A.About the Destination
The destination chosen for this report is Bali that is not only an island but also province of Indonesia. The province along with Bali includes smaller neighboring islands of Nusa Lembongan, Nusa Ceningan and Nusa Penida. The island is surrounded by Lesser Sunda Islands in the westernmost end, Lombok in the east and Java in the west (Berger 2013). However, Denpasar, the capital, is situated in the southern part. Bali is a portion of a coral triangle that has the maximum biodiversity of the marine species. There are around close to over 500 species of coral found in the island. Bali served the United Nations Educational, Scientific and Cultural Organization (UNESCO) World Heritage Site. It has also been home to the unified confederation of the kingdoms that comprised of the Balinese houses of royal category.
Figure 1: Bali Island
Source: (Ringer 2013)
Evidence of How the Destination Supports Tourism
Bali has been a famous tourist destination that has seen a considerable rise in the number of tourist over the years. Around 80 percent of the economy depends on business related to tourism. The island is known for its painting, sculpture, leather, metalworking, modern and traditional dance and music (Law et al. 2016). The Island is also famous for its iconic beaches, coral reefs and the volcanic mountains that have raised it to the top of the destination list. Bali, the Indonesian Island, is one of the favorite destinations of the tourist for both adventure and relaxation as it not only provides white beaches but also ensures gather lifetime experience of great diving and dense jungle treks. In Bali Indonesia, Tourism has a contribution of close to 4.1 percent of GDP in Indonesia and employs around 6.9 percent of workforce.
The local government of Indonesia articulated an intense vision for future through developing the stunning landmarks of Indonesia into new and high-end tourism parks. The government of Indonesia went to greater lengths in promoting Indonesian tourism. The government has not only implemented economic master plans for boosting Indonesia amongst the top ten global economies but has also created the Ministry of Tourism and Creative Economy in promoting tourism (Gurtner 2016). The local government of Indonesia in recent times has introduced tourism policies based on the sustainable and the environmental principles. The government has realized that the need to develop tourism in a sustainable manner and therefore based its government policy on four notable principles that implied that tourism should be pro-growth, pro-job, pro-environment and pro-poor. The commitment of the Federal Government comes through Australia, the ambassador of Indonesia, in boosting Indonesian tourism. Through the World Bank, Australia helps Indonesia in gaining enough funds for creating ten newer Bali. A draft put forward by the World Bank showed that Indonesia put in the requirement of seeking an initial amount of $US180 million for developing three of its locations. There was also an additional demand of $US570 million.
Leiper considers the tourism phenomenon as a system functioning under the various environments like the human, economical, socio cultural, physical, technological, political and legal.
Figure 2: Diagrammatic Representation of Leiper WTS Model
Source: ( Sharpley and Telfer 2015)
a. Economic Impacts of the Destination Caused by Tourism
The incoming of the Dutch navigation companies led to transformation of Bali Island into a cultural enigma. Not only did the museums and the libraries developed but the island also saw the promotion of the woodcarving art. In addition to this, the opening of the Ngurah Rai Airport in Bali in the year 1969 connected the island to the air routes of the international network. This led to the dramatic rise in the number of tourists (Vanhove 2017). Leisure tourism is mostly income and price elastic and remains quite responsive to the host as well as the countries that generate the traveler. The increase and decrease of price in the destination countries discourages or encourages some of the tourist from the traveler countries. In a similar manner, the rise and fall of income in will in initiating a parallel effect thereby discouraging or encouraging the overseas visit of the citizens for the countries generating the travelers. However, the economic impacts of the presence of the visitors on the destinations arise from the spending of the money of both the tourists and the travelers on a variety of services and goods. To pay for their tourism experience the foreign tourist changes their currency that leads to the increase of foreign currency in the host country for spending not only on its own needs such as providing educational and medical facilities along with stimulation of the general development of the economy. The tourist money has a cascading effect on the host economy and used for the establishments of restaurants and hotels.
