Feasibility Study of Community Based Tourism

in Pinge, Bali
Supporting a CBT project in Pinge, a village in the heart of Bali.

By Arthur Hannert

Feasibility Study of CBT in Pinge

Supporting a CBT project in Pinge, a village in the heart of Bali.

Thesis of Arthur Hannert

Student at the NHTV University of Applied Sciences
ITMC International Tourism Management and Consultancy degree programme
May 2010

I hereby declare that this thesis is wholly the work of Arthur Hannert. Any other contributors or
sources have either been referenced in the prescribed manner or are listed in the acknowledgements
together with the nature and scope of their contribution.

Preface
The first time I got introduced to the concept of Community Based Tourism was in the final year of
the International Tourism Management and Consultancy programme. Ton van Egmond sent a
project proposal to the students of his course, Sustainable Tourism Development (ST1).
Immediately, I was interested to participate because of several reasons. First of all I identified with
the project's objective to do something good with tourism. I wondered whether CBT could be a
solution to counter negative tourism developments. I was eager to learn more about this alternative
approach, especially by means of a practical fieldwork. I felt inspired contributing my educational
background in such a way that it might benefit some people, or even a community. Another reason
was my former relationship to Asia, in particular India. Since this project was going to happen on
Bali, the only Hindu island in Indonesia, I had no choice other than to apply for it. At that point my
knowledge about Bali was very limited. Nevertheless my enthusiasm grew every day approaching
the departure date. I was looking forward to challenge myself with a new subject and destination.
Three months research on Bali turned out to be a valuable enrichment in many ways. Despite my
former experience in Asia I was confronted with unfamiliar situations. A great deal of improvisation
and creativity was needed to work in the Balinese environment. The cultural difference and
language barrier on a daily basis complicated matters. Most of the times it was more of a struggle
than a fortune to work in a paradisical holiday destination. Nevertheless challenging times proofed
to be the best teachers. Despite the many limitations I was able to gradually steer towards finishing
my thesis.
It would not have been possible without the help of Made Denayasa, Pinge's community leader, and
his brother Made Suardika. During my stay in Pinge they took great care of me and supported my
progress in many ways. I was very fortunate to have enjoyed a comfortable homestay
accommodation in Made Denayasa's house. Whereas Made Suardika and his wife welcomed me
every day for lunch and dinner with delicious Balinese food. Moreover I am grateful for Mr.
Gosana's support throughout the three months. He was an inspiring facilitator and managed to
organize everything in a convenient manner.
I would also like to give special thanks to Ton van Egmond, my thesis supervisor from NHTV, for
his guidance and advice.

Executive summary
Pinge is a small village located in the middle of Indonesia's most popular tourism destination, Bali.
For more than 40 years Bali has been shaped by tourism development. Every year millions of
tourists enjoy the tropical climate, beautiful beaches and distinct cultural traditions. Especially the
south has become a magnet for luxury resorts, mass hotel constructions and mainstream tourists.
For several reasons the Indonesian government has been searching for alternative practices of
tourism in recent years. A solution emerges to support the concept of community based tourism.
This sustainable form of tourism aims at improving community life in rural areas. All tourism
activities are developed in correspondence with villagers who manage resources themselves. Most
profit benefits the community while sustainable principles reduce negative impacts. Community
based tourism empowers balanced host-guest conditions to create a mutually beneficial relationship.
In theory the arguments seem to be very promising and rewarding.
In this respect the Balinese research institute International Centre of Service Studies (ICSS Bali) has
launched a project about community based tourism. With support of the Indonesian government and
other local stakeholders the objective has been set to gain more insights into the evolving
phenomenon. In collaboration with three graduating ITMC students a research study of three
different rural villages has been organized. Pinge being one of them has been selected to provide an
example of a community based tourism village at an early stage of development. According to the
requirements of the commissioner the following research goal is defined:
Analysing primary and secondary research data to successfully conduct a feasibility study for CBT
development in Pinge, Bali.
To successfully approach this goal the following research questions are identified:
1.
2.
3.
4.
5.
6.
7.
8.

What are the Critical Success Factors for CBT?

How does a CBT development work in theory?
What are the important tourism assets in Pinge?
What makes Pinge and its surrounding special as a tourism destination?
What types of tourism exist on Bali?
Who are the tourists visiting the island for what reason(s)?
What are Pinge's opportunities and strengths for which tourist markets?
How reasonable is a CBT development in Pinge based on the previous findings?

Applying primary and secondary research allows to obtain sufficient information. In the first step
relevant books, internet sources and former theses are of great help to gain background knowledge.
Slowly the situation became more understandable and specific focus could be directed towards the
second step. This is a three months stay on Bali, of which two months have been spent in Pinge. It
has been an opportunity to collect primary data through observation, interviews and daily
interaction with Pinge's residents. The village and its surrounding has been examined from a
tourism perspective in the following structure.
The analysis of existing conditions focuses on natural and cultural resources in Pinge. The village
has an outstanding environment that is enriched by beautiful rice fields, mountain views and exotic
flowers. Several temples in the village emphasize that Hinduism plays a powerful role in everyday
life. The villagers are mainly occupied with growing rice while living in a very traditional way.
Modern influence seems to have passed by without leaving any trace. Local people refer to Pinge's
surrounding as truly authentic Bali with no pollution and a quiet atmosphere. Next to Pinge's village
4

life there are several tourism attractions in nearby surrounding. The hot springs in Angseri, the
national monument of Margarana and Bali's most famous rice terraces in Jatiluwih make it a
competitive tourism area on Bali
The tourism analysis deals with current arriving tourists to Bali. Three of the most popular types of
tourism are Sun&Beach Tourism, Cultural Tourism and Adventure Tourism. Given the tourism
supply of Pinge two matching tourist profiles have been worked out. Several reasons argue to aim at
'dedicated' tourists from Europe who search for highly authentic experiences in local communities.
Especially consumers in Western Protestant countries have a clear tendency towards holiday
destinations similar to Pinge. 'Dedicated' organized adventurous tourists and 'dedicated' individual
travellers/ backpackers value local interaction, exotic cultures and unconventional activities. These
two niche markets are promising to correspond to Pinge's tourism concept and deliver desirable
impacts on the community.
In the tourism potential analysis three market trends indicate opportunities for innovative tourism
activities in Pinge. An increasing interest in new forms of tourism such as natural and cultural
heritage tourism, holistic tourism and Voluntourism can be observed in Western countries. An
analysis of competitors per market states Pinge's competitive position. A SWOT analysis identifies
specific strengths and opportunities from a market perspective. For both niche markets Pinge
convinces through a favourable location with enormous natural and cultural resources. In
combination with distinct traditional village life the place appears to be a timeless paradise. The
hospitality and willingness of Pinge's community to welcome tourists is significant. It is the
villagers enthusiasm for CBT that is going to determine future success. However, several
weaknesses and threats challenge tourism development in the village. Not enough accommodations
are available to provide rooms for groups of organized tourists. Other rural villages on Bali are
aiming at CBT as well and could compete for similar markets in the future. Pinge's community
lacks sufficient experience in tourism to make use of its full potential.
Despite several constraints the conclusion is that Pinge has tourism potential. It is a feasible
destination for further CBT developments. Pinge has several strengths that support this tendency.
The weaknesses and threats can be overcome through support of stakeholders and consistent effort.
A recommendation is given to use the Internet for marketing purposes in the beginning. By
designing a website the community can raise awareness of CBT in Pinge on an international scale.

Table of Content
page
Preface
...........................................................................................
Executive Summary ...............................................................................

3
4

Chapter 1. Introduction
1.1
Background analysis ...........................................................................
1.2
Problem analysis
...........................................................................
1.3
Research goal and questions ...........................................................
1.4
Structure of the report
...........................................................
1.5
Methodology
.......................................................................
1.6
Limitations of the research ...........................................................

8
10
10
10
11
11

Chapter 2. Community Based Tourism

2.1
Defining CBT
....................................................................... 12
2.2
Using Critical Success factors to evaluate Pinge's Tourism History .. 15
Chapter 3. Analysis of Existing Conditions
3.1
Attractions and events
...........................................................
3.1.1 Natural resources ...........................................................................
3.1.2
Cultural and historical resources ...................................................
3.1.3
Climate ..................................................................................
3.1.4 Accessibility
......................................................................
3.2
Facilities
...................................................................................
3.2.1 Accommodation ...........................................................................
3.2.2
Food and beverage
...............................................................
3.2.3
Supporting Facilities
...............................................................
3.3
Infrastructure ..............................................................................
3.3.1 Water systems
...............................................................
3.3.2
Communication networks
...................................................
3.3.3
Health care facilities
...............................................................
3.3.4
Streets
...........................................................................
3.3.5
Security systems ...........................................................................
3.4
Transport
......................................................................................
3.4.1 Transport to the area
...............................................................
3.4.2 Transport within the area ...............................................................
3.5
Hospitality ...............................................................................

18
18
19
21
21
22
22
23
23
23
23
23
24
24
24
24
24
24
24

Chapter 4. Tourism Analysis Bali

4.1
Analysis of current demand
......................................................
4.2
Analysis of types of tourism on Bali
...................................
4.3
Description of tourist profiles
...............................................
4.4
Analysis of impacts per type of tourism
...................................

25
26
27
31

Chapter 5. Tourism Potential Analysis

5.1
Analysis of market trends
........................................................
5.2
Analysis of competitors per market
..........................................
5.3
Analysis of strengths and weaknesses
.......................................
5.4
Analysis of opportunities and threats
...................................

34
36
38
39
6

5.5

Analysis of Carrying Capacity

Chapter 6. Feasibility Pinge

6.1
Conclusion CBT in Pinge
List of references

...............................................

41

........................................................... 41

....................................................................................... 43

Appendices ................................................................................................... 45
Photo Impressions ....................................................................................... 50

Chapter 1: Introduction
The following pages are going to explain what the thesis is about. First, the reader will get familiar
with the context of the report. A background analysis presents different stakeholders that are
involved. Once the situation is clearly outlined the problem is going to be approached. Research
questions help to direct the content towards a specific research goal. An overall division into several
chapters makes clear how this goal is going to be reached. A methodology gives insight into the
necessary steps that have to be taken. Finally, limitations of the research are presented.
1.1 Background analysis
Who is involved?
The current tourism policies of the Indonesian government aim at a comprehensive integrated
development of tourism, linking tourism to other economic sectors, stimulating small- and mediumscale enterprises (SMEs), promoting people-centred and ecologically friendly tourism (CBT
research on Bali, 22. Sept 2009). The previously mentioned objectives refer to a law assigned by the
national government in 1974. It was a first answer to deal with uncontrolled tourism developments
in Southern Bail. The local culture of Bali is based on the spirit of the Hindu religion, and forms
part of the national culture of Indonesia. It is also an enormous potential resource. In order to
promote and develop it, tourism and culture should be linked to each other in ways appropriate to
both of them, and the harmonious balance between them preserved. Cultural tourism is the type of
tourism which can be used to promote this (Bijl, 2009, p.35). This quotation emphasizes the
involvement of the Indonesian government in tourism development. It is a fundamental stakeholder
desiring sustainable tourism development.
The Balinese research institute International Centre of Service Studies, ICSS Bali, was established
by Yayasan Dharma Widya Ulangun in 2007. It's office is located in the Bali Hotel School. The
director is Prof. Dr. Jan Hendrik Peters. ICSS has the vision and mission to promote research in the
field of tourism. ICSS's priority is to conduct applied research, initiate international cooperation,
and publish an international journal of innovation in the field of hospitality and tourism (translated
ICSS profile). In March 2009 the initiative 'Visioning the Future' started together with the Bali
Hotels Association (BHA). The result of this first quantitative phase was presented to the council in
January 2010 by means of a report. The second phase is more qualitative orientated. The focus lies
on in-depth interviews with general hotel managers. The project leader, Lenny van Ameijde is going
to state her findings before the summer 2010 in a national meeting. The expectations of the study is
to help hotels make the right decisions for the future. In addition, two other studies are launched by
ICSS, i.e. a profile of foreign tourists visiting Bali and research for Community Based Tourism on
Bali. The latter one has led to the project named Development of Community-Based Tourism on
Bali, Indonesia, which this thesis forms part of. The idea is to pursue a sustainable form of tourism
while spreading it to remote areas. In the longer run the vision is to open an educational institution
for CBT practices on Bali.
NHTV Breda University of Applied Sciences has an international reputation for its tourism
department. The International Tourism Management and Consultancy programme (ITMC) focuses
on Sustainable Tourism Development. A unique combination of modern theory linked to praxis
oriented study methods provides ITMC students all necessary expertise; in particular the fourth year
course Sustainable Tourism Development by Dr. Ton van Egmond and Ellen de Groot. Therefore,
ICSS approached Dr. Ton van Egmond for assistance. Based on the course assignments, he then
chose three motivated students to be part of the project.

Mr. Djinaldi Gosana is the executive director of the Bali Hotels Association. His great experience
has given him a clear understanding of the tourism industry on Bali. In addition he volunteers to
support local communities with advice and supervision. He also represents the role of a facilitator
between the international students and Balinese life. In that respect his responsibility is to find a
suitable study area. He has arranged the accommodation and has helped throughout the entire
research process. All these tasks qualify him as a major stakeholder.
The author's work has been combining tourism theory to everyday life in Pinge. Former tourism
knowledge has been applied during a two months study period in Pinge. Next to mutual
experiences with local Balinese the outcome is a thesis. It's expectation is to serve as a beneficial
source for professionals to use for further development. Great attention is paid towards satisfying
the commissioner's requirements.
What is it about?
Generally speaking, the thesis is about sustainable tourism development on Bali. It follows an
unconventional concept called 'Community Based Tourism', i.e. 'CBT'. A single definition of CBT
does not exists. A person's educational background stresses its meaning while cultural difference
might change its entire perspective. The challenge will be defining CBT and applying it to a village
on Bali. Additional focus is directed towards Critical Success Factors and CBT Planning and
Development. This introducing theoretical part is then complemented by a village's Tourism
Assessment.
Where is it done?
The village of attention is called Pinge. Pinge is located in the heart of Bali, within the province of
Indonesia. It belongs to the district of Tabanan (Balinese: Kabupaten Tabanan). Within this district it
is part of the municipality of Marga (Balinese: Kecamatan Marga). It counts to the village of Tua
(Balinese: Desa Tua). Due to its size Pinge is not considered to be a village and is referred as Dusun
Pinge. A literal translation from the Balinese word 'Dusun' into English does not exist. Therefore
Pinge will be referred to as a village throughout the report.

