WHEN TOURISM EATS YOUR SPACE: EXCESSIVE HOTEL DEVELOPMENT IN YOGYAKARTA AND DENPASAR

Introduction

Tourism is an acitivity which has growing rapidly in recent years. United Nations defines tourism or travel as the displacement of persons between different geographic locations, for any type of purpose and for less than a year. Tourism can happen within a country or region or involve more than one country (www.un.org). Evidently, tourism has an economic impact that can generate revenue for State and society.

Indonesia is one of the countries which makes tourism as a source of revenue. In 2013, tourism gained 347 trillion rupiah for State revenue. It was equal with 23 percent of total State revenue in 2013 (www.unsil.ac.id, 2015). It indicates that tourism is an important sector in producing state revenue. Tourism in Indonesia is affected by the economic growth. The people’s income is increased, so that they could spend their money for leisure acitivites, such as tourism. Tourism emerges as a new lifestyle for Indonesian people.

Tourism activity needs support facilities, that is accommodation. Tourist needs hotel as a place to relax. Based on tourism growth, Indonesia needs more hotels to support tourism activity. Survey conducted by HVS China & Southeast Asia in 2012 showed that tourism trip in Indonesia would become 400 millions in 2023. To adapt with that number of trips, Indonesia needs 800 more hotels to be developed (id.voi.co.id, 2013). As a 2012 data, Indonesia is already has 15.283 hotels (Ministry of Finance, 2012). In the next years, more hotels will be developed to support tourism activity.

            
Besides its positive contribution to support tourism activity, hotel development also has negative impacts for the environment and the society. Hotel develoment could reduce land carrying capacity. Hotel development problem can be seen in two cities in Indonesia, those are: Yogyakarta and Denpasar. Yogyakarta is the capital city of Special Region of Yogyakarta Province (Provinsi Daerah Istimewa Yogyakarta/DIY Province) and Denpasar is the capital city of Bali Province.

Both Yogyakarta and Denpasar are two main tourism destinations in Indonesia. According to Consumer Purchasing Priorities survey conducted by MasterCard (beritasatu.com, 2013), Denpasar occupies the first rank as favorite tourism spot, whereas Yogyakarta occupies the third rank. The two cities rely their revenues from tourism sector, but tourism is also evoke some problems. From this paper, I would like to present hotel development problems, both in Yogyakarta and Denpasar.

Positive Effects of Hotel Development In Yogyakarta and Denpasar

Tourism gains siginificant revenues to Yogyakarta and Denpasar. Yogyakarta has 401 hotels (Statistic Board of DIY Province, 2013). Meanwhile, as 2012 data, Denpasar has 225 hotels (Statistic Board of Denpasar City, 2012). In Yogyakarta, tax from hotels and restaurants was as much as 72 billion rupiah (Tourism Department of DIY Province, 2012). It contributed 21 percent of total Local Own-source Revenue of Yogyakarta City in 2012. In Denpasar, by 2010, hotel tax was 82 billion rupiah (Denpasar City Government, 2010). It is equal with 32 percent of total Local Own-source Revvenue of Denpasar City. It indicates that tourism, especially in hotel development, becomes the major contributor for the two city revenues.

Negative Effects of Hotel Development in Yogyakarta and Denpasar

Besides its positive effect for economy, hotel development also incurs negative impacts. Both at Yogyakarta and Denpasar, hotel development reduces green openspace area. Green openspace is useful for water catchment area. In Yogyakarta, people creates a social movement to protest the excessive hotel development (print.kompas.com, 2015). The people are anxious because hotel development clears away their settlement. The people’s wells are dried because the hotels pull out groundwater for their customers. Here are some evidences about hotel development that seizes public space in Yogyakarta:

A new hotel developed in the middle of people's settlement 

koranyogya.com

Public protest against excessive hotel development 

jogja.tribunnews.com

The same condition is also happened in Denpasar. Researcher from Udayana University, N. Sunarta said that hotel development in Denpasar causes flood and reduces water catchment area (www.republika.co.id, 2010). Green openspace in Denpasar in Denpasar continues to shrink from year to year. Even in 2013, there was reduction of green openspace of 100 hectare (fajarbali.co.id, 2013). The green openspace is converted to settlement and hotel areas. Hotel development in Denpasar leads to the reduction of groundwater. The native people have to scramble with the hotels to get groundwater as their daily needs. Here are some evidences about flood disaster caused by the reduction of green openspace area:

A little rain can causing flood in Denpasar 

balimotorider.com

Local Governments’ Effort to Deal with Hotel Development Problems in Yogyakarta and Denpasar

To deal with hotel development problems in Yogyakarta and Denpasar, The Local Governments have conduct hotel moratorium policies to stop hotel establishment. In Yogyakarta, Yogyakarta City Government has launched Mayor Regulation Number 77 Year 2013 on Hotel Development Control. Local Government realized that they only have small area, and hotel development should be restricted. That moratorium policy is enacted from January 1, 2014 until December 31, 2016. In Denpasar, moratorium policy is embodied in Bali Province Letter Number 570/1665/BPM on Moratorium of Investment Registration for Tourism Accomodation Service. Bali Province Government evaluates that hotel development in Denpasar is over supplied. That policy is enacted from January 5, 2011 until detail study about accomodation need appears.

How is the Implementations?

Local Government policies to restrain hotel development in Yogyakarta and Denpasar are appropriate to overcome the problems. But, how about the implementations? Are the two Cities implement their polcy properly? I found that hotel moratorium policy implementations in Yogyakarta and Denpasar are inappropariate. We should look first to Yogyakarta. Despite the hotel moratorium policy has enacted, there remains several hotels which will be developed in Yogyakarta City. Deddy Pranowo as Head of Tourism Promotion Board of Yogyakarta City stated that there are new twenty hotels that will be developed in 2014-2015 2013 (jogjanews.com, 2013).. The period of 2014-2015 is the period of hotel moratorium policy enactment. I can conclude that the hotel moratorium policy in Yogyakarta is not implemented sincerely.

            
What about Denpasar? Even though hotel moratorium policy has been implemented since January 5, 2011, there are still some hotel developed in Denpasar. I found that at least three hotels are established in the period of moratorium as the data below:

Table 1 Some New Hotels Developed in Denpasar City During the Hotel Moratorium Period

No.	Hotel Name	Start to Build
1.	Grand Whiz Hotel	July 2012
2.	Harris Hotel	December 2012
3.	Pop! Hotel

Sources: www.propertiindonesia.co.id (2012) and www.investor.co.id (2012).

           
From the above table, we could see that hotel moratorium policy in Denpasar is not effective. During the moratorium period, there are three new hotels developed. Moreover, Harris Hotel and Pop! Hotel are built near Denpasar City Government office. Member of Local Legislative Assembly of Denpasar City said that Denpasar City does not yet has Local Regulation on Land Use. As the effect, hotel can be developed everywhere in Denpasar City (www.balipost.co.id, 2012). I can also conclude that Denpasar City Government is not serious to inspect any hotel development during the moratorium period.

Conclusion

Tourism sector is a significant contributor for local revenues in Yogyakarta and Denpasar. Tourism activities in both Cities are supported by hotels as accomodation facility. Nevertheless, Yogyakarta and Denpasar have similar problem about excessive hotel development that reduces green openspace and gorundwater. To overcome the problem, Local Governments in Yogyakarta and Denpasar has conduct policy on hotel moratorium. On the implementation, hotel moratorium policies in Yogyakarta and Denpasar are not effective. Both in Yogyakarta and Denpasar, there are some hotels developed during the moratorium periods.

My Recommendation

1   1. Bali Province Government should call Denpasar City Government and conduct a coordination meeting, in order to enforce Bali Province Letter Number 570/1665/BPM on Moratorium of Investment Registration for Tourism Accomodation Service.

