnt fees:

paynrnt

for the intemational chain hotel nanagenrcnt system

The Sequence ofthe Sourca ofTouism Leakage

Based on the survey undertaken on 79 hotels, the sequence

ofthe

sources ofleakage were as follow:

(i)

Overalt inported

beverages were the

first

source

of

leakage in

alltypes

of hotels. Meanwhile, profit transfer

for

foreign owners was also the nnin source of leakage in 4

&

5 Star-rated chain hotels. This was the second source

of

leakage afterirrported

E

F

,s

a3

ai_:i

s

Tourism Leakage ofThe Accommodation Sector in

Bali

beverages.

In 4

&

5 Star-rated chain hotels, nenagernent fees paid

to

intemational

chain rnanagenpnt r:irere the third source of leakage.

(it)

Inported

foods and

payrrnt

for online fees also played a crucialrole as the sources

of

leakage

in rrnstly

all type

of

hotels.

h

4

&

5 Star-rated chain and non-chain

hotels, the

payrrrnt

forforeign enployees was also a significant source of leakage .

(iii)

Inported fruit

and vegetables were also as source

of

leakage especially for all Star-rated hotels.

(iv)

I-astly,

inported

utensils and paynrcnt for booking fee stated in the last rank of the source ofleakage.

More detail

on the

sequence

of

leakage's sources

in

each

type

of

hotels

is

shown

in Table 3.

TaHe

3

The

Secmence of the Sources of

'lburism

in the

Samdins

Hotels

Tlpe

of

Itrotels Seqrence

ofthe

Sources of Leakage

I

2 3 4 5 6 7 8 9

l0

1,2

&3

Star-rated hotels b a I

c

E h d

4&5Star-ratedhotels

ll

Chain hotels U Non-chain hotels

b b

f

a

a e

c

J

e I o

o d

c h

d h

Non-star rated hotels b I a

H

Rernarks:

a

b c d

e

Irryorted

foods

Inported

beverages

Inpoded

fruits and vegetables

Inported

utensils and equipnrcnt

Paynrnt for

overseas nnrketing ortraining

f

: Profit transfer for foreign owners g :

Payrnnt for

foreign enployees

h : Paynrcnt

for

booking fees

i

: Paynrcnt for online fees

j

:

Paynrnt for

intemational chain hotel rnanagenrcnt fees

Calcularton of Revenue and Lea!,-age of the Sampling Hotels Tourism leakage of a hotel

Tourism leakage of a hotel can be calculated as below:

L=Ll+12+13+U...+L9.

...(6)

where:

L

:

Annual tourism leakage of an hotel

Ll

= Paynrcnt

for

irported

foods

12

:

Payment

for inported

beverages

13 = Paynrcnt

for

irrported fruits and vegetables

I-tl

:

Paynrcnt

for inported

utensils and equiprrcnt

L5

:

Paynrcnt

for

overseas narketing ortraining [image:12.442.37.433.213.624.2]

I

G- A- Okasuryawardani, Komang Gde Bendesa, Made Antara & Agmg Surycwan lliranatha

[,6

:

Paynrnt

for foreign erployees

L7 =

Paynrnt

for booking fees L8 =

Payrrnt

for online fees L9 = Payrrpnt for

rmnagenrnt

fees

Based on the sources of tourism leakage" an exanple

of

calculation

for

annual leakage

of

a sanpling hotel is as follow:

Type

ofhotel

:4

&

5 Star-rated chain hotel

Code of sanpling

hotel:

3

Calculation of the annual leakage of this hotel included:

(i)

Paynnnt for inported foods

(Ll)

(ii)

Paynrcnt for inported beverages

([2)

(iii)

Paynrcnt

for

inported

ftris

and vegetables

(I3)

(iv)

Paynrnt

for inported utensils and equipnrent

(I/)

(v)

Paynnnt for overseas nnrketing

ortraining

(I5)

(vi)

Paynrnt for

foreign enpbyees (16)

(vii)

Paynrnt for

booking fees (L7)

(viii)Paynrnt

for online fees (L8)

(ix)

Paynrcnt for rrnnagenrnt fees (L9)

The annual leakage

ofthis

hotel was

Yl+ Y2

.-.

+ Y9

Revenue ota hotel

Based

on

the

sources

of

revenue,

an

exanple

of

calculation

for

annual revenue

of

a

sanpling hotel is as follow:

Type

ofhotel

;4

&

5 Star-rated chain hotel

Code

of

sanpling hotel : 3

=

Rph

12,582,810,6'18 = Rph 120,610,800,000

=

Rph

112,512,000

:

Rph

104,800,000

=

R$,h

3,000,000,000

=

Rph

1,500,000,000

:

Rph

t39,9+)90

:

Rph

5,990,672,705

:

Rph

6,112,931,332

:

_{Rph 150,545,430,975}

:

Rph 213,952,596624

=&h

?6,411,@1,651

=

Rph

15,282,328,330

= Rph 305,646,566,605 Calculation

ofthe

annual l€venue of this hotel included:

(i)

Revenue from rooms

(Yl)

(ii)

Revenue from selling foods and beverages (Y2)

(iii)

Revenue

fum

others: laundry, spa, etc.

