Sustainability of Tourism Industry and Contribution of Development in North Sumatra

This dissertation explores the sustainability of tourism industry and the contribution of development in North Sumatra, Indonesia. It covers the impact of tourism on the environment, economic development, and social-culture. The research questions include the prospect of North Sumatra tourism, sustainability of tourism in North Sumatra, and how tourism can contribute to the economic value of North Sumatra.

UNIVERSITY OF GREENWICH (UOG)
Bachelor of Arts (Hons) in Business Management (Top Up)
ASSIGNMENT / PROJECT COVER SHEET
(to be completed individually by student)
UOG ID Number 000893391
Course Specialization Tourism and Hospitality Management
Subject Code/Name BUSI 0011/ Dissertation
Assignment Title Dissertation
Topic
The Sustainability of Tourism Industry and The
Contribution of Development in North Sumatra
Lecturer/Supervisor Mr. Constantine Ng
Word count 2,932
DECLARATION
I, the above named student, confirm that by submitting, or causing the attached
assignment to be submitted, I have not plagiarized any other person’s work in
this assignment and except where appropriately acknowledged, this assignment
is my own work, has been expressed in my own words, and has not previously
been submitted for assessment.

1. CHAPTER 1: INTRODUCTION:
Tourism is one of the industry that have big impact on the economy growth which can
increase the gross domestic product (GDP) of a country. Therefore, many countries had set
tourism as a leading sector by increasing destinations and investments in order to make tourism
the key factors of increasing domestic income, creation of workplace, enterprise and
infrastructure development and it will make the people in the country prosper due to the
increasing availability of job.
Indonesia is rich with natural resources that serve tremendous benefits to various industry
and one of them is the tourism industry in Indonesia. Moreover, Indonesia also have a variety of
culture that have high history value (Yuwana, 2010). As an archipelago country, Indonesia have
the potential in developing tourism industry. The development of the industry is not the only
impact on the increasing foreign exchange income but also will give an opportunity for the
people to open up a new business to reduce unemployment and maintaining the damaged
environment is important as well. Increasing international tourist by improving tourism will have
positive impact on the supply in tourism industry.
The success of the development in tourism industry is based on the acceptance of the area
and the PDRB through the total of souvenir that being sold, the total tourist from domestic and
international, hotel occupancy and the income per capita. From the perspective of economic, the
activity of tourism will give contribution to the area such as tax, car park retribution and
ticketing or getting foreign exchange from the international tourist. Having tourism will push the
economy from the activity which will increase the income of the people in the area. Tourism in
North Sumatra have the potential to be managed and marketed as a trading because having many
employee and give a huge contribution to the PDRB.
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Tourism industry is one of the useful source in the country after the decrease of the oil
(Rahma & Handayani, 2013). It plays the vital role to increase the environment, create new
business and infrastructure to make a better life for the society (Yudananto, 2011). There is a
positive impact on the non-economic infrastructure which caused by tourism. The positive
impact in the non-economic infrastructure such as using the technology and developing the
modernisation value or to achieve the social culture value such as to show the country identity or
to show respect on the country also be friend between the ethnic and the nation (Sunaryo, 2013).
People tend to travel a lot either out of town or overseas for different purposes such as
business trip, for education, relaxation or for the medical purposes. This literature review will
discuss about the objective of the research, the aim for this research and three research question
that are taken from some journals.
The topic of the literature review is about the sustainability of tourism industry and the
contribution of development in North Sumatra, Indonesia. Hereby, this research will find out on
how does the environtmental issue have been damaged by tourism industry. Moreover, to what
extent the economic development of North Sumatra can be contributed through tourism will be
investigated. The study will extensively cover in Lake Toba which is the key attraction to the
tourism in North Sumatra. As the consequence, the aim of this research is to identify the
emergence of environmental threats in North Sumatra particularly through tourism industry.
Furthermore, it can learn about the impact of sustainability in tourism industry of North Sumatra
and to what extend does sustainability contribute the development.
1.1. Research Question:
In the research question, there are three question that will be asked and discuss with the
appropriate solutions.
 What is the prospect of North Sumatra tourism
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 Is the tourism in North Sumatra sustainable? If yes, can it compared to other countries
with similar area?
 How can tourism contribute economic value of North Sumatra?
1.2. Definition of Tourism:
The term of tourism is where people can move to one place to another place for personal
purposes or business purposes (United Nations World Tourism Organisation 2008 cited in
Westcott, M. 2014) and it is also one of the global industry that makes the economy growth
growing rapidly. Based on American website (Go2hr.ca, 2018), it was said that the tourism
industry is competitive and need to meet the customer’s expectation such as safety, satisfaction
and pleasant.
1.3. History of North Sumatra:
North Sumatra is a province which capital is Medan. It is connected with the Aceh
province, Strait Malacca, the Riau province, and the West Sumatra. Furthermore, there is one of
the famous tourist places in North Sumatra which is Lake Toba. According to the Indonesia
Tourism Board (2018), Lake Toba is the largest lake in Asia and also one of the most famous
destination in North Sumatra.
2. CHAPTER TWO: LITERATURE REVIEW:
2.1. The Understanding of Tourism Industry in North Sumatra:
To understand more in depth of the tourism industry in North Sumatra, this research is
going to use the Triple Bottom Line (TBL). The TBL framework is going to include social,
environment and economic as a performance of a business (Goel 2010 cited in Alhaddi, 2015) in
North Sumatra. Rojek-Nowosielska (2015) said that the basic of the modern business
responsibility is based on the strategy of sustainable development. Moreover, the aim of TBL
framework is to value the asset and control the resources in which people can manage well the
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resources efficiently and effectively. The theory is known as people, planet and profit (3P’s) and
triple value adding (Robert & Cohen, 2002; cited in Hammer & Pivo, 2016). Using TBL can be
the strength that allows people adapt with the framework by the need of different organisations
such as businesses or non-profits, different projects or policies infrastructure such as investment
or educational programs, or different geographic boundaries in a city, region or country (Slaper,
2018).
2.2. Environmental:
Environment need to be sustained for tourism because without a place there are no people
living. The environment can be nature such as beach, lake, mountain and forest and the building
environment can be road, hotel, houses and historic building. Environment sustainability, which
will cause more on positive impact than the negative, occurs when all the resources can be use by
the people both local and tourist.
Figure 1: Lake Toba view
Source: Google, 2018
Tourism infrastructure is a tangible element that is created to attract the visitors. A
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number of authors has found out about the strong relationship between tourism development and
infrastructure (Adobayo and Iweka, 2014) because by having an easy access such as
infrastructure, which is (roads, airport, harbour and railway) and services (public services and
health care), in a country will attract the tourist. Moreover, building such as hotel, restaurant and
other entertainer place is the infrastructure as well that need to meet the want of the tourists
expected (Popesku, 2011).
Figure 2: Types of tourism infrastructure
Source: Tourism & Transport Forum (TTF), (2012) Tourism Infrastructure Policy and Priorities
(in JOVANOVIĆ, S. and ILIĆ, I. 2016)
In figure 1, the three types of infrastructure are showed tourism infrastructure is a shared
infrastructure, which the market is a tourist destination and it is engaged in the distribution of
tourism products that made of a network of regional, state, and national tourism organizations
(Tourism & Transport Forum, 2012).
Environmental infrastructure occurs when the tourist can enjoy the tour in a country
which have natural value such as national park and Marine Park. (JOVANOVIĆ, S. and ILIĆ, I.
2016)
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Figure 3: Components of tourism infrastructure
Source: Raina, A., Ecology, Wildlife and Tourism Development: Principles, Practices and
Strategies, 2005. pp. 192 (in JOVANOVIĆ, S. and ILIĆ, I. 2016)
The diagram in figure 2 shows that four components which is physical, cultural, service
and governance is part of tourism infrastructure, however the expansion of constructing tourism
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Tourism
Infrastructure
Physical
Hotels,
Restaurants
Transportation
Communication,
Water,
Electricity
Cultural,
Culture,
heritage fairs
and festivals
Local art and
music, dress and
dance
Language and
food
Service
Banking
facilities Travel
Agency
Insurance
agencies
Tourist guides
Governance
Law and order
machinery
Customs and
immigration

infrastructure concern a large number of countries and having higher results in tourism will
impact on economic development.
Creating the way of managing the connection between tourism infrastructure, tourism and
local economy is conditioned by the effect of the overall development (Swyngedouw, 2000).
Then the quality of the infrastructure is responsible by the state and public enterprise and public
sector. Smith (1994) pinpoint that with the lack of vicinity of tourist destination is an obstacle
that can affect tourist's experience and satisfaction in a certain tourist destination. Tourism
infrastructure become a crucial role for tourist’s experience while general infrastructure and
services is the most important factors for the tourist development.