(source: Google map)

1.2 Problem analysis

Being a pilot study, this project lays out many challenges. The expectation of all stakeholders are
very high. The fact that CBT is only recently gaining recognition piles to the difficulty. It is a topic
rarely discussed in academic literature. The 'complicated phenomenon' originates from local needs
rather than market demand. It is very common that these initiators have only limited knowledge
about the tourism industry. The consequences are failures and disappointments instead of profitable
developments (van Egmond, A global outline). Nevertheless everyone's motivation to cope with
these difficulties in a professional way is promising. The report can be seen as a response of dealing
with the unfamiliar situation. It is very much a lecturing experience, especially for the author and
Pinge's inhabitants. Following the idiom 'Making virtue out of necessity' the process is supported by
good will. It is not reasoned to oppose Mass Tourism developments, neither imitate them. Ideally
speaking, the report's contribution leads to a greater insight into CBT practices for all stakeholders.
1.3 Research goal and questions
The research goal is to deliver a feasibility study for CBT development in Pinge. By applying
various methods a current tourism assessment is worked out using different perspectives. The range
of these perspectives is limited by CBT principles. A limitation is necessary to narrow down the
complexity to a manageable format. By doing so, Pinge can systematically be characterised as a
tourism destination. Its feasibility essentially depends on both, the supply and demand side. For that
reason Pinge's existing tourism condition needs to be compared to a market analysis. Only then it
becomes possible to discuss tourism potential and feasibility.
The research goal is formulated as following:
Analysing primary and secondary research data to successfully conduct a feasibility study for CBT
development in Pinge, Bali.
More specific research questions give hints on how to approach the research goal:
9. What are the Critical Success Factors for CBT?
10. How does a CBT development work in theory?
11. What are the important tourism assets in Pinge?
12. What makes Pinge and its surrounding special as a tourism destination?
13. What types of tourism exist on Bali?
14. Who are the tourists visiting the island for what reason(s)?
15. What are Pinge's opportunities and strengths for which tourist markets?
16. How reasonable is a CBT development in Pinge based on the previous findings?
1.4 Structure of the report
The second chapter explains the theory that is essential for the report. A brief definition of CBT is
accompanied by a more in depth explanation of Critical Success Factors. These are derived from a
previously written ITMC Bachelor Thesis by Anouk van Hoof. Then a second Master dissertation
by a Tourism Destination Management student, Renske Bijl, is used to demonstrate a theoretical
CBT Planning and Development. In the last paragraph a linkage from very broad theory to Pinge's
village is applied. The third chapter deals with Existing Tourism Conditions in Pinge. All relevant
10

aspects are taken under consideration to figure out what Pinge can contribute as a tourism
destination. In the forth chapter a market analysis reflects the current tourist flows to Bali. It is
important to gain a clear understanding of potential tourist profiles. The fifth chapter is a
combination of the previous two ones and results in a tourism potential analysis. The fact is stressed
in how far supply and demand can be matched within the concept of CBT. The elaboration of
strengths and weaknesses is the basis for the final chapter six. It is a reflection of the previous
findings along with a feasibility statement.
1.5 Methodology
Various methods of conducting research are applied. A basic distinction can be made into primary
research and secondary research.
While living on Bali for three months different strategies were applied to collect data. The most
important one was to observe local everyday life. This was manageable because of a homestay
accommodation in Pinge for two months. Daily conversations during lunchtime made it possible to
learn about different subjects, e.g. interesting places to visit, villager's customs, values and
traditions. Most new sites were discovered this way and were visited afterwards. Incidental
encounters with locals and simple conversations on special occasions such as marriage and
volleyball tournament gave even more meaning to the visible. Intensive interviews with Mr. Gosana
and the community leader helped to understand Pinge's tourism history in more depth. Several
additional semi structured interviews with a professional tour guide, a guest house owner in Ubud,
and many tourist friends added a great deal of market insights.
Secondary research was mainly done to gain theoretical background knowledge. Derived
information from the Internet, books, and articles filled many gaps in the beginning. Two former
theses contributed a lot to the completion of the second chapter. Another helpful source was a
feasibility study conduced by the Balinese Udayana University in 2002. Although it was in
Indonesian language, it could be translated into understandable English using Google Translator.
1.6 Limitations of the research
The author was faced with various limitations during the research practice. A major obstacle to deal
with was communication. Especially in the remote village Pinge few residents spoke a sufficient
level of English to allow a conversation. In order to interview someone in depth it was necessary to
ask for help of Mr. Gosana. Another challenge was the different way of life. Some time was needed
to get along in the tropical climate, adjust to the food and pace of things to happen. The absence of
Internet in Pinge was a problem, too. In addition to fieldwork limitations literature constraints
existed. A scarcity of market information about tourists visiting Bali complicated chapter four and
five. Other literature had to be used that only indirectly corresponded to tourist behaviour on Bali.

11

Chapter 2: Community Based Tourism

This chapter provides the theoretical background information about CBT. In the first part reasons
for CBT implementation are mentioned. The second part defines the concept of CBT from different
perspectives. The sources are two former theses and a feasibility study. It will become clear what
problems Pinge has to anticipate when developing CBT.
2.1 Defining CBT
The island of Bali is a good example for mass tourism development and consequences of booming
tourist trade (JED: village, 2007). Tourism on Bali has largely been planned by the Indonesian
government, far away in Jakarta, and by foreigners (JED: village, 2007). A major part of the
Balinese population has been completely neglected. Whether it comes to decision making, local
participation in investments, or management of tourism resources. The result is that only six per
cent of all tourism assets on Bali belong to the Balinese. A severe lack in control and ownership of
these assets, which in total amount to 150 trillion Rupiah, is present (Letters: What, 2009). A great
deal of money is earned on the expenses of the Balinese population. While they bear environmental
and socio-cultural impacts such as water scarcity, waste pollution, and commercialisation of their
cultural values. During the last years Bali Government has increasingly been trying to improve this
unequal host-guest relationship. According to Division Head of Research and Development, Mr.
Ketut Naria, a new concept will be integrated in years to come. He refers to a type of agrotourism
and ecotourism with fitting activities at the village. The objective is to let local communities
manage themselves. The government only takes the role to mediate, advocate and build the
network. The profit obtained is intended for the community. Actually, this is the concept of
Community Based Tourism (bali-travelnews:..). Although a definite instruction on how to
implement the strategy is not available yet, the expectation is fuelled by good commitment.
Attention is directed towards the multiplier effect. As soon as tourists start arriving their spending
within the communities will lead to poverty alleviation. Through cooperation with travel agents,
communities have the opportunity to attract potential customers.
Nowadays, tourism development is mainly concentrated in the southern part of Bali in Denpasar,
and in the Regencies Badung and Gianyar. Popular destinations such as Kuta, Sanur, Nusa Dua and
Ubud have dramatically changed throughout the decades. On the other side Balinese regions outside
these 'hot-spots' do not benefit at all. The result of this unbalanced development influences the
whole island. One example is that urban villages lose a majority of their young population. Instead
of helping their communities to develop youngsters leave their home town to find employment
elsewhere. While tourist places are blessed by economic growth many other areas are left aside. The
gab between these two polarities is continuously increasing. A first step to approach this process is
evident by positive intention of government, institutions and communities. The following two
paragraphs are mend to illustrate theoretical solutions of CBT development.
The University Udayana in Denpasar, Bali, follows a CBT concept for rural areas. This CBT theory
is explained in the beginning of Pinge's feasibility study. It provides general suggestions for
possible developments of a village. The following paragraphs are going to identify the basic idea of
CBT from a Balinese perspective. According to the feasibility study in Pinge, culture and tourism
on Bali are inseparable. Culture is one of the capital's main base in the development of tourism on
Bali (Udayana, 2002). Traditional villages, such as Pinge, are crucial supporters of the country's
present cultural structure. Key factors in measuring success of Bali's tourism development rely on
the sustainability of the indigenous village life. It is of importance to create a mutually beneficial
relationship between tourists and traditional villages. One way to do so is by implementing
12

alternative forms of tourism to generate direct benefit for indigenous communities. The title 'Desa
Wisata' (Balinese for tourist village) assigned to a village on Bali makes it accessible for tourism
development. Then especially rural areas follow the programme of 'Desa Wisata Terpadu' (Balinese
for CBT). It is defined as follows: A rural area that offers the overall ambience that reflects the
authenticity of Balinese rural social life in terms of its culture, customs harmony, architecture and
the spatial structure of the village, as well as having the potential to develop various components of
tourism, for example: attractions eat and drink, souvenirs, and other travel needs (Udayana, 2002).
A theory has been developed based on the Guidelines and Tourism Act of 1990. It supports balanced
and sustainable development patterns that are summarized in the following paragraphs.
A suggestion is given for suitable activities in a Tourist Village, such as Pinge. An example is to
involve tourists in rice planting activity. Depending on their interest, direct or indirect participation
of cultivation, planting, and harvesting can be practised. Another activity is to take part in village art
activities such as dance and music, sculpture and crafts, martial arts and cooking. Sport activities
are a third opportunity to get involved in local life. Tourists can engage in a variety of sports in the
countryside such as tracking, jogging, kite competitions and fishing. It is also suggested that tourist
participate in ceremonial activities under specific requirements. They might get involved in both,
preparation and execution of a ceremony. One important part of rural life that needs to be developed
as a medium for interaction is the food and beverage sector. Three ideas are mentioned how this
could be realized. The first possibility is eating together in the villagers' houses. All concerning
efforts are organized by local residents. The meal could be combined with dances held by local
communities. A second idea is to open a restaurant in a village with strategic advantage. This case
in particular resonates with villages located on a popular tourism route. A third possibility is
organised cooking classes that offer courses in traditional Balinese foods. All the three ideas require
training in food quality and health issues.
A balanced development envisions harmony between two opposites. The communal and individual
aspect is taken under consideration. While the community's interest is a main focus it remains
equally important to enhance individual potential. The purpose of development is not only targeted
at economic interest. Instead, the development focuses on non material improvement of culture,
welfare and environment. The benefits for residents include 'balanced needs between the body and
the mind'. In terms of construction any product should take into account the carrying capacity on an
economic, socio economic and cultural level. Generally speaking, development has to be oriented
towards rapid short- term benefits, that fit within the overall long-term goals. Concerning the
markets, it is suggested that market orientation is not solely aimed at foreign tourists, but also
domestic tourists. The reason is to stimulate interaction between urban and rural life to enrich
national culture. It is argued that a rational development approach is very necessary whereas one
based on religious roots is even more desired.
All development decisions are consolidated with indigenous villagers. A community based planning
and development approach is highly recommended due to several reasons. Community leaders are
respected as wise men who inherited hundreds of years of experience to know better the existing
resources in their region (Udayana, 2002). They know about natural properties in their area as well
as their communal behaviour. Once again the importance of socio-cultural values is stressed. Local
people know best about their social values. Therefore, they are able to contribute to the public
culture in a better way. Engaging community participation at an early stage of development ensures
a stronger sense of belonging. The level of commitment to the programme is strengthened from the
beginning. The result usually is a higher level of continuation. Community involvement in planning,
decision making and implementation eventually leads to more success.

13

A Development Model is designed to suit each village. Since potential and problems differ from one
place to another, three CBT concept are needed. The first model rests on 'Indirect Interactions'
between host and guest. Villages benefit indirectly without having to interact with tourists
(Udayana, 2002). Some examples are writing books about village customs and photography of
indigenous traditional architecture for postcards. The second one proposes a 'Half Direct
Interaction'. One day trips to the village let tourists come around for a while without having to stay
overnight (Udayana, 2002). During the visit, host and guest can take part in collective activities,
e.g. eating together. At the end of the day tourists return to their hotels. A third concept describes
'Direct Interaction'. A homestay experience allows tourists to spend a night in accommodation
owned by the villagers. A direct interaction requires an assessment of carrying capacity as well as
impact studies on local communities. The hosts are expected to learn appropriate treatment of
visitors.
Summarizing the previous paragraphs it can be said that the CBT concept of Udayana University
evidently follows a community based approach. The appeal for local participation on various
development levels underlines this statement. Culture is regarded as an important asset that requires
careful management. Since one village differs to another an individual assessment is needed.
Research findings then determine which convenient model to follow. In that respect special
attention is given to the degree of host-guest interaction. Constant agreements with community
leaders guarantee a more balanced development course. Governmental authorities should make use
of local knowledge because villagers know best about their immediate environment. Therefore, they
should decide what types of activities are most applicable there.
A second perspective for CBT planning and development comes from a Master thesis. The work
titled CBT: development and sustainability encompasses many literature sources concerning this
subject. The following paragraphs are going to complement the Balinese view. CBT is a unique
concept which is not simply aiming at maximizing profit, rather it is more concerned with the
impact of tourism on the local community and environmental resources. CBT initiatives aim to
involve local communities in the running and management of small tourism project as a means of
poverty alleviation [...] (Bijl, 2009). In addition to that CBT evokes conservation of local culture
and natural heritage. While negative impacts on environment and local life are minimized broad
benefits for the community are anticipated. Some examples are further education and training
opportunities for language, service and guiding. Besides that foreign interest increases community
awareness and villagers become proud of their heritage. Intercultural exchange takes place and new
friendships are created.
A CBT development tends to evolve from two different scenarios. In the unplanned scenario a
destination begins to arrange tourist facilities on its own. A demand caused by tourists or tour
operators leads to an interest in this area. Local communities start to react and to build without
planning and controlling the process. At this point they might not understand what the tourist is
looking for. The second scenario develops CBT from an opposite approach. It is called planned
scenario. Before tourists discover a destination, other initiators such as NGOs, the community itself,
or a tour operator become aware of its tourism potential. They start to deliver a product and supply
the area with activities. In this case it can be a challenge to create an attractive product due to a lack
of market insights. Another challenge is to attract visitors to the project (Bijl, 2009).
The framework for CBT planning and development suggests how to proceed (table 2). In the
preparation phase it is of great importance to figure out why this particular community desires
tourism. After establishing a committee, a general assessment of the village follows. By questioning
themselves these members deliberate about whether tourism can benefit the local community. They
14

discuss different issues such as interests and expectations of all stakeholders. They talk about a
common vision and specific goals. They also need to be aware of necessary tools and resources for
their project. Generally speaking it is recommended that a committee carefully thinks of all aspects
before taking any action. It is very common that communities do not have sufficient knowledge
about the tourism industry. Therefore community members require consultation from professionals
to prevent unrealistic expectations and incorrect estimations. During the participation and
management phase the community should be included in the decision-making process. Different
levels of participation can be applied. A common practice is to elect a community leader. A majority
of residents is then indirectly involved in the planning process by being able to influence their
representative. Management also concerns financial matters. Questions about financing and profit
distribution are important topics. An idea is to establish a community fund with an only purpose of
tourism development and equal distribution. When it comes to Product Development unique
activities offering competitive advantage are needed. Community benefit can be generated through
activities such as cooking, craft making, dance and music as well as visiting archaeological sites
and museums. Activities with direct impact on host communities need to be managed well to
minimize negative influence. A carrying capacity determines an acceptable amount of tourists. Once
again professional consultation is recommended to create marketable products that meet the
expectation of foreigners. The task of establishing service and facility standards might require
training of villagers and reconstruction of facilities. A great deal of experience is needed to link the
village's tourism potential to a suitable target market. Composing a marketing strategy is necessary
to select the type of tourists who are most likely looking for what the community has to offer. When
tour operators promote a village attention should be paid to not exceed the carrying capacity. The
effort to look for and establish a relationship with a responsible tour operator could be worthwhile.
In a final step the Implementation takes place. When sufficient funding of the projects are available,
the planned construction of facilities can begin. Close cooperation with local and national
government is important to get access to resources, financial support and further advice. Pilot tours
help to become aware of improvements by delivering first impressions. Constant monitoring of the
project is preferable to adjust to new market trends and to ensure its sustainability. (Bijl, 2009)
Summing up the previous paragraphs it can be concluded that CBT is seen as a means for poverty
alleviation. Community participation is expected on a regular basis in cooperation with professional
institutions, NGOs or the government. A CBT project can start from planned and unplanned
conditions. In both cases a conversation of local culture and natural resource is aspired. Local
Communities are expected to profit from direct activities with tourists. The framework for CBT
planning and development clearly distinguishes five steps to achieve these goals.
2.2 Using critical success factors to evaluate Pinge's tourism history
Pinge's tourism history
On the 21. March Mr. Gosana and Made Denayasa, Pinge's community leader, were interviewed.
During an one hour conversation the situational background of tourism development has been
discussed. The outcome is the following story. Pinge's tourism history began in 2001, when Made
Denayasa noticed a Volkswagen car filled with German tourists passing through his village. He was
wondering why anyone would be interested to do so. At an instance he confronted the visitors with
his curiosity. Their opinion was that Pinge has a special aura, something adorable in the air. They
referred to its catching atmosphere that leaves behind lasting impressions. Based on this encounter
Made Denayasa contacted the Balinese authorities in form of a written letter. His intention was to
ask for government support to make Pinge accessible as a tourism destination. The government
agreed to help and launched a research project. The request was forwarded to the University
Udayana. Under supervision of a tourism Professor a feasibility study was carried out in 2002. Its
15

