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E-Journal of Tourism Vol.7. No.1. (2020): 37-54
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The Economic Impact of Man-Made Tourism Development Towards Local
Community in Kota Batu East Java
(Case Study: Pasar Parkiran Jatim Park I)
Tomi Agfianto
1
, A Faidlal Rahman
2
1
Tour and Travel of Sebelas Maret University
2
Hospitality Management of Brawijaya University
Corresponding Author: tomi.agfianto@staff.uns.ac.id
ARTICLE INFO
Received
3 December 2019
Accepted
15 February 2020
Available online
31 March 2020
ABSTRACT
Recently, Tourism becomes a great demand by all people including the
millennial group. It makes stakeholders of tourism industries should
provide and accommodate the demand of the millennial. The
millennial people are close to challenges, technologies, digitals, and
something that has excitement. One of tourism concepts which is
suitable and highly demand is man-made tourism such as theme park,
amusement park, etc. This study aims to identify and analyze the
tourism impact that emerges with the existence of man-made tourism
activities, because those tourism activities are closely to capitalist
monopoly and industrialization. The approach of this research was
quantitative method by distributing questionnaires to the tourists who
spent their expenditure and local host who received income from the
tourism activities. This research was conducted at the Pasar Parkiran
tourism destination in Kota Batu East Java which is managed by Jatim
Park I. The results of this study explain that the value of Keynesian
Income Multiplier (KIM) effect is 0.93. The result shows that tourism
activities give positive impact to local host due to the value close to
1.00. The research explains that negative image of mass tourism
activities that is monopolized by the company is not totally true, while
tourism is managed by the company involving the community as the
partner will have a positive impact on both sides.
Keywords: Mass Tourism, Man-made Tourism, Tourism Economic
Impact, Batu City Tourism Development, Pasar Parkiran.
INTRODUCTION
Background
Tourism becomes a primary and
leading sector in development the
economy of the country. Since 2016,
Tourism contributes to improve the
economy by donating US$ 13.568 billion.
Furthermore, in 2018, tourism has been
able to generate a second largest foreign
exchange income after Crude Palm Oil
(CPO) (Kemenpar, 2019). Another
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indicator of the successful growth of the
tourism sector is based on data released by
the Indonesian Ministry of Tourism that
the increasing number of foreign tourists
year by year. In 2018, there was a growth
of 12.61% from 2017 which was
15,810,305 foreign tourists, although the
number was not in accordance with the
figures targeted by the ministry which
were 17 million foreign tourists in 2018.
The continuity of Indonesia
Tourism development has already positive
impact on the tourism growth in East Java
Province. This development proved by
increasing the number of tourists, where
East Java was visited by 66.314.044
tourists, consist of 690.509 foreign tourists
and 65.623.535 domestic tourists in 2017.
This number has a growth of around
11.62% compare to the previous years
2016 which amounted to 618,615 tourists.
The development of tourism industry in
East Java, both foreign and domestic
tourists, within a certain period showed a
positive increase. It means, East Java as a
tourism destination in Indonesia is indeed
quite potential and interesting to be visited
by tourists. Therefore, this development
can be used as an indicator that East Java
tourism can compete with other tourism
regions in Indonesia.
Geographically, Batu City is a
part of Malang Raya Area which is
consists of Malang City and Malang
Regency. This small city is well-known as
tourism destination with branding of
Shining Batu Many tourists visit Batu City
comes from various regions in Indonesia
and countries all over the world. They
come because Batu City has its own
distinct characteristics and strengths that
are always attractive to tourists. This is
proven by the development of tourism and
increasing the number of tourist visits to
Batu from year to year besides being a
strength in preserving the distinctiveness
and diversity of tourist attractions that are
different from other regions (product
diversification) (Rahman, 2012)
The growth of tourist attraction in
Batu City is currently classified as very
massive, especially in the development of
man-made tourist attractions. Based on
data obtained from the Batu City Tourism
Board, there are at least 49% of the tourist
attractions in Batu City are man-made
tourism attraction and the remaining 13%
and 38% are cultural tourist attractions and
natural tourist attractions. The man-made
tourist attraction in Batu City is dominated
by PT. Bunga Wangsa Sedjati which has
Jatim Park Group tourism destination. The
tourism destination has several tourist
attractions including Jatim Park I, Jatim
Park II, Jatim Park III, Batu Night
Spectacular (BNS), Eco Green Park,
Museum Angkut, Predator Fun Park and
many more tourist attractions spread out in
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East Java Province. (Disparta Kota Batu,
2019)
The impact of the growth is
expected to be able to contribute to the
improvement of the local economy,
especially people who are around the
location of tourism activities. In some
places, investors are present to develop the
tourism industry with a capitalist model
and the public is not given access to be
involved in it. This has an impact on
people becoming increasingly poor,
unemployed, and social inequality is
higher (Karim, 2005). How much impact
is received by the community around the
tourist attraction of the Pasar Parkiran
Jatim Park I with the existence of tourism
activities and how the implementation on
the field by local people is discussed in
this article.