2.3. Social-culture:
To measure the social line through community of a region of in a country, it is need to
include the quality of life, equity and access to social resources, health and well-being,
measurements of education, and social capital (Slaper 2018). Socio-culture occurs when the
negative impact is minimised and focused on exchanging culture with tourist and maintaining the
local traditions. The activity is by sharing the local interest such as dancing and handcraft.
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Figure 4: North Sumatra (Batak) cultural dance
Source: Google, 2018
The form of interaction which is associative and dissociative and the nature of the
interaction of society and tourists is the basic assumption of social interaction (Soekanto, 2012:
65-97). There is no mutual trust between the tourists and the local community because there will
be the community representatives who are the people that the tourists interact with in the
constraints space and time. The form of tour packages is some of the interaction that has been
arranged and the relation between the tourists and the society is unequal relation because the
tourists are more superior while the community follows the tourists' wishes (Pitana dan Gayatri
2005: 81-82).
The development of tourism and the high tourist arrival in tourist destination is explained
in the irritation index theory about the changing people attitude toward tourist. Doxey introduced
the irritation index theory in 1975 (Reisinger, 2009: 220-221). The theory illustrate that the high
tourist arrival will change public attitude from positive become negative. There are four step in
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changing an attitude which are euphoria, apathy, annoyance and antagonism. The increasing
frequency of meeting or interaction with the tourist will change people's attitude towards tourist
which illustrated in the four step (Budiarsa, Thelisa and Widiastuti, 2018 4[2]: 228-239)
The modernisation theory is about basic assumption that move the characteristics of
modern society or particular society to follow as a model of modern society by the shape and
direction of socio cultural change of society. In general, the flow of modernisation is followed
and imitated by the people who think tourists are more advanced. The modernisation theory is
said that the traditional point of view need to be modern (Sztompka, 2004). The process
globalisation is the characteristic of modernisation which is individualism, rationality,
economise, development and the job differentiation (Kumar, 1988 in Sztompka, 2004).
According to Rosana (2011) is said that the change of social culture is related to the belief of
social norm and value, organisational structure, social behaviour pattern, public bureaucracy and
social interaction.
2.4. Social-Economic:
Social economic is always separately defined. In the theory of social, it is illustrated the
people while in the social department define it as a part of an activity that cause the people feel
secure in the economic and social as well. In Indonesian dictionary is said that social is occurred
to please the society (KBBI, 1996:958). Human needs other people’s help to satisfy their needs
and it shows as pleasing the needs of people.
The economic measures are the bottom line which is the flow of the financial. The
measures include business climate factors, business diversity factors, taxes, employment, and the
income or expenditures (Slaper 2018). In Indonesia dictionary (KBBI, 1996:251) said that
economic is a theory about the production, distribution and wealth. Money is crucial in human
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life because money can cover basic needs such as food and shelter (Gulf band centre, 2018) so
economic play the role in the tourism sustainability. The economic sustainability occurs when a
country keep the money local and reduce leakages. When a foreigner or an international brand
company own, and operates hotels or company in a country it invested, those international
companies will not contribute much to the local economy because the money will leak overseas.
This action is not sustaining in the long run and will only give negative impacts to the country.
Thus, socio economic is the need that people have to fulfil mainly the primary needs such
as food, clothes, house, education and also health. All of the needs are connected to the income.
Having interaction like buying something from the local people will give the financial benefits
for both tourist and local people.
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Source: Google, 2018
Figure 5: Traditional Batak cloth which sold for tourists
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Source: Google, 2018
3. CHAPTER THREE: METHODOLOGY:
In this chapter, it will show an overview of several methods to give an accuracy on the
studies. The discussion will also cover the area of research design, type of variable, sampling,
data collection and also data analysis.
3.1 Research Design
The intention of doing research is to find out the new fact about the studies that have not
been searched (Walliman, N., 2011). The method of the research is organised in define the
objective, arrange data and the data finding is occurred inside the framework and followed with
the existing guidelines. There is some indication that the framework and the guideline provide
such as what to include in the research, how to achieve the research and what types of suggestion
that based on the collected data (Williams, C, 2007). The research is including three types of
research which is qualitative, quantitative and mixed method.
Qualitative research is a research that engaged with findings in theory as a data and in
Creswell (1994 cited in William, 2007) opinion, he describes qualitative research as an extension
of framework that occurs to develop different part from people’s behaviour or opinion in real
life. The data theory’s explanations (Firestone, 1998) and participant’s point of view are
investigated and it is known as social phenomenon in qualitative research. Using qualitative
research could create biases because most of the answer is based on peoples’ opinion.
Quantitative research is a set of data from statistical information in order to support the
knowledge (Creswell, 2003, p.153 cited in William, 2007) of the researchers. The method of
quantitative research occurs when the researcher discovers the relationship between concepts that
originated from previous theoretical scheme.
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Mixed method research is the combination research of qualitative research and
quantitative research. This paper will be using the mixed method to avoid biases.
For the present research work, mixed research work will be considered because it will
utilise both the qualitative and quantitative work.
3.2 Type of Variable:
Variable is occurred when the researcher can observe or measure and varies by the trait
or part of an individual or a group of societies in the studies. The purpose is to let the researcher
collect the information and compare the data of the studies. (Creswell, 2012)
There are eight type of variable which is dependent variable, independent variable,
measured variable, control variable, treatment variable, moderating variable, locating
independent variable and intervening variable.
Dependent variable is a characteristic that influenced by the independent variable and
usually can be found in the literature as the result.
For the present research work development of the tourism and hospitality industry is
dependent variable, whereas, economic development, local culture, personal income, job
creativity and environment will be independent variable.
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3.3. Hypothesis:
Figure 6: Structural framework
The hypothesis in this research will show the connection between environment, economic
and social.
1. Having good environment will impact on the growth of economic development in the
country and it will give an opportunity for the people to have a better income.
2. Increasing tourist will impact on the growth of economic development in the country but
the local culture may diminish.
3. Having environment problem will impact on the slowdown the growth of the economic
development.
3.3. Population and Sampling:
Population is a place that consist of both subject and object with some characteristic
(Sugiyono 2005: 90). According to Arikunto (2002), population in the research is an overall
subject in the research or the totality of the overall in a sample. Sample is some part of
population that is taken for the purpose of the research. Sampling is a study about a number of
people from larger group or population in the research field (Notoatmojo, 2005). There are non-
probability sampling and probability sampling. Non-probability sampling is a sampling
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Environment
SocialEconomic

technique that acquire the sample that taken
This research will be conducted in some population in Medan and Prapat (Lake Toba). The
sample will be around 100 respondents that will be selected randomly. There are 40 respondents
from face to face interview which was obtained from the travel agency in North Sumatra, Medan
and the other 60 respondents are from online survey which was obtained from social media
(Instagram, WhatsApp and Line).
Source: Google image, 2018
3.4 Data Collection:
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3.4.1 Primary Research:
Primary research is the method which is more scientific or logical. The technique of
collecting the primary data is usually from one place to another place to help the researcher to
learn more specific in the studies. The objective of collecting the primary data is to find out
something innovative which can also be accepted in reality and also to avoid biases. (Driscoll,
2011)
There are some methods that researcher can use to collect the primary data. The method
is survey, observation and interview.
Survey is one of the method to collect useful data in logical manner which to show in
particular interest in some population in specific areas by using a great concept and techniques
(Minister of industry, 2003). Moreover, it is also defined as a source of collecting information
from a group of people about their opinion said Pinsonneault and Kraemer (1993 p. 77 cited in
Glasow, 2005).
Observation is the other method which the researcher needs to observe what is going on
in the specific area. The benefit of using observation is where the researcher get the result
without any interaction with people and let the researcher discover people’s action or habit in the
specific area. (Bryant, M., 2018). Moreover, there are two types of observation which is
unstructured observation and structured observation. Unstructured observation is where the
observer will write down what is correct based on what the observer see in the research field
while structured observation is where the observer does the observation according to the plan and
write down the time structurally in the area of research.
Interview is a process of communication between the interviewer and people through face
to face or through telephone to gather the information (Zarinpoush & Eastwaramoorthy, 2006)
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which is needed. There are several types of research in interview which is structured interview,
semi structure interview and unstructured interview.
Structured interview is a direct question which is organised with mostly a yes and no
answer. As Berg (2007 cited in Alshenqeeti, 2014) point of view, structured interview makes
both the interviewer and interviewees got less openness to each other. Moreover, the type of
interview can be argued as a quantitative questionnaire of the basic assumption and form.
