CC BY
2
UDC 332; DOI 10.18551/rjoas.2023-01.01
POST-PROFIT STRATEGY: REDESIGNING ROLES OF MARKETING AS A PILLAR IN SUPPORTING SUSTAINABLE TOURISM DEVELOPMENT IN BALI
Iswara Agus Made Yoga*
International Institute of Tourism and Business (IPB International), Bali, Indonesia
Astawa I Nengah Dasi
Universitas Pendidikan Nasional, Denpasar, Bali, Indonesia
Suyasa Darma, Diana Wira
International Institute of Tourism and Business (IPB International), Bali, Indonesia
*E-mail: agus.iswara@hotmail.com
ABSTRACT
The desire to turn Bali into a sustainable tourist destination has been getting stronger lately. This is important for the sustainability of Bali tourism and also supports the UN's 2030 Sustainable Development Goals (SDGs) agenda. However, in reality the marketing concept and the marketing concept are still oriented towards economic aspects, namely large profits and the continued growth of the company's life, while environmental and social sustainability aspects are only complementary if the economic aspects have been fulfilled. This study discusses the marketing business strategy to realize sustainable Bali tourism, by using the role of marketing and sellers who act as spearheads in marketing Bali, bringing in tourists, increasing the number of visits and expanding market share. This research uses a qualitative approach that is critical descriptive, namely a critical study of certain social phenomena, in this case the phenomenon of marketing and sales practices of accommodation service businesses in Bali. The results of this study describe or construct in-depth interviews and Focus Group Discussions (FGD) on research subjects so that they can provide a clear picture of the understanding of post profit for sustainability. The concept of post profit was developed from sporadic practices where companies do not make profits as the ultimate goal or only stop at profits but goes beyond thinking and practicing things that are more macro, namely to realize sustainable Bali tourism.
KEY WORDS
Post-profit strategy, marketing, sustainable tourism development, Bali.
The desire to make every tourist destination sustainable is getting stronger lately, but in discourse and steps to realize this desire it is rare to consider marketing aspects and the role of marketers as the spearhead of the tourism industry. This presentation critically and comprehensively examines the role and contribution of marketing and marketers in realizing sustainable tourism development and also supporting the UN's 2030 Sustainable Development Goals (SDGs) agenda. The study includes a discussion of the biggest challenge currently facing marketing around the world which is focused on profit, whether it is direct profit oriented, indirect profit oriented and also a combination or mix profit oriented model. These three models are both profit oriented which of course have positive and negative impacts.
The new paradigm that is presented in response to the negative impacts that arise is the post-profit marketing paradigm, namely marketing that does not stop at achieving profit as the ultimate goal but goes beyond with the aim of contributing in the form of support to sustainable tourism development programs with the belief that profits will follow.
This concept is the next face of the triple bottom line which harmonizes the aspects of profit, people and planet which was first coined in 1994 by John Elkinton. The post profit concept is an update of the triple bottom line, but in fact it has been implemented decades
ago in Bali, one example is the Tri Hita Karana concept, namely the aspects of Parahyangan, Palemahan, and Pawongan, where the element of profit is not an aspect, but the harmony of these three aspects will bring benefits and prosperity, not only profit but benefits, namely wider and more sustainable benefits.
Post profit marketing has three main objectives. First, the marketer's role should not only stop at achieving profit, but can go beyond it so that it does not focus only on the sustainability of the business but also the sustainability of the destination. Second, marketers have a strategic role in inviting potential customers to become responsible tourists in the context of preserving the nature and culture of the destinations visited. Third, the success of increasing tourist awareness to become a responsible tourist can assist tourism managers in realizing the ideals of building sustainable tourism. By providing a commitment to support sustainable tourism development programs, monetary benefits will come in a sustainable manner. Conversely, profits will not be sustainable if tourism declines.
LITERATURE REVIEW
In accordance with the topic of this research regarding the importance of marketing in addition to fulfilling the desire to make a profit, it is also to support sustainable tourism development in Bali. Iswara (2020) conveys theoretically and empirically in his research that marketers currently need a sustainability-oriented marketing model for the following three reasons. First, the role of marketers is more inclined to achieve profit targets and often forgets the task of participating in maintaining the sustainability of Bali tourism. In this case the marketer should not only stop at achieving profit, but can go beyond it so that the marketer's task is not only focused on the sustainability of the business but also the sustainability of the destination. Second, as officers who are at the forefront of conducting transactions with customers (tourists and travel agency agents, retailers or wholesalers) a marketer has a strategic role in inviting prospective customers to participate in becoming a responsible tourist in the context of preserving the nature and culture of the destinations visited. Third, the success of increasing the awareness of tourists to become responsible tourists can help tourism managers in destination areas to realize the ideals of building sustainable tourism.