Research Objectives
The purpose of this study is to
identify the impact received by the local
community around the development of the
tourism destination of the Pasar Parkiran
Jatim Park I based on the approach of the
tourist’s expenditure and the local people
income who are active in supporting
tourism activities in the Pasar Parkiran
Jatim Park I.
LITERATURE REVIEW
Tourism Industry
Tourism has commonly believed
that it has contributed positively to
economic growth as exports have strongly
triggered economic expansion. The rapid
development of tourism industry afford to
drive the growth of local income and
government revenue directly and indirectly
(Oh, 2005). In last few years, this industry
began to be focused by both regional and
central governments. According to
Okumus (2005) explains that the tourism
industry is able to become one of the main
sectors driving the local economic. This is
able to help the Northern Cyprus economy
by contributing to reduce the
unemployment number by creating a total
of 6,000 jobs. In addition, tourism
contributed to a GDP of $ 93 million (3%).
Although in further explained, that tourism
is an industry that is susceptible to
economic crisis in the country. The
Indonesia economic crisis in 1998 affected
the decrease of foreign tourists arrivals
from 1997 in 12%.
According to Sunaryo (2013),
historically there are two tourism
development models that underlie current
tourism development and management
models. Growth oriented model which
gives priority to mass tourism is an early
development model and familiar in the
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1980s. This model focuses on the high and
massive level of the tourists number. After
it was realized that the paradigm of the
model did not have a significant impact on
society, a new concept or paradigm
emerged as one of the options and
balances of mass tourism, namely the
concept of sustainable tourism
development which began to be
implemented since the 1990s.
In the tourism industry, there are
three main stakeholders involved in
managing and providing tourism activities.
The stakeholders are the government,
private companies, and local communities
located around the tourist destination
(sutama, 2013). The private sector is the
main stakeholder in the management of
mass tourism. Jatimpark, Batu Night
Spectacular, and museum angkut are mass
tourism destinations managed by the
private sector, where the number of
tourists and tourist expenditure is the
parameter of the success goals
management. Tourism destinations that are
provided and managed by private
companies are called Investor Based
Management.
The concept of Investor Based
Management has the opportunity for
closed the access of local host to get the
impact of tourism activities. This is caused
by the divisions determined by the
company in terms of receiving tourist
expenditure. Opportunities for sharing the
impact of tourism activities should be felt
by the community around the local tourist
attraction. Providing access to the
community is not only intended to have an
economic impact on the local community,
it is also expected to avoid tourism
conflicts that occur between the company
and local communities.
Economic Impact
Cohen (1984) explained that there
are eight categories regarding the impact
of tourism on the local community socio-
economic, namely: the impact on foreign
exchange earnings; impact on community
income; impact on employment
opportunities; impact on prices; impact on
benefit distribution; impact on ownership
and control; impacts on development in
general; impact on government revenue. In
line with Cohen, Frechtling (1987)
explains that the economic impact of the
tourism development model is a
contribution of a tourism development
model in a tourist destination to the
economy of a region. These impacts can
be in the form of: 1) revenue from sales of
tourism products (entrance tickets,
accommodation, restaurants, game /
attraction rides, transportation, and retail);
2) community income (souvenir / souvenir
sales and services); 3) employment
opportunities; and 4) government revenue
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from taxes and user charges. Tourism
becomes an important factor is caused can
be a driving factor for the development of
several economic sectors. With the
increase of the tourism was followed by
related industries that are close including
handicrafts, souvenir goods and the
agricultural sector where tourists need
food for consumption.
According to MEA (2001) there
are three groups of economic impacts,
namely direct effects, indirect effects, and
induced effects. In practice, indirect
effects and induction effects are
sometimes referred to as secondary effects
which follow the direct effect as a primary
effect (Primary Effect), it call multiplier
effect.
The multiplier effect has several
principles as explained by Yoeti (2008):
the tourist expenditure never stops
circulating in economic activities where
the money is spent and rotate in that area.
In the principle, the faster the rotation of
the money moves into the others, the
greater the influence of the money in the
economy at the location and the greater the
value of the multiplier coefficient. When
the money disappears from circulation
stops at one individual and has not moved
into the others, the money has no effect on
the local economy.
Local Community
Local Community is a group of
individuals to form the personalities of the
citizens of human groups or tribes who are
different from one another. In a local
community that is also the relevant
citizens to develop and preserve cultures
that are in certain strata of society which
must have different characteristics. It can
also be regarded as one of the media or
educational institutions, a diverse field of
human life both ethnicity, religion, work
activities, education level, economic level,
and social culture. In the context of
community organization is a life together
which is at the micro level of the
government. In this sense is an institution
or an embodiment of the subject of
managers who receive the trust of
community its self.