For this analysis, the researcher have considered 150 population who are related to the
tourism industry of the North Sumatra and out of them 100 respondents has been randomly
chosen for the sample population.
3.4.2 Secondary data:
Secondary data is the data comes from reports, news and online research that has
combined into one data. The secondary data is included the literature review which theory is all
from another credible journal.
3.5 Data analysis:
Considering the mixed method of research design and analysis of the primary and
secondary data, statistical tools such as SPSS will be utilised. Through the analysis of the
descriptive data analysis, researcher will utilise the regression analysis.
3.6. Discussion:
This discussion is study about the sustainability of tourism industry and the contribution
of development in North Sumatra. The study will also give the answer referring to the research
question. Based on the data that have been collected through some articles, it shows unexpected
result of North Sumatra.
3.7. Conclusion:
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Nevertheless, there is an increasing growth in tourism sector in North Sumatra in which
the economic growth is also increasing. Moreover, it is good that North Sumatra become a place
of interest of other countries which also keen on investing in North Sumatra because the direct
investment from foreign will benefit both the industry that receive and other domestic industries
which the effect can improve in human capital and technology (Rappaport 2000 cited in Upreti
2015). Through direct investment from foreign, the host country will benefit by adding more
employment, more knowledge and new technology and the volume of domestic investment may
increase as well (Borensztein, DeGregorio and Lee 1998 cited in Upreti 2015). There will be a
negative effect on the recipient country which cause by the foreign direct investment because the
foreign industry will invest in the productive capital only. Therefore, the domestic industry will
be set out when the nation safety is low (Hanson 2001 cited in Upreti 2015).
International trade and economic growth will have a positive relationship by exporting
and importing said Upreti (2015). Then the higher rate of export growth is strongly connected
with the higher rates of economic growth, which is found by Kavoussi (1984 cited in Upreti
2015), and it gives positive impact for the countries income that are middle and low. The
openness of trade will help the poor country expand the growth in both productivity and human
capital (Harrison 1996 cited in Upreti 2015). Upreti (2015) stated that least developed countries
are highly depend on basic agriculture.
To sum up, it is good that a country’s economic growth is increasing because it will help
people maintaining the quality of their lives by having job, get education, get enough food and
standard living cost. Moreover, people; environmental and economy are the three components
that can cause a country economic growth merit or demerit. In addition, it is clearly see that
because of the natural disaster, the tourism sector has been dropped slightly for the short term.
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5. Analysis:
North Sumatra is acknowledged as one of the favourite destination of the tourists who
come to visit Sumatra Island, which is a province of Singapore. As per the Indonesian Ministry
of Tourism, it has been argued that it is one of the top ten tourist destination of the country and
presently it is attracting a wide array of tourists around the world. As it can be seen from the
literature review, tourism industry of Indonesia is popular for the Lake Toba and being the
largest volcanic lake, it attract lot of visitors throughout the year. As of now, there are more than
14,262,100 citizen in the island and with the rise in tourism it is having large amount of growth
in the same. Largest amount of immigration can be observed in this area and the population is
made of Batak, Javanese, Malay and other tribes who made almost 81% of population. More
than 95% of the population in the area are Muslim and the second largest religion worshiped in
this area is Christianity with fewer population with Buddhism religion can be seen in this area.
This section of the report is aimed to describe the sustainability of the North Sumatran tourism
industry in the coming days with the statistical analysis along with secondary source analysis.
The analysis is based on the data retrieved from the 100 sample who are being surveyed
regarding the sustainability of the North Sumatran tourism industry sustainability.
5.1 Graphical presentation of the findings:
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Figure 7: What is the prospect of North Sumatra tourism?
From the figure 7 it can be seen that out of 100 respondents 50% believe that tourism
industry under the present governmental guidance is expected to grow in near future, where as
29% of the respondents believe that it will fall. 14% of the respondents thinks that it will grow at
lower rate compared to the peer destination of tourism and contrary to this 7% of the population
believes that the North Sumatran tourism will remain stagnant. One of the main reasons for the
same can be seen due to the rise in the governmental support towards the tourism industry of this
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region. Over the decade government aid and the liberalisation of the economy has allowed more
and more visitors to this area allowing it have good growth prospect.
Figure 8: Is North Sumatran tourism industry gets government support?
As per the figure 8, it can be seen that 52% out of to the total sample population strongly
agrees that North Sumatran tourism industry get adequate amount of governmental support,
whereas only 6% strongly disagree. 26% of population agree with the proposition that Sumatran
tourism industry is getting adequate amount of government support and adding both the sample
who strongly agrees and agrees with the above mentioned proposition, it can be seen that almost
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78% believes it is true. However 11% of the sample population, fails to identify the amount of
governmental support towards the north Sumatran tourism industry and 5% disagreed with the
proposition. From the figure 8, it can clearly be said that most of the population of the north
Sumatran region are happy with the amount of the governmental support towards their tourism
industry.
Figure 9: Does North Sumatran environmental condition has influenced the tourism industry of
the state?
Source: (Created by Author)
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Environment is one of the major factors that influence the tourism industry in different
nation. North Sumatra being a tropical attract, throughout the year have soothing weather for the
tourism, however, during monsoon season, tourism industry face little fall in the number of the
visitors. As it can be seen from the figure 9, 87% of the sample population believes that the north
Sumatran environmental condition has influenced the tourism industry of the state and from the
analysis of the geographic position of the Sumatran island it can be seen that it is true. As per the
report north Sumatra faced highest amount of tourist during the summer and spring and the
number of the visitors starts to fall gradually during the monsoon and winter.
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Figure 10: Having environment problem will impact on the slowdown the growth of the tourism
industry development?
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As it can be seen from the above analysis that tourism industry of Sumatra faces
moderate amount of fluctuation due to the change in the weather condition. Thus, having
environment problem will impact on the slowdown the growth of the tourism industry
development will provide an impact as well. As it can be seen from the figure 10, 38% of the
population strongly agrees with the same and 23% of the sample population agree with the same
proposition. Considering the distribution of the population regarding the impact of environment
on the Sumatran tourism, it can be seen that it has good amount of impact on the tourism
industry of the state.
Figure 11: Is tourism industry of North Sumatra comparable with Singapore and Malaysia?
Source: (Created by Author)
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As per the figure 11, it can be seen that out of the sample population 74% believes that
there is wide amount of difference between that tourism industry of mainland Singapore and
Malaysia. One of the main reasons for the same is good transportation, availability of the
hospitality services in the peers states and exposure of the same to the greater number of tourists.
Apart from this, though North Sumatra is a part of the Singapore province, it lacks in case of
connectivity and has struggled enough due to the climatic fluctuation that has caused them to
face reduced amount of tourists. On the other hand, on 26% of the sample population believes
that there is significant amount of growth in the Sumatran tourism industry compared to the
Malaysia and on the other hand it has enhanced the performance of the domestic economy as
well. Large amount of sample population believes that there is significant amount of difference
between the performance of the Singaporean tourism industry and Malaysian tourism industry
compared to the north Sumatra.
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Figure 12: Does tourism contribute economic value to North Sumatra
Source: (Created by Author)
Almost 92% of the sample population believes that tourism industry of north Sumatra
provides good value to the domestic economy and it can also be seen that it has produced job
enough to reduce the unemployment rate of the economy lower.
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Figure 13: Does tourism of North Sumatra produce job
Source: (Created by Author)
93% of the sample population believes that tourism industry of north Sumatra produces
sufficient amount of job that has enhanced the performance of the domestic economy. With the
rise in the employment, it can be seen that, there is considerable amount of rise in the Human
Development Index (HDI) as well as Standard of Living of the North Sumatran population has
also increased. It can also be seen that there is moderate amount of decrease in the
unemployment level due to the rise in the job creation in the north Sumatran region through the
growth in the tourism industry of this place.
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Figure 14: Job creation by the tourism industry
Source: (Wttc.org 2018)
From the figure 14, it can be seen that economy of Singapore has produced job by a
moderate number through the tourism industry and as per trend, it has potential to enhance the
job creation by 40%. Same trend is followed by the neighbouring countries as well that provides
North Sumatra ability to have same kind of growth rate in employment too.
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Figure 15: In which factor(s) North Sumatra need to focus for better sustainability of tourism
industry?
Source: (Created by Author)
though there has is good amount of governmental support towards the tourism industry of
Sumatra, it can be seen that a lag is also there in terms of the infrastructural development,
connectivity with the mainland of Singapore and the other allied service is missing. Lack of
hospitality service is one of the major reason that has caused stagnant movement in the growth
path of the Sumatran tourism industry. Thus, as per finding of the researchers, it can be seen that
most of the population thinks that government should provide support in order to grow a good
hospitality industry and in addition to this, governmental aid to develop infrastructure is also
essential for the growth and sustainability of the north Sumatran tourism industry.
