report on development of destination management...

Report on Development of Destination Management Organization

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Pangandaran is a world-known beach tourism site in Java with many international tourists particularly from Western Europe. Situated

in Ciamis Regency, West Java Province, Pangandaran beach as a main tourism attraction lies in 27 km of coastline, with a 350 hectare of peninsula, which is a conservation area is divided in two parts, east and west. Pangandaran is 2-hour drive from the capital city of Ciamis Regency, and a 5-hour drive from Bandung, the capital city of West Java, and Yogyakarta in Central Java area. The site owned airport facility called Nusa Wiru is a 20-minute drive. The airport have been recently activated. Pangandaran is located in a strategic area that is in between of main route from West Java to Central Java. Its strategic location has encouraged tourists particularly from Jakarta, Bogor, Bandung, Cilacap, and Yogyakarta to visit Pangandaran. During school holiday season, Eid-el Fitr, Christmas and New Year holiday the site has been a favorite destination for tourist. The number of local tourists may reach 485,000 annually and 9,800 inbound tourists. The condition has made Pangandaran defined as a featured tourism site in West Java together with Puncak area in Bogor Regency.

However, data collected from Local Working Group (LWG) through Tourism Program Supporting Biodiversity in Pangandaran that funded by UNWTO, Ministry of Culture and Tourism, and Regional Government of Ciamis Regency, and INDECON, shows that weak tourism management in Pangandaran has lead to problems in managing tourism in Pangandaran. Declining quality of the environment, which is a main asset in tourism activity, has had a negative impact. Dualism in management as in Nature Recreation Park for instance also affects to ineffective management. This weakness also leads to lack of law enforcement that has been stated by management.

Weak planning, direction and policies of Culture and Tourism Office of Ciamis Regency become obstacle to

Pangandaran tourism development. Accommodation building and house conversion to accommodation business is carried out by almost all local people in Pangandaran that live close to the beach. High numbers of visitors also increase the number of street vendors and food stalls in Pangandaran. Informal tourism services such as tourist boats, vehicles and bicycle rentals also grow rapidly everywhere surrounding beach. A large amount of waste is a logic consequence from all the tourism businesses in Pangandaran.

If this condition continues, the quality of the environment will decline dramatically, and will result in poor quality and quantity of visitation and sustainability of natural resources and cultural management.

COLLABORATIVE MANAGEMENT

Collaborative management is a situation when two or more parties negotiate, agree on, and ensure division of function, roles, rights, and responsibilities in management of one particular area (or of natural resources) equally amongst them (Borrini-Feyerabend, G., et.al, 2000). Yet, it is as easy as it says. Political and socio-cultural conditions which affect roles of local stakeholders in Pangandaran need to be considered before deciding the form and coverage of the institution. The richer roles and interests of the stakeholders, the process to establish such collaborative management will be more complex. Establishing collaborative management requires awareness and common consensus that tourism in Pangandaran will be better as long as the stakeholders can reach synergy in:i. Rights and responsibility, which means awareness

that a collaboration or partnership will transform rights of one party as responsibilities for other parties, or vice versa;

ii. Role and responsibility; which means awareness that all stakeholders involved in the collaboration of partnership have roles according

Introduction


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3. Principles of Collaboration a. Togetherness and participatoryb. Equityc. Transparencyd. Mutual benefite. Public accountability

4. Function of CMTPa. Function of the Advisory Board

- Provide guidance and direction for Management Board

- Monitor tourism management in Pangandaran

b. Function of the Management Board- Formulate direction and policy for tourism

development in Pangandaran- Formulate short, mid, and long term

program- Formulate monitoring and evaluation system- Conduct consultation with the advisory

board

- Select and choose formation of the executing agency

- Supervise operational of the executing agency Provide report for the advisory board, Head of Regency or local council

- Assess and give recommendation to related institutions in terms of issuing permit related to tourism development in Pangandaran.