Betrand in Syani (1995) explains
that community is a group of people with
the same identification, organized in such
a way as to carry out everything needed
for a harmonious shared life. In another
sense the community is a group of
individuals who reside in a certain area
and can interact with other individuals
over a long period of time. Based on the
explanation described, it can be concluded
that the community is a group of people
who live in a certain place for quite a long
period of time and interact with each other
with the aim of creating harmony in life.
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One form of community is a group of
people who are limited by certain aspects,
such as territories, nations, and groups.
According to Soekarto in Syani (1995) the
characteristics of a community in a form
of shared life include the following: a)
Humans who live together. In social
science there are no absolute
measurements or exact numbers to
determine how many people there must be
and are just called society. But
theoretically, the minimum number is
more than one or at least two people living
together; b) Mixed for quite a long time. A
collection of humans is not the same as a
collection of inanimate objects such as
chairs, tables, and so on. The basic
difference here is the interaction with one
another. The interaction can talk, feel and
understand, they also have the desire to
convey their impressions or feelings; c)
They realize that they are part of a group
or a unit; and d) They are a system of
living together. The system of living
together gives rise to culture, because each
group member feels himself bound to one
another.
In this study, the meaning of local
community is a community that has lived
in Kota Batu for a long time, especially the
surrounding Pasar Parkiran Jatim Park I.
The community as an object of research
becomes very important in the
classification and determination of
research criteria. As one of the efforts to
impose restrictions on local communities
in this location, it is determined that local
communities refer to Badan Pusat Statistik
(BPS) that is, all people who have lived in
geographical areas for 6 months or more
and or who have been domiciled for less
than 6 months but aim to settled and
supported by identity card (KTP) which
prove that they live in the area around
tourism.
METHODOLOGY
This research uses a quantitative
method approach by collecting and
processing data. The data in this study
were collected with the original conditions
with the instrument in this study was using
a questionnaire. It is a technique or way of
collecting data indirectly (Arikunto, 2006).
There are three kinds of respondents in
this article, namely: tourists by identifying
their expenditures, business owners who
make business in the Pasar Parkiran Jatim
Park I, and labours who work in tourism
destination. Where the second and third
respondents are identified based on their
income and expenditure related to their
business and daily expenses.
The probability sampling method
is used in this article with implementated a
random sampling techniques without
ignoring certain criteria to fit the research
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objectives, so that it can answer the
research problem. Sample criteria in the
form of tourists with a minimum age is 17
years old with the reason that tourists who
have that age have been able to determine
the decision to spend the money that they
have. The sample size is determined by
using the Slovin formula with the margin
of error 10 percent.
Pasar Parkiran Jatim Park I in
Batu City is the research location, because
it (Jatim Park I) is a pioneer and the most
famous man-made tourist attraction in
Batu City with the highest number of
tourists 413,497 tourists in 2016 (BPS,
2017). This research was conducted in
April 2018. Primary data used by giving
questionnaires to tourists who come and
expend their money in tourism destination,
the owner of SMEs at the Pasar Parkiran
Jatim Park I to collect information of their
income and expenses. Secondary data was
used to support in compiling this research
related to actual and factual condition of
tourism in Batu City.
Number of samples in this study
were 110 respondents with the detail 50
respondents of tourists, 30 respondents of
SMEs owner, 30 respondents of labour in
the destination. Determination of the
samples refers to Sekaran (2006) where
generally, to obtain good results in the
research, the number of samples used are
in the range of 30-500 respondents. In this
study, the Keynesian Multiplier Effect
analysis technique is used to measure the
direct impacts, indirect impacts and
induced impacts that occur in activities at
Pasar Parkiran Jatim Park I. These
economic impacts can be measured using
the multiplier effect by the flow of money
that occurs. In measuring impacts, there
are two types of multiplier, namely: a).
Keynesian Local Income Multiplier is a
value that measures how much tourist
expenditures have an impact on increasing
local community’s income; and the others
b) Ratio Income Multiplier, which is a
value that measures how much the direct
impact felt by tourist expenditures have
implications for the overall local economy
income. This multiplier measures the
indirect and induced impacts. The formula
that can be used in measuring the
multiplier effect is as follows:
Keynesian Income Multiplier = (1)
Ratio Income Multiplier, Type I = (2)
Ratio Income Multiplier, Type II = (3)
Where:
E: tourist expenditure (Rupiah)
D: community income obtained directly from
E.
N: community income obtained indirectly
from E
U: community income obtained induced from
E
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RESULTS AND DISCUSSION
Characteristics of respondents
Gender and Age
The result of the research shows
that gender of tourists is dominated by
female (58%) than followed by male with
the total 42%. Apart from gender, tourists
are dominated by productive tourists, with
an age range of 17-30 years at 84%,
followed by 31-40 years are 12% and the
remaining 4% is elderly at more than 40
years.