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Figure 16: Is tourism of North Sumatra comparable with Mainland Singapore and Malaysia
Source: (Created by Author)
From the figure 15, it can be seen that under the governmental support and present
forecast of the Sumatran tourism industry, the same is sustainable and it has good potential to
grow in future. Out of the 100 sample population, 74% believes that there is good amount of
sustainability in the north Sumatran tourism industry and from the same, it can also be inferred
that, most of the population of the state also have similar perception regarding the sustainability
of the tourism industry.
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Figure 17: Contribution to the domestic GDP by Singapore
Source: (Wttc.org 2018)
As it can be seen from the figure 16, there is moderate amount of GDP share sourced by
the economy of Singapore. Presently it is showing an upward sloping growth rate in GDP share
and as per forecast, by the end of 2027, it will share highest amount of income to its domestic
economy compared to its peer nations. On other hand it can be seen that, North Sumatra has
GDP growth rate of 5.2%, whereas, in case of Singapore it is 5% during the last one decade
(Huber 2015). Moreover, if, the tourism industry of these different states is considered, then it
can be seen that, there is much similarity in terms of growth, job creation and other
macroeconomic variables. It showcase that North Sumatra will have the same trend and enhance
its GDP share to the domestic economy considering the almost identical growth path of tourism
industry (Oakley 2015).
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Figure 18: Is the tourism in North Sumatra sustainable
Source: (Created by Author)
Next section of the research will portray the relation between the different factors of the
Sumatran tourism industry through the correlation analysis and the frequency distribution
analysis.
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5.2 Frequency distribution:
Below tables showcase that there were 100 sample population and they were surveyed
with different question in order to perceive different views regarding the Sumatran tourism
industry.
Statistics
What is the
prospect of North
Sumatra tourism?
Is North Sumatran
tourism industry
gets government
support?
Does North
Sumatran
environmental
condition has
influenced the
tourism industry of
the state?
Having
environment
problem will
impact on the
slowdown the
growth of the
tourism industry
development?
Is the tourism in
North Sumatra
sustainable?
N Valid 100 100 100 100 100
Missing 0 0 0 0 0
Statistics
Does tourism contribute economic
value of North Sumatra?
Does tourism of North Sumatra
produce job?
N Valid 100 100
Missing 0 0
Frequency Table
As per the frequency table it can be seen that out of total population 50% believes that
Sumatran tourism industry will grow at higher rate and 29% believes that it will face a fall in the
tourism industry. On the other hand 7% of the population believes that it will remain stagnant
and 14% believe that it will grow at lower rate.
thus from the frequency distribution it is also true that most of the sample population
believes that Sumatran tourism will grow at a higher rate in the future days; however, relevance
of the same cannot be inferred from the frequency distribution.
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What is the prospect of North Sumatra tourism?
Frequency Percent Valid Percent Cumulative Percent
Valid
Will face fall in tourism industry 29 29.0 29.0 29.0
Will grow at lower rate 14 14.0 14.0 43.0
Will grow in future at higher rate 50 50.0 50.0 93.0
Will remain stagnant 7 7.0 7.0 100.0
Total 100 100.0 100.0
Table 1: What is the prospect of North Sumatra tourism?
Source: (Created by Author)
As per the table 1, it can be seen that 52% out of to the total sample population strongly
agrees that North Sumatran tourism industry get adequate amount of governmental support,
whereas only 6% strongly disagree. 26% of population agree with the proposition that Sumatran
tourism industry is getting adequate amount of government support and adding both the sample
who strongly agrees and agrees with the above mentioned proposition, it can be seen that almost
78% believes it is true. However 11% of the sample population, fails to identify the amount of
governmental support towards the north Sumatran tourism industry and 5% disagreed with the
proposition. From the table 1, it can clearly be said that most of the population of the north
Sumatran region are happy with the amount of the governmental support towards their tourism
industry.
Is North Sumatran tourism industry gets government support?
Frequency Percent Valid Percent Cumulative Percent
Valid
Agree 26 26.0 26.0 26.0
Disagree 5 5.0 5.0 31.0
Neutral 11 11.0 11.0 42.0
Strongly agree 52 52.0 52.0 94.0
Strongly disagree 6 6.0 6.0 100.0
Total 100 100.0 100.0
Table 2: Is North Sumatran tourism industry gets government support?
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Source: (Created by Author)
When it comes to the environmental impact of north Sumatran on its tourism industry,
then it can be seen that 87% believes that it has good amount of impact, where as 8% of the
sample population remain unanswered for the same. In addition to this, it can also be seen that
5% of population argues that there is less or no impact of the environmental condition on the
performance and sustainability of the Sumatran tourism industry.
Does North Sumatran environmental condition has influenced the tourism industry of the state?
Frequency Percent Valid Percent Cumulative Percent
Valid
Maybe 8 8.0 8.0 8.0
No 5 5.0 5.0 13.0
Yes 87 87.0 87.0 100.0
Total 100 100.0 100.0
Table 3: Does North Sumatran environmental condition has influenced the tourism industry of
the state?
Source: (Created by Author)
in order to clear the impact of the environmental anomaly on the tourism industry of
Sumatra, respondents were asked about the magnitude of the relation between these two factors
and it can be seen that 38% believes that there is strong relation, where as 15% strongly
disagrees regarding the same. 11% sample population remain neutral regarding the same
showcasing the lack in the environmental knowledge and its relation with the tourism is present
in north Sumatra.
Having environment problem will impact on the slowdown the growth of the tourism industry development?
Frequency Percent Valid Percent Cumulative Percent
Valid
Agree 23 23.0 23.0 23.0
Disagree 13 13.0 13.0 36.0
Neutral 11 11.0 11.0 47.0
Strongly agree 38 38.0 38.0 85.0
Strongly disagree 15 15.0 15.0 100.0
Total 100 100.0 100.0
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Table 4: Having environment problem will impact on the slowdown the growth of the tourism
industry development?
Source: (Created by Author)
As it can be seen from the table 5, 91% of the sample population believes that there is
good amount of sustainability in case of the tourism industry of Sumatra.
Is the tourism in North Sumatra sustainable?
Frequency Percent Valid Percent Cumulative Percent
Valid
No 9 9.0 9.0 9.0
Yes 91 91.0 91.0 100.0
Total 100 100.0 100.0
Table 5: Is the tourism in North Sumatra sustainable?
Source: (Created by Author)
Almost 92% of the sample population believes that tourism industry of north Sumatra
provides good value to the domestic economy and it can also be seen that it has produced job
enough to reduce the unemployment rate of the economy lower.
Does tourism contribute economic value of North Sumatra?
Frequency Percent Valid Percent Cumulative Percent
Valid
No 8 8.0 8.0 8.0
Yes 92 92.0 92.0 100.0
Total 100 100.0 100.0
Table 6: Does tourism contribute economic value of North Sumatra?
Source: (Created by Author)
93% of the sample population believes that tourism industry of north Sumatra produces
sufficient amount of job that has enhanced the performance of the domestic economy. With the
rise in the employment, it can be seen that, there is considerable amount of rise in the Human
Development Index (HDI) as well as Standard of Living of the North Sumatran population has
also increased. It can also be seen that there is moderate amount of decrease in the
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unemployment level due to the rise in the job creation in the north Sumatran region through the
growth in the tourism industry of this place.
Does tourism of North Sumatra produce job?
Frequency Percent Valid Percent Cumulative Percent
Valid
No 9 9.0 9.0 9.0
Yes 91 91.0 91.0 100.0
Total 100 100.0 100.0
Table 7: Does tourism of North Sumatra produce job?
Source: (Created by Author)
From the above analysis, it can be seen that, factors like environment, governmental aid
and job creation are the main driving factor that has enriching the tourism industry of the state. In
order to understand the level of association of these factors, regression analysis has been done
below.
5.3 Regression analysis:
Thorough this regression analysis, researcher will try to showcase the relation between the
different factors of the Sumatran economy that influence the sustainability, performance and the growth
of the tourism industry.
Variables Entered/Removeda
Model Variables Entered Variables Removed Method
1
Does North Sumatran environmental
condition has influenced the tourism
industry of the state?, Is tourism
industry of North Sumatra comparable
with Singapore and Malaysia?, Does
tourism of North Sumatra produce
job?, Does tourism contribute
economic value of North Sumatra?b
. Enter
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a. Dependent Variable: Is the tourism in North Sumatra sustainable?
b. All requested variables entered.