conclusion was that Pinge has the potential to become a tourist destination. Based on these findings
the authorities of Tabanan declared Pinge as a 'Desa Wisata' (Balinese for Tourism Village) in 2003.
A general meeting followed during which a tourism board was formed in Pinge. Although an
official body had been established no further action was done. The hope for financial support by the
government was left aside. Since the residents themselves did not have the necessary means Pinge's
tourism development stopped for almost seven years.
In the end of 2009 hope arrived with the election of a new community leader. As soon as Made
Denayasa took over his new position he contacted the Bali Government Tourism Authority once
again. This time they recommended him to see Mr. Gosana. A few days later Made Denayasa
visited the Tourism Board in Denpasar and explained his situation. Mr. Gosana was eager to hear
about the community chief's enthusiasm for tourism. He told him about a parallel pilot project,
namely the Development of CBT on Bali. Both came to the conclusion to wait for Mr. Gosana
visiting NHTV Breda first. Then finally in February 2010 a meeting in Pinge's Banjar was
organised. The objective was to formulate a vision and mission for Pinge's future tourism
development. The meeting included the former established tourism body, Made Denayasa, Mr. and
Mrs. Gosana, other village authorities and two ITMC students. During the three hour assembly
several topics were discussed. Being an expert in his field Mr. Gosana explained how to develop
Pinge as a tourism destination. He clearly emphasized the importance of community participation.
Made Denayasa stressed the point that everyone involved had to maintain the vision of 'Tri Hita
Karana'.This is an ancient belief familiar to most Balinese. The word comes from Sanskrit language
and literally translates into 'three of the harmony'. It means creating harmony and balance through
peaceful relation between human to God, human to human, and human to environment. By referring
to Tri Hita Karana, Made Denayasa expressed his desire for a sustainable development of tourism in
his village. The meeting ended with this statement and a positive feeling.
In her thesis Anouk van Hoof developed a framework to measure success of CBT development in a
rural area. She determined three major topics that are relevant in this process. To every one of them
belongs a set of Critical Success Factors together with questions. The following paragraphs are
going to evaluate Pinge's tourism history by means of answering these questions. The structure
consists of three elements that are: (1) initiation of CBT development, (2) community participation,
and (3) tourism development. In van Hoof's example she assumes an initiation by a NGO. In
contrast the initiators in Pinge are local residents. This difference is taken into account and
mentioned when relevant.
Initiation of CBT development
The first CSF deals with the relationship between CBT development and its goals. When Made
Denayasa, the community leader of Pinge, approached the government to ask for assistance he had
something in mind. One of his intention was attracting tourists to his village who would enjoy
themselves. The interest of tourists in Pinge meant an opportunity to do business. He thought of
economic benefits that tourists would generate. He was looking for a way to improve the living
standard of his community. The second CSF is the tourism potential of a destination. It examines
whether an area has an attractive supply to be matched with potential tourists. This is of great
importance and will be discussed in chapter three and four in detail. The third CSF refers to the
knowledge and skills of the NGO. Van Hoof means the NGO that initiated the tourism
development. In this case a community leader is the initiator. He did not have the skills and had to
consult Mr. Gosana. At some point ICSS got involved in the development process as well. Thus,
several persons are part of CBT developments in Pinge whose field of expertise is tourism. They are
very familiar with tourism development on Bali. In addition Mr. Gosana is experienced in working
with communities. He supports a similar CBT project in a village near Ubud, called Bedulu. The
16

fourth CSF reflects the commitment of the NGO. In this case the involvement of the stakeholders
is promising. ICSS has launched a project to invite fourth year student to participate in a research
study. Mr. Gosana sacrificed personal free time to support the students and the communities. And
the students spent several months living together with the Balinese people while writing their
Bachelor thesis.
Community participation
The first CSF is interest of the community in CBT development. A majority of Pinge's residents is
interested in CBT. A study by University Udayana states that 56% agree with a CBT development.
Three families have invested their own capital to provide accommodation. Expectations differ from
one person to another. Some want to earn additional income and improve their life. Others expect to
generate enough tourism activity to create jobs for their children. They would like to stop the
emigration of them to Denpasar and Southern Bali. During the meeting in February the participants
agreed upon common expectations of CBT development in Pinge. Within the concept of Tri Hita
Karana tourism should contribute to additional income without damaging the environment.
Moreover the community should be an essential part of planning and decision making. The second
CSF is selection of participating community members. In Pinge everyone who is able to
contribute to the project can be a member. For example two retired men who previously worked in a
four star resort and a restaurant. They are part of the tourism board that was established during a
community meeting. The third CSF determines ownership of land and tourism resources. In Pinge
every family owns land and most of it is owned by the community. Other tourism resources such as
temples belong to the village, i.e. also the community. In this respect there are no concerns about
decision making of available resources. The fourth CSF is knowledge and skills of the
community. According to Udayana University the human resources in Pinge are good in general.
However the advice is given to train residents and increase their quality for the future. This should
happen as soon as the first tourists will stay in Pinge and will make use of other activities. The fifths
CSF are available financial resources. The village is inhabited by mainly farmers who do not have
available financial resources. The cheapest possibility is to borrow money from the community
bank Pinge. A national bank would charge a lot of interest. The communities hope is that the
government might assist with financial support. However it is worthwhile mentioning that the
province of Tabanan is a poor region on Bali. The community should try to obtain financial
resources independently.
Tourism Development
Concerning tourism development the first CSF is Integration with other sectors of the economy.
Mr. Gosana made clear in the meeting to let tourists participate in the community's activities. The
tourism product should be linked to farming activities, local dance performances and temple
visitations. A homestay accommodation will make sure that the hosts have a maximum benefit. In
addition locally grown food will serve as alimenation. The second CSF is marketing of the
tourism potential. Once Pinge has the required tourism infrastructure it will have to attract tourists.
Different distribution channels can be used to address targeted market segments. Direct distribution
would be the most profitable way to sell their products. This could be achieved by using a website
to promote the village. Potential customers learn about prices of accommodation and activities to
purchase them on the spot. Another option is indirect distribution with the help of trade
intermediaries. For example a tour operator could try out the community's tourism product. If he
decides that it suites his customers Pinge will be added to the product of the agency. The latter one
is a more common practice in CBT project.
It can be concluded that CBT is a manifold and complicated concept. A successful development
depends on many CSFs as well as knowledge of the tourism industry. Therefore usage of reliable
17

theory and literature is advisable for its development. Moreover a detailed assessment of the
tourism product is unavoidable. A tourism potential is only available when there is a market interest
for consumption. Therefore, the following chapters are going to focus mainly on the critical success
factor called tourism potential.

Chapter 3: Analysis of existing conditions

The village Pinge belongs to Marga municipality, which lies in the Tabanan district. It is located
around 35 km north from the capital city Denpasar, and approximately eighteen km from district
capital city, Tabanan. Two of the four mountains G.Sangiang (2.093m) and G.Phen (2.063m) enrich
Pinge's scenery to the Northwest. The village inhabits 156 families with a total number of 895
individuals. According to Made Receb Adnyana ten percent of Pinge's inhabitants are working in
Sanur and Denpasar. Five percent are traders and one family owns a chicken business. Some other
families do wood carvings for temple and houses whereas one family runs a wood factory. Around
80% of Pinge's residents are farmers. Every family owns at least 1.500 square meters of farmland
and some up to 10.000 square meters. Based on existing records in Pinge, the village area covers
240,75 Ha. It is limited to the north by the village Apuan, and to the south by Tegal Sepit. In the
west there are other Indigenous Villages and to the east lies Banjar Apuan Jelantik.
3.1 Attractions and events
3.1.1 Natural Resources
The village Pinge
Pinge and its surrounding is fortunate to have an outstanding environment. The fertile land is well
irrigated by the many river descending from the mountains. The greater amount of rainfall allows
rice harvesting three times a year. Many other fruit and vegetables plants are surrounded by ideal
growing conditions. Cacao, papaya, coconut and passion fruit trees decorate the scenery along with
other exotic flowers. The nature is very well preserved and constantly cared for. The inhabitants live
with nature rather than from it. They treat the land and everything that is growing on it with great
respect. There is always someone gardening the sideways or cutting the long grass in a traditional
manner.
Jatiluwih
The Jatiluwih area is famous for the most beautiful rice terraces on Bali. Especially in the early
morning hours and for sunset the scenery turns into a pictures canvas. It seems that every available
square meter of the hillsides is used for planting rice. Uncountable terraces decorate the land in a
magnificent way that is unique for Bali (Photo Impression: Photo 1&2). From Pinge it takes about
twenty minutes on motorbike to reach the beginning of the Jatiluwih area. Another ten minutes
driving through narrow and curvy streets let appreciate the view from different points. The nicest
view point is filled with some local restaurants, and a few cafs. It it not unusual to meet foreign
tourists there.
Hot Springs Angseri
The natural hot springs are located in Angseri, a village similar to Pinge. The distance from Pinge
to Angseri is approximately four km. The last two km lead through terrible road conditions.
Therefore it takes about 20 minutes of slow driving to reach the facilities. To make them more
accessible the road is being improved at the moment. The entrance fee for foreigners is 20.000
Rupiahs and 10.000 for locals. The hot springs facilities are still under construction. Nevertheless
they can be visited, since only minor adjustments are going on. In total there are five separated
18

pools each with a capacity for three to five people. Their form and size is different as well as their
temperature. At the end behind a temple there is a swimming pool with warm water (Photo
Impressions: Photo 3-5). Two waterfalls are next to it. All the facilities are well embedded into the
environment, which makes it appear very natural. The hot water originates about 30 meters away
from the pools. Bamboo pipes are used to transport it to the individual places. Two bathrooms, two
changing rooms and a small restaurant provide all the service that is needed. The atmosphere is very
casual. Since hardly any foreigner know about this new facility it is mainly visited by Balinese
people. Especially on weekends, families with children and groups of friends can be seen enjoying
themselves. Once in a while people stop by to light incense sticks and pray in front of the small
temple. The water appears to be rich in minerals and iron. After a few minutes bathing a layer can
be felt on the skin that makes it softer and healthier.
Botanic Garden and Bali Treetop Adventure Park
The Bali Botanic Garden was founded on 15. July 1959. It spreads over an area of 157,5 ha. Being
located on a relative high altitude of 1.250 1.450 m.a.s.l., the average temperature only reaches
17 to 25C. The humidity varies from 70% to 90%. Bali Botanic Garden is unique on Bali as a
place for botanical research, conservation, education and recreation. More than 2000 species of
plants are preserved [there]. The Bali Botanic Garden displays plants from around the world within
different landscape themes that are complemented by glasshouse conservatories, buildings, water
features, and statues (Balibotanicgarden). Some examples are Orchids, Ferns, Begonia, Cacti as
well as ceremonial and medicinal plants. The great diversity and tranquil environment can entertain
almost any tourist for hours. On the parking space small local shops provide all kinds of snacks.
The entrance costs about one Euro including a parking fee for the whole day.
Next to the Garden tourists can enjoy a Treetop Adventure Park. The Walk-in price is approximately
seventeen Euro for adults, and ten Euro for children. The price includes access to all five levels of
circuits with 65 challenges. They range from 'Squirrel Circuit' for children aged four to eight,
'Discovery circuit' for all ages, and 'Adrenalin Circuit' with a height up to twenty meters. The park
suits visitors of all ages and varying experience. In addition, the price includes assistance by
professional instructors, an insurance and drinking water. The park's brochure states an adventure
duration up to two and a half hours. The park claims to be environmentally friendly by using
innovative compression system to protect trees from any damage. Protective half logs are used to
prevent cables from cutting into trees and minimize tree trunk degradation (brochure). The park is
open everyday from eight thirty in the morning until six o'clock.
3.1.2 Cultural and historical resources
Desa Pekraman Pinge Pinge Traditional Village
The history of Pinge dates back around 630 years. The village is mentioned in the Bhawana Tatwa
Manuscript. Ida Rsi Madura Dimade, son of Ida Sanghyang Sunia Hening from Majapahit ancestry,
came to Bali in 1380. He was a noble man who built several temples such as Pura Madura, Pura
Gunung Sari, Pura Asah Danu at Beratan and Pura Pauman at Batan Getas. Rsi Madura Dimade
lived in Pinge. At that time the village belonged to the Marga Palace. One day Anak Agung Gede
Pajenengan from Marga Palace passed through Pinge. He liked that area a lot and instructed I Gusti
Nugarah Geluntung to build a temple. This temple was called Pura Natar Jemeng. This temple still
exists in Pinge and it is very sacred to the villagers. According to an interview with Mr. Pagung, an
archaeologist from Bedulu, Pura Natar Jemeng treasures ancient stone relics that are more than 600
years old. Some of the stone relics can be identified as figures of the Hindu Gods Shiva and
Ganesha (Photo Impressions: Photo 11&13). Other motives are two women, and seven Shiva
Lingam. Pinge is the only village in Tabanan district to have such ancient relics. Mr. Pagung
19