Education
The education level of tourists
who become as respondents in this
research are dominated by bachelors
degree with a proportion of 48%, tourists
with a senior high school level are 38%.
Moreover, the tourists with elementary
school are 2%, 4% are junior high school
and 8% are tourists with a diploma
education level.
Occupation and Income
Based on the type of occupation
and income indicators, the largest
proportion of tourists who come to the
Pasar Parkiran Jatim Park I are students
with a proportion of 44% and followed by
tourists with occupation status were
entrepreneurs (36%). A number of 3%
proportion are tourists with civil servants
and housewives and State-owned
enterprises employee have a proportion of
8%.
In terms of income received by
respondents dominated by young age with
work status students, the income is
dominated by tourists with income less
than 500.000 (36%) and followed by the
second proportion of 26%, namely tourists
with income 1.500.001- 2.500.000. The
lowest proportion is tourists with income
of 2.500.001-3.500.000 by 6%, 12% for
tourists with more than 3.500.000 income
and 20% for tourists with income of
500.001-1.500.000.
Table 1.1 The Proportion of Tourist
Expenditure at Pasar Parkiran Jatim Park I
No Description
Average
expenditure (Rp)
Proport
ion (%)
A
Out of Location Expenditure 53.940 33,34
1 Transportation (Rp/pax/day) 21.300 13,17
2
Meals before arrived
(Rp/pax/day) 32.640 20,18
B
In the Location Expenditure 107.830 66,66
1 Meals (Rp/pax/day) 31.230 19,31
2 Souvenirs and Gifts (Rp/pax/day) 15.700 9,71
3 Entrance ticket (Rp/pax/day) 16.580 10,25
4 Games entrance fee (Rp/pax/day) 24.430 15,10
5 Toilet fee (Rp/pax/day) 1.940 1,20
6 Parking fee (Rp/pax/day) 5.580 3,45
7 Others expenditure (Rp/pax/day) 12.370 7,65
C
Total Tourist Expenditure
(Rp/pax/day) (C=A+B)
161.770 100
D
Total Out of Location
Expenditure
(D=A*monthly average of
tourists) (Rp/month)
499.646.220
E
Total In the Location
Expenditure
(E=B* monthly average of
tourists) (Rp/month)
998.829.290
F
Total tourist expenditure in one
month
(F=D+E) (Rp/month)
1.498.475.510
Source: Data processed, 2018
Secondary data got from the management of tourist
attraction, 2018
Notes: The average of tourists (Jan – Dec 2017) is 9.263
tourists
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Based on Table 1.1. it can be seen
that the proportion of transportation costs
expended by tourists when visiting the
location is 13.17 percent of the total costs
by each tourist, while the meals costs
expended before arriving is 20.18 percent
or an average of Rp. 32.640,- so that the
total expenditure of tourists before arriving
at the location or called out-of-location
expenditure is 33.34 percent or an average
of Rp. 53.940,-. In this case, out-of-
location expenditure occurs caused by
there are a lot of culinary destination in the
night for tourists’ dinner, then the tourists
who will visit Pasar Parkiran are usually
have dinner outside location. Furthermore,
the average expenditure of tourists who
carry out tourism activities in the Pasar
Parkiran is 66.66 percent of the total
expenditure spent. The biggest proportion
of expenditure made by tourists is on
meals expenditure that is equal to 19.31
percent while the next is on the games
offered by tourist destinations that is equal
to 15.10 percent.
Direct Effect
Owners Personality
Based on the study, the gender of
business owners in the Pasar Parkiran
have the same proportion of both female
and male in the amount of 53.33% and
46.67% or a difference of 6.66% with an
age distribution are more than 31 years
(80%) with details 31-40 years is 40% and
≥ 40 years is 40%. The marital status of
business owners in location are dominated
by married status of 73.33% and 26.67%
are unmarried entrepreneurs.
Education
In education, business owners in
the location are dominated by
entrepreneurs with senior high school
education level (56.67%) and followed by
business owners with junior high school
education level of 16.67%. Business
owners who have a college education level
are only 13.33% with the detail are a
diploma of 3.33% and a bachelor of 10%.
Business Capital and Length of Business
Business capital should be
prepared by the owners. The average of
owners business capital in the Pasar
Parkiran Jatim Park I is Rp. 5,020,400,
and the business has been running for an
average of 27 months or more than 2
years.
The direct impact can be seen
from the tourist’s expenditure occurs in the
destination which is directly received by
the business units in the location, so that it
can be seen how much the direct impact is
felt. The direct economic impact that
occurs in the location can be seen in
proportion to the net income of the
business owner, which in this case varies
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according to the type of business being
run. Data on the percentage of business
unit owner's income can be seen in Table
1.2.