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .832a .692 .679 .163
Table 8: Model summary
Source: (Created by Author)
a. Predictors: (Constant), Does North Sumatran environmental condition has influenced the tourism industry of the state?, Is
tourism industry of North Sumatra comparable with Singapore and Malaysia?, Does tourism of North Sumatra produce job?,
Does tourism contribute economic value of North Sumatra?
As it can be seen from the table 8, adjusted R Square value is .679 that showcase it is a
good fir model that define the relation among the factors that influence the tourism industry of
the state.
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 5.664 4 1.416 53.259 .000b
Residual 2.526 95 .027
Total 8.190 99
Table 9: ANOVA table
Source: (Created by Author)
a. Dependent Variable: Is the tourism in North Sumatra sustainable?
b. Predictors: (Constant), Does North Sumatran environmental condition has influenced the tourism industry of the state?, Is
tourism industry of North Sumatra comparable with Singapore and Malaysia?, Does tourism of North Sumatra produce job?,
Does tourism contribute economic value of North Sumatra?
From the table 9, it can be seen that factors like environment, job creation, and economic
performance are significant factors and positively related with the sustainability of the North
Sumatran tourism industry growth.
Table 10 showcase provide a detailed view of the chosen model that tries to trace the
sustainability of the Sumatran tourism industry. It produces significance level for the different
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variables and demonstrate the level of association between the sustainability of the tourism
industry of North Sumatra and the other factors.
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1
(Constant) .073 .141 .518 .606
Does tourism contribute
economic value of North
Sumatra?
.701 .084 .664 8.345 .000
Does tourism of North Sumatra
produce job? .129 .079 .129 1.637 .105
Is tourism industry of North
Sumatra comparable with
Singapore and Malaysia?
.008 .038 .012 .213 .831
Does North Sumatran
environmental condition has
influenced the tourism industry
of the state?
.084 .031 .168 2.736 .007
Table 10: Correlations between different factors of tourism of North Sumatra
Source: (Created by Author)
a. Dependent Variable: Is the tourism in North Sumatra sustainable?
As it can be seen from the table 10, tourism industry contributes significantly to the
growth of the economy and environmental factors influence the performance and sustainability
of the North Sumatran tourism industry. However, when it comes to the performance analysis
with the Singapore and Malaysia, then it can be seen that, there is no significance with the same
with the sustainability of the Sumatran tourism industry.
Is tourism industry of North Sumatra comparable with Singapore and Malaysia?
Frequency Percent Valid Percent Cumulative Percent
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Valid
No 74 74.0 74.0 74.0
Yes 26 26.0 26.0 100.0
Total 100 100.0 100.0
In Which factor(s) North Sumatra need to focus for better sustainability of tourism industry?
Frequency Percent Valid Percent Cumulative Percent
Valid
Cultural factors 13 13.0 13.0 13.0
Environmental factors 6 6.0 6.0 19.0
Governmental aid 27 27.0 27.0 46.0
Governmental aid; Cultural factors 1 1.0 1.0 47.0
Governmental aid; Socioeconomic
factors 2 2.0 2.0 49.0
Hospitality industry 28 28.0 28.0 77.0
Hospitality industry; Governmental
aid; Socioeconomic
factors;Environmental factors
1 1.0 1.0 78.0
Hospitality industry; Socioeconomic
factors 1 1.0 1.0 79.0
Socioeconomic factors 20 20.0 20.0 99.0
Socioeconomic
factors;Environmental factors 1 1.0 1.0 100.0
Total 100 100.0 100.0
Table 11: In which factor(s) North Sumatra need to focus for better sustainability of tourism
industry?
Source: (Created by Author)
As it can be seen from the table 11, cumulative percentage shows 28% of people thinks
growth in the hospitality industry and 20% believes socio economic factors can enhance the
sustainability of the tourism industry of North Sumatra. 27% believes that governmental aid
alone can be beneficial in order to provide the sustainability to the North Sumatran tourism
industry. Contrary to this, largest population out of sample thinks that the growth in the
hospitality industry, socioeconomic factors and better performance of the environmental factors
can enhance the sustainability of the North Sumatran tourism industry.
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5.4 Correlation analysis:
This section will showcase the correlation between the different factors of the North
Sumatran tourism industry.
Is the tourism in
North Sumatra
sustainable?
Does tourism
contribute
economic value of
North Sumatra?
Does tourism of
North Sumatra
produce job?
Is the tourism in North Sumatra
sustainable?
Pearson Correlation 1 .809** .634**
Sig. (2-tailed) .000 .000
N 100 100 100
Does tourism contribute
economic value of North
Sumatra?
Pearson Correlation .809** 1 .680**
Sig. (2-tailed) .000 .000
N 100 100 100
Does tourism of North Sumatra
produce job?
Pearson Correlation .634** .680** 1
Sig. (2-tailed) .000 .000
N 100 100 100
Is tourism industry of North
Sumatra comparable with
Singapore and Malaysia?
Pearson Correlation -.053 -.077 .027
Sig. (2-tailed) .603 .445 .789
N 100 100 100
Does North Sumatran
environmental condition has
influenced the tourism industry of
the state?
Pearson Correlation .435** .344** .313**
Sig. (2-tailed) .000 .000 .002
N 100 100 100
Table 12: Correlation among North Sumatran tourism sustainability, economic value sharing
and job creation
Source: (Created by Author)
From the table 12, it can be seen that 2 tailed significance test showcase that factors like
north Sumatran economic factors, environmental condition are the main associated factors that
can alter the performance of the tourism industry of the state. However, it is also true that factors
like performance difference between the Singapore and North Sumatra and Malaysia with North
Sumatra are not significant as it can be seen from the regression analysis too.
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2

Is tourism industry of
North Sumatra
comparable with
Singapore and
Malaysia?
Does North Sumatran
environmental
condition has
influenced the tourism
industry of the state?
Is the tourism in North Sumatra
sustainable?
Pearson Correlation -.053 .435**
Sig. (2-tailed) .603 .000
N 100 100
Does tourism contribute economic value
of North Sumatra?
Pearson Correlation -.077** .344
Sig. (2-tailed) .445 .000
N 100 100
Does tourism of North Sumatra produce
job?
Pearson Correlation .027** .313**
Sig. (2-tailed) .789 .002
N 100 100
Is tourism industry of North Sumatra
comparable with Singapore and
Malaysia?
Pearson Correlation 1 -.101
Sig. (2-tailed) .315
N 100 100
Does North Sumatran environmental
condition has influenced the tourism
industry of the state?
Pearson Correlation -.101** 1**
Sig. (2-tailed) .315
N 100 100
Table 13: Correlation between North Sumatran tourism environmental influence and
comparability with Singapore and Malaysia
Source: (Created by Author)
Correlation between North Sumatran tourism environmental influence and comparability
with Singapore and Malaysia is not significant at all. Apart from the fact that north Sumatran
tourism industry have good amount of importance to the domestic industry, none is significant
factors for the sustainability of the north Sumatran economy.
6. Conclusion and recommendation:
6.1 Addressing the objectives:
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The first objective of the paper has been to have an idea about the prospect of tourism in
North Sumatra. It is seen that North Sumatra has a high prospect for the development of tourism
as all the data has shown positivity.
The next objective has been to understand whether tourism in North Sumatra is
sustainable. The results have explained that tourism is sustainable in this area and when
compared to the other countries, there are chances for improvement.
The last and the final objective has tried to understand whether tourism is able to contribute to
the economic value of North Sumatra and the results have been positive as well. It is seen that
tourism can increase the economic value of North Sumatra and therefore better focus on tourism
can increase the profit of the region and the economy as well. Hence, it is seen that all the
objectives have been addressed and the results discovered are true and fair.
6.2 Conclusion:
This section of the paper is prepared by taking assistance of the previous chapters that
have been constructed in accordance this topic. The topic has been looking to create an
understanding of the tourism prospect in North Sumatra and how it assists in the development of
the economy of the country. In this manner, in the introduction section, the background of the
country has been explained with the help of which an idea can be attained with respect to the
location of the country and the culture that is existent. The culture plays a vital role as the culture
would determine the acceptance level of the citizens with respect to foreign tourists. It is seen
that North Sumatra has high demand for tourists visiting that area simply due to its locations and
natural beauties.