mentioned that similar findings more commonly exist in Bedulu, the ancient Balinese capital.
Pinge's community is a typical example of a traditional Balinese village. It has been able to sustain
its culture and tradition for the past 600 years. While other places show impacts of mass tourism
development and modern life, the village kept its isolation. Even Balinese people identify the
Tabanan region as truly authentic Bali. A taxi driver described that area as having no pollution and a
quiet atmosphere. Most Balinese have never heard of the little village. Nevertheless, Pinge's
community structure is representative for every other Balinese village. It is governed by a single
Banjar, called 'Banjar Pekraman Pinge'. A Banjar is the organizational meeting point and forms the
heart of a village. Every six months, a big formal meeting invites all participants from the village.
Everything concerning Pinge is discussed, e.g. financial issues, resource and harvest amounts.
Smaller meetings with the organizational body are more flexible and are scheduled when needed. If
there is a construction going on for example a gathering every two weeks is nothing unusual. The
second official body is the 'Subak', which organizes water irrigation for the rice fields. There are
three main rice field plantations that are supervised by three Subaks. Membership to the Banjar is
mandatory for each Balinese married man. Only Balinese married couples are full Banjar members
and subjected to the Banjar rights and obligations. Foreigners or other Indonesians cannot join the
Banjar as it is tied up with Balinese culture and the Agama Hindu religion (Banjar Bali, April 12
2007).
The Hindu religion plays a powerful role in everyday life of Pinge. It influences economic and
social activities and determines when a ceremony is done. An individual's mentality is affected by a
strong community bond. Family names do not exist in Pinge. Every new born receives one of the
four titles 'Wayan', 'Made', 'Noman', or 'Ketat'; meaning first, second, third, or fourth son/ daughter
in connection with a first name. In case of a fifth child the naming starts again from the beginning.
Close family members life in a 'Pamesu', a family courtyard. It consists of several buildings with
different functions. One building has the function of a sleeping and living room. Another building is
for cooking while another is the bathroom. Another specific building is for storing the rice. These
family courtyards lie next to each other on both sides of Pinge's only street (Photo Impressions:
Photo 12). A brick wall is used for separation only, and a gap allows passing from one courtyard to
another. All families in Pinge have more than one temple in their courtyard.
National Monument of Margarana
The National Monument of Margarana is around half an hour drive away from Pinge (Photo
Impressions: Photo 6). The Monument honours the brave soldiers that fought against the Dutch
colonies. The site is built in a rectangular shape with the main monument in the centre. It takes
about half an hour of slow walking to see everything. Several big trees, flowering smaller ones, and
many more plants enrich the site with natural beauty. A few ponds filled with lotus flowers
contribute to the peaceful ambience. Very good care is taken after the environment, which
resembles more a garden with colourful plants. Only the gravestones at the end indicate the site's
purpose. One building is dedicated for a small museum. It exhibits remains of the war such as
uniforms, weapons and communication tools. The entrance costs about 10.000 Rupiahs. According
to a visitor book 70% of visitors are domestic whereas 30% are from a foreign country. Both of
them either come alone by motorbike or in groups by bus. The foreigners are mainly from the
Netherlands, France, Australia, Canada, Japan, Australia, Russia and United Kingdom.
Ceremonies and temples
The inhabitants of Pinge perform ceremonies in a very traditional way (Photo Impressions: Photo
7). It is their custom to worship every major temple every six months. In total there are seven of
them. During these celebrations at least 100 participants are involved. Although it is not obligatory
to participate most of the villagers do so based on their strong belief. It is a way to honour God by
20

giving something back (Made Suardika). Everyone dresses up with fine clothes. The men use a
sarong, a white shirt and a head bandage. The women also use a sarong and a white blouse. These
colours might vary since there is no significance attached to them. What matters is being part of the
event. All kinds of offerings are prepared in advanced such as fruits, rice candy, cookies, and
flowers. These offerings are carried to Pura Bji where a blessing ritual takes place. A group of 35
musicians carries along music instruments and accompanies the crowed with vocal and acoustic
sound. They are members of Pinge's art institution that owns a traditional set of musical instruments
(Balinese Sekehe Gong). They practice on a regular basis and often play at ceremonies and dances.
After the blessing of all offerings women carry them on their heads to another temple. At this new
location the ceremony continues. Generally speaking, most religious ceremonies are linked to
agricultural life, e.g. during ploughing and harvest season. There are however, also art ceremonies
in Pinge that are closely related to Hinduism. The relation of art and religion classifies some
performances to have a sacred character. The Leko dance for example is regarded to be sacred and
ancient in Pinge. Although it is extinct some information is know by the community of similar
dances such as Joged. During the study of Udayana University old and damaged equipment of the
Leko dance was found by accident.
Volleyball tournament
From the 21. March Pinge hosted a volleyball tournament that lasted more than a month. It was a
first trial for the village community to raise funds this way. The intention was to earn money for a
renovation of temple Dalem. A stadium made out of local bamboo was built by an experienced
sponsor (Photo Impressions: Photo 8). All participants were teams from neighbouring villages.
Every late afternoon two games were played from seven to ten o'clock. The visitors were Balinese
people, most of them from neighbouring villages. In addition to entrance fees profit was made from
several food stands selling hot dishes, snacks, and beverages.
3.1.3 Climate
Pinge has a distinct climate in comparison to the entire island. It lies 500 to 750 meter above sea
level and is characterised by milder temperatures (Udayana, 2002). This lowland is more likely to
attract rain due to the close by mountains. The soil is very fertile and suitable for agriculture. The
sun rises around six o'clock. During morning hours the sky is very clear and there are hardly any
clouds. Around eight to nine o'clock the mountains become less visible as cloud formations start to
cover them. The clear view eventually vanishes and the mountains disappear behind a white curtain.
At that time Pinge still might have a blue sky. Within a few hours the morning temperature raises,
reaching a pleasant annual average temperature of 28 C to 30 C. The average rainfall per year is
4500 cm. In comparison to other tourist places on Bali Pinge has a less extreme climate. It does not
get as hot and humid as in Ubud, Sanur or Singaraja. The air is hardly polluted and rarely smells
like burned trash. Raining season starts in December and lasts until mid April. The rest of the year
counts to dry season. Throughout the rainy season daily rain is very common. The rainfall is mostly
limited to one and maximal three hours. It usually rains in the late afternoon, from three to five
o'clock. Along with the duration the intensity might be different form one day to the another.
3.1.4 Accessibility
Pinge has a favourable position on the island. Its central location allows comfortable visits to all
other areas. It is easily accessible because it lies next to a provincial road that connects Singaraja
and Denpasar. This particular road runs through a number of famous tourist attractions such as
Taman Ayun, Alas Kedaton, Bedugul and its lakes. The driving distance accounts to fourty minutes
on motorbike and about sixty minutes by taxi to visit Bedugul. Bali's cultural centre Ubud is one
21

hour away by motorbike and one and a half hours by taxi. Bali's capital Denpasar is about two hours
by car and within an additional thirty minutes Kuta can be reached. This is the same distance to
Ngurah Rai International Airport.
3.2 Facilities
3.2.1 Accommodation
At this stage of development, there are four families with the intention to provide accommodation
for tourists. The location of these rooms is spread throughout the village. Three of them are in the
neighbourhood where most of the community lives. One house is in the very north of Pinge about
twenty minutes walking distance. All but one of these rooms are embedded in a family's living
environment. They are located next to other local houses, family temples, and gardens. All of the
buildings have originally been used for housing purposes. Along with the CBT development the
owners started to invest their money to make them suitable for tourists.
The first house is the biggest and most attractive one (Photo Impressions: Photo 9). Its exterior
design is traditional Balinese with beautiful wood carvings. The house is made up of two parts. On
the left side there are three bedrooms, one spacious living room, and one bathroom with a Western
toilet and a shower. The sizes of the three bedrooms are different. On the right side of the building
there is a separate entrance to a fourth room with a second bathroom. At this moment the house is
almost ready to welcome guests. The only thing that is missing is the furniture. The owner does not
have the financial means to equip the rooms yet. A solution has been negotiated between him and
Mr. Gosana, who agreed to provide second hand furniture as soon as possible. Once the rooms are
furnished enough space for a total number of four couples would be available.
A second family supplies a smaller and less attractive house. It has two rooms with different size
and two entrances. The bigger room is equipped with a bathroom and a Western toilet. The smaller
one has not a bathroom yet. The intention is to build a bathroom for the second room. In front of the
house a pile of stones is waiting for the construction to begin. Moreover, the front wall is naked and
needs to be finished as well. Once the rooms are furnished enough space for a total number of two
couples would be available.
A third family announced their willingness to participate in tourism activities. The reason is that one
house is constantly empty because its owners are living in Denpasar. However, nothing has been
done to the rooms yet. The only bathroom with a traditional Balinese toilet is shared by all the
family. Before tourists are likely to stay in that accommodation a new bathroom is needed.
The fourth place for possible accommodation is in the very north of Pinge. The house consists of
two separate rooms, each one equipped with a modern bathroom. The exterior of the building marks
a traditional Balinese style similar to the first house. The interior is of lesser quality and requires
renovation. It is worthwhile mentioning that this accommodation differs to the previous ones. It is
located next to a busy street with an almost constant background noise of motorized vehicles.
Moreover, it is inhabited by only two persons whereas the other rooms are part of an entire family.
Because the rooms are located outside Pinge's neighbourhood the feeling of staying with a family
within a community is lost. The currently present furniture consists of two single beds. A total
number of two guests can be hosted.

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3.2.2 Food and beverage

The quality of food in Pinge is characterised by fresh products. Its farmers produce all year long a
variety of vegetables and fruits. Their main crop is white rice, which is cultivated three times a year.
Additional vegetables are chilli, cucumber, tomatoes, letters, coffee bean and different potatoes. A
great variety of fruits consists of cacao, banana, papaya, pineapple, mangosteen, durian, passion
fruit, and jackfruit. Because of the favourable climate all the products have a delicious and healthy
taste. The use of traditional farming techniques guarantees naturally grown food without fertilisers.
Nevertheless, anti bug spray has been necessary for the past fifteen years. According to Made the
increased number of pollution on Bali is the cause. Nowadays it is common practice. Otherwise
most of the crops are destroyed by too many insects. All of the locally grown products are also
consumed by the community. Rice is an essential part of every meal and is eaten for breakfast,
lunch and dinner. The idea of a typical Western breakfast is rather strange for locals. The Balinese
kitchen does not lack in variety. Many different dishes are prepared on a daily basis. Other
commonly used ingredients are tofu, tempe, eggs, chilli and various spices. The most common meat
types are pork and chicken. Chicken is more affordable whereas pig is used for celebrations and
special events. Examples for famous local dishes are 'Klopon', black rice pudding, 'Sate Tusuk',
barbecued pork meat on a Bamboo stick, and 'Sate Lilit', barbecued pork meat with grated coconut
on a Bamboo stick.
3.2.3 Supporting Facilities
At this moment Pinge owns few facilities to support leisure activities. In addition to the previously
mentioned ones, there are two places that have a pool table. They are a popular meeting point for
the youth of the village. At any time of the day, predominantly male villagers can be found playing
pool or just hanging around. Another facility that will serve tourists' needs is under construction.
Next to temple Dalem an area is dedicated for tourism purposes (Photo Impressions: Photo 10).
Once it is finished it will entail a stage with lots of free space. It is going to be an open construction
with just a roof to protect it from rain. This way a panoramic view is guaranteed over surrounding
nature. According to Made Suardika it will be used for different activities. One task is to gather
tourists there and provide them breakfast, lunch, and dinner. An open kitchen is already present at
the entrance to the temple. Moreover it will serve as stopover point for hiking tours and as a stage
for dance performances. The multi purpose facility is built meanwhile the temple Dalem is being
renovated. Both ongoing constructions are supposed to be completed by the end of August 2010.
3.3

Infrastructure

3.3.1 Water systems

All the families have access to running water and are connected to the sewage system. The
traditional Balinese houses do not have a bathroom. Therefore, a single bathroom is shared between
the many family members. The kitchen is a separate unit and rarely located in one building with the
sleeping rooms.
3.3.2 Communication networks
The cell phone is the most common communication device in Pinge. Only few houses have a
telephone connection. Neither public phones nor Internet exist at all. There is no Internet Caf in a
radius of fifteen kilometres around Pinge. It takes about twenty minutes on motorbike to go to
Marga to find an Internet Caf with slow connection.
23

3.3.3 Health care facilities

Pinge is to small to have a doctor. In a close by village called Barn, there is a people's health centre,
in Balinese 'Puskesmas'. The next hospital is at least one hour drive away and located in a bigger
city such as Tabanan or Denpasar.
3.3.4 Streets
There is only one street going through Pinge. It is a narrow road with enough space for a single car.
The first part surrounded by houses on either side is well paved. When leaving this housing zone the
road condition starts to change. The pavement is broken and full of holes filled with stones.
Although its strongly requires to be repaved the government does not take any action. The only way
to avoid the bumpy ride is to take a large d-tour around the entire village. Most other streets within
the region are well paved. More frequently driven ones are wider and allow pleasant motorbiking.
3.3.5 Security systems
Pinge and its surrounding villages do not have a police station. Only in Marga, in the district
village, a small police station can be found. In the feasibility study of Udayana University Pinge's
social life is described as still very harmonious and innocent. According to law records
indigenous criminal cases of even low conflict never happened.
3.4 Transport
3.4.1 Transport to the area
The island of Bali can be reached by plane. A number of airline companies offer services with
varying price levels. For example Airasia links Denpasar Airport to numerous major cities in Asia
such as Bangkok, and Singapore. The prices vary according to the season from 50 to 150 Euro. It is
then possible to catch a direct flight from these major airports to almost any global destination. The
only direct flight that connects Europe to Bali is from Amsterdam Schriphol airport. Once landed on
Bali the most convenient advice is to look for a taxi. Pinge's remote location makes is tricky to be
reached. From Denpasar airport it takes about one and a half hours by taxi. The price may vary from
200 to 400 Rupiahs. It might take some time to find a driver who is familiar with the area. Most
Balinese people have never heard of the village. In that case additional direction have to be
mentioned such as Margarana, Angseri, and Tabanan.
3.4.2 Transport within the area
The most common means of transportation are motorized bikes and walking. Only few families in
Pinge own a car. It is comparably cheap to rent a motorbike from a local family (2-3 Euro a day). A
car can only be rented in a bigger city. The price starts at 15 Euro for a day.
3.5 Hospitality
Pinge's community has a great sense of hospitality. The hosting of a one month volleyball
tournament has underlined the openness of the village. Daily games attracted more than 200 visitors
from neighbouring villages. Despite their presents no troubles occurred nor did anyone complain
about the many disturbing motorbikes. Especially foreign visitors are welcomed with a lot of
curiosity. A big smile with a friendly look into the eyes is a common gesture.
24

Chapter 4: Tourism analysis Bali

This chapter identifies the tourism demand for Bali and Pinge. In the first part a quantitative
analysis illustrates current tourism flows to Bali. A differentiation of types of tourism gives insight
into very general tourists' interests. The next paragraph explicitly deals with tourist profiles that are
relevant for CBT in Pinge. Then an analysis of impacts per type of tourism elaborates how these
profiles might influence the village. The impact analysis is subdivided into economic, socio cultural
and environmental impacts.
Unfortunately, extensive market information about foreign tourists visiting Bali does not exists. The
absence of tourist classification in Indonesia represents a universal problem. Knowledge of
potential markets is commonly lacking, as are the tools to enter and exploit these markets (van
Egmond, 2007 p.4). The result is a shortcoming to properly differentiate types of tourism and to
understand their travel motivation. Understanding the tourist phenomenon, as well as the ability to
employ specific marketing tools, are critical success factors for tourism development in local and
regional destination areas in developing countries (van Egmond, 2007, p.4). Hence, knowledge of
a detailed market analysis is essential to understand tourism to Bali. A reasonable solution is to fill
the gap with empiric literature. The book Understanding Western Tourists in Developing
Countries by Ton van Egmond explains types of tourist that are very much applicable in this
context. His study focuses on Europeans, in particular citizens from the historically Protestant
countries of Europe. These are Germany, Great Britain, the Netherlands, Scandinavia (Denmark,
Finland, Iceland, Norway, Sweden), Switzerland (van Egmond, 2007, p.6). As this chapter goes
more into detail the choice for these tourist generating countries will become evident.
4.1 Analysis of current demand
The following numbers are taken from 'Statistics Indonesia of The Republic Indonesia' 1 (table 5). In
2008 the total number of foreign visitor arrivals to Indonesia accounted 6,234,497. The visitors
originated from more than 36 different nations. Most of the arrivals came from Asia and Asia
Pacific reaching a total number of 2,794,607 and 2,178,443. The top tourist generating countries are
Korean Republic (320,808), Australia (450,178), Japan (546,713), Malaysia (1,117,454), and
Singapore (1,397,056). Europe generated 924,745 visitors originating from the United Kingdom
(150,412) Netherlands (140,771), Germany (137,854), France (125,216), Switzerland (31,662),
Sweden (23,067), Denmark (17,507) Norway (17,434), and Finland (10,535). Visitors coming from
the United states accounted to 174,331 arrivals to Indonesia in 2008.
According to Udayana Feasibility study all visitors to Pinge were from abroad. During their
investigation in Pinge samples of about 110 respondent were collected.. The findings demonstrated
that domestic visitors were not interested in this area. Most of the representatives were from
Europe. Another statement by five travel agents revealed that mainly European tourists choose for a
rural tourism programme. A demand analysis of foreign tourist visiting Pinge emphasizes that 80%
were Europeans. Particularly visitors from Germany and France were strong markets. Besides that,
20% of tourists visiting Pinge were Australians (Udayana, 2002).

