Short answer

Prioritize the integration of local resources and products within the tourism supply chain to retain economic value within the destination.

Field: Innovation & Markets
Source: HAL (Le Centre pour la Communication Scientifique Directe) (2015)
Method: Mixed-methods (quantitative and qualitative)
Sample: 79 hotels and 600 foreign tourists
Evidence: Strong effect

By understanding and addressing tourism leakage, specifically within the accommodation sector, Bali can significantly increase the economic benefits retained within the local community. This innovation & markets research insight is drawn from a 2015 study published in HAL (Le Centre pour la Communication Scientifique Directe). Using Mixed-methods (quantitative and qualitative) with 79 hotels and 600 foreign tourists, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Prioritize the integration of local resources and products within the tourism supply chain to retain economic value within the destination.

Study

Innovation & MarketsHigh ImpactStrong effect

Reducing Tourism Leakage: Strategies for Local Economic Benefit in Bali's Accommodation Sector

By understanding and addressing tourism leakage, specifically within the accommodation sector, Bali can significantly increase the economic benefits retained within the local community.

HAL (Le Centre pour la Communication Scientifique Directe) · 2015

Key Findings

01Tourism leakage in Bali's accommodation sector is a significant economic issue.
02Tourist and hotel manager perceptions influence the willingness to support local products.
03Government subsidies and import reduction strategies can mitigate leakage.

Application

Design takeaway

Prioritize the integration of local resources and products within the tourism supply chain to retain economic value within the destination.

How to apply

Conduct an audit of imported versus local supplies in a tourism-related business and identify opportunities for substitution. Engage with local suppliers to understand their capabilities and potential for growth.

Project actions

01When researching a product or service, consider its supply chain and where its components or materials originate.
02Investigate how local businesses can be integrated into larger commercial operations to reduce reliance on external sources.

Method & Evidence

AimTo calculate tourism leakage in Bali's accommodation sector, evaluate the impact of government subsidies and import reduction, understand tourist and hotel manager perceptions, and develop strategies to minimize leakage.

MethodMixed-methods (quantitative and qualitative)

ProcedureData collection through surveys with hotel managers and foreign tourists across four major tourist destinations in Bali. Leakage calculated using a micro-level (industrial) and macro-level (regional) approach. Analysis included evaluating the effects of subsidies and import reduction, and assessing perceptions and preferences regarding local versus imported products.

Sample79 hotels and 600 foreign tourists

ContextTourism accommodation sector in Bali, Indonesia

Variables

IV["Government subsidies","Import reduction by accommodation sector"]

DV["Tourism leakage","Job opportunity","Income distribution"]

CV["Hotel star rating (1, 2, 3 Star; 4&5 Star; Non Star)","Hotel type (chain vs. non-chain)","Tourist nationality","Tourist spending patterns"]

Strengths & Limitations

Strengths

+Comprehensive approach combining micro and macro analysis.
+Inclusion of both industry (hotel managers) and consumer (tourists) perspectives.
+Development of actionable strategies for leakage reduction.

Limitations

The specific context of Bali may not be directly transferable to all tourism destinations. The study's focus on accommodation means other tourism sectors might have different leakage patterns.

Reliability & validity

The study employed a mixed-methods approach and a structured sampling method for hotels and tourists, enhancing both the reliability of quantitative data and the depth of qualitative insights. However, the generalizability of findings to other regions would require further validation.

Think critically

To what extent can a design project actively promote local economies, and what are the potential trade-offs in terms of cost, quality, or availability?

Design Principles

"Maximize local value retention by substituting imported inputs with locally available alternatives."

This research highlights a critical challenge in tourism-dependent economies: the outflow of revenue due to reliance on imported goods and services. For designers and businesses operating in such regions, identifying opportunities to substitute imports with local alternatives is key to fostering sustainable economic growth and strengthening local supply chains.

What This Means for Your Design

Money spent by tourists often leaves the local area because hotels buy things from other countries. This study shows how to keep more of that money in Bali by using local products instead of imported ones.

How to use in your project

1.Reference this study when discussing the economic impact of your design project on a local community or region.
2.Use the findings to justify design choices that prioritize local sourcing or support local economies.

Add to My Project

Quick Cite

Paragraph starter

This research on tourism leakage in Bali's accommodation sector (Suryawardani, 2015) demonstrates that significant economic benefits can be lost when businesses rely heavily on imported goods and services. The study's findings underscore the importance of designing solutions that prioritize local sourcing and integration, thereby enhancing local economic retention and fostering sustainable development within a region.

Source

HAL (Le Centre pour la Communication Scientifique Directe)

Tourism leakage of accommodation in Bali

journal · 2015

View source

Questions About This Research

What does the research say about reducing tourism leakage: strategies for local economic benefit in bali's accommodation sector?: Prioritize the integration of local resources and products within the tourism supply chain to retain economic value within the destination. Evidence: HAL (Le Centre pour la Communication Scientifique Directe) (2015).
Why does "Reducing Tourism Leakage: Strategies for Local Economic Benefit in Bali's Accommodation Sector" matter for design?: This research highlights a critical challenge in tourism-dependent economies: the outflow of revenue due to reliance on imported goods and services. For designers and businesses operating in such regions, identifying opportunities to substitute imports with local alternatives is key to fostering sustainable economic growth and strengthening local supply chains.
How can designers apply this research?: Prioritize the integration of local resources and products within the tourism supply chain to retain economic value within the destination.
What were the main findings?: Tourism leakage in Bali's accommodation sector is a significant economic issue.. Tourist and hotel manager perceptions influence the willingness to support local products.. Government subsidies and import reduction strategies can mitigate leakage.
What research method was used?: Mixed-methods (quantitative and qualitative) with 79 hotels and 600 foreign tourists.
How strong is the evidence?: Evidence strength is rated Strong effect, based on a 2015 journal from HAL (Le Centre pour la Communication Scientifique Directe).
What should I do differently in my next project?: Conduct an audit of imported versus local supplies in a tourism-related business and identify opportunities for substitution. Engage with local suppliers to understand their capabilities and potential for growth.
What are the limitations?: The study focused specifically on the accommodation sector and may not represent leakage across the entire tourism industry. Perceptions and willingness to pay can be influenced by various factors not fully captured.