The Positive Economic Impacts on Bali includes (Webster and Ivanov 2014):
The Negative Economic Impacts on Bali includes (Kim, Uysal and Sirgy 2013):
b. Environmental Impacts on Destination Caused by Tourism
Tourism especially ecotourism helps in promoting the conservation of natural resources such as the rain forest and the conservation of the wildlife. Tourism also leads to the generation of the funds for maintenance of the marine parks and the animal reserves through the guide fees and the entrance charges (Li et al. 2014). It also leads to the creation of alternative employment sources thereby reducing the problems of deforestation and overfishing. At the same time, tourism also creates threat for the cultural and natural resources of the region such as beaches, water supply, heritage sites and coral reefs. Environmental impact of tourism leads to the depletion of the water resources due to the overuse of water resources for the swimming pools, hotels, golf courses and personal use. This also leads to the degradation and shortage of the water supply along with generation of greater volumes of water. The environmental impact also leads to the creation of pressure on the local resources that include food, energy and other raw materials. Greater transport and extraction of the resources intensifies the physical impacts associated with exploitation. Because of the seasonal character of tourism, many destinations have more tourists in high season compared to the low season. The resources are at stake for meeting the higher expectations of the tourist. In the environmental context, tourism also leads to the degradation of the land including fossil fuels, minerals, fertile soils, forests, wild life and the wetland. Tourism has also led to the increased construction that has led to enhanced pressure on the scenic landscapes and the resources. The use of land for the purpose of accommodation and other provisions of infrastructure lead to a direct impact on both the non-renewable and renewable resources. Thus, the environmental quality that is both manmade and natural is required for the aspect of tourism. However, the relationship of tourism with the environmental aspects is quite complex. There is involvement of various activities that can have adverse environmental impacts. There are also certain negative impacts of the environment on tourism development that leads to the gradual destruction of environmental resources. Tourism also brings in certain beneficial impacts on the environment through contribution of the environmental conservation and protection. Tourism also helps in raising the environmental values that serves as a tool for the protection of finance of the natural resources along with an increase in the economic importance.
However, the positive environmental impacts on Bali include (Holden 2016):
The negative environmental impacts on Bali include (Murphy 2013):
c. Socio Cultural Impacts on Destination Caused by Tourism
The socio cultural impacts of the tourism refer to direct and indirect relations that the tourists have with the host communities based on the interaction of the tourism industry. The interaction of the two groups acts a major issue in influencing the kinds of the impacts (Yang, Ryan and Zhang 2013). When there is a huge difference between culture of receiving and origin society then there is a probability of greater impacts. Thus, the socio cultural impacts represents the manner in which the tourism changes the individual values and community, community structure, behavior, overall quality of the life and lifestyle in terms of both visitor and destination. The socio cultural impacts occur in the three primary categories, which includes tourism host interaction, tourism development and key cultural impacts. The key cultural impacts take place as the result of physical development, relationship conflict or growth and impacts because of culture loss or continuation. In other words, the socio cultural impacts imply the improvements of the infrastructure and the new amenities for leisure that leads to the benefit of the local community. In addition, tourism also encourages the conservation of the traditional handicrafts, customs and festivals that otherwise would have been left to wane thereby creating a civic pride. Tourism also helps in the interchange between guests and the hosts thereby leading to improved cultural understanding that might also help in raising the issues of global awareness including the human right abuses and poverty (Cole 2014).