- Raise fund for tourism management in Pangandaran

- Manage conflict between stakeholders in tourism management

c. Function of the Executing Agency- Conduct daily operational activities- Establish and run management program as

approved by management board- Provide input for management board in

terms of policy, program, and permit related to tourism development

- Run operational fund for tourism management in Pangandaran

- Establish partnership to push tourism development

- Take responsibility regarding the use of operational fund and report to management board

Organizational Chart of Collaborative Management

to their capacity and duty responsible for the achievement of those roles;

iii. Common objectives; which means awareness that interests of each stakeholder have to be inline with the common objectives agreed with other stakeholders

Each stakeholder might have awareness to build partnership; yet considering that each stakeholder tends to have different capacity and different interests, therefore the partnership will require negotiation; and conflicts are often inevitable. A strategic plan to establish a collaborative management is essential to develop an efficient and effective institution. Such institution should be legitimate, become the media for the stakeholders to work together, have capacity in distributing rights and responsibilities, as well as able to resolve conflicts between the stakeholders. Based on the discussion and consultation between TA and local stakeholders, it is important that an integrated management involving various stakeholders is implemented. The proposed institutional set up is described below.

1. It is necessary to establish a “COLLABORATIVE MANAGEMENT for TOURISM in PANGANDARAN” (CMTP) or “LEMBAGA PENGELOLA PARIWISATA PANGANDARAN” (LP3) in Indonesian. CMTP will be structures as follow:a. ADVISORY BOARD for PANGANDARAN

TOURISM; which consists of the highest decision makers or appointed authority of the directly related government institutions. In this case, the board can involve community leaders and highest people at provincial or regency level

b. MANAGEMENT BOARD for PANGANDARAN TOURISM, which consists of key stakeholders from various government institution and non government institutions to run an integrated management. The board has the highest authority to provide direction and policies related to direction for tourism management. Considering the complexity

of tourism stakeholders in Pangandaran, it is recommended that Management Board has maximum 19(nineteen) members. Each member represents groups of similar interests to voice particular interest in tourism management. They are for example, NGO forum for environment, which represents NGOs in natural environmental issues; or Pangandaran culture forum, which represents art groups and cultural groups in Pangandaran. It is also recommended to involve the initiating body – in this case Local Working Group (LWG); and to prioritize key stakeholders which directly relate to tourism development, such as HPI, PHRI, tourism office, BKSDA, to sit in management board.

c. EXECUTING AGENCY for PANGANDARAN TOURISM; which will run daily management. It is recommended that the agency is run professionally and to recruit qualified individuals. The structure should accommodate the needs of tourism development in Pangandaran, capacity building, and natural and cultural conservation measures.

2. Objectives of Establishment COLLABORATIVE MANAGEMENT for TOURISM in PANGANDARAN (CMTP)a. Optimize, increase efficiency, and increase

accountability of tourism management in Pangandaran

b. Create an effective mechanism and clear multi sector coordination in sustainable tourism management

c. Develop and promote sustainable tourism in Pangandaran to push economic growth in Ciamis Regency

d. Increase active role of community by generating job opportunities and increasing local income from tourism activities

e. Conserve marine and land biodiversity as well as environmental services of Pangandaran, both inside and outside the conservation areas


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RECOMMENDATION FOR FINANCIAL MECHANISM Limited management budgets have been main obstacle in Pangandaran tourism management, including environment preservation budget funded by Regency Government. The tourism sector has been a main contributor to original regional government income. Thus far, fund and refund that resulted from the tourism sector are few relatively and incomparable to the tourism income of Pangandaran. How to find innovation of sustainable fund is a question. Direct funding that can utilized direct in the field, that makes facilities and environmental maintenance possible in Pangandaran could run effectively and enable an increase in the quality and image of Pangandaran. Justification and fund mechanism of CMTP is described below:

The “Entrance ticket” counting system using transportation mode actually has some weaknesses, since the system is unable to monitor number of visitors accurately. The number came up from assumption of visitor numbers that multiplied by each mode of transportation. Nevertheless, the Tourism Office has declared that this system is quite good since it is easy to implement during high season and reduced traffic in entrance gate.