Table 1.2 The Proportion of SME’s Owners
income at Pasar Parkiran Jatim Park I
No. Type of Business
Owners
Σ (Rp) %
1
Food and Beverage
Outlets 2.500.000 48,66
2
Gifts and Souvenirs
Outlets 2.120.000 41,83
3
Games managed by
Community - -
4 Toilet Service 1.500.000 45,94
Average 2.040.000 45,48
Source: Data processed, 2018
The net income felt by each outlet
varies according to the type of the
business. Based on Table 1.2 it can be seen
that the meals outlet has the largest
proportion of 48.66 percent with an
average of Rp 2,500,000, while the
souvenirs and gifts shop have a profit
proportion of 41.83 percent of the average
monthly income received. There is no
income received by the community related
to game facilities. This is caused by the
game being provided and managed
directly the Management. The direct
economic impact can be seen from the net
income of outlet owners. The calculation
of the direct impact felt by the business
unit can be seen in Table 1.3.
Table 1.3 The Direct Effect at Pasar Parkiran
Jatim Park I
Type of Business
SM
E’s
Ow
ners
Sa
mpl
e
Tot
al
Uni
t of
SM
E’s
Avera
ge
Incom
e
(Rp/M
onth)
Direct
Effect
(Rp/Mo
nth)
(a) (b) (c) (d=b*c)
Food and
Beverage Outlets
18 52
2.50
0.00
0
130.0
00.00
0
Gifts and
Souvenirs Outlets
11 33
2.12
0.00
0
69.96
0.000
Games managed
by Community
0 0
0 0
Toilet Service
1 3
1.50
0.00
0
4.500
.000
Total 30 88
4.62
0.00
0
204.4
60.00
0
Source: Primary and secondary data
processed, 2018
Based on Table 1.3 the amount of
direct economic impact received by the
toilets have the smallest amount of Rp
4,500,000, - with an average per month for
it receiving Rp 1,500,000. The total direct
impact received by all outlets in the Pasar
Parkiran is an average of Rp. 204,460,000
per month, with an average of each outlet
being Rp. 1,540,000.
The direct economic impact felt
by the outlet owner is the net income
received when carrying out its business
activities in the Pasar Parkiran Jatim Park
I. Meals Outlet has the largest amount of
income, which is an average of Rp
130,000,000, - per month. This is
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influenced by in addition to the average
amount per month for each meal outlets, in
terms of the number of types of meals
outlet, there are also a lot of 52 units. So
that the amount received in each month by
this business unit has the highest amount.
Toilet has a small number of units. There
are 3 location of toilet in the Pasar
Parkiran considering the area of the
destination is not too large and is part of
Jatim Park I, so there are only 3 toilet
units. In this case, the Pasar Parkiran is
also able to open up opportunities for local
workers to work in these locations. There
are 163 workers who work in the Pasar
Parkiran Tourism Destinations which are
divided into several sectors or job
positions. Before the formation of the
Pasar Parkiran, the community carried
out the business of selling food and drinks
on the roadside as street vendors. With the
Pasar Parkiran become a tourist
destination, the community has location to
do business without fear to the authorities
in this case the local governance because
of illegal business.
Indirect Effect
Expenditures made by outlets in
the surrounding of the location such as the
purchase of raw materials, maintenance of
equipment, payroll are included in the
indirect economic impacts that occur at the
tourism destination. The calculations
regarding the expenditure of business units
inside and outside the location can be seen
based on Table 1.4.
Table 1.4 Total Expenditure of SME’s Inside
and Outside Location
Description
Type of Business
Food and
Beverage
Outlets
Gifts and
Souvenirs
Outlets
Games
Toilet
Service
Inside Location
Material Cost 1.080.556 1.081.818 - 200.000
Maintenance
Cost 130.833 125.455 - 200.000
Rent Cost 523.778 532.364 - 600.000
Total
Expenditure
(Rp/Month) (a) 1.735.167 1.739.636 - 1.000.000
Total SME’s (b) 52 33 - 3
Total
Expenditure
inside location
(Rp/Month)
(c=a*b)
90.228.667 57.408.000 - 3.000.000
Outside
Location
Local
Transports 199.412 173.182 - 100.000
Tax and
Retribution 13.529 20.000 - -
Operational
Cost 54.000 56.455 - 45.000
Total
Expenditure
(Rp/Month) (d) 266.941 249.636 - 145.000
Total
Expenditure
outside
location
(Rp/Month)
(e=d*b)
13.880.941 8.238.000 - 435.000
Source: Data processed, 2018
Based on Table 1.4 the costs by
outlets within the location will indirectly
have an impact on the local people who
work at there. These expenditures include
the purchase of raw material inputs,
equipment maintenance, and rental costs.
In this case, the expenditures made by the
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meals outlet and souvenir outlets do not
differ too much, namely the average per
unit of business is Rp 1,735,167 and Rp
1,739,636, -. But if seen from the total
expenditure spent by each group of
business units, the meals outlets group had
the largest total expenditure of Rp.