Thus, the positive Socio Cultural Impacts on Bali include (Andersson and Lundberg 2013):
The negative Social Cultural Impacts on Bali include (Mason 2015):
d. Interlink Between the Impacts
The economic, environmental and the socio cultural impact of tourism have interconnection amongst them in the overall development of the destination. They contributed positively to the economy through the improvement of the society’s incomes. Tourism contributed to the economy in the form of rent of the food and beverage sales along with the rent of the hotels stay and the sales of its food and beverage (Epstein and Buhovac 2014). Tourism also created an earning means for the people who are cleaning, serving food in the hotels and escorting. The combined impact of the economic, environmental and socio cultural aspects of tourism helped in increasing the employment through the creation of new job post. The interlinking between the aspects also helped in the improvement of the society where chances have been provided to people for developing activities like spa business and involvement in traditional performances for entertaining the guests. The interlinking between the various aspects also helped in cultural preservation of various dance forms and art. It helped in building community leadership where people are able to believe and love their leaders. In addition, it also led to the improvement of the knowledge of the society about tourism, punctuality and clean living. Further, the existing community also learns to communicate well (Glasson and Therivel 2013). There is also much improvement in the physical environment of the destination in terms of view as well as quality. This made the destination not only cleaner but also devoid of pollution. The interlinking between the various aspects created an overall positive vibes for the chosen destination and helped in the development of Bali into one of the most attractive tourist destinations.
a. Butler’s TALC Curve for Justifying the Current Position of Destination
As stated by Butler, initially the visitors will come to the area in smaller numbers due to the lack of facilities, local knowledge and lack of access. With the introduction of the facilities and growth of awareness, there is an increase in the number of visitors (Tirosh 2013). However, with information dissemination, marketing and provision for further facility the popularity of the area grows rapidly. Gradually, the rate of increase in the number of visitors will decrease with the reach in level of the carrying capacity. This might be in terms of the environmental factors, physical plant and social factors. The environmental factors included air quality, water quality and land scarcity while the physical plant included accommodation and transportation. The social factors mostly represented crowding. The decline of the attractiveness of the destination compared to the other areas due to visitor impact or overuse leads to the reduction of the number of tourist.
There are however six stages of Evolution of the Tourist Area (Ma and Hassink 2013):
The Stage of Exploration:
The stage is marked by:
Lower number of tourist
Tourists are attracted based on the primary attractions that may be either cultural or natural
Presence of no secondary tourism attraction
Tourism does not have social or economic significance to the local residents
The Stage of Involvement:
This stage is marked by:
Involvement of the local residents in tourism
Emergence of the secondary facilities of tourism such as guests houses
Development of the tourism season
Development of pressure for the governments for improving the transport of the tourist
The Stage of Development:
This stage is marked by:
Larger numbers of tourists who exceeds the local population during the peak periods
Presence of massive advertising will ensure the creation of well-structured market for the tourist market.
Rapid decline in the involvement of the local people and control of tourism
Presence of the external organizations will help in providing secondary attractions for tourism.
Development and marketing of the natural and cultural attractions
There might be physical changes in the area without the approval of the local people
The Stage of Consolidation
This stage is marked by:
The growth of tourism slows down but the actual number of tourists is more than the local population.
The economy of the area is tied to the tourism
There would be wide reaching advertising and marketing
Representations of the major franchises and chains of tourism
There will be a well defined recreational business district in the resort areas
Arousal of discontent and opposition from the local people
The Stage of Stagnation
This stage is marked by:
The number of visitors reaches the peak
Reaching or exceeding of the carrying capacity
Leads to the social, environmental and economic problems
The destination becomes separated from the geographic environment
Increase in the number of artificial attractions for tourism compared to the primary attractions
Although the destination has well-established image it remains no longer visible.