4. The Committee will carry out workshops that involve entire stakeholder groups in order to achieve development agreement.

A diagram and suggestion for Pangandaran a tourism stakeholder groups is provide below. The groups will represent the represented parties in DP3.

Suggested parties consist of two components, the yellow one is core parties that are directly involved in boards either from a government at regency level or from tourism player in Pangandaran. The purple ones represent parties that need process in their development, as an umbrella to other organization that has similar importance. This forum required cooperation of committee and regional government in its establishment process.

LEGALITY CMTP has responsibilities in supporting the development of Pangandaran area towards sustainable development that benefits the community and contributes to environmental and cultural conservation in Pangandaran. Therefore, the CMTP should have a legality that is defined by the Head of Regency Decree Letter and stated through Regional Regulation at regency level.

Table 1. Actual Price for Visitor to Enter Pangandaran

Description WalkingMotorcycle(2 person)

Private Car(5 person)

Minibus(10

person)

Minibus(15

person)

Minibus(20

person)

ModerateBus(30

person)

Big Bus(50

person)

Tourism Ticket 1,800 3,600 9,000 18,000 27,000 36,000 54,000 90,000

Insurance Fee 500 1,000 2,500 5,000 7,500 10,000 15,000 25,000

Garbage 200 400 1,000 2,000 3,000 4,000 6,000 10,000

Parking 400 700 700 700 700 1,500 1,500

VehicleRetribution

500 1,0001,500 1,500

2,0003,000 4,000

TOTAL 2,500 5,900 14,200 27,200 40,200 52,700 79,500 130,500

ENTRANCEFEE/PERSON

2,500 2,750 2,700 2,650 2,645 2,600 2,600 2,580

Source: Retribution Data onTollgate

PARTIES IN PANGANDARAN TOURISM MANAGEMENT BOARD

As described above, Dewan Pengelola Pariwisata Pangandaran - DP3 (Management Board for Pangandaran Tourism) should represent stakeholders in Pangandaran tourism. This condition is required to establish a firm control system and monitoring, both for system administration or facility development and for spatial planning implementation. However, since there is a stakeholder’ complexity in Pangandaran tourism development, it is recommended to establish a Management Board with 19 members, where each member represents each type of group to convey their aspirations in management such as environment NGO or community cultural forum which are representations of art and culture groups in Pangandaran.

Nevertheless, it is necessary to cluster types of entrepreneurs or associations that have similar business or locations. It is also recommend prioritizing parties that are directly connected to tourism development such as HPI (guide association), PHRI (hotel and restaurant association), Balawista (Life Guard), Ciamis Tourism and Culture Office, BKSDA (Nature Conservation Bereau), and other

parties that automatically related to achieve seat in Management Board. It is also suggest involving LWG (local Working Group) in Management Board.

Required time in Management establishment will much depend on stakeholders’ readiness; the process could be fast or need a long time, since it is necessary to cluster some stakeholders that have similar importance or place of business. Socialization to entire parties is also needed, particularly to government agencies in order to achieve the same perception and action as in the establishment process.

If the entire stakeholders be in agreement to LP3 concept, the continuing of establishment process will required these steps below:1. Establish a committee that consists of main/

core parties to fostering the development of Management Board.

2. The committee has responsibility to develop a work plan and determine work allocation and responsibilities of involved institutions.

3. The committee will carry out series of meeting intensively with other government parties in regency and provincial level, as well as with any parties in Pangandaran to increase support.

List of stakeholders for CMTP Board Member


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Table 3. Condition of West Beach and priorities to be improved as charged by visitors.

