Strategic Tourism Policies and Sustainable Development in Bali

This report provides a critical analysis of the impacts of tourism on Bali, Indonesia, examining economic, environmental, and socio-cultural effects. It applies Leiper’s Tourism System Model and Butler’s Tourism Area Life Cycle (TALC) curve to assess Bali's current position and sustainability. The report also evaluates the effectiveness of existing government policies aimed at sustainable tourism, identifies key stakeholders and their roles, and discusses Doxey’s Irritation Index in the context of host-tourist relations. It concludes by emphasizing the importance of balanced tourism management for Bali's future, with the full report available on Desklib for further study and reference.

Running head: STRATEGIC PLANNING FOR LESIURE AND TOURISM
Strategic Planning for Leisure and Tourism
Name of the student:
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Author Note:

1STRATEGIC PLANNING FOR LESIURE AND TOURISM
Table of Contents
1. Introduction..................................................................................................................................2
a. About the Destination...............................................................................................................2
b. Evidence of How the Destination Supports Tourism...............................................................2
c. Local and Federal Government Support to Tourism................................................................3
d. Applying Leiper’s WTS Model on Destination.......................................................................3
2. Part A...........................................................................................................................................4
a. Economic Impacts of the Destination Caused by Tourism......................................................4
b. Environmental Impacts on Destination Caused by Tourism...................................................6
c. Socio Cultural Impacts on Destination Caused by Tourism....................................................8
d. Interlink Between the Impacts.................................................................................................9
3. Part B.........................................................................................................................................10
a. Butler’s TALC Curve for Justifying the Current Position of Destination.............................10
b. Policies Imposed by Government for Sustaining Tourism in the Destination.......................15
c. Discuss the Effectiveness of the Existing Policies.................................................................17
d. Identification of Critical Stakeholders...................................................................................19
e. Role of the Stakeholders in Implementation of the Policies..................................................21
f. Doxey’s Theory of Tolerance of the Host with the Tourist....................................................22
Conclusion:....................................................................................................................................23

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References......................................................................................................................................23
1. Introduction
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.

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Figure 1: Bali Island
Source: (Ringer 2013)
b. 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

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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.
c. Local and Federal Government Support to Tourism
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.
d. Applying Leiper’s WTS Model on Destination

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Tourist Generating Region
(Anywhere in the World)
Push Factors
Tourist Destination Region (Bali)
Pull Factors
Tour Operators
Ticketing Services
Marketing and Promotional Activities
Travel Agents
Available Channels of
Communication and Transport
Entertainment Industry
Accommodation
Shopping
Tourist Attraction
Tourist Services
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
Environments: Physical, Technological, Social, Cultural, Economic and Political
Transit
Tourist
Departing Tourists
Returning Tourists

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Source: ( Sharpley and Telfer 2015)
2. Part A
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):

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 Creation of increased income for the native dealers of the souvenir
 Creation of increased employee income and salaries of owners of hotel and
vacation homes
 Ensures enhanced trading of the dividends, profits, interest and rents
 Ensures creation of occupation in private as well as private sector
 Ensures enhancement of income for public sector
 Ensures fast development with the adoption of television, fax, internet and
telephone
The Negative Economic Impacts on Bali includes (Kim, Uysal and Sirgy 2013):
 The enhancement of the private cost
 The enhancement of the common economic cost
 Endangerment of the quality of life in form property and health endangerment
and environmental pollution
 Enhancement of the fiscal cost through increasing the additional capacities of
feed, public investments, public hand performance and concepts for new
marketing
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,

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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.

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However, the positive environmental impacts on Bali include (Holden 2016):
 Raising the awareness of the environment
 Ensures incorporation of the practice of sustainable tourism
 Ensures restoration and conservation of the biological diversity
 Ensures the preservation of the wildlife
The negative environmental impacts on Bali include (Murphy 2013):
 Leads to water pollution
 The biggest challenge has been overcrowding in terms of not only the tall buildings
but also the influx of the people.
 Reduction in the number of rice fields due to its purchase for the developmental
purpose along with many of the wetlands sold to the investors.
 Shutting down of the irrigation channels for making ways for the buildings and roads
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

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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):
 Inheritance of the traditional wood art and music
 Due to the creation of alternative employment leads to lesser creation of criminal
activities
 Leads to the commercialization of the cultural properties
The negative Social Cultural Impacts on Bali include (Mason 2015):
 Influence of the foreign culture on the local people
 Social conflicts between the foreigner and society or new comers and society
 Absence of required respect from the tourists towards the ceremonies and temple
ceremonies of the native Bali people

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 Influenced the social life of Balinese people by transforming them into chaotic
individuals where money became an integral part of their lives.
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