2    2. Yogyakarta City Government should enforce Mayor Regulation Number 77 Year 2013 on Hotel Development Control sincerely and reject all proposals on hotel development from private parties.

3     3. Local Governments in the two Cities should disseminate hotel moratorium policies extensively, so that investors know about the policies.

Source:

Statistic Board of DIY Province. 2013. Page 12 - Direktori Hotel dan Akomodasi Lain

Daerah Istimewa Yogyakarta 2013. http://yogyakarta.bps.go.id/flipbook/2013/Direktori%20Hotel%20dan%20Akomodasi%20Lain%20Daerah%20Istimewa%20Yogyakarta%202013/HTML/files/assets/basic-html/page12.html.

beritasatu.com. 2013.  Denpasar Geser Bandung Sebagai Destinasi Wisata Terfavorit. Rabu, 14 Agustus 2013 http://www.beritasatu.com/destinasi/131481-denpasar-geser-bandung-sebagai-destinasi-wisata-terfavorit.html

Denpasar City Government, 2010. Laporan Realisasi Penerimaan Pendapatan Asli Daerah Kota Denpasar Tahun Anggaran 2010 dalam Bulan Desember. http://bankdata.denpasarkota.go.id/bankdata/PAD-DESEMBER_2010.pdf. 

Fajarbali.co.id. 2013. Ruang Terbuka Hijau di Denpasar Terus Menyusut. Rabu, 06 Februari 2013. http://fajarbali.co.id/index.php/denpasar/470-ruang-terbuka-hijau-di-denpasar-terus-menyusut.html

id.voi.co.id. 2013. Memanfaatkan Momentum Pertumbuhan Investasi Perhotelan Di Indonesia. 1 Oktober 2013. http://id.voi.co.id/voi-komentar/4454-memanfaatkan-momentum-pertumbuhan-investasi-perhotelan-di-indonesia. 

Jogjanews.com. 2013. Sudah Berizin, Pembangunan 20 Hotel Baru di Kota Jogja 2014-2015. 26 November 2013. http://jogjanews.com/sudah-berizin-pembangunan-20-hotel-baru-di-kota-jogja-2014-2015#sthash.HB4BfmE8.dpuf

Tourism Department of DIY Province. 2012. Statistik Kepariwisataan 2012. http://www.kotajogja.com/images/bukuSTATISTIK%20KEPARIWISATAAN_2013.pdf. 

www.balipost.co.id. 2012. Denpasar Terbitkan Lima Izin Hotel Baru. 14 Juni 2012. http://www.balipost.co.id/mediadetail.php?module=detailberita&kid=10&id=66438. [03 Mei 2014]

www.investor.co.id. 2012. Pembangunan Hotel Harris dan Pop di Denpasar Dimulai. 18 Desember 2012. http://www.investor.co.id/home/pembangunan-hotel-harris-dan-pop-di-denpasar-dimulai/51051.

www.print.kompas.com. 2015. Kesadaran Akan Dampak Negatif Pembangunan Hotel Mulai Muncul. http://print.kompas.com/baca/2015/04/09/Kesadaran-Akan-Dampak-Negatif-Pembangunan-Hotel-Mu.

www.propertiindonesia.co.id. 2012. Grand Whiz Hotel akan Buka di Bali dan Makassar. http://www.propertiindonesia.co.id/2012/07/grand-whiz-hotel-akan-buka-di-bali-dan-makassar/.

www.republika.co.id. 2010. Pembangunan Hotel Akibatkan Banjir di Denpasar. 30 Juli 2010. http://www.republika.co.id/berita/breaking-news/nusantara/10/07/30/127360-pembangunan-hotel-akibatkan-banjir-di-denpasar.

www.un.org/esa/sustdev/natlinfo/indicators/methodology_sheets/econ_development/tourism_contribution.pdf

www.unsil.ac.id. 2015. Seminar dan Diskusi Nasional: Peran Kebijakan dan Langkah Strategis Pengembangan Industri Pariwisata Indonesia.