Cleanness Condition TotalNeeds of

Improvement Very Bad Bad Fair Good Very Good

Yes 29.58% 33.80% 28.17% 0.00% 0.00% 100.00%

No 4.23% 0.00% 2.82% 1.41% 0.00% 100.00%

Total 33.80% 33.80% 30.99% 1.41% 0.00% 100.00%

SecurityCondition TotalNeeds ofImprovement Very Bad Bad Fair Good Very Good

Yes 0.00% 2.82% 56.34 28.17% 4.23% 91.55%

No 0.00% 0.00% 4.23 4.23% 0.00% 8.45%

Total 0.00% 0.00% 60.56 32.39% 4.23% 100.00%

Neat Condition TotalNeeds of

Improvement Very Bad Bad Fair Good Very Good

Yes 8.70% 47.83% 28.99% 5.80% 0.00% 91.30%

No 0.00% 2.90% 4.35% 1.45% 0.00% 8.70%

Total 8.70% 50.72% 33.33% 7.25% 0.00% 100.00%Source: Visitor survey result on West Beach.

The above results show that opportunities are wide open for Pangandaran management to optimize retribution mechanism at the entrance gate, in order to establish direct fund to the area. Recommend

Tahun/ YearPengunjung/Visitors Kenaikan/

PenurunanIncrease/ Decrease

%Domestik/Domestic Asing/Foreign Jumlah/Total

1999 1,036,252 6,708 1,042,9602000 1,042,537 6,554 1,049,091 6,131 0.59%2001 935,153 5,620 940,773 (108,318) -10.32%2002 915,360 3,882 919,242 (21,531) -2.29%2003 881,870 1,469 883,339 (35,903) -3.91%2004 968,128 3,344 971,472 88,133 9.98%2005 420,886 2,801 423,687 (547,785) -56.39%2006 271,842 1,618 273,460 (150,227) -35.46%2007 253,207 4,306 257,513 (15,947) -5.83%2008 480,703 5,040 485,743 228,230 88.63%

Prediksi kenaikan: Nilai kenaikan tertinggi ditambah nila i penurunan tertinggi dibagi dua, ditambah4% per tahunPrediction: Highest increase value plus highest decrease divided by two, plus 4% increase every year

16.12%

2009 558,196 5,852 564,048 78,305 16.12%2010 670,505 6,796 677,301 113,252 20.12%2011 832,230 8,163 840,394 163,093 24.12%2012 1,066,254 10,132 1,076,386 235,992 28.12%2013 1,408,734 12,981 1,421,716 345,330 32.12%

Source: Count

for CMTP to develop new mechanism of entrance fee and implement the new optimal retribution system at entrance gate to provide sufficient fund for Pangandaran Tourism area maintenance.

Table 4. Forecasting of Visitor Number to Pangandaran Tourism Area (2008-2012)

If we look total amount that visitor should pay per person, the vehicle system fee is not fair, because not giving an equal amount to the visitor. Visitor comes with motor cycle and private car pay more than the visitor who comes by bus.

Study on tourism economics conducted by Indecon and LWG by using Willingness to Pay study - a method to indentify aims or willingness to pay of the customer. The study determined by price in market mechanism, indicate that ticketing system at a tollgate is ineffective. Result study (see table below) shows that motorcycle users, for instance, nowadays pay 2,750 rupiahs while they are willing to pay 4,807 rupiahs per person; private care users pay 27,200 rupiahs per car or 2,700 rupiahs per person, while they are willing to pay 17, 462 rupiah per person.

Different amount of Willingness to Pay based on the different mode of transportation reflects the different willingness based on financial condition of respondents. Motorcyclists are mostly young people or students from surrounding Pangandaran, such as Banjar, Cilacap, Ciamis, Tasikmalaya, and Garut. Similarly, visitors who come by minibus also come from the surrounding cities. On the other hand, visitors who come by private cars are mostly families from Bandung, Ciamis, Yogyakarta, and Jakarta with higher income. It explains why visitors by private cars are willing to pay much more than the entrance fee compared to visitors by motorcycle.

Table 2. Visitor Willingness to pay based on sampling of Transportation Mode.