1 Badan Pusat Statistik, http://dds.bps.go.id, accessed 22. March 2010

25

4.2 Analysis of types of tourism on Bali

In this part a general differentiation of tourism on Bali is approached. It helps to gain a better
understanding of Bali's tourism industry. It results from observation of activities, brochures and
tourists' behaviour at various places on Bali.
Sun&Beach Tourism
Beach Tourism is the most widespread form of holiday on Bali. Numerous resorts, and hotels are
located predominantly in the Southern part of the island. Places around Seminyak, Kuta and Nusa
Dua developed to popular destinations. Throughout the years their traditional Balinese appearance
changed. Nowadays thousands of tourists enjoy the diversity of Westernised restaurants, the luxury
of modern accommodation and wellness facilities. During the day tourists are likely to be found on
the beach. Surfing is a common sport and practised on most of the coastline. Other activities are
snorkelling and diving. At the late afternoon the streets start to get more crowded as tourists go
shopping or dining. Meanwhile the night life slowly awakes while bars and clubs become busier.
The great amount of supply in combination with relative cheap prices is a competitive advantage to
many Western destinations. Especially Australians take advantage from lower alcohol prices than in
their homeland.
Cultural Tourism
Balinese culture is extremely diverse and unique. Compared to neighbouring Indonesian islands
Bali is very prosperous. The Hindu religion put forth a distinct architecture with many temples, well
decorated houses and statues. Being very proud of their heritage the Balinese love to expose their
culture. Ubud is a renowned town for Cultural Tourism. It is located one hour north to Denpasar.
Daily ceremonies, a tourist market, and narrow streets with all kinds of stores attract hundreds of
tourists on a daily basis. Uncountable artist shops sell paintings, wood and stone carvings, designer
cloths, jewellery and other souvenirs. Although the atmosphere is tourist oriented, Ubud managed to
keep some of its traditional appeal. In contrast to many cities in Southern Bali, which were
overwhelmed by coastal tourism development. Many different tour operators promote cultural
tourism on Bali. For example Nouvelles Frontieres is a commercial tour operator. It offers tours that
include visits to Ubud and one night homestay in Bedulu, a close by village. Other specialized and
adventurous tour operators advertise more diverse packages. In contrast to conventional tourism
they emphasize supporting of cultural heritage and community life. Go Differently and Responsible
Travel for example claim to benefit host and guest alike. Visiting museums, participating in
ceremonies and closer interaction with locals are just some examples found on their itineraries.
Adventure Tourism
Adventure Tourism can be found on many parts of the island. Water sport activities on the coast
include surfing, snorkelling and diving. The many rivers descending from the mountains allow
kayaking and rafting. For example the Ayung River is suitable for these sports. Moreover, adventure
tour operator such as Bali Adventure Tours 2 offer mountain biking and different trekking tours. An
Elephant Safari Park and a Bali Treetop Adventure Park extend adventurous choices. Adventure
tourism differs from the previous types of tourism. One of its main characteristic focuses on
activities with an increased level of risk. A feeling of excitement and perceived danger enrich the
experience. Although the contact with nature is important, it is the activity that matters most. Hiking
through remote areas is regarded to be a popular activity. It can be practised by almost all types of
tourists while enhancing natural interaction.

2 www.baliadventuretours.com with 20 years of adventure experience, accessed 12.Mai 2010

26

Author's observation of Alternative Tourism

Many tourist encounters led to the realization that Bali is more than just a holiday destination.
Throughout the years it became a second home for many foreign nationalities. People with an
alternative lifestyle, that tend to travel for years, spend many months on Bali. Their focus is not
directed towards holiday making, but rather on living on Bali. Instead of spending money for leisure
activities, these people try to make a living there. Some of them profit from skilful labour and low
manufacturing costs. They produce products such as clothes and artwork and export them abroad.
Others find deep inspiration in Bali's way of life. They sometimes spend several years writing books
and publishing them there. Popular topics are spiritualism, yoga and meditation. Around Ubud's
walls advertisement and leaflets inform about yoga classes, reiki courses as well as many other
spiritual activities. In addition to spiritual products Bali offers a variety of health and wellness
services. There are various spa facilities and health centres throughout the island.
4.3 Description of tourist profiles
Before describing tourist profiles it is essential to make a choice for specific market segments. It
would be pointless to talk about all available tourist profiles. First, a suggestion of a tourism
concept for Pinge is presented. This concept is based on the theory introduced in chapter two and on
the research findings of chapter three. Then, in accordance to this concept suitable tourist profiles
are going to be applied.
Pinge is rich in natural and cultural resources. The land and the community are the most important
tourism assets. Both aspects have to be a fundamental component of the tourism concept. The
simple life of the villagers is deeply interrelated with the environment. They live in line with nature
and their surrounding. The belief in Hinduism is very strong and influences every day life and
thought. Ceremonies and prayers have been practised in the same manner for hundreds of years.
From a tourism perspective Pinge is highly authentic. The village and its people preserve Bali's
original heritage. CBT theory argues to adapt tourism activities to these values in a sustainable
manner. In that respect a homestay experience is a well considered choice. Several families are
investing in this type of accommodation. The community plans to attract tourists for several days
entertaining them with different activities. A walking tour was designed to lead through temples,
rice fields and the most attractive places in Pinge. At the end a dance performance finishes off the
tour. Another activity is to let tourists participate in agricultural work. The plantation and harvesting
of rice can be used to create a theme. Tourists would be able to learn more about the rice plant, the
way it is processed and relevant growing techniques. Instead of just telling these information a
tourist should participate actively and engage in the process himself. The same is true for other
activities in the village such as dance, music, ceremonies, and wood carving. The emphasize should
be placed on exploring Pinge's natural and cultural resources.
However, making everyday local life accessible to tourists is not sufficient. A suggestion is to add
additional value by offering a tailor made holiday experience for every tourist in Pinge. Every
visitor should be treated with a lot of attention by a personal guide for example. Instead of
commercializing the tourism product should be conserved in the most authentic and unique way
possible. All activities need to function on a small scale with attention towards quality. A tourist
should have the possibility to stress certain aspects of his stay. The choice for a number of
categories needs to be developed. An example is art and dance, agriculture and plants, or health and
fitness. According to the tourist's interest an itinerary is composed for the entire stay. This happens
between the tourist and community members during an arrival dinner for example. Focusing on
individual interests and emphasizing participation increases the overall quality level of the
experience.
27

The next step is to identify tourist profiles that would be interested in Pinge's holiday concept. In
the beginning of the chapter it was suggested that main attention should be given to the European
market. There are several reasons to answer the question: How can the European market be more
favourable for CBT, despite the clearly dominating numbers of tourism arrivals from Asia and Asia
Pacific? First of all Indonesia ranks 12th position on a top-20 destination for the European market in
2002 (table 1). On an international level tourist arrivals from West, North and Central Europe
account to 585,000 in Indonesia, 615,000 in India, 653,000 in Brazil, and 479,000 in Mexico based
on WTO data in 2002. In 2008 the arrivals from Europe to Indonesia increased to 924.745 (4.1:
Statistics Indonesia). That makes Indonesia quiet popular among other developing tourist
destinations such as India, Brazil and Mexico. Another answer is given by the feasibility study of
Udayana that observed mainly German and French travel interest to Pinge. Besides that Australian
visitors were the only non-European tourists there. In contrast there was no interest in Pinge from
Asian tourists.
When questioning Asian tourist behaviour it can be said they hardly participate in rural tourism. It
is the Northern European market, rather than Asian, African or Latin American markets, that is
interested in direct interaction and having a glimpse of 'real' local life (van Egmond, 2007, p.107).
The essence of Pinge's tourism concept however relies on the community life. The practice of CBT
depends on the involvement and interaction of local people, too. For Asian tourists Pinge's
authenticity loses its value while participation in rural life is not desired. Moreover for some Asian
countries Balinese life is more familiar to their own culture and regarded as less interesting. In
contrast the Europeans are the top generating destination to look for a nature-based element, an
educational or learning component, and requirements of sustainability. [] It goes without saying
that the interest in 'unspoilt' nature, nature conservation, learning about nature and contribution to
the development of local communities can predominantly be found in Northern European and
perhaps North American and Australian markets (van Egmond, 2007, p.108). This fact makes
clear why the primary target markets should be European tourists. Europe holds the biggest market
potential to correspond to CBT in Pinge.
Since there are cultural differences within Europe selecting a similar range of countries is
recommended. Market research studies revealed great differences in consumer behaviour between
Protestant and non-Protestant societies. [...] Protestant countries of Europe have many patterns of
thinking, feeling, and acting in common. These countries are Denmark, Finland, Germany, Iceland,
the Netherlands, Norway, Sweden, Switzerland, and, to a certain extent, Great Britain and Austria (a
Catholic country with dominant Protestant values) (van Egmond, 2007, p.19). Consumers in these
countries have inherited a Protestant ethic that influences travel and consumer behaviour to this day.
Outside the European continent migrant countries such as Australia, Canada, New Zealand and the
USA resemble equal qualities. These Western Protestant societies are driven towards the paradise
the mythological place of origin, of creation itself (van Egmond, 2007, p.87). The pursuit for
'virgin innocence and originality' is a temporal solution to escape modern civilization. It is a result
of complex processes in these countries that relate to a romantic perception of exotic communities
and nature. The touristic 'return' to paradise is a symbolic 'return' to the origins of mankind, in
order to make us feel like being without sin (van Egmond, 2007, p.87). Pinge correspond to this
perception of an authentic life style in idyllic nature. It is not subject to technological advancement
nor industrial progress. According to this Protestant ethic a 'romantic yearning' for places such as
Pinge exists in European countries.
The consequence for Pinge is that about ten European countries have a market potential that can be
targeted. Additionally four migrant countries have this market potential to a certain extend. Taking
the arrival numbers into account the Northern and Western European Protestant countries add up to
approximately 546,938 tourists arrivals to Indonesia in 2008. Together with Australia the amount is
28

almost one million (997,116) arrivals to Indonesia in 2008. It is a given fact that not all these
tourists can function as potential visitors to Pinge. Therefore the next step is to elaborate tourist
profiles as detailed as possible within the mentioned countries. Given the tourism supply in the
previous chapter it is obvious that only niche markets come into question. Pinge's tourism concept
is not applicable to conventional tourism at all. Only a certain percentage of 546,938 (and of
997,116 including Australia) tourists would show interest. Once again the Asian and domestic
market is not relevant for CBT in Pinge. In addition to the previously mentioned reasons no
evidence for interest in Pinge's holiday concept has been found by Asian tourists.
Based on market research the following tourist profiles have been selected: (1) 'dedicated' organised
adventurous tourists and (2) 'dedicated' individual travellers/ backpackers
'Dedicated' organised adventurous tourists
Organised adventurous Tourists have many similarities with conventional tourist profiles. Both
tourist segments follow almost identical routes on holiday trips. Nevertheless a difference in their
travel behaviour is evident, and even more so when they are 'dedicated' tourists. Organised
adventurous tourists prefer to travel in smaller groups with less than twenty and often less then ten
(if tour is not fully booked)(van Egmond, 2007). They tend to have longer trips and see themselves
as travellers, rather than tourists. They are willing to pay more money to participate in tours that go
'into depth'. A deeper and more intense experience results from overnight stays at local guest
houses, campsites and modest accommodations. They enjoy visiting a few indigenous families to
sense 'traditional life'. Popular activities are eating together, learning about customs and traditions,
and staying overnight. They are interested in local businesses that are typical for the destination. An
incidental purchase from local sellers, especially children, is seen as a 'real life' encounter. A great
appreciation comes from such a 'real' interaction although it was planned before. Organised
adventurous tourists accept the fact that such communities are selected and maintained for tourism
purposes. They still perceive them as something real and memorable. Learning about new ways of
life is desired by most of them. Intellectual stimulation is a must on their vacation. They not only
want to see new things but also consume stories, facts and gain unexpected insights. (van Egmond,
2007, p.59)
These interests correspond to highly educated Europeans who are aged between twenty and eighty.
The average age is forty. They have a higher level of education and occupy above average jobs.
Some examples are medical and nursing staff, teachers, entrepreneurs and high-ranking officials
(van Egmond, 2007, p.96). The reasons to take part in such vacations are to see places that you are
not inclined to visit on your own initiative (van Egmond, 2007, p.96). Travelling in a group has the
advantage to be more affordable and safe. A tourists is cared for by a guide who talks about places
of interest, local stories and the animal and plant life. Moreover the entire holiday trip is organized
by professional. The tourist can easily leave behind his stressful life without worrying about flight
tickets, activities and accommodations. During the holiday they expect to have a guide who is fluent
in the language of the group. They do not want to see other tourists because that would spoil their
experience. Seeing other tourists is only accepted in 'must see' attractions. In the eyes of the tourists
experiencing 'authentic family life' is more important than visiting ruins, museums and buildings.
Table three in the appendix summarizes these characteristics. The so called 'dedicated' adventurers
consume the destination as part of the package. They are curious people with a sense for
exploration. It is in their interest to seek decent and respectable cultivated pleasure (table 3). On
the one hand they want to discover places more extreme than the tourism highlights. On the other
they seek a level of development and quality. 'Dedicated' organised adventurous tourists agree to
some extent to renounce comfort of accommodation and transport. Their desire to learn and connect
29