90,228,667 per month. It dominates
expenditure at the tourist location due to
several factors that influence. These
factors include the number of the outlets in
the tourist location which has the highest
number compared to other business units
in the form of souvenir, as well as business
units providing toilet facilities in tourist
location. In addition, to the large number
of units, the purchase of raw materials for
meals outlets has a greater amount
compared to the provision of toilets in
which the purchase or expenditure of raw
materials is relatively low. Furthermore,
the indirect economic impacts felt by
labours in the form of income obtained can
be seen in Table 1.5. Based on Table 1.5
there is a difference in the proportion of
salary based on the type of work but the
average income is taken. The greatest
indirect economic impact is felt by the
meals outlets which is Rp. 190,588,667, -
because the number of labours in the
business unit has the highest number.
Table 1.5 The Indirect Effect at Pasar
Parkiran Jatim Park I
Type of
Business
Avera
ge of
Labo
ur
(pax)
Σ
SM
E’s
(un
it)
Σ
Lab
our
(pax
)
Labou
r
Incom
e
(Rp/m
onth)
Total
Labou
r
Incom
e
(Rp/m
onth)
Tota
l
Expe
ndit
ure
insid
e
locat
ion
(Rp/
Mon
th)
Total
Indire
ct
Effect
(Rp/M
onth)
(a) (b)
(c=a
*b) (d)
(e=c*d
) (f) (g=e+f)
Food and
Beverage
1 52 52
1.930.0
00
100.36
0.000
90.2
28.6
67
190.58
8.667
Gifts
and
Souven
irs
1 33 33
1.570.0
00
51.810.
000
57.4
08.0
00
109.21
8.000
Games 0 0 0 0 0 0 0
Toilet
Service
1 3 3 1.250.0
00
3.750.0
00
3.00
0.00
0
6.750.0
00
Manage
ment
Maintena
nce
14 1 14
2.600.0
00
36.400.
000 -
36.400.
000
Cleaning
10 1 10
2.300.0
00
23.000.
000 -
23.000.
000
Administ
ration
7 1 7
5.000.0
00
35.000.
000 -
35.000.
000
Security
7 1 7
2.050.0
00
14.350.
000 -
14.350.
000
Ticketing
8 1 8
2.000.0
00
16.000.
000 -
16.000.
000
Games
Guard
10 1 10
2.000.0
00
20.000.
000 -
20.000.
000
Outboun
d
10 1 10
2.400.0
00
24.000.
000 -
24.000.
000
Parking
9 1 9
1.600.0
00
14.400.
000 -
14.400.
000
Total 78 96 163
24.700.
000
339.07
0.000
150.
636.
667
489.70
6.667
Source: Data processed, 2018
In addition to payment of labour’s
salary, the direct impact is also calculated
from the expenditure of outlets located in
tourist destination as shown in Table 1.4.
Based on the two components, labour’s
salary and outlets expenditures in tourist
sites, a total indirect economic impact
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which occurs in these tourist destinations.
In this case the indirect economic impact
that occurred on the Pasar Parkiran is Rp
489,706,667 per month.
Induce Effect
This location also has a induce
economic impact that occurs due to
expenditure made by labour in the area of
tourism. The expenditure causes a velocity
of money received by them and spent to
finance his daily life. The research makes
an interview and contributes a questionaire
to the labour with the detail below.
Labour Personality
The proportion of labour
respondents is not much different between
male and female, the difference is only
6.66%, with the details men (53.33%) and
women (46.67%). The range of age in the
location dominated by 21-30 years at
56.67%. A proportion of 20% is found in
labours with age less than 20 years and
more than 40 years are equal. There are
3.33% of labour respondents with ages 31-
40 years. This proportion is the smallest
proportion in the age of the labours.
Education and Geographic Background
The education level of the
location in the Pasar Parkiran is
dominated by senior high school level with
a proportion of 70% and followed by a
bachelor degree level of 20%. The level of
junior high school is the smallest
proportion of 3.33% and the elementary
school level of 6.67%. With a proportion
of the labour is 80% dominated by local
and native community of the area while
the remaining 20% are from outside the
location of tourism destinations. The
average length of work labours in the
Pasar Parkiran are approximately 38
months or 3 years.
Expenditures that cause further
economic impacts such as daily
consumption costs, daily necessities, local
transportation costs, and the cost of school
children when they are married.
Conversely, expenditures made outside
tourist sites do not have an induced
economic impact because the money goes
out of the location area. Expenditures
outside the location are divided into two,
namely the cost of electricity payments
and other costs. The proportion of labour
expenditure can be seen in Table 1.6.