(B)

The annual rt:venue of this hotel was

Yl+

\2

+

Yf

Perceattge ofTourism leakage ota Hotel

Based

on the

calculation

of

revenue

and

leakage

outlined

above,

the

percentage

of

tourism leakage

of

the sanpling hotel was:

Percentageofkakage

:

Totalkakage x

lCI%

Total Revenue

Rph 150.545.430.975

x

100% Rph 305,646,566,605

=

49.2s %

Tourist

Iakage

of

All

Sampling Hotels

Furthenmre,

the

amount

of

tourism

leakage

of

all

sanpling hotels

for

each

type

of

accomrndation is presented in Table 4.

As

can be seen fromTable 4, the highest anrcunt

Tourism Leakage ofThe Acconmodatian Sector in

Bali

of

tourism leakage

on

all types of acconrnodatbns was inported beverages. The anpunt

of

inported

beverages was about 65%

of

total bakage

of

Non-star rated hotels; about

45To

ef

1,2&3 Star-rated hotels; about

7flo of4&5

Star-rated non-chain hotels; aod about

&o/o

af

4&5

Star-rated chain hotels. Meanwhile,

inported foods

were

also

inportant source

of

leakage

on

all

types of acconrrndatbns.

Annng

all types of acconnmdatiorq

the highest

inported

foods were occurred on

l)&3

star-rated hotels (about 24o/o of

total

leatcage). Managenrcnt fee was one sourc€ of leakage in 4&5 Star-rated hotels as this type

of

accorrurpdation rnanaged

by

intemational chain hotel managenrcnt. It was about 47o

of

the total leakage of

4&5

Star-rated hotels. In addition, profit transferwas also occurred at

4&5

Star-rated

hotels, as

one

of

the

sanpling

hotels owned

by

foreigner. The profit transferwas about 0,17o

of

total leakage of 4&5 Star-rated

hotels-Table

4 The

Amount

of

Irakage

of

AtlSanrytling

Hotels

for Each

Type of Accomrnodation

inBali

inYear

2012

ri

No Source of Import

Non-Jtar r:ateo Hotels (Rupiah)

lrzdt3 star-rated

Hotels (Rupiah)

46.3

5Br-rat'

Non-Chain Hotels (Ruoiah)

4d.5 $tar-xlfed

Chain llotels

(Rupiah) Foods 85.902.675.005 (12.6%\ 37.469.160.987 (23.7%) 7't.521.698.442 (6.3%\ 213.933.002.18 4 (20.sYo) z Bwerages 449.259.159.786 (6s.7W 70.822.831.218 (44.8%\ 863.174.734.286 (69.8olo) oo/.oJ).46u.UU 0

tu.t%')

-t

rnlts

ano Veeetables

o.ull.J6u.v6u (4.3V,)

o.), l r*0z!.266

(0.sold

. /J).J4lr.Uru

$2%)

4 uood, utenslls, Equipment, Materials 1t.294.569.374 (7.2%) 4.000-702.429 (0.37") 1.376.700.{n0 (0-r%) 5 Mrketmgand StaffTraining 8.820.m0.ux) (5.6010) 108.938.,161538 (8.87o) 49.UUU.ilru.{nru (4.8vo) Payments for

Foreigr Emplovees 87.600.000.000 {7.1'/"') 21.984.000.000

(2.rw

l0

Online fees t4 t.v96.492.t)v

Qt.7%\

22.686.927.8M (t4.4%\

89. I 15.720.E2E (7 _2"/.)

37.104.023.687 (3.6%)

booKmg re€s o.J /u.6) l.r+ /+

(0.60/o)

t2 Managem€nt

Fe

4U.dt6.OOt.OvJ

(3.9o/o)

l3

Profit Transfer 604.457.301

(0.r%) Total

hakage

683.158.326.950 (l00%) 157.914.870.365 (100%) t.236.882.781.77 I

(lm%)

1.04t.372.5t9.3 39 {100%) Total Rerenue of

Hotels

7.778.374.966.3 15

I .318.129.502.48 I 5.448.951.999.20 7 2.041.433.034.6 66 Percentage ol

Leakase 8.8% 12.0o/o 22-7U" 51.00

Arerace l*akage

[image:14.448.31.412.209.644.2]

I

G. A. Okasuryawardani, KomangGde Bendesa, Made Antara &Agung Suryawan Wiranclha

The results show that the highest percentage of iourismleakage

fiomthe

accotrrnrcd?.tior

sector

in

Bali was on the 4,5 Star-rated chain hotels (51.0 %).

[t

was followed

by

the 4,5 Star-rated non-chain hotels (22-? Yo), and 1"2,3 Star-rated hotels (12.0 %). Meanwhile,

the

lOwest

leahge

was

on

the

Non

star-rated hotels (8.8%), see Figure 3. The average

tourism leakage

of

all

types

of

acconrnodations

in

year 2012 was 18.8%. These rcsults

indicate

that

(i) the higherthe

hvel

of hotel classification, the nnre leakage rvill be; and

(ii)

the accornmdations which are nranaged

by

intemational chain hotel systen-s and/cr owned

by

foreigners have rrore leakage than

othertype

of

accorurodations.