to foreign countries is strongly present. However actual learning and interaction are rather limited
(table 3). They want to perceive their experiences as authentic as possible. Their travel group is
small in numbers and their visits are comparatively long. The more dedicated an adventurous tourist
is the more extreme is his travel behaviour. Every desire is amplified towards a more 'pioneer' and
'hard-core' like experience. A 'dedicated' organised adventurous tourist chooses a tour operator that
meet his expectations. A mainstream travel agent for example would not have an interesting enough
product. Instead the choice would go to specialized tour operators with obviously distinguished
products. For example tailor made packages that include unconventional places and responsible
activities.
'Dedicated' individual travellers/ backpackers
By avoiding tour operators Individual traveller/ backpacker do not organize their vacation in the
country of origin. They prefer to arrange everything themselves, e.g. booking flights and
transportation, and choosing accommodations and activities. When they arrive at a destination they
might decide to purchase something from a local tour operator, e.g. excursions and adventure trips.
Unorganized travellers like to distinguish themselves from organized tourists. When travelling
individually they perceive more freedom. Individual travellers enjoy making their own decisions
about where to go and what to do. They want to face the unexpected and are open for surprises on
their unorganized holiday. Moreover it is a way to get more easily into contact with local people.
Individual travellers are very similar to backpackers in many ways. A clear difference does not
exists so that a backpacker profile merely complements an individual traveller's one.
'Dedicated' backpackers originate from highly developed Western countries, i.e. primarily from
Northern, Western and Central Europe (van Egmond, 2007, p.71). A majority of them are in the
early twenties and an increasing amount are older than thirty. They tend to travel for long terms. In
the ISTC/ATLAS Survey, more than 70% of the sample of young travellers had a length of trip of
less than 60 days, while in most of the studies mentioned the minimum length was two months
(van Egmond, 2007, p.71). The level of education is high and most are students or former students.
'Dedicated' backpackers travel individually or in small groups. According to a hierarchy of
backpacker destinations Indonesia equals to countries such as India, Morocco, Malaysia and Nepal
(table 4). It is neither the most popular destination nor the least travelled one. While on tour
'dedicated' backpacker make use of conventional tourism facilities. They visit tourist attractions and
famous sites and participate in organised excursions. However it is very important to be distinct
from ordinary tourists. They value low-budged activities and accommodations with a high level of
authenticity. They practice low spending patterns that allow them to travel for months. Using a
guide book such as the Lonely Planet is very popular amongst mainstream backpackers. The more
dedicated ones try to avoid a typical backpacker track and look for alternative sources. They interact
more with local residents and prefer to live with them. A homestay or a locally owned hostel are
common types of accommodations.
A classification of 'West' 'South' tourists demonstrates different backpacker characteristics (table
3). The 'dedicated' backpackers are very curious travellers. They want to experience more than just
the 'must see' places at a destination. Comfortable travel is not a priority and can be renounced to a
certain level. It is important to learn about cultures and interact with local residents. Compared to
other backpackers the dedicated ones learn a lot in practice. They also connect to others to a greater
extent. Experiencing authenticity away from ordinary tourism activities is a crucial motivation. It
allows them to have profound encounters with people. Dedicated backpackers are small in volumes
and travel a long time. Once again, all these characteristics apply to dedicated individual travellers,
too. The more dedicated a traveller is the more is the longing for 'pioneer' and 'hard-core' typed
experiences. They desire a more extreme travel experience that deviates from ordinary travelling.

30

4.4 Analysis of impacts per type of tourists

In the previous section two tourist profiles were chosen to match Pinge's tourism supply. The
'dedicated' organised adventurous tourist and the 'dedicated' individual traveller/ backpacker. Both
tourist markets are mostly found in Northern and Western Europe, and to some degree in Australia.
Before starting to discuss the impact analysis an important question needs to be answered: How to
attract both tourist markets from Northern and Western Europe to Bali for CBT in Pinge? First it
has to become clear that no tourist is likely to visit Bali solely for CBT in Pinge. The village and its
community are responsible to take own initiative to sell their tourism product. A marketing strategy
for example can be an effective tool to define distribution channels in detail. They can serve Pinge
to address target markets. A possibility is to cooperate with adventurous tour operators that have
access to 'dedicated' adventurous tourists. If the tour operator is convinced of Pinge's tourism
potential the village could be added to the itinerary. For taking over part of the responsibility the
tour operator will ask a commission. In return Pinge's tourism supply would become accessible in
Europe by 'dedicated' organised adventurous tourists looking for a vacation. It is crucial to attract
this market in the country of origin because once arrived on Bali their itinerary is already fixed.
Concerning 'dedicated' individual traveller/ backpacker there are several opportunities to address
them. A majority of this market obtains information before going on vacation. Similar market
studies for adventure and ecotourism in Peru state that about two thirds of tourists search the
Internet. It is the most popular source for obtaining information. Whereas only a third consults
tourist guides or asks family and friends. This means that there is a good chance to address
individual travellers by means of a website of Pinge. The development of an online presentation can
advertise CBT in Pinge and inform about products and activities. If interested individual travellers
learn about Pinge in advance they are more likely to visit the village. Another way is to advertise
Pinge's tourism product on Bali and Indonesia. Since individual travellers make their itinerary while
they travel, leaflets and posters in strategic locations could grasp their attention. Some examples are
popular backpacker meeting points, advertisement wall in Ubud near Bali Buddha, Internet cafs
and restaurants. Moreover, Pinge's community members can look for local travel agencies and tour
operators that advertise the product on Bali. As mentioned before this market occasionally visits
local travel agencies. It can be concluded that Pinge has several possibilities to address both
markets. The suggested examples state how Pinge could be able to attract 'dedicated' organised
adventurous tourists and 'dedicated' individual travellers/ backpackers from Europe. The same ideas
are applicable to Australia as well.
When thinking about the impact analysis of two distinct markets it can be argued that Pinge will be
influenced in different ways. 'Dedicated' organised adventurous tourists arrive in small groups of ten
to twenty people. Having booked a package in the country of origin from an adventurous tour
operator they arrive with certain expectations. Pinge's community members have to fulfil these
expectations and constantly provide a standard quality that is required by the tour operator. In return
this market is willing to pay more money for unconventional experiences. According to eight
hypothetical case studies of various tourist profiles 'dedicated' organized adventurous tourist
generate the highest net income revenues for local and regional economies in destination
countries (van Egmond, 2007, p.111). They have a greater economic influence because they prefer
to consume local goods and facilities. The use of foreign facilities and products is not interesting for
them and does not match their holiday intention. Their expenditures, consequently, do not leak
away much from the region and bring along greater economic dynamics in terms of income
multiplier effect than other types of tourism (van Egmond, 2007, p.112). The dedicated tourists are
more inclined to support small local businesses intentionally. It is in their interest to positively
benefit the visited community, especially when participating in CBT. This is an advantage for local
31

entrepreneurs to do business on a small scale. Providing a homestay, serving local food and
manufacturing souvenirs are affordable business opportunities in terms of start capital. Whereas the
dedicated tourists' interest is promising for high revenues.
The very attributes that make 'dedicated' organised adventurous tourists attractive in economic
regards account for intrusive socio cultural impacts. The motivation for authenticity and 'real' local
life implicates a high exposure of residents' privacy. The greater the curiosity of tourists the higher
is their expectation to get a glimpse of ordinary life. The consequence is disturbance of community
members who are not involved in any tourism activity. Residents might be overwhelmed by tourists
appearing from nowhere, starting to take pictures while demanding their attention. This is especially
true for inexperienced villagers who are confronted with tourists. Another example is tourism
involvement in religious ceremonies and sacred places. The elderly villagers in particular might feel
disturbed by a gazing audience. Religious villagers may not want to tolerate repeated visits of
foreigners who have no understanding of Hinduism. They might perceive them as sightseers just
seeking pleasure and disrespecting ceremonial events. However, it is not a fact that 'dedicated'
organised adventurous tourists always bring along such negative impacts. There is a general need
for experience of CBT on Bali to understand its impacts. Contrary it can be argued that foreigners
benefit Pinge's social life in other ways. A sudden interest in cultural heritage might lead to
conservation of tradition, dance and art for example. Villagers start recognizing the value of
heritage that is in danger of extinction. A revitalization of local dances and handicraft could
generate additional employment, too.
It can also be assumed that part of the community is positively influenced by arriving tourists while
another part is feeling discomfort. An example tries to make the point. A family runs a chicken farm
in Pinge next to temple Bji. This temple is visited by tourists who want to mediate and do yoga
exercises in the morning. However, hundreds of chicken spoil their comfort due to smell and noise.
Tourists start to complain so that the community decides to stop the family's business for the good
of all. The justification is that tourist's well-being is more important because of a greater profit for
the community. The family is forced to shut down their business and give way to tourism
development. Although this situation is somewhat exaggerated it clearly shows how tourism
impacts are manifold. To what extend tourists are accepted or harmful depends on each village and
the community's mentality. Some conditions are difficult to change whereas others can be avoided
by clever planning. In that respect closing the chicken farm would not have been necessary if
another mediation area was chosen. A lot of negative impacts can be avoided in advance while
unexpected ones can be adjusted through experience.
The 'dedicated' organised adventurous tourists have a moderate impact on the environment in Pinge.
They do not demand large scale developments and neither polluting luxury. They make use of the
facilities that can be provided within the community. They do not look for activities that are harmful
for nature. Nevertheless it is a given fact that tourists in general tend to waste more water and
generate more trash than local people. The environmental impacts increase with more tourists
visiting Pinge. Besides that the long haul flight from Europe to Indonesia contributes to CO2
emissions. Once there are tourists visiting Pinge environmental studies are needed to exactly
determine the impacts. In case of destructive behaviour counteractive measures have to follow.
'Dedicated' individual travellers/ backpackers cause slightly different economic impacts than
organized tourists. The former ones arrive in Pinge on their own instead of organized tours. The
group size is likely to be smaller with more single travellers and couples. As mentioned before there
are several ways how they could have learnt about the community. With a general idea on their
mind they visit Pinge to decide whether or not they want to stay there. Upon arrival the first
32

impressions are important and deciding. It is now up to the community to win the customer and sell
a convenient product. The economical impact of this market is subject to fluctuation. It depends on
the negotiated price and lengths of stay. Backpackers and to a lesser degree individual travellers
have a lower budget and always try to bargain a convenient price. They would not agree to pay as
much as organized tourists for their package. Although backpackers pay lower amounts they can
compensate through their length of stay. Individual travellers and backpacker hardly generate
leakage. In addition they prefer buying local goods and using unconventional facilities. The result is
a direct impact on regional economy and a higher multiplier effect.
In terms of socio cultural impacts individual travellers/ backpackers are comparable to organized
tourists. The fact that both markets are dedicated to experience authenticity, learn about culture and
tradition leads to unavoidable impacts on local life. Again, it depends on the community's attitude to
what extend they are able to cope with visitors. In particular families providing a homestay must be
prepared to deal with European tourists. It is true that 'dedicated' visitors are more adaptable
towards cultural differences. After all it is their intention to experience exotic life styles. However, it
is questionable whether or not local residents want to assimilate to new arrivals all the time. They
might be driven by prospect for profit but not completely aware of all consequences. The mentality
of Europeans is considerably different to Balinese. For example it is normal for Pinge's residents to
go to sleep at nine o'clock and wake up around five o'clock. For a backpacker being on vacation this
is rather unusual. Balinese people are used to eat rice and vegetables for breakfast, lunch and dinner.
Even the most 'dedicated' tourists would have difficulties to follow this diet. Obviously, they would
ask for a more 'European' cuisine. Such small but relevant cultural issues might not be clearly
understood by inexperienced villagers. Since there are only few residents in Pinge who speak basic
English at all, cultural interaction can easily become cultural frustration. Arriving individual
travellers might have certain expectations that organized tourists do not have. The difference is that
an adventurous tour operator instruct Pinge's communities what is expected from them. In contrast
randomly arriving individuals might have ideas that are beyond the hosts capacity. Experience is
needed to learn about socio cultural impacts and ways to handle them.
'Dedicated' individual travellers/ backpackers have very similar environmental impacts on Pinge as
'dedicated' organized tourists. It can be argued that some individual travellers/ backpackers who
have already been travelling for several months got used to using less water. Despite that they are
mostly interested in activities equal to organized tourists. On an international scale backpackers also
contribute to CO2 emissions due to the long haul flights.

33

Chapter 5: Tourism potential analysis

5.1 Analysis of market trends
Similar to other industries tourism is subject to consumer trends. Well travelled tourists for
examples are looking for new experiences that surpass previous holidays. Yet other tourists might
be driven by completely different reasons. Recent changes on a global scale show an increased
interest in new forms of tourism. In accordance to Pinge's tourism supply suitable trends are going
to be listed. The first trend tends towards natural and cultural heritage tourism, the second one to
toward Voluntourism and the third to Yoga Tourism.
According to the European Commission new forms of tourism are evolving to satisfy different
needs. This observation is not based on market research but rather on practical experience in
destinations. Natural and cultural heritage is used in many ways to create new activities. Some can
be undertaken in a couple of hours, others need a couple of days, and yet others may require people
to stay a week or more (European, p.6). Nature tourism involves outdoor activities such as
walking, hiking and cycling. Especially walking is a major preoccupation for Europeans these
days. In Scotland, walking accounts for 18% of all tourism expenditure, in 1998 the walking market
generated an estimated 1.1 million trips, during which visitors spent over 600 million (European,
p.9). Simple activities that allow interaction in nature are additional possibilities, e.g. picnicking,
swimming,visiting nature reserves and park visitor centres and harvesting. More active activities are
canoeing, horse riding, and fishing. Culture tourism is another more distinct form of modern
travelling. Visiting festivals and events, enjoying music, theatre and shows and participating in rural
life through farming and Sunday markets fall under this category of holiday. Most of the times all
these activities are carefully planned and environmentally friendly. This is important because the
market is sensible to environment protection. Moreover the tourists have a desire for local
gastronomy and locally grown products.In Scotland, for instance, 25% of all tourism spend is on
food and drink (European, p.7). They are also interested in general sightseeing of historic and
religious monuments and ancient ruins. The curiosity for knowledge in some tourists makes them
engage in Education tourism. They like to learn about local history, art and heritage while getting
involved in various courses. Popular topics are music, painting, language, and photography. Other
courses teach about local cuisine, the making of traditional handicrafts, nature conservation and
species identification. Almost every aspect in nature and rural community life seems to be
appealing.
A motivation for such alternative tourism evolves out of technological and industrialized
environments. It is a way to escape modern life that no longer is in harmony with nature. The result
is a search for physical well being and health. Other motivating factors are discoveries of something
unknown to stimulate and educate the intellect. These tourists are particularly in favour with
unspoilt nature and beautiful scenery. A concept introduced by Urry (1990, 2002) refers to this
behaviour as 'Romantic Gaze'. A tourist visually consumes places of undisturbed natural beauty
(van Egmond, 2007, p. 17). In addition to natural contact these tourists look for encounters with
people from different backgrounds and cultures in a more personalised and intimate setting than
would be found in them as tourism destinations (European, p.7). Others are motivated by simple
adventure and excitement. A survey of German tourists concerning ecotourism revealed that 50%
expect small accommodation businesses run by locals (European, p.7). Around 45% prefer to go
hiking on their own and want to receive good information before their tour. About 40% expect a
local cuisine with locally grown products. The same amount mentioned the importance to feel
welcomed and a strong local hospitality (European, p7.).
This trend towards natural and cultural tourism corresponds to available resources in Pinge. It
34