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Table 1.6 The Proportion of Labour
Expenditure
Lab
our
Surrounding Expenditure
Outside
Expenditure
Meal
s
Cost
(%)
Daily
Cost
(%)
Tran
spor
-
tatio
n
Cost
(%)
Sc
ho
ol
fee
s
(
%
)
To
tal
(
%
)
En
er
gy
Co
st
(
%
)
Othe
r
Cost
(%)
Tota
l
(%)
(a) (b) (c) (d)
(e
=a
+b
+
c+
d)
(f) (g)
(h=f
+g)
Meal
s
Shop
45,8
4
26,2
6
10,24 6,45 88,79 3,43 7,79 11,21
Souv
enirs
Shop
53,9
3
13,2
6
14,15 5,84 87,18 6,72 6,10 12,82
Gam
es
Shop
0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00
Toile
t
Servi
ce
22,1
2
17,7
0
26,55 7,08 73,45 8,85 17,70 26,55
Man
age
ment
Main
tenan
ce
41,67
25,0
0
8,33 0,00 75,00 4,17 20,83 25,00
Clea
ning
69,69 1,39 20,91 1,05 93,03 3,48 3,48 6,97
Adm
inistr
ation
35,29 5,88 47,06 0,00 88,24 7,06 4,71 11,76
Secu
rity
58,82 2,94 29,41 0,00 91,18 2,94 5,88 8,82
Tick
eting
24,00
20,0
0
8,00 0,00 52,00 12,00 36,00 48,00
Gam
es
Guar
d
18,52
14,8
1
14,81 0,00 48,15 14,81 37,04 51,85
Outb
ound
65,36 1,96 19,61 0,00 86,93 3,27 9,80 13,07
Parki
ng
40,73
29,7
9
3,90 19,60 94,03 5,97 0,00 5,97
Aver
age
39,6
6
20,5
9
17,91 3,33 81,50 6,06 12,44 18,50
Source: Data processed, 2018
In addition to consumption costs,
there are still daily expenses, local
transportation costs, as well as children's
school fees incurred by workers who work
in the Pasar Parkiran. The total
expenditure done by workers around the
tourist destination is 81.50 percent,
meaning that the total labour income in the
Pasar Parkiran is almost entirely spent
inside the location or around the tourist
destination, while the expenditure done
outside the location is 18.50 percent.
The induced impact of the
existence of the Pasar Parkiran tourist
location can be seen from the amount of
labour expenditure carried out in the
tourist location. Data on the continuing
impacts can be seen in Table 1.7.
Table 1.7 The Induce Effect at Pasar Parkiran
Jatim Park I
Labour
Total
of
Labour
(Pax)
Total
Labour
Expenditure
per month
(Rp)
The
Proportion
of Labour
Expenditure
in Location
(%)
Induce
Impact
(Rp/Month)
(a) (b) (c) (d=a*b*c)
Meals Outlet 52 2.247.000 88,79 103.740.000
Souvenirs
Shop 33 1.131.000 87,18 32.538.000
Games 0 0 0 0
Toilet 3 1.130.000 73,45 2.490.000
Management
Maintenance 14 2.400.000 75,00 25.200.000
Cleaning 10 1.435.000 93,03 13.350.000
Administration 7 1.425.000 88,24 8.801.000
Security 7 1.700.000 91,18 10.850.000
Ticketing 8 1.250.000 52,00 5.200.000
Games Guard 10 1.350.000 48,15 6.500.000
Outbound 10 1.530.000 86,93 13.300.000
Parking 9 1.561.000 94,03 13.210.000
Total 163 17.159.000 81,50 237.465.000
Source: Data processed, 2018
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Based on Table 1.7 it can be seen
that the total average expenditure of
respondents in the Pasar Parkiran is Rp.
17,159,000, - of this amount if the average
proportion of labour expenditure carried
out in tourist sites is 81.50 percent then it
can be seen that the induced economic
impact occurring in the Pasar Parkiran is
IDR 237,465,000. The induced impact of
81.50 percent carried out by labour in the
Pasar Parkiran is expenditure at tourist
destinations which includes expenditures
for consumption costs both for personal
and family needs, daily necessities such as
bathing, cigarettes, local transportation
costs for purchases gasoline as
transportation fuel to the workplace and
the cost of school children for workers
who are married and have children who
have gone to school.
Based on Table 1.7 it can be seen
that the game staff has the smallest
proportion of expenditure which is 48.15
percent compared to the proportion of
other labour’s expenditures. This is due to
the fact that most of the labour who work
as game staff are young and unmarried
staff.
Multiplier Effects
The value of the multiplier effect
is an instrument to see how much tourism
activities in the location has an economic
impact on the community, especially in
terms of income. (1) Keynesian Multiplier
Effect, which is a value that shows how
much tourists expenditure affects the
increase in local community income; (2)
Ratio Income Multiplier, which is a value
that shows how much the direct impact
that is felt from tourist’s expenditure has
an impact on the local economy. In this
case, it measures two impacts, those are
indirect impacts and induced impacts that
occur.