The introduction has even concentrated on the fact that tourism is a developing industry
in various countries and all the countries have been looking forward to make use of this sector in
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4

order to increase their revenue. In the initial section, an idea about the country has been provided
so that information on Indonesia is known. The country is filled with natural resources and
therefore explains the fact that the country is nature wise wealthy. The background of the study
has even highlighted the areas and the sites that attracts tourists and in this manner it is seen that
these areas will be given significance in order for the country to develop. The research questions
that have been constructed has looked to addresses the areas and the aspects that will be
answered with the help of which authentic and desired results can be attained.
The literature review of the paper has pointed out the factors that have an impact on the
tourism sector in North Sumatra. These factors have been addressed by numerous other
researchers who have done researches on this topic previously. These aspects that have been
addressed in the literature provides a brief idea with the help of which the current analysis has
been completed. The literature has explained how the environment has an impact on tourism as
well as how socio-cultural aspect determines the level of development in the tourism industry.
Economy has a vital role to play and therefore the relationship between the society and the
economy of the country with respect to tourism is even addressed.
The methodology section of the paper addresses the sort of data that has been used for the
purpose of analysis and accordingly the method that has been used for the collection of the data
in order to meet the requirements of the task. The research has highlighted the fact that primary
as well as secondary data has been used with the help of which the assessment can be complete
and desirable results can be ascertained. It is seen that statistical tools have been used with the
help of which outcome from the collected responses can be extracted. In this manner, the
analysis of the paper is undertaken. Qualitative as well as quantitative data analysis has been
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5

taken into consideration in this paper in order to have a proper idea about the aspects that will be
addressed in this paper.
As is evident from the above analysis of the collected data regarding the perception of
people with respect to different attributes of the tourism industry in North Sumatra it can be seen
that there, in general, exits a positive perception among the selected respondents, regarding the
future of the tourism industry in North Sumatra. Nearly half of the total number of respondents
perceive the industry to be growing at an increased rate in the future than its current prospects,
which, in all probability may arise from the fact that the economy of the country, which
remained lagging behind for a considerable period of time, has been experiencing some positive
trends of growth owing to its recent trade openness and international phenomena like that of
Globalisation and technological innovations and infrastructural developments.
The increasing integration and inter-connectedness of the countries, along with
development of different social media platforms and increased usage of internet, has led to
increase in the level of awareness among the global tourist population and adventure as well as
nature lovers regarding the tourism industry of the country, which in turn can be plausible
reasons behind the positive perceptions of people regarding the future prospects of tourism
industry in the country, along with the infrastructural development in the country.
However, there are also presence of negative perceptions among a considerable section of
the selected sample of respondents regarding the future of the concerned industry, which can be
the result of the limitations which the overall infrastructural aspects of the country as well as the
tourism industry in the North Sumatra, experience in the contemporary period, which in turn can
be affecting the experiences of the tourists, thereby creating negative perceptions among them, in
terms of the future prospects of the concerned industry.
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One of the primary contributors in the development of any industry in a country, in a
generalised framework, is the role which the government of the country plays in facilitating the
growth of the concerned industries, as much of the competitiveness, prospects, profitability and
growth of the industries depend on what policies the government of the concerned industries
take in the concerned aspect (like that of tax cuts, subsidies, financial and non-financial supports
and other similar facilities). In this context, on the front of the role of government of North
Sumatra, in facilitating the tourism industry, considerably positive perception can be seen among
the selected respondents, as more than half of the total sample size can be seen to be voting in
favour of the concerned industry getting substantial supports and aids from the government of
the country and only a small percentage of the total sample size voting against the same.
The main reasons, behind the presence of an overall positive perception among the
respondents regarding the presence of significant government support for the concerned industry,
maybe because of the recent development initiatives which the government of the concerned
country can be seen to be taking, in the fronts of development of transport, communication
infrastructure as well as in the form setting up liberal trade and political relations with other
countries, thereby attracting more investments as well as businesses in the country, which in turn
is expected to play a key role in benefiting the tourism industry directly as well as indirectly. The
tourism sector of the country can also be seen to be receiving supports from the government in
terms of financial concessions and investments, which may also contribute in the positive
perceptions of the selected respondents regarding the role played by the governing authorities of
the country in the aspects of promoting and supporting the tourism industry in North Sumatra.
There exist different factors which affect the growth and development of tourism industry
in a country in general, one of the primary ones of which is the environmental aspects present in
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the country. In the contemporary period, especially in the cases of leisure tourism, the popularity
of places with greeneries and flora and fauna seems to be increasing as people opt to experience
peace over their urban lives. In this aspect, North Sumatran tourism industry can be seen to be
gaining an advantage with time and increased awareness due to the presence of ample
opportunities of people to spend leisurely time in the lap of nature. The absence of over-
developed urbanised places in the country, in general, can be seen to be perceived by most of the
respondents as one of the contributing factors behind the recent growth in the tourism industry of
the country, as can be seen from the analysis of the data collected, where nearly 87% of the
respondents can be seen to be perceiving the environmental conditions of North Sumatra as
significant influencers for the growth and future prospects of the concerned industry.
However, most of the respondents can also be seen to be perceiving the presence of
different environmental problems to be detrimental for the growth of the tourism industry. This
may be due to the fact that, with the increases in environmental problem, the country can both
lose its prospects as a potential tourism destination for leisure tourists as well as its currently
developing infrastructural scenarios. However, in spite of the presence of considerable positive
perceptions among the selected respondents regarding the future and growth prospects of the
tourism industry in North Sumatra, the respondents do not seem to compare the industry of the
concerned country with that of the tourism industries of Singapore and Malaysia, where the
development of the concerned industry has been immense over the years, much of which can be
seen to be facilitated by the industrial development, economic growth and robust governing
frameworks operating efficiently for overall development of the countries. As per the perceptions
of the respondents, to reach to that level of growth and prospects the North Sumatran tourism
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industry needs to put emphasis on hospitality, role of government, socio-economic development,
cultural amalgamation as well as the preservation of its environment.
The analysis of the collected data shows the presence of a positive perception among the
people in general regarding the sustainability of the tourism industry in North Sumatra, much of
which is expected to develop from the positive growth trends which the concerned industry in
the country has been showing in the recent times, including those of higher number of visitors,
technological and infrastructural development, investments and increasing popularity as well as
government support to the concerned industry in the country. On a conclusive note it is
understood that the topic of tourism is regarded as the one of the industry that have created an
impact on the economic expansion through increase in GDP of a nation. The topic clearly
explains that tourism is the leading sector to make the key factors of raising the domestic income
and creation of work place environment because of the growing availability of the job.
As understood from the analysis Indonesia is having the rich source of natural resource
that serves for the benefit of the tourism industry. Additionally, the analysis provides that
Indonesia is having a wide variety of cultural history that preserve the archipelago of the nation.
The analysis evidently puts forward that there is a potential for development in the tourism
industry. The increase in tourism not only contributes to the revenue growth but also contributes
to the exchange income and give rise in the opportunity of the local people to reduce the instance
of the unemployment.
The research puts forward that development in the tourism industry is dependent on the
area of namely the occupancy in hotel and the per capita income. Based on the economic
perspective, tourism activity contributes to the foreign exchange obtained through the
international tourists. The topic conclusively provides that the sustainability of the industry is
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vital in Indonesia and contributes to the development of the North Sumatra coast. The research
effectively provides that environmental issues have contributed to the damaging cause of the
tourism industry. Furthermore, the study extensively covered the key attraction point in North
Sumatra.
The objectivity of the research was to recognize the growth of the threats impacting the
environment through industry. The question of the research was aimed at answering whether the
Sumatra Coast is the prospect for tourism growth in that regions. Additionally the research
question was directed in understanding whether the North Sumatra cost is sustainable with the
other nations having similar areas.
The research historically considered the tourism of the North Sumatra and its provincial
capital Medan. The empirical evidences from the research provides that province of Sumatra is
regarded as one of the highest tourism attraction places such as Lake Toba. The evidences from
the research gained suggest that understanding the tourism industry in the North Sumatra
includes understanding the environment of social, environmental and economic performance of
the business. The research potential highlights that the basic aim of the modern business is to
create the strategy for sustainable development. Additionally, evidences from the research puts
forward that controlling and preserving the tourism resources can help in attracting the tourist
across the different nations.
The research is directed in understanding that environmental resources can be used by the
people to create more positive impact than the negative impact the resources can be used by both
the local and the tourist that visit that island. An important element of the tourism was that there
was number strong relationship between the development and infrastructure since the strong
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0

relationship among the infrastructure would have an easy impact on the infrastructure namely the
services of roads, rail, airport and harbour.
To conduct the methodology, the research evidently designed the question to address the
issues of tourism development. The research methods were organized to define the objectives,
arrangement of data and findings from the data that took place within the framework by adhering
with the guidelines. On the quantitative basis the questions of research were designed to find out
the theory and describe the qualitative research up to the extent that it understands the behaviour
of the people in the real life. The use of qualitative research has created a biases with majority of
the people’s opinion have been considered.