confirms that market demand is increasing in Europe. Pinge's community needs to be aware of that
opportunity and develop its product to that effect.
Voluntourism counts to recently emerging forms of tourism. According to Jeremy Stafford, Coowner of Voluntours.co.za, Voluntourism is the fastest growing tourism market globally. The
reliability of this statement cannot be shown due to absence of statistical numbers. Nevertheless it
suggests a clear trend towards a more responsible form of travel. A great number of organizations
offering this service can be found on the Web. Voluntourism is a combination of conventional
holiday with volunteering activities at a destination. It is closely related to other forms of 'new'
tourism such as Sustainable Tourism and Pro-poor Tourism. It is very common for Voluntourists to
take part in projects which are associated with some form of development building or painting a
school, teaching English, beach clean-ups, wildlife censuses, [and] national park path maintenance
(Mowforth, 2009, p.127). The motivation to go abroad and contribute to charity is a result of an
intrinsic drive. It is a clear response to shifts in contemporary tourism as explained by Mowforth
and Munt. The 'New Post-Fordist' tourist resembles distinct travel characteristics. A 'postmodern'
tourists values individuality and travels in an unpackaged way. A 'real' experience is appreciated and
should be achieved through responsible behaviour (Mowforth, 2009, p.26). Voluntourism is only
one response of shifting interests of modern tourists.
An example for Voluntourism on Bali demonstrates the luxury travel company 'Hands Up Holidays'.
It offers three packages that are a mixture of vacation and volunteering. The first six days of the
itinerary are dedicated to exploring the island. Activities such as water rafting, mountain biking and
hiking are part of the programme. On the seventh day the volunteering starts and continues for four
days. The work is chosen according to one's skills. It includes building, repair and renovations, or
medical or IT/ administrative work at a foundation for the rehabilitation of physically disabled
children and young adults from villages throughout Bali3.
As soon as Pinge's tourism infrastructure is able to receive tourists the community can try to profit
from Voluntourism. An idea is to ask for helping Voluntourist to support CBT development. For
example Voluntourist from Europe can teach basic language skills to villagers who are directly
working with tourists. Other Voluntourist can help with designing a website or translating it into
different languages. Others might be interested in helping a family with renovation and house work.
Non-commercial tour operators for Voluntourism can be consulted to get hold of helpful tourists.
The focus of Voluntourism should not be used to attract more visitors though. Instead, it should be
regarded as an opportunity to welcome good minded people who want to do useful work.
Yoga tourism represents another trend within the global tourism industry. It falls under the category
of holistic tourism, i.e. health and wellness tourism. Holistic tourism provides the visitor with
activities and/ or treatments aimed at developing, maintaining and improving the body, mind and
spirit (Mintel, 2009). Worldwide there are over 72,000 spas introducing holistic services to an ever
increasing demand. A clear trend shows how medicine is interrelated with spas to offer 'preventative
wellness solutions'. Yoga is one of the leading concepts next to Ayurveda and Pilates. According to
studies in the US and abroad yoga's health benefits include relief from asthma, chronic back pain,
arthritis, and obsessive compulsive disorder, among other problems (Mintel, 2009). India being the
country of origin for ancient yoga has already started capitalizing on this trend. Most of the yoga
tourists go on holiday to practice yoga and take part in other activities, too. Only a minority devotes
their vacation to improve yoga skills. It is the combination of yoga with walking, or surfing, or
cooking that is commonly offered for mainstream tourists. The United States and Great Britain
account to the most popular tourist generating counties. A majority of yoga tourists are females in
their thirties and forties. They live in the city and follow a stress full working life as professionals or
3 www.handsupholidays.com/tours accessed 8 Juni 2010

35

in technical fields. The most popular motivations are to rejuvenate oneself, relax and be more
flexible in body and mind. Letting go of stress from busy life and helping to gain a sense of balance
are reasons to go for yoga trips, too.
Throughout the years numerous wellness retreat centres were established on Bali. Some of them
offer yoga classes in combination with massages and healing retreats. An example is the Bali Yoga
Retreat, a partnership of Vitality 4 Life with a health resort in Ubud 4. Bali Yoga Shala5 is one of the
oldest yoga schools on the island. It focuses less on wellness and stresses teaching on yoga instead.
It is located in the Southern part of Bali, next to the main tourist's places.
The trend for yoga tourism can benefit CBT in Pinge, too. As soon as tourists are able to arrive to
Pinge the community can think of adding yoga classes and meditation courses to their tourism
product. In combination with CBT activities, holistic tourism can be used to diversify and increase
tourism supply. Pinge's remote and quiet location has ideal external preconditions, i.e. fresh air,
mild climate and locally grown fresh food. The hot springs in Angseri are a great competitive
advantage. As previously discussed yoga tourists want to take part in other activities that
complement their yoga practice. Walking tours through rice fields and jungle, relaxation bathing in
hot springs and healthy cooking classes with local families are just some examples how to combine
both tourism forms. Pinge can profit from this trend by increasing visitor arrivals. It is a way to
diversify their tourism supply and to make it more attractive for new markets.
5.2 Analysis of competitors per market
'Dedicated' organised adventurous tourists
On an international scale the competition for organised adventurous tourists is striking. Many
destinations worldwide compete for a limited number of tourists from Europe. Fishing from the
same limited pond makes destinations highly competitive (van Egmond, 2007, p.107). It is
common that a lot of CBT projects fail to attract enough visitors and income. The amount of
possible destinations in South and Central America, Africa and Asia is too vast to be covered by
holiday seekers from Europe only. The current demand in paragraph 4.1 indicates that Bali is
receiving a quiet substantial amount of tourists. In 2008 a little more than 900.000 European visitors
arrived in Indonesia and a majority of them visited the country's most popular island, Bali. This is
an advantage for Pinge to get hold of potential tourists. Pinge can take an example of a village
called Bedulu. Bedulu was the first village to launch CBT a few years ago. Although the community
is still occupied with improving their tourism product it is attracting some tourists. It can be
regarded as a competitor for Pinge because it has a similar tourism supply. Nevertheless there are
some differences between the two villages. Bedulu is about five times bigger and less rural than
Pinge. Bedulu's community established a tourism product that is consumed by organized
mainstream tourists. They arrive with the French tour Operator Nouvelles Frontieres and spend two
days and one night there. The day is filled with activities organized and managed by various
community members. It begins in the morning with a breakfast buffet catered by locals. Then the
group starts walking through Bedulu to visit a school and different temples. Some families
demonstrate pottery making, cooking of traditional food and a cock fight. A highlight is a dance
performance accompanied by many musicians. After a dinner the tourists spend the night in local
houses to experience a homestay. The French tourists get an insight in typical Balinese village life
before continuing with their tour. Besides that Bedulu's accommodations are rented to other tourists,
too (Bijl, 2009).

4 http://www.baliyogaretreat.com/index.html accessed 9 Juni 2010

5 http://bali-yogashala.com/index.php?option=com_frontpage&Itemid=1 accessed 9 Juni 2010

36

Following the example of Bedulu, Pinge can work together with tour operators that have a market
access to Europe. Instead of choosing a commercial tour operator though, Pinge has to look for an
adventurous one. A small scale tour operator that is targeting 'dedicated' organised adventurous
tourists would be ideal. In this manner Pinge focuses on a niche market and avoids the competition
of Bedulu. If Pinge does not find a suitable tour operator it will be difficult to get hold of this
market. A possibility is to target the market directly using various distribution channels such as
Internet, magazines and tourism fairs. This would require the help of tourism experts, corresponding
institutions as well as enough money to cover marketing expenses.
'Dedicated' individual travellers/ backpackers
This market has a great choice of destinations to choose from. Table four in the appendix states that
Backpacker prefer to travel in their home continent first. The most popular far away destination is
Australia. According to this hierarchy of backpacker destinations Thailand, India, and Morocco are
in front of Indonesia. Then follow Malaysia, Nepal, Peru and Guatemala. Thus Indonesia counts to
the lower half part of this hierarchy. Again it becomes clear that a lot of destinations compete for a
limited amount of tourists. The result is a highly competitive market. The amount of facilities on
Bali for this segment reflects this challenging situation. Almost any tourism place provides
accommodation for low budget travellers. In Ubud for example, several local families converted
their homes to provide cheap bungalow accommodation. On a small peace of land they constructed
as many rooms as possible to rent to foreigners. Similar product developments can be found
throughout the island. Nevertheless most of this supply is targeting mainstream backpackers. A
distinct tourism concept is not applied because the supply is a response to meet current demand.
A competitor for Pinge is a network for village ecotourism called JED 6. A well designed website
provides information about four villages on Bali. On their website, JED advertises with the slogan:
Journey for a powerful impact on people, culture and the environment. Bali's only village
tourism network attracts their customers with small scale tailor made products (JED: village,
2007). At first sight their tourism concept seems to be very similar to Pinge's tourism concept
explained before. JED clearly aims at unorganized travellers rather than organized tourists. The four
villages are spread out through Bali to diversify the product range. The Kiadan Pelaga village for
example lies next to Pinge and has comparable natural resources. Kiadan Pelaga's community
manages the tourism activities themselves. The range of activities includes learning about and
participating in coffee making, cultural village life, and rice farming. In addition trekking through
the forest and bird watching tours are available. The accommodation is a visitor lodge. A second
village Tenganan is located in the east of Bali. It focuses on other activities such as weaving and
visiting a temple. The length of stay ranges from day trips to overnight trips and costs from 75 US
dollars to 130 US dollars for two people. A more detailed observation reveals that JED is targeting
ecotourists with a higher spending power. Only a minority of backpackers would pay this high
amount.
Concluding the analysis it can be said that there appears to be no direct competitor for Pinge at the
moment. It is not a surprise considering the fact that CBT is a rather new phenomenon on Bali.
However this situation is going to change in near future. Next to Pinge and Bedulu, at least ten other
villages are aiming at developing CBT. Limited information about these villages exists because
most are in an early stage of development. Therefore it is difficult to describe Pinge's competitive
position in comparison to them.

6 http://www.jed.or.id/index.html homepage of JED, village ecotourism network, accessed 10 March 2010

37

5.3 Analysis of strengths and weaknesses per markets

In this paragraph the strengths and weaknesses of Pinge's tourism potential are going to be
explained. The selling advantages and disadvantages of the product are presented from the two
market perspectives, i.e. 'dedicated' organised adventurous tourists and 'dedicated' individual
travellers/ backpackers. This analysis is primarily based on the findings of the previous chapters. It
approaches the question why these markets should go to Pinge rather than to another village or
attraction.
Strengths for 'dedicated' organised adventurous tourists
Pinge has a favourable location on the island. It lies next to a major highway that connects
the northern part of Bali with the capital in the south. This strategic position makes it easily
accessible and adaptable for organised holiday tours for example. It can be included in
already existing tours of adventurous tour operators that want to distinguish their product.
Pinge and its surrounding owns enormous natural and cultural resources. The combination
of traditional village life with a beautiful environment creates a unique atmosphere. The
place appears to be timeless, untouched by modern developments. The villagers maintain
ancient Hindu believes and ceremonies in everyday life. The level of authenticity is
extremely high in Pinge. This quality is increasingly becoming rare on the island and
popular among 'dedicated' adventurous tourists.
Surrounding attractions such as rice terraces of Jatiluwih, hot springs of Angseri and
national monument of Margarana offer plenty activities and diversity in the rural area. They
are not part of conventional tourism circuits but give an insight in original Bali experience.
Other attractions such as the Botanic Garden, Bali Treetop Adventure Park and lake Bedugul
are a little bit further away. Nevertheless, all these attractions are less than one hour driving
away from Pinge. Tourists staying in Pinge could reach them easily without long driving
hours.
The community in Pinge is eager to receive tourists to their village. They are committed to
invest own money and initiative to develop a CBT product. This effort underlines the scale
of hospitality and enthusiasm for tourist arrivals.
Strengths for 'dedicated' individual travellers/ backpackers
Due to Pinge's central position a majority of tourism attractions are within a comfortable
distance. Backpackers staying in the village are able to discover most of Bali's attractions
such as Lake Bedugul, Ubud and the hot springs of Angseri. It takes about one hour driving
to reach the beach and the mountains. A majority of these attractions are relatively cheap and
still reflect an original feeling of Bali.
Pinge's community has a positive attitude towards tourism. Few families who have the
financial means are constructing homestay accommodations. One accommodation per
family represents a small scale operation and convinces through high level of authenticity.
The community is open for new developments and people. The hosting of a volleyball
tournament shows the villagers sense of hospitality.
Pinge's villagers are able to offer food and accommodation for a cheaper price than
commercial facilities. The collective development of CBT leads to lower leakage and higher
revenues. This makes the tourism product more competitive in economic terms.
Weaknesses for 'dedicated' organised adventurous tourists
Pinge does not have enough rooms available to accommodate a big group of tourists. At the
moment there are four families constructing an accommodation. Only one family is almost
finished and could provide four rooms within the next months. When the other three
38

families are going to complete the renovation is not exactly clear due to financial reasons. In
case all the four families will be done by next season, the capacity would only reach a
number of eight rooms. This is not enough to provide accommodation for an organised
group of more than ten people. It is worthwhile mentioning that one family house provides
four rooms under one roof. The rooms of the other three families are very little and they
might be too rustic for organised adventurous tourists. The quantity and quality of
accommodations might be a reason for tour operators not to cooperate with Pinge until a
certain standard is reached.
The community lacks sufficient experience in tourism to create a marketable product
themselves. Pinge might be forced to choose a tour operator that is too commercial. The
influence and requirements from this tour operator can oppose CBT principles. That means
that a standardization of activities and villagers' behaviour is required to do business. This
would have impacts on the authenticity and village life so that 'dedicated' tourist loose the
interest in Pinge.
Pinge might not find any tour operator to work with. In this case it would become very
difficult for the community to get hold of organised tourist who generally purchases holiday
trips in the country of origin.
'Dedicated' organised adventurous tourists are a niche market with a limited amount of
potential tourists. On an international scale there are many destination competing for them
and the level of competition is very high.

Weaknesses for 'dedicated' individual travellers/ backpackers

Pinge's remote location might be too rural for even 'dedicated' individual travellers and
especially backpackers. Since there are no other backpackers around nor places to meet
foreigners it might be not interesting for them to stay for longer periods there.
Moreover Bali has various mainstream 'backpacker destinations' with cheap
accommodations and restaurants. Places such as Ubud have a common reputation to be
culturally attractive and very authentic. Although compared to Pinge they are obviously
marked by tourism developments. 'Dedicated' individual travellers/ backpackers might
perceive Ubud as satisfying enough and see no reason to go to such a remote place.
Pinge can have difficulties to attract sufficient travellers and backpackers. They represent a
niche market and competition on an international scale is very high. In addition the
community does not have enough money to spend on expensive marketing and
advertisement. The few families who are providing accommodations might not generate
enough income to cover their costs. Especially in the beginning such difficulties can
discourage the community to continue with CBT development.
5.4 Analysis of opportunities and threats per markets
This paragraph is the second part of the SWOT analysis. It deals with opportunities and threats of
Pinge's tourism potential. It discusses favourable and unfavourable aspects of Pinge, its markets and
competitors to attract visitors. 'Dedicated' organised adventurous tourists and 'dedicated' individual
travellers/ backpackers once again are the focus of attention.
Opportunities for 'dedicated' organised adventurous tourists
There are many natural and cultural resources in Pinge with potential for development. The
main village temple, Pura Jemeng, has ancient stone relics that are rare for the Tabanan area.
A study about this temple and its treasure was done by the government. These findings can
be used to create a unique story line for the village to increase its attractiveness. Applying a
special theme helps to raise the attention for this market to discover something new.
39

Evolving trends in the European travel market ask for increasingly authentic holiday
experiences in rural areas. Simultaneously Bali's government is supporting CBT that seem to
be a matching response. Pinge is one of the first villages to resonate with the development
and trying to make the village accessible. Adventurous tour operators might recognize and
value this original approach for marketing purposes.
CBT development in Pinge can positively affect neighbouring villages to follow its example.
A greater amount of tourism supply would make it possible to attract bigger groups of
tourists. A cooperation of several villages would result in a more competitive product.