Table 1.8 Multiplier Effect Value of Pasar
Parkiran Jatim Park I
Multiplier Value
Keynesian Income Multiplier 0,93
Ratio Income Multiplier Type I 3,40
Ratio Income Multiplier Type II 4,56
Source: Data Processed, 2018
Regarding on Table 1.8 about the
Keynesian Income Multiplier value in the
Pasar Parkiran of 0.93, it means that each
increase in tourist expenditure by Rp 1,000
will have an impact in the form of an
increase in the local economy of Rp 930.
The value of the Ratio Income Multiplier
Type I is 3.40, so each increase of Rp.
1,000 on the receipt of business units
results in an increase of Rp. 3,400 to the
income of the business owner and labor.
The value of the Income Multiplier type II
ratio is 4.56, indicating that each increase
of Rp 1,000, - on business unit revenue
will increase Rp 4,560, - on business
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owner income, labor income, and labor
consumption expenditure in the local
economy that will revolve to the local
community. The Keynesian Income
Multiplier value in the Pasar Parkiran has
approached number 1 which is 0.93, the
value of the Ratio Income Multiplier Type
I and the Ratio Income Multiplier Type II
of 3.40 and 4.56. It means that Pasar
Parkiran Jatim Park I, based on the results
of multiplier effect analysis, has been able
to have a good impact on the local
community. It can be seen from the
numbers that have approached 1.00 figures
on the multiplier effect that occurs. The
fundamental thing that has made tourism
activities have an impact on society is the
open space for community to do business
at the destination. The community is given
the chance to create a business outlet for
food stalls, drinks, souvenirs and gift
stalls. Apart from being given the space to
set up business units at tourist sites, the
absence of competition between the
community and the management is the
reason why the community can feel the
impact of tourism more. The management
of Jatim Park I, which is engaged in
providing tourist destinations in the form
of games and various tourists attract, while
the local community does the business of
setting up typical culinary stalls of Batu
City.
Apart from good management
according to professional company
standards, supporting factors in the form
of tourism facilities also play a role in both
of these tourism industries. Based on the
review of the location, Pasar Parkiran is a
tourist destination in the center of the city
with adequate facilities. Supporting
facilities and infrastructure in the form of
central city accommodation facilities are
easy to access. In addition to
accommodation facilities, the distance
between location and public transport
facilities is also easier to reach.
Furthermore, viewed from the
Minister of Tourism RI Regulation No. 28
of 2015 on Business Standard of Food
Sales Center, there are 3 main aspects in
the standardization namely Products,
Services, and Management. As one of the
leading tourism destinations in Batu City,
Pasar Parkiran has paid attention to the
government standards. All facilities and
infrastructure for supporting local host
businesses have been provided by the
tourism destination, in this case Jatim Park
I, so that it is appropriate and can be used
by tourists who enjoy the culinary.
Services are important in tourism activities
in the Pasar Parkiran, so that human
resources in the Pasar Parkiran more
often get training on the professionalism of
working the tourism business.
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Related to Government
Regulation No. 78 of 2015 on Salary and
reinforced by East Java Governor
Regulation no. 75 of 2017 on Regional
Minimum Salary in East Java at 2018,
where private companies that have
employees are required to provide decent
work salary in accordance with those
government standards. The minimum
salary set by the East Java provincial
government for Batu City in 2018 is Rp
2,383,167.00, so that in this case the salary
of labour in the Pasar Parkiran have
approached the figure specified in article 3
paragraph 2 of the Governor’s Regulation.
Based on Article 3 paragraph 1 of PP No.
78 of 2015 concerning Wage Policy is
expected to be one of the efforts to
improve decent livelihoods for workers /
laborers, one of which is the fulfillment of
income in accordance with existing
provisions. By providing workers’ wages
in accordance with established standards,
it can increase the income of the
community, especially those working in
the Pasar Parkiran tourism destination, so
that it contributes to increasing the existing
indirect economic impacts.
CONCLUSIONS AND SUGGETIONS
Man-made tourism activities,
namely Pasar Parkiran Jatim Park I, have
given an impact on local communities,
especially those get involved in the
location. These impacts have been studied
based on Keynesian Income Multiplier
Effect with focus in the direct impacts
received from tourist expenditures, the
indirect impacts originating from business
owner expenditures, as well as the induced
impacts coming from local labour’s salary
in the tourism destination. Besides the
economic impact, man-made tourism
activities have been able to create and
provide a job, especially for local
communities who live around tourism
destinations. Suggestions can be given to
tourism destinations are to pay more
attention to the local community by
involving business activities so that the
impact received by the community can be
wider.
Acknowledgement
We would like to extend our highest
thanks to PT. Jatim Park Group for giving
an opportunity to hold the observation and
interview to the respondents of the
research. And also thanks to Professor
Made Antara, MS and Dr. I Wayan
Suardana., S.ST.Par., M.Par as the
guidance in our research project. Last but
not least, we would like to thank to all the
respondents that already fulfill the
questionaire of the research.
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