The evidences gained suggest that measures vary based on the trait or the portion of
group of society in the studies. The research conclusively provides that the work development of
the tourism and hospitality industry was the dependent variable, while the economic
development, local culture, creation of job and environment were the independent variable.
Gauging into the framework the of hypothesis the research considered that having the good
environment would contribute to the economic development of Indonesia and would additionally
provide opportunity to the people for having the better income source. The research concludes
that increasing the tourism would create the positive effect on the growth of economic expansion
however there may be a negative impact on the domestic culture that might be effected.
Therefore, having the environmental problems would negatively reduce the growth aspects of the
economic development of tourism in Sumatra.
The population and the sampling size confirms that both the subjective and the objective
characteristics have been considered. The research overall provides that there is a sustainability
of tourism in Sumatra coast that contributes to the development of the tourism in North Sumatra.
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Though the study presented an unanticipated result however it is evidently understood that North
Sumatra have turned out to be place of interest among the tourist that are keen on vising the
coast. Contributions from the primary analysis have stated that foreign direct investment would
additionally result in benefit of the host nation as this may create an array of domestic investment
for the local residents.
The empirical findings from the research have explained that domestic industry would
gain growth through the international trade and economic growth would be strengthen by the
exportation and importation. With increase in the rate of export growing the strong would be
income growth among the middle and lower income group of people. The relative trade openness
ultimately creates opportunity in the production of the both human as well as production capital.
To sum up the conclusion the subject of tourism has immensely focused on helping the people in
maintaining the quality of their life by improving the degree of education, having sufficient
amount of food and improve in the standard of living. To sum up the prospect of tourism in
North Sumatra presents a higher future growth rate, despite some have cited that the industry
may fall however the growing interest of the people in Sumatra contributes to the growth of
tourism in Indonesia.
The correlation analysis in relation to the concerned topic has been dependent on the
primary data that has been collected from the selected respondents. Correlation analysis is one of
the key analysis tools that is used for the purpose of assessment in order to discover the degree of
relationship among the dependent and the independent variables that have been selected in this
paper. The extent of relationship would therefore determine the impact of these variables on
tourism industry in North Sumatra. The overall assessment that has been done with respect to the
questions that have been asked to the respondents reveal that some of the variables are positively
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correlated to each other and some of the variables are correlated negatively. This suggests that
some of the variables have a vital role to play in the development of the tourism industry in
North Sumatra and certain variables have no hand or negative influence on the development and
the prospect of tourism in North Sumatra. The results have indicated the fact that tourism in
North Sumatra is not comparable to the Malaysian and Singapore tourism when assessed with
the sustainability of tourism in North Sumatra. It is therefore seen that North Sumatra needs to
undertake their tourism in their own way and no comparison should be made with the other
countries and this would have a positive effect on the development of the tourism in that area. It
is even seen that comparing the tourism with the Malaysian and the Singapore tourism process
would even have an impact economic value that is provided by the tourism of North Sumatra in
Indonesia. This is due to the fact that both these variables are negatively correlated.
All the other variables are moderately and positively correlated and therefore addresses
the fact that these variables are helpful in the development of the prospect of tourism in North
Sumatra. The completion of the analysis leads to the development of the idea whether the
objectives that have been constructed earlier have been met. This is done by addressing the
objectives of the paper.
6.3 Recommendation:
As per the various types of the analysis form the data it can be seen that the prospect of
the North Sumatra tourism has been based on the 50% growth in the future. This can be clearly
seen as an opportunity for the destination to focus on the growth with higher percentage of
investment in the tourism. It needs to be also evaluated that the different type of the findings of
the report has been also related on the reporting aspects of the tourists’ destination which can be
sated with the strong agreement of the North Sumatra tourism getting the governmental support.
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This support need to be facilitated with the various types of the responses pertaining to the
initiatives which will able to support better governmental initiatives. The advantages leading to
the governmental expenditure will be conducive for the supporting of the different types of the
aspect of the betterment in the future initiatives in tourism. The analysis of the study has been
further seen to be related to the different aspects of the study which shows how the North
Sumatran environment has been able to focus on the significant nature of the initiatives in the
tourism industry. The analysis of the study has also focussed on the impact of the environmental
problem which is having a relevant influence as per the environmental problems which are
having a direct influence on the slowdown of the growth in the tourism. This agreement of the
respondent clearly states that the government needs to take additional steps in focus on green
plantations in the areas of the tourism of the North Sumatra.
Such initiatives will be able to focus on the different types of the options for the
prospective tourists who may be willing to visit the places of attraction. The data analysis has
been also able to focus on the various types of the considerations of the study which has been
seen with the direct influence of the governmental aid to be highest among the various types of
the other initiatives. This type of the responses has been depicted to be directly conducive for the
users in terms of determining the future option related to the travelling and making future
expeditions. The future studies need to also focus on the opportunities of the depictions of the
various types of the other scopes of the which are seen to be taken into account with the various
types of the effort relating to the hospitality industry. In particular in order to ensure the
sustainability of the tourism in the North Sumatra the focus needs to be put on the governmental
aid and hospitality industry. The collection of the various types of the responses relating to
whether the tourism in North Sumatra is sustainable in nature, the depiction relating to this needs
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to be identified with the consideration of the studies which will be able to focus on the
sustainability aspect in North Sumatra.
The significant aspect of the study has focused on the high percentage tourism contribute
to economic value of North Sumatra. The significance of the study is seen with 8.5 t stat value.
Some of the various types of the other depictions of the sturdy needs to be seen with the
consideration of the data which are related to the tourism of North Sumatra which is seen to be
having a direct influence on the job responsibility among the individuals. The higher level of the
significance of the study is further seen to be associated to the consideration of the various types
other depiction relevant to tourism industry of North Sumatra comparable with Singapore and
Malaysia. This particular aspect is depicted with a low level of significance. Therefore, the main
recommendation in regard to this aspect needs to be discerned with significant level of the
consideration by providing the amenities alike Singapore. In case the government is able to
support the aspect like the other countries such as Singapore then the overall sustainability will
be depicted with a positive impact. It needs to be also discerned that the different types of the
aspect of the other aspect of the environmental condition has influenced the tourism industry of
the state. In this aspect it is recommended that the more tourists will be able to visit the places of
attraction with more level of comfort.
Some of the various types of the other opportunities of the place needs to be depicted
with the partnering with the local communities, business and local guides. The future research
studies need to further focus on the different types f the discussion as per the data analysis and
literature review needs to be depicted with the involvement of the locally run communities which
will be able to demonstrate several types of the positive culture of the tourism spirit. There need
to be more number of reforms will be able to focus on the environmental initiatives such as Batu
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Kapal Conservation Buffer Zone Program. The participation in the different types of the
environment program needs to be taken into account with the different types of the initiatives
which are depicted with the environmental mapping and sharing of the ideas for collaborative
actions. The plantation aspects of the company are depicted with the considerable amount of the
steps which will lead to a greater sustainability. The improvement in the future actions for the
sustainability will be able to focus on improved expedition particularly to the mountain climbers.
The government is seen to be earning considerable amount of the revenue from the mountain
climbers and therefore the improving in such facilities will be beneficial l for the companies in
terms of focusing on the in assisting of greater adventure sports.
The various types of the initiatives pertaining to the plantation activities will be not only
conducive will not only among the mountaineers but also the individuals looking for jungle
expeditions. The improvement in the wild life of the in the area needs to be also taken into of the
consideration with Our Batu Kapal Conservation Buffer Zone Program. This will be able to
make significant level of the improvement pertaining to the important buffer zones. This zone
has been further seen to be situated in the Gungung Leuser National Park. The different level of
the participating efforts needs to be also depicted with the significant nature of the focus which
are based on the surveying and assisting in planting the trees along the bamboo corridors. The
project needs to aim on the services pertaining to the biodiversity islands and the native of thee
vegetation to create a greater influence. It is also recommended for the tourist destination to
focus on the various types of the programs which are seen to be based on the various kinds of the
ROAR Project - Zero Plastic Bottles project. This initiative will be able to focus on the different
types of the aspects of the study which will be related to the increasing the sustainability. Such
programs are depicted to be conducive in terms of the supporting of the activities which are seen
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to be related to the creating provisions water bottles recycling and the increased efforts
pertaining to the different types of the considerations with the refilling units of the water bottle.