The Decline and the Rejuvenation Scenario
This represents the final stage of Butler model for tourism. Butler observed decline or rejuvenation as the possible alternatives. The last stage of the model is dependent on the five scenarios that lay between the complete rejuvenation and complete decline (Yang and Fik 2014). This includes:
Success in the process of redevelopment leads to the improved growth
Improvements in capacity levels leads to the modest growth of the tourism
Stabilization of the tourism through the cutting capacity levels
Constant overuse of resources and insufficient investment leads to the decline
Disease, war and other catastrophe leads to an instant collapse in the tourism
The Scenario of Decline:
Inability of competing with the newer tourism attractions
Weekend or Day trippers replaces the holidaymakers
Non tourism activities replaces tourism facilities
Hotels might become the home for retirement of the local residents
The area might becomes a slum for tourism or there might be a complete drop out of the tourism market
The Scenario of Rejuvenation:
Complete change in the tourism attractions
Discovery of untapped resources of tourism
Figure 3: Butler’s TALC Curve
Source: (Yang and Fik 2014)
The management of the holy and heritage site of Bali taken care of by the Department of Tourism and Culture Bali that falls under the Ministry of Culture and Tourism of Indonesia (Mowforth and Munt 2015). There are various levels of planning policies of government related to the cultural heritage of Bali. This includes:
The chief of the destination development at the Tourism Agency of Bali ensured the implementation of four key policies in accordance with national development plan for the tourism sector of Bali (Jenkins 2015). The first policy is formulated in relation to destination development where the government focused more on the mapping of tourism for determining the unique areas of the island. The second policy focused on the development of the existing sites of the tourist along with up gradation of their accessibilities and facilities. The third policy focused on the improvement of the business related to the tourist and the human resources for empowering the local communities. The fourth policy revolved around the development of some of the newer destination in some of the unexplored areas. This is because Bali had pool of cultural and natural attractions in abundance. Tourism represented a dynamic industry that rapidly changed with the global and local trends of tourism. The government therefore felt that it was very necessary in keeping pace with the varying demands of the tourists in relation to the based on destinations types, attractions and accommodation. Cultural attraction was the primary reason for people to visit Bali during the past although now people mostly visit for enjoying the spa facilities, newer attractions and enjoying water sports. There was establishment of the Bali Tourism Promotion Board (BPPD), the members of which represents competent figures in the tourist industry of the island. However, for boosting the promotional activities of the future years the provincial administration will ensure closely working with the BPPD (Edgell 2015).
The second implemented policy would revolve around tourism through strengthening of the partnerships between the industry, community and the government. There would also be emphasis on the need for improving the credibility of tourism and the bigger responsibility of the industry in helping to preserve the environment of the island (Sharpley and Telfer 2015). The government will also tighten and closely monitor the issuance of permits concerned with tourist development. The development of the new tourism will gradually get shifted to the western, eastern and the northern parts. Institutional improvement stressed on increasing the activities of the various associations of tourism which include Association of Indonesian Tour and Travel Agencies (ASITA), the Association of the Indonesian Hotels and Restaurants (PHRI) and the other organizations. Presently, there has also been a development of the village-based tourism in the rural areas (Dahles 2013). It is therefore necessary for associations for relating their activities to the organization based on community that would ensure managing such programs. The four policies would therefore act as guideline for development of the tourism in short, middle and the long term. However, the four policies of tourism has been prepared in reference to the Law No. 10/2009 based on tourism , bylaws on the spatial planning and the government decree of the No. 50/2011 on the national development.
c. Discuss the Effectiveness of the Existing Policies
The State Level Policies implemented under the Regulation of Republic of Indonesia no. 26/2008 indicated within the purview of the national planning region there existed around twenty established zones that depend on the characteristic of the every region (Kneebone 2014). These policies primarily highlighted the heritage site as one of the key sites for the purpose of conservation. This included local heritage, world heritage, natural environment, corridors of beach borderline, cultural heritage, area of the riverbanks, coral reefs and the mangrove beaches. In addition, significant benefit extended to the areas related to the significant cultural value that consisted of the ancient objects as well as sites. In addition, there has been establishment of national strategic zones in Bali.
These policies also implicitly mentioned the tangible and intangible dimensions that required preservation for purposes including social, cultural, education, tourism and religion. Further, the importance of the preservation of the cultural heritage lay in sustenance of the social welfare and national identity along with the global promotion of the Indonesian culture. The policies of planning also emphasize the protection of the open space since they supported cultural, ecological, aesthetic and economic values. In fact, the protection of the open spaces helped in protecting the heritage sites and the regional identity (Dwyer 2015). However, it is also necessary for the open spaces in reflecting the nature, history, ecology, regional culture and the environment.