Opportunities for 'dedicated' individual travellers/ backpackers

The first family in Pinge plans to provide the first homestay accommodation this year. As
soon as the room is furnished individual traveller/ backpacker can already make use of it.
They can claim to be the first tourists to stay in Pinge while supporting CBT. Besides that
tour operators can be invited to the village to contribute advice and experience.
Current 'backpacker places' that are popular might be spoilt by increasing numbers and
mainstream developments. The result is that these places no longer serve 'dedicated'
individual travellers/ backpackers at all. They would start looking for alternatives on Bali
and create a greater demand for Pinge.
Pinge can make use of market trends to extend its products. A more diversified supply and
innovative activities are likely to be more interesting for this market. An example is a
combination of CBT with yoga tourism and Voluntourism.
Threats for 'dedicated' organised adventurous tourists
Pinge might start working with a tour operator that pretends to be sustainable. In reality
profit making is the only objective and negative impacts start to occur. Throughout the years
Pinge's initial tourism concept changes into a commercial use. The vulnerable resources are
exploited . At that point the community has to deal with more negative impacts than
expected. Only some families make profit while the majority regrets tourism development.
Despite the sustainable principles of CBT arriving tourists are harmful for the little village.
Cultural differences and tourist's behaviour are too distinct from traditional village life so
that unexpected socio cultural and environmental problems start to occur.
The popularity of CBT on Bali creates a too big supply. A lot of villages provide a similar
product to compete for the same market. The result is that Pinge fails to attract sufficient
visitors. A surplus of the same supply and limited demand leads to low profit for the
community.
Threats for 'dedicated' individual travellers/ backpackers
Excessive supply can also influence the individual traveller/ backpacker market in a
negative way. If too many villages offer the same product 'dedicated' visitors have too many
alternatives to choose. Pinge would not be able to generate enough income with CBT only.
Pinge surprisingly becomes a popular 'hot spot' for individual travellers/ backpackers. The
marketing strategy has failed to attract 'dedicated' traveller only. Instead the mainstream
backpacker community gets interested in the area creating a huge demand. Pinge's
community is not able to meet the demand in a sustainable way anymore. Foreign investors
appear and convince several families to seize the opportunity for a quick profit. As there are
no explicit regulations nor a clear carrying capacity the 'boom' causes uncontrolled and
devastating impacts.

40

5.5 Analysis of carrying capacity

The concept of carrying capacity contributes to a sustainable use of resources. Applying it to Pinge
will result in a more balanced tourism development. The carrying capacity is composed of several
elements, e.g. social carrying capacity, economic carrying capacity and ecological carrying capacity.
Every element can be seen as a tool to express a goal. The capacity level of each element is
influenced by the characteristics of tourists and the characteristics of a destination area and its
population (Schouten, 2005, p.27). In this respect the relationship of every element is briefly
analysed based on the capacity level of the two relevant markets and Pinge's community. The
purpose is to stress the importance of a well defined carrying capacity to underpin the sustainability
of CBT in Pinge.
The social carrying capacity determines to what degree the local community is accepting both
markets. 'Dedicated' tourists have a tendency to be very curios about local life. They want to
explore culture and tradition as detailed as possible. As previously mentioned such behaviour can
lead to invasion of privacy. Since every culture has different thresholds it is up to Pinge's
community to define acceptable and unacceptable tourist behaviour. Discussing social carrying
capacity during a community meeting is advisable. A way to regulate the interaction of guest and
host can be formulated in a code of conduct for tourists in a homestay. The economic carrying
capacity determines a least amount of tourist arrivals to make enough profit for Pinge's tourism
development. At the same time it determines a maximum amount of tourists that Pinge is able to
receive without creating negative impacts. When Pinge's tourism product is ready for consumption
prices need to be set. Calculating the break-even point and economic influences on other sectors
need to be taken under consideration. The ecological carrying capacity is usually based on signs of
damage on natural environment, flora and fauna. Related environmental impact studies can be
consulted to regulate tourist behaviour in advance. It is also advisable to ask expert in this field to
give an estimation before tourists start to arrive. It is easier to prevent negative impact on the
environment than to reverse damage. Generally speaking the 'dedicated' markets are experienced
travellers paying more attention towards sustainability. They would not support activities that are
devastating for the environment.

Chapter 6: Feasibility Pinge

The final chapter is going to comment on Pinge's feasibility as a destination for CBT. Findings of
the previous chapters serve as a basis for this argumentation. Additionally a recommendation is
mentioned in the end.
6.1 Concluding CBT in Pinge
Generally speaking Pinge has the potential to become a feasible destination for CBT on Bali.
Several analyses throughout the report underpin this statement. At the moment the village is in an
early stage of development. There are only few families that are investing in tourism infrastructure,
i.e. homestay accommodation. Besides that other tourism developments only exist in theory.
Nevertheless the conclusion of this report is that Pinge has tourism potential. The village and its
surrounding are rich in natural and cultural resources that by themselves have been attracting
random Western tourists. The existing conditions of Pinge's environment and community are
feasible for further product development. Several examples made clear that a variety of activities
can be added to compose a lucrative tourism concept. It is of great importance that Pinge's
community is aware of this point. The villagers have to recognize Pinge's tourism potential within
the greater tourism context of Bali. It is true that the island is a popular tourism destination
41

attracting millions of tourists every year. However it is careless to think that all of them would be
interested in CBT in Pinge. The market analysis stated that only two tourist profiles are likely to
visit Pinge. It has to be very clear to the community that both are niche markets with a limited
amount of potential customers. They origin far away in Europe and have plenty of other
destinations to choose from. Consequently an extensive and unique tourism concept is a must to
awake interest among 'dedicated' visitors. The focus should be on sustainable activities closely
related to community life.
Obviously Pinge is not the only village to have natural and cultural resources on Bali. However, it is
one of few to be highly motivated and dedicated to develop CBT. The community's effort managed
to win the confidence of several stakeholders, i.e. ICSS and Mr. Gosana. Their commitment is a
welcoming opportunity for Pinge's community and provides them a favourable starting position.
Additionally the government encourages alternative forms of tourism in rural areas. According to
this objective Pinge has already been entitled to a tourism village for CBT. It can be assumed that
all this empathy in combination with valuable resources provide a reasonable ground for future
success.
Concluding it is to say that this report was able to find evidence for Pinge's feasibility. The final
SWOT analysis stated several strengths and opportunities that support this tendency. Meanwhile
Pinge's weaknesses and threats should not be neglected. At the moment they make up several
constraints, which however can be solved. There is no definite reason for Pinge not to continue with
further tourism development. CBT is an appropriate concept to aim for regarding Pinge's
background situation.
An important recommendation for Pinge's community is to advertise the CBT project on the
Internet. A possibility is to design a website presentation in such a way to catch the interest of
'dedicated' tourists. That means that a story line can be used to provide sufficient information on
various topics, e.g. Pinge's history, meaning of temples, village life and traditional dances. Special
attention should be directed towards CBT activities. The main principles of Pinge's tourism concept
have to become visible. The website should be translated into as many European language as
possible, e.g. English, German, and French. The use of a website can help Pinge to raise attention
for CBT initiative. In addition already established online CBT networks can be consulted. Adding
Pinge to their database might even be less expensive and more effective in the beginning. Online
marketing is a useful tool to reach specific target groups.

42

List of references
Books - articles - reports
APEC, (2009). Draft handbook on community-based tourism. By Ministry of Tourism Malaysia
Mowforth, M. & Munt, I. (2009). Tourism and Sustainability Development, globalisation and new
tourism in the third world. (3rd ed.). London: Routledge
Swarbooke, J. & Beard, C. & Leckie, S. & Pomfret, G. (2003). Adventure Tourism: the new frontier.
Butterworth-Heinemann
Van Egmond, T. (2005). The Tourism Phenomenon: Past, Present, Future. (2nd ed.), Amsterdam:
ToerBoek bv
Van Egmond, T. (2007). Understanding Western Tourists in Developing Countries. Wallingford:
CABI
Ecosystems LTD/ European Commission (unknown year). Using natural and cultural heritage to
develop sustainable tourism
Schouten, F. (2005). Managing visitors: Helping the frail to prevail. Breda: NHTV Academic
Studies No.1
Mintel Oxigen, unknown author, (May 2009). Yoga and Pilates Tourism International
Husler, N. (2005). Planning for community-based tourism; A complex and challenging task. The
International Ecotourism Society. Accessed 8. March, 2010, from
http://www.cic-wildlife.org/.../Haeusler_Community_based_tourism_2005_eng.pdf
Dr. Ir. I Gede Pitana, MSc (2002). Studi pengembangan desa adat Pinge menuju desa wisata
terpadu di kecamatan Marga Tabanan Feasibility Study of Pinge village for community
based tourism. Denpasar: University of Udayana
Websites
Background to JED. (2007). accessed 10. March 2010, from
http://www.jed.or.id/EN/background.php
Letters: What have they done for Bali? (June 9, 2009). The Jakarta Post. Accessed 15. February
2010, from http://www.thejakartapost.com/news/2009/06/09/letters-what-have-they-donebali.html
Christanto, D. (August 14, 2008). Bali leaves farming, environment. Accessed 15. February 2010,
from http://www.thejakartapost.com/news/2008/08/14/bali-leaves-farming-environmentbehind.html
Community-based tourism: Research report (December, 2006). Accessed 15. February 2010, from
http://www.responsibletravel.com/copy/Copy100814.htm

43

Badung prepares seven tourism villages. (May 31, 2009). Accessed 15 February 2010, from
http://villarentalbali.com/balinews/2009/05/31/badung-prepares-seven-tourism-village/
Bali to develop integrated village tourism. (2009). Accessed 16. February 2010, from
http://www.bali-travelnews.com/index.php?option=com_content&view=article&id=
407:bali-to-develop-integrated-village-tourism-&catid=1:headline-news&Itemid=146
Balis valleys of the kings. (n.d.). Accessed 16. February 2010, from
http://www.baliblog.com/travel-tips/bali-daily/balis-valley-of-the-kings.html
Banjar Bali: village level government. (n.d.). Accessed 12. April 2010, from
http://www.baliblog.com/travel-tips/banjar-bali-village-level-government.html
Jeremy Stafford, (Dec 2007), Co-ownerVoluntours, Response to Voluntourism Pros, Cons, and
Possibilities, Accessed 28. May 2010, from http://www.energizeinc.com/hot/2007/07febres.html
Christopher Hill, manager of Hands Up Holidays, Accessed 8. June 2010 from
http://www.handsupholidays.com/read/about-handsup
Interviews and important meetings
Pinge's tourism body, Made Denayasa, Mr. and Mrs. Gosana, other village authorities and two
ITMC students, Introductory meeting about CBT development in Pinge, Banjar on 7.
February 2010
DRS. I KT. Budiyana, professor for tourism and guest house owner in Ubud, interview held on 16.
February 2010
Made Receb Adnyana, resident of Pinge with good English skills, interview held on 21. March
2010
Mr. Djinaldi Gosana, executive director of the Bali Hotels Association and Made Denayasa,
community leader Pinge, interview held in Banjar Pinge on 21. March 2010
I Wayan Adi Sumiran, owner of travel agency PT. Adi Tour & Travel, interview held on 29. March
2010
Mr. Pagung, archaeologist from Bali and expert in Hinduism, interview held on 18. April 2010 in
Bedulu
Made Suardika, retired restaurant worker, interviews held on many occasions during lunch and
dinner time in Pinge

44

Appendices
Table 1

(2002, estimated by van Egmond, T. based on WTO data, 'Understanding Western Tourists in
Developing Countries', 2007, Wallingford: CABI)

45

Table 2 - framework for CBT planning and development

46

Table 3 - Understanding the Tourist Phenomenon, van Egmond 2005, p. 105

47

Table 4 hierarchy of backpacker destinations 2002

(van Egmond, 2007, 'Understanding Western Tourists in Developing Countries', p.72)

Table 5 - Number Of Foreign Visitor Arrivals To Indonesia By Country Of Residence 2002-2008

Country Of Residence
USA
Canada
Others America
Total America
Austria
Belgium
Denmark
France
Germany
Italy
Netherlands
Spain & Portugal
Sweden
Norway
Finland
Switzerland
United Kingdom
Rusia
Other Europe
Total Europe

2002
160982
32690
28380
222052
18874
24079
19773
96844
142649
56857
110631
55368
30771
19301
8564
28848
160077
14155
46213
833004

2003
130276
25104
20166
175546
14220
22730
16172
75945
113895
33467
91446
27969
22085
15010
6708
20929
98916
14413
31999
605904

2004
153268
30997
25514
209779
24235
26254
18289
91710
134625
42504
92152
38215
25285
15226
6936
32238
113578
18770
40689
720706

2005
157936
28806
22769
209511
19365
15084
19306
109567
156414
38118
114687
32008
25137
16819
7377
30466
163898
17138
33024
798408

2006
130963
29918
23644
184525
18759
26652
12937
98853
106629
35859
110272
47000
21412
15956
8653
27215
110412
34116
55673
730398

2007
155652
32343
32207
220202
16206
27245
15144
104473
112160
29570
106987
51837
22909
16095
9937
25352
121599
52928
84288
796730

2008
174331
39784
25563
239678
17696
21996
17507
125216
137854
33300
140771
45830
23067
17434
10535
31662
150412
69628
81837
924745

(Badan Pusat Statistik, 2008, extract from

http://dds.bps.go.id/eng/tab_sub/view.phptabel=1&daftar=1&id_subyek=16&notab=16)
48

Table 6 Map Pinge

49

Photo Impressions
Photo 1

(rice field view Jatiluwih 20 minutes on motorbike from Pinge)

Photo 2

(rice field view Jatiluwih)

50

Photo 3

(hot spring Angseri big swimming pool with warm water and small waterfall in the back)
Photo 4

(smalles hot water pool in Angseri)

51

Photo 5

(small local restaurant in hot springs Angseri)

Photo 6

(National Monument Margarana)

52

Photo 7

(Ceremony in Pinge with offerings in a temple and music)

53

Photo 8

(Volleyball stadium made from Bamboo In Pinge)

Photo 9

(Homestay accommodation front view)

54

Photo 10

(Tourist place under construction)

Photo 11

(600 year old stone relics Ganesha and Shiva, and Shiva Lingam)
55

Photo 12

(Pinge street north and south view)

56

Photo 13

(Pura Natar Jemeng entrance and inside the altar are the ancient stone relics)

57