The recommendation to the future research study needs to be also based on the different
types of the inference as per the consideration of the relevant procedure which will aim to attract
more number of the tourists in the Sumatra region. In addition this, the different types of the
initiatives for the holiday destination will also focus on the sustainability of region. This aspect
will be able to add the factors influencing tourism in North Sumatra. The main program of the
study is recommended with the Batu Kapal Conservation Buffer Zone Program. This will be able
to make significant level of the improvement pertaining to the important buffer zones. This zone
has been further seen to be situated in the Gungung Leuser National Park. The tree plantation of
the region has been also seen to be based on the considerable amount of the responses as per the
Batu Kapal Conservation Buffer Zone Project. The extended nature of the volunteering
opportunities associated to the study needs to taken into considerations with the future studies
which are a part of the conservation programs. The miscellaneous focus needs to be also given to
the accommodation and travel vehicle for the tourists aspiring to visit the place. The
accommodation aspects need to be taken into account with the equal importance like the
sustainability. Lastly the sustainability of the region needs to be also ensured with the
mountainous of the exiting infrastructures of the areas which are depicted to be taken into
account with popular attractions. The utilisation of the influence of the environmental factors on
the tourism in the region need to be well implemented as per the promotional activities which
will be best for visiting the place. Therefore, in regard to the different discussions of the present
study the future studies need to focus on the reducing environmental pollution.
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Appendix:
Past Growth and Current Growth in North Sumatra:
The official data that posted by the Indonesian Central Bureau of Statistics shows the
growth in a year is 9.54 percent of the arrivals of the international tourist to Indonesia from
January to October 2016 that reached 9,413,814 people. The Minister of Tourism is expecting
the arrival in November and December is reached 1.3 million and 1.5 million arrivals,
respectively. Hereby, Indonesia can higher the reach of the target which is in 2015 is from 10.4
million to 12 million in 2016, which will be an outstanding growth of 20 percent in a year. In
2016, a number of tourists have spent their money at IDR Rp172 trillion in Indonesia and the
GDP have contributed to 11 percent by the Indonesia’s Tourism Sector. (Indonesia.travel 2018)
By the end of 2017, Arief Yahya who is The Tourism Ministry, is aiming for 15 million
international tourists or 25 percent of a growth rate in 2017 and 20 million of the arrivals in
2019. In August 2017 Indonesia welcomed 1.35 million international tourists and according to
Sofyan Tan who is the house of the representative of the Republic of Indonesia (DPR RI) said
that the growth of Indonesia has increased to 22.4% in a year which is quite high and become
one of the top 20 globally. Moreover, because of the location in North Sumatra is located in
Strait of Mallaca that near to the countries such as Singapore, Malaysia and Thailand, the
development of the infrastructure become the key point which is port, airport and highway. In
addition, there one out of ten national strategic project which is to improve the infrastructure
such as transportation, electricity and clean water to the national strategic tourism area (KSPN)
in Lake Toba. (The Jakarta Post, 2017)
North Sumatra and Lake Toba is pushed to become a tourist icon that is developing its
sport, culture, nature and MICE (Meeting, Incentive, Conference and Exhibition) (The Jakarta
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Post 2017). The Team Leader of Acceleration for the Development of Priority Tourism
Destination at Indonesia's Tourism Ministry, Hiramsyah Thaib, said that Lake Toba in North
Sumatra has become one of the top 10 tourist destination and attract some investor, which come
from countries such as China, Singapore, the Middle East, Japan and others European countries,
to invest in the projects which cost IDR Rp1 trillion or approximately USD $75 million that
under construction around Lake Toba. (Indonesia-investment, 2018)
The director of Tourism, Lake Toba Authority Agency (BODT), and Tourism Institution,
M Rommy Fauzi, said that tourists that come to Lake Toba has been increasing and the target is
much higher than the expectation which is 233.483 tourist until November 2017. Furthermore, as
the airport in North Tapanuli, Silangit airport is going to become an international airport, this
could cause Singapore tourists increase and also provide chance to reach the Malaysian markets
to visit Lake Toba. In addition, targets to make development and improvement of tourism sites,
intense promotion, infrastructure development, tourism activities and the readiness of the local
accepting the tourist should not be hard to achieve. Thus, North Sumatra is targeting the
international tourists to reach 1 million peoples to visit Lake Toba in 2019. (Tempo 2018)
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10 Priority Tourist Destinations of the Indonesian Government:
Destination Tourist 2013 (people) Tourist Target 2019 (people)
Borobudur (Central Java) 227,337 2,000,000
Mandalika (Lombok) 125,307 1,000,000
Labuan Bajo (Flores) 54,147 500,000
Bromo-Tengger-Semeru
(East Java)
33,387 1,000,000
Thousands of Islands (Off the
coast of Jakarta)
16,384 500,000
Lake Toba (North Sumatra) 10,680 1,000,000
Wakatobi (Sulawesi) 3,315 500,000
Tanjung Lesu (Banten) 1,739 1,000,000
Morotai (Halmahera,
Maluku)
500 500,000
Tanjung Kelayang (Bangka
Belitung)
451 500,000
(Source: Indonesia-investment, 2018)
According to Central Statistic (2018), it is said that the tourism that come to Indonesia
had slightly decrease to 6.17% which is 1,110,000 arrivals in January 2017 to 1,040,000 arrivals
in January 2018. Moreover, the comparison of the tourist arrival in between December 2017 and
January 2018 is decrease around 9.36%. However, according to Antara news (2017), it is said
that the economic growth in the first half of 2017 in North Sumatra is increased 4.8%. Then, the
electricity and gas is also recorded as one of the highest as a positive growth of 10.80% in the
first half of 2017.
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Moreover, based on the North Sumatra Central Bureau of Statistic (BPS) data it shows
the second highest growth is 9.58% in real estate and 9.33% in communications sector. However,
in the period of January to June the province economic growth dropped below the country’s
average which is 5.01% but the household consumption rose at 5.37%. In the first six month of
2017, the larger contributor of the province gross domestic product (GDP), which is the
agriculture, forestry and fisher, is 21.14% of regional GDP. Following by the wholesale retail
trade and manufacturing industry are 20.47% while 18.01% of car motorcycle repair (Netral
news 2017). Wahyu Ario Pratomo the Indonesian economic observer predicted that in the second
half of 2017, the economy will grow stronger in North Sumatra; however, when the inflation is
low, there will be higher pressure in inflation of the increase of electricity and drinking water
tariffs. (The Antara news 2017).
Indonesia is the worldwide competitiveness which ranked in the place of 36 out of 137
surveyed countries that showed in World Economic Forum’s Global Competitiveness Index
2017-2018 and it is also shows the government and the press with high trust level by the
Edelman Trust Barometer 2017. While the Global Investment Prospects Assessment 2016 to
2018 which is issued by the United Nations Conference on Trade and Development (UNCTAD)
that Indonesia is becoming the top ten in the list of the most attractive global foreign direct
investment locations which is in the ninth rank. (The Jakarta Post 2018)
In addition, North Sumatra has the potential on developing the economic growth so that
the Korea Rail Network Authority (KRNA) keen on investing mass transportation. The light
rapid transportation and bus rapid transportation is constructed by the KRNA and the Korean
company want the private sector interested to the Indonesian government plan so that they will
invest in the transportation facility. Even though the North Sumatra Regional Secretary, Ibnu
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Hutomo, is accepting the KRNA proposal, but he also wants the railway connected to several
regions from Medan such as Pematangsiantar-Parapat, Toba Lake-Pematang Siantar-Parapat-
Silangit Airport of North Tapanuli and some cities such as Medan-Binjai-Deli Serdang-Karo.
(Tempo 2018).
Survey questionnaire:
How you are connected with tourism industry of north Sumatra? Works as travel agent Works as hotel manager Works as tour guide Works are operator of tours Works as the leisure activity co-ordinator
What is the prospect of North Sumatra tourism? Will grow in future at higher rate Will face fall in tourism industry Will grow at lower rate Will remain stagnant
Is North Sumatran tourism industry gets government support? Strongly disagree Disagree Neutral Agree Strongly agree
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Does North Sumatran environmental condition has influenced the tourism industry of the state? Yes No
Having environment problem will impact on the slowdown the growth of the tourism industry
development? Strongly disagree Disagree Neutral Agree Strongly agree
Is the tourism in North Sumatra sustainable? Yes No
Does tourism contribute economic value of North Sumatra? Yes No
Does tourism of North Sumatra produce job? Yes No
Is tourism industry of North Sumatra comparable with Singapore and Malaysia? Yes No
In which factor(s) North Sumatra need to focus for better sustainability of tourism industry?
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 Hospitality industry Governmental aid Socioeconomic factors Cultural factors Environmental factors
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