According to the provincial policies, there existed three regulations that helped in controlling the heritage. The policies primarily focused on the cultural heritage concerning regional planning, building and architecture (Giap, Nurina and Mulya 2015). There has been thirty-one zones covered by the policies and they primarily described the regulation of the heritage. Three classifications of the temple within the heritage site required protection from any sort of irrelevant activities. The protected cultural heritage sites included temples and other heritage buildings along with some Hindu sacred sites located in the hill, lake, mountain and spring, sea, meeting points of the river, beach and sea zones. The strategy of conservation adopted for the culturally enriched heritage sites and stated with the policy should focus on improving the cultural and social values. Through encouraging, the community for getting involved in the action for preservation will not only strengthen the regional identity but also enable the cultural and social system applicable for community, improve the preservation of the heritage site, protection of the object of heritage from disintegration and control of the holy sites from the negative impacts of the developments.
However, the regional policies include four regulations within the planning policies that are concerned with the cultural heritage and are focused on the regional building and planning regulations (Ringer 2013). The regional policies help in protecting the heritage sites from the activities and the development. Further, the policies also regulate the building permits. However, the vision of the government in the long-term development of Bali lay in the maintenance of the destination as cultural city. Since the heritage monuments act an identification of the Bali Island, so conservation of the heritage sites should become the stepping-stone for the new development.
d. Identification of Critical Stakeholders
The critical stakeholders of Bali include:
e. Role of the Stakeholders in Implementation of the Policies
The stakeholders have adopted a strategy of sustainable tourism for the cultural landscape of the Bali Island. Sustainable tourism represents the tourism that protects and safeguards the genuineness of cultural landscape based on a philosophy that reflects the values of the balanced conservation and sustainable development of tourism through the active participation of the stakeholders thereby providing authentic experience to the visitors and benefits to the local communities (Lawrence and Weber 2014). However, for implementing the policies the stakeholders adopts certain strategic objectives that are as follows:
f. Doxey’s Theory of Tolerance of the Host with the Tourist
According to Roberts and Morag (2017), Doxey put forward a model that ensured the evaluation of the social impacts of the tourism. He was of the view that the increase in the number of the tourist leads to the attainment of more developed industry of tourism in the destination. This results in the cause of irritation of the host country. Thus, the Doxey Theory indicated the change of attitude of the locals in the direction of tourism as per the impacts. He proposed that this attitude of the locals involves four stages that include apathy, euphoria, antagonism and annoyance. At the initial stage of the tourism development, the residents not only feel comfortable but they are also happy or euphoric. After which they lose interest in the aspect of tourism that might be termed as apathy. The negative influence of the tourism is marked by the next stage when the residents feel annoyed due to the increase in the number of the tourist growth. The last stage marked by antagonism that shows hostile reactions towards tourism. As per the Doxey theory, the reciprocating impacts between the community members and the tourist results in different degrees of irritation amongst the members of the community mostly influenced by the figures of the tourists and subsequent threat imposed towards the way of the life.
Conclusion:
To conclude, one can say that Tourism in Indonesia has overshot the figures of last decade. The figures provide an idea that close to ten million tourists have already visited the country in the past decade. The country also received a key boost from Australia towards tourism because of the decision of waiving the visa entry fees of March 2016. In the year August 2016, Bali had close to 105,754 tourists from Australia that was 49 percent more than the figures of the August 2015. The government of Indonesia is thus aiming for doubling the international tourist figures by the year 2019. The Indonesian government considers the tourism sector as the growth strategy of the country and thereby aims at increasing the contribution of the sector to the country’s GDP by about 8 percent. This has led the government to increase the budget of the promotional and tourism programs from $30 million to around $ 263 million.
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