Transportation Mode

ActualTicketPrice

(Rupiah)

ActualEntrance

Fee/Person

Willingnessto pay inaverage(Rupiah)

Differenceof Price(Rupiah)

Maximum(Rupiah)

Motorcycle 5,900 2750 4,807.69 2,057 50,000.00

Private Car 27,200 2700 17,462.26 9,737.74 130,500.00

Minibus 40,200 2645 6,666.67 33,533.33 10,000.00Average Willingnessto Pay per person

9,645.54

Source: Visitor survey result on West Beach.

Meanwhile, survey results on the price of the Nature Recreation Park area show that the average price visitor are willing to pay is 7,804.88 rupiahs. The price is not much different from actual price (7,000 rupiahs) which is 2,000 rupiah for Pajak Nilai Bukan Pajak – PNBP (Tax Value Non Tax) and 5,000 rupiahs for entrance ticket to NRP including 250 rupiahs for insurance.

The value f visitor’s willingness to pay is follow by other expectations or important requirements such as rehabilitation of infrastructures and information in order to increase comfort and the money will spent to contribute to environmental rehabilitation in tourism area. Importance components charged by visitors to be improved described below:

Development of DMO Committe Metting


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Description Existing Recommendation forNew Entrance Fee Price

Explanation

Tourism Ticket 1,800 3,000 Goes to Local Government/Regency

Insurance Fee 500 500 Goes to Insurance company

Garbage 200 500 Goes to local Institution

Parking 400 500 Goes to local Institution

VehicleRetribution

500 500Goes to local Institution

Conservation/EnvironmentalFee

2500

Goes to CMTP for operational andimplementing TMP work plan andprogram which will increase visitorsatisfaction and better environmentcondition.

TOTAL/PERSON 2,500 7,500

Based on the above fact, we recommended that the CMTP later is implementing changes on retribution system in Pangandaran. Count retribution should returned by charging per person instead of per vehicle. The system will be more optimal and contribute more to environment preservation, as well as provide an accurate record of the number of visitors. This system should follow by the computerize system in entrance fee, so that make sure every visitor got count, recorded and get the tickets. Below the new chart for recommendation of calculation of new pricing mechanism in Pangandaran:

The recommended count is to increase retribution price from Rp. 1,800 to Rp. 3,000, where the additional stipulate Rp. 1,700 will be an additional income to local Government. Meanwhile, Rp.500 as insurance fee will packaged in the entrance

ticket. New suggestion fee is ‘conservation fund’ or ‘environment maintenance fund’ that will be directly return to Pangandaran and managed by CMTP. Rp. 2,500 will be suggested for this matter and will be charged at the entrance fee.

Therefore, the new suggested price charged to visitors is Rp. 7,500 per person. If this new system is implemented, based on year 2008 data – which Pangandaran was visited by 485,743 tourist both domestic or inbound tourist- it could be predicted that ‘environment or conservation fund’ managed by CMTP will be around 1,2 billion rupiahs per year. This income will continue to grow if quality improvement and environment rehabilitation in Pangandaran is conducted in order to provide comfortable conditions and unforgettable experiences to the visitors, as describe in table below:

Tahun/Year

Pengunjung/Visitors Kenaikan/PenurunanIncrease/Decrease

%Prediction Environmental FundManaged by CMTP (Rupiahs)Domestik/

DomesticAsing/

ForeignJumlah/ Total

2008 480,703 5,040 485,743 228230 1,214,357,500

2009 558,196 5,852 564,048 78305 16.12% 1,410,120,000

2010 670,505 6,796 677,300 113252 20.12% 1,693,250,000

2011 832,230 8,163 840,394 163093 24.12% 2,100,985,000

2012 1,066,254 10,132 1,076,386 235992 28.12% 2,690,965,000

2013 1,408,734 12,981 1,421,716 345330 32.12% 3,554,290,000

Table 5. Recomendation of new price for Pangandaran entrance fee

Table 6. Prediction of environmental fund managed by CMTP (2009-2013)

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