Rahmawati, Jiang, Law, Wiranatha, and DeLacy in their research "Spirituality and corporate social responsibility: an empirical narrative from the Balinese tourism industry" (2018) discussed the importance of a spiritual approach and social responsibility in the development of sustainable tourism in Bali. In her study, Rahmawati et al., analyzed spiritual-based social responsibility in the context of Tri Hita Karana in building sustainable tourism. In their research, they qualitatively interviewed 20 interviewees and conducted two focused discussions involving businessmen, government and non-governmental organizations (NGOs). Analysis of opinions and literature, they concluded that spiritual-based corporate social responsibility assistance by directing assistance to spiritual, religious, and cultural aspects is very important in building sustainable tourism. The relevance of Rahmawati et al., research Rahmawati et al., shows the importance of sustainable tourism development in Bali by paying attention to spiritual aspects, something that is rarely discussed by researchers. However, this research does not pay specific attention to the role of sales and marketing in supporting CSR efforts to support sustainable tourism development, which is the focus of this research.
Bendesa and Aksari's research entitled "From Agricultural to Tourism Hegemony: A Deep Socio-Economic Structural Transformation" (2017) outlines the shift in the contribution of the agricultural and economic sectors to Bali's development. This study highlights the slow but sure changes in the declining contribution of agriculture and the increasing contribution of the tourism sector to economic growth and development in Bali. This study provides an indication that if this is allowed to continue, inequality will not be avoided. The tourism sector is advancing, while the agricultural sector is declining, aka it is under the threat of being unsustainable. What is not discussed in Bendesa and Aksari's research is what steps must be taken to build sustainability. This issue is raised in this dissertation by paying attention to
the role marketers can play in accommodation services in Bali to realize sustainable Bali tourism development.
Pitana (2002) in the book Tourism, Forum for Preservation of Culture and Community Dynamics of Bali and Pitana and Gayatri (2005) in the book Sociology of Yogyakarta Tourism discusses the impact of tourism as a basis for providing solutions to sustainable tourism development, especially with an emphasis on cultural aspects. Tourism is an activity that directly touches and involves the community so that it has various impacts on the local community. Even tourism is said to have extraordinary breaking energy that is able to make local people experience metamorphosis in various aspects. The impact of tourism is an area of study that has received the most attention in the literature, especially the impact on local communities (Pitana and Gayatri 2005). With this paradigm, the community is empowered to play an active role from the early stages, so that the negative impacts of tourism on the physical and socio-cultural environment can be avoided (Pitana 2002). Tourism apart from contributing to determining a country's income, is also a partnership of organizations both national and international in an effort to save the environment, preserve nature and culture, provide local communities with benefits and opportunities to respond to change.
Thoughts in the marketing concept and practice have evolved over time. Belz and Peattle (2010) in their research emphasize that the conventional marketing mix is considered unable to answer the challenges of issues regarding sustainability, so it is necessary to adopt the concept of sustainable development into a marketing strategy that provides more benefits to customers. Belz and Peattle proposed the 4Cs of sustainability marketing mix, which consisted of customer solutions, customer costs, convenience and communication. The limitations of this research are that it is still limited to the model proposal and the aspects that are focused on the 4Cs are customers, which means that the planetary and social aspects in the concept of sustainability have not been clearly identified.
Similar to the thinking of Belz and Peattle (2010), Kumar, et al., (2012) also in their research transformed the 4 Ps marketing mix namely; product, price, place and promotion to 4C namely: customer solution, customer price, convenience and communication. The basis of this transformation is because the conventional marketing mix has not been able to answer the challenges of the issue of sustainability marketing, so that the ecological and social problems caused by current business practices need to be harmonized with the concept of sustainability. In contrast to Belz and Peattle's research, this study seeks to formulate an ideal marketing model that supports sustainable tourism development in Bali. This model is to be built from the existing potential in the marketing practices of accommodation business services in Bali so far.
The theoretical basis of the triple bottom line is used as the grand theory in this study, because this theory is also the basis for tourism marketing innovation which is expected to be a solution in realizing sustainability in Bali. Besides the triple bottom line theory, this research is also supported by other theories, namely (1) legitimacy theory, (2) stakeholder theory and (3) agency theory. These three supporting theories can describe the conditions of how a company can change or run a sustainable marketing innovation in Bali.