The rxrre

leakage, therefore the less revenue from tourism

will be

directly received

by

hotel and

undirectly

by

the

local conrrunity as

tourism

is

the nain

source

of

economic

developnrnt of

Bali

Province .

Flgure

3

Arerage Tourism

I*akage

of

Accorunodation

Sector

in

Bali

There

is

a need

to

minirire

tourism leakage ft,om acconrmdation sector partictriarlS' in

the

d5

Star-rated chain and non-chain hotels

by

reducing the use

of inported

lrladucts

and

services.

One opportunfiy

in

reducing

inported

products is

to

provide

subslitute products

for irrported

products.

Anotheropportunity in

reducing leakage is

to

rnininrize

the nun$ef

of

foreign

enployees

hired

in

the

star-rated hotels

by

local

emirloyees. However, quality

of

products and hunnn r€sources are crucial to be addressed in order to minimize tourism leakage.

Reducing tourism

leakage nrcans

giving nnre

opportunity

for

local products

to

be

consunrcd

by

tourists,

and

providing

nnre

job

opportunities

for

local people.

Lr

other

words, less

leakage nrcans

nnrc

benefits

for

local

people ftom

tourism

It

will

bring irrplications

t9

the

irrprovenpnt

of

quality

of

life of the conrrunity, rmintaining quality

o f

environnrnt,

and b etter quality ery eriences for touris

ts'

CONCLUSION

C-alculation

of

tourism leakage

on

acconrrndation sector in Bali shows that tht', highesi percentage

of

tourism leakage on acconrnodation s ector was on lhe 4&5 Star-rated chain

hotels

(51.0

%),

followed

by

the

4,5

Star-rated non-chain hotels (22.7 Vo), and 1,2&3

tffi

W"

8(}96

7M

6ry6

5@5 AUo

3M" 2M" lMo

o%

r

LIAKAGE

I

NON LEAKAGI:

4,5 Star-rated

Chain

Hotels

4,5

Star-

1.2,3

Sfer-

f'lon

Star-mt€d

Non rated

tated

chain

llotels

Hotels

Hotels

Tourism

l*akage

ofThe Accommodation Sector in

Bali

Star-rated hotels (12.0 %)- The lowest tourism leakage was on the Non-star rated hotels (8.S %). Ovei:all,

the

average tourism leakage

on

accormpdation sector in Bali was 18.8

%.

These

results

indicate

that

thc

higher the

level

of

hotel

classifications,

the

nnre

leakage

will be;

and

acconrrpdation

which

was

rnnaged

by

intcrnational chain hotel

system and/or owned

by

foreigner had nrore leakage than othertypes of accornrnodation.

The

rnre

leakage, therefore the less revenue from tourism

will

be directly received by

hotel

and

undirectly by

the local

conrnrnity

as tourism is the

rBin

source

of

economic

developncnt

of Bali

Province.

The

nrain sources

of

tourism leakage

from

acconrmdation sector were irrported food

and beverages,

paynrnt

for booking fees, overseas

nnrteting

and stafftraining,

paynrnt

for

foreign

enployees,

and

nanagement fees. Payrnent

for profit

transfer

for

the

ownenhip of

the accormrpdation was also been found as a sourte oftourismleakage on

4&5

Star-rated chain

hotels-

Tourism leakage fi,om acconrnodation sector needs

to

be minimized.

Inplication

of

successful

in

minimizing leakage

is

gaining

better

quality

of

life

for local

conrrmnity

in destination.

SUGGESTIONS

A

further

research

could

be

undertaken

to

include

all

factors

that

are used

in

the

calculation

of

tourismleakage as nrcntioned

in

the rnodel

of

Unluonen, et. al' (2011) in orrder

to

obtain

npre

accurate results. Moreover,

it

is

suggested

to

develop a holistic

strategy

to

reduce tourism leakage from acconnndation

sector

For future developnrcnt

of

acconmrodation sector in

Bali priority

should be given

to

accorrrndations which are

owned and/or managed

by

local and national company in order to ninimize the leakage and to

nnximizn

the benefits

forbcal

corrnnrnity'

References

Antara,

M.

(1999). Dampak Pengeluaran Pemerintah dan lf/isatawan Terhadap Kinerja Perekonomian Bali: Pendekatan social accounting matrix(Inpacts

of

Governnrent and Tourism

Bpenditures

on

Balls

Economy Perfonrnnce:

A

Social accounting

natrix

approach). Unpublis hed Ph.D. Thes is. Bo gor Agricultural

Institute. Bogor.

Bali

Statistical

Office.

2011.

Bali

in

Figure'

Denpasar. Bali'

Bali

Statistical

Office.

2013.

Bali in Figure.

Denpasar. Bali.

Bull,

A.

1991. TheEconomics

ofTravel andTourism

SecondEdition.

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