METHODS OF RESEARCH
Research on post profit for sustainability to support sustainable tourism development in Bali is a study carried out with a qualitative approach. As a qualitative approach, it means that work procedures and data collected and analyzed are qualitative data such as opinions, opinions, analysis, predictions, discourses, and observations. The data is examined critically, described descriptively supported by available quantitative data. Data collection was carried out through in-depth interviews and Focus Group Discussion (FGD). In addition, the views of previous researchers contained in books, documents, publications also play an important role in studying research subjects so that they can provide a clear picture of understanding and new forms of knowledge or stronger alternatives. This research was conducted in Bali, especially in the type of accommodation business. Data collection methods and techniques in this study were literature study, observation, in-depth interviews, and FGDs. The
determination of experts in this study were representatives of the government, the tourism industry, the private sector, academics and the community who were selected based on their abilities and were seen as having a connection with the research problem. This study uses descriptive-critical-interpretative data analysis.
RESULTS AND DISCUSSION
Before the pandemic hit the world, Bali's tourism development had progressed rapidly in the last ten years. This is evidenced by various facts, such as the growth in the number of direct foreign tourist arrivals to Bali, investment growth through the development of tourism-related properties, which are spreading not only in Badung Regency, Denpasar, but also in Gianyar, especially the tourist area of Ubud (HVS 2015). In addition, Bali also recorded several achievements following its crowning as the world's best destination chosen by tourists in a TripAdvisor survey. Nonetheless, Bali tourism also faces various challenges that arise as a result of its development, such as traffic congestion problems, waste, gaps in the commercialization of cultural arts, unhealthy competition due to too many similar businesses in the tourism service business, and security threats such as terrorism (Chong 2020; Gurtner 2016; Putra and Hitchcock 2007).
One prominent indication of the rapid development of tourism in Bali is the growth of the hotel business. As of 2018, the number of star hotel rooms, non-star hotels and other accommodations available in Bali has reached 146,000 rooms. Badung Regency, in 2018 the number of rooms reached 102,000 rooms or 70% of all rooms in Bali (PHRI Badung
2019). The large number of rooms in Badung Regency is inseparable from the existence of three developed tourism areas, namely the Nusa Dua Area, Tuban Area and Kuta Area.
The emergence of competition in room rental prices has implications for the cheaper offers of tour packages offered by travel agents, especially now that travel agents easily offer their products via the internet. With such conditions, it strengthens Bali as a cheap destination so that tourists who come to Bali are not what many people expect, namely quality tourists but still lead to mass tourism.
In 2019, the average total occupancy of hotel rooms in Bali was 59.56% and this figure decreased compared to the previous year. The decline in occupancy rates certainly increases the competition between accommodation providers, not including the hotel class of cottage tours, jasmine, villas and homestays. The competitive atmosphere can get out of control and price wars are unavoidable between accommodation business providers (BPS
2020).
Competition does not only occur in accommodation entrepreneurs, online room booking service businesses also trigger price wars. Various ways are offered by online travel business companies, providing as complete information as possible about the hotels offered, including hotel location, physical form of the hotel, facilities to the price offered. Competition occurs when they offer the lowest prices to each other by pressing the hotel to provide more competitive prices.
As is the case in other areas, Bali's tourism destinations also aspire to become sustainable tourism. This means that the government and the public and businessmen have a great desire to make Bali a tourist destination that is not only successful now but also forever. For this reason, various efforts are carried out, both systematically with the government as the regulator, as well as creatively carried out by entrepreneurs and the public, by developing various alternative tourism, which does not emphasize profit-making but sells tourism services that are pro-environmental and pro-social culture. Types of services such as yoga, cooking classes, organic, and volunteers are alternative tourism service businesses that do not highlight economic desires but actually provide special attractions and quite convincing benefits. However, in implementing sustainable Bali tourism, there are many challenges that must be faced.
Tourism and the environment will influence each other depending on how they process each other. Tourism is an industry whose survival is largely determined by the good and bad of the environment. The rapid growth of global markets, including tourism, has been
accompanied by an increase in environmental imbalances and damage throughout the world. In reality, the growth of tourism investment can be seen in the dramatic changes in the landscape of the island of Bali. Coastal areas, rice fields, riverbanks, hills and mountains and even forests that function as water catchment areas cannot be separated from the target locations for developing tourism facilities. Changes in land functions that are very rapid, not only become a serious threat to the existence of farmers who have long depended on paddy fields, but also result in changes in the structure of work that is vulnerable to creating unemployment problems.
Behind these positive quantitative developments, the Province of Bali as the most developed tourism destination in Indonesia has serious problems, especially in the aspect of degradation of the natural environment and the socio-cultural life of the Balinese people. The existence of tourism, on the one hand, can indeed strengthen the social solidarity of indigenous peoples by taking advantage of opportunities from tourism to strengthen internal self-defense.
On the other hand, the existence of tourism causes the threat of subak environmental degradation with the conversion of rice fields to tourism support facilities. Especially for land conversion in Bali in 2017 it increased to reach 895 hectares per year. Of the nine regencies and cities in Bali, Tabanan Regency is the highest contributing area to land conversion in 2017, which is 363 hectares. Buleleng is in second place with a total area of 325 hectares. While Jembrana and Bangli relatively did not experience a decrease in the area of rice fields. As for Badung, it experienced a shrinkage of 38 hectares, Denpasar covering 35 hectares, Gianyar covering 50 hectares, Klungkung covering 64 hectares, and Karangasem reaching 20 hectares (BPS Bali 2017).
With the shrinking of paddy fields, the various positive externalities that arise from rice cultivation, especially irrigated lowland rice, also disappear. This phenomenon provides an understanding of the existence of Bali's natural resources which are increasingly threatened by the growth of tourism infrastructure and facilities. The predictable logical consequence is a decrease in the ability to be self-sufficient in food and the marginalization of farmers. It is feared that this will threaten the sustainability of tourism itself, because the agricultural sector itself is one of the attractions of the island of Bali.
Bali cannot avoid various external influences that will enter, for that in the future Bali must have an "Open Fortress", where tourism accepts various changes of globalization but avoids negative impacts. For this reason, it must have strength/fortress as resistance to the onslaught of various unavoidable impacts.
Another reason to note is that the development of Bali tourism is more focused on economic or profit aspects alone, so that there is a gap between the economic aspect and two other aspects, namely environment and socio-culture. One example is the marketing strategy used today which is more profit oriented. Marketing professionals also consider that their main task is to sell products, while the task of preparing products for sale is the task of other parties or people. In fact, if examined more deeply, the role of marketers is not only selling and selling products but is responsible for participating in making and maintaining product quality. If viewed at a more macro level, marketers must participate in making the products they sell and Bali tourist destinations in general to remain high quality and sustainable. Marketing cannot only meet the expectations and desires of tourists only to gain profit and satisfy tourists, with social, cultural and environmental costs being borne by the people at the destination. Professional marketing ideally negotiates with customers to invite customers to participate in preserving the nature and culture of the destinations where they visit.
A profit-oriented marketing model is a normal practice in business, but if it only focuses on profit, this will be very detrimental to Bali in the long run. Marketing in Bali should not make profit the ultimate goal or only focus on profits but go beyond what in this case is called post profit, which is in accordance with the concept of Tri Hita Karana which is the breath of life in Bali. As a future solution in Bali is how to balance the achievement of both economic, environmental and socio-cultural performance to avoid conditions where future generations experience problems in meeting their needs.
As with other businesses, tourism service businesses in Bali are here to make a profit. Everyone has a goal to make a profit. It's just that some of their ways to get profit are direct and explicit, there are also indirect ones by highlighting products and activities that are environmentally friendly and support cultural preservation. Based on that and a study of around nine hotels from the categories of stars, resorts, boutiques, glamping, their marketing models can be divided into three groups, namely, (1) direct profit-oriented models, (2) indirect profit-oriented model and (3) mix of profit-oriented model. These three models represent almost all of the accommodation business services in Bali. The three groups above are still focused on profit even though the promotion method is different (Iswara, 2022).
Another challenge in this research is that when owners and managers agree to only prioritize the economic aspect (profit) as their business goal, all activities related to corporate social responsibility become not an urgency or priority. If they succeed in meeting the target, it is possible that the corporate social responsibility program can run. However, ironically, the corporate social responsibility program will be difficult to implement and may not even work if they do not meet the expected target (profit). In fact, the operation of the business, whether it is profitable or not, has contributed to negative impacts on socio-cultural and environmental aspects. So that this research is present in order to be able to internalize external costs such as the CSR program included as costs or internal costs and recovery of the negative impacts can still be carried out and minimized regardless of the profits or losses of the company.
Marketers in Bali should not only make profit the ultimate goal, but can go beyond the goal of making a profit. They ideally do not stop at making a profit but show a commitment to support efforts to make Bali tourism sustainable. If this can be achieved then the business will grow and automatically the profits will follow. On the other hand, profits will be threatened with stopping if Bali tourism experiences a decline or it no longer becomes the choice of tourists. Marketing that adopts the post profit concept has more sensitivity to ethics, the environment and also strong social responsibility. Business people in Bali should take a more active role not only focusing on achieving internal company profits, but also participating in maintaining the sustainability of their destinations. The concept of post profit will indirectly make marketing activities to educate customers to become responsible customers and jointly participate in maintaining the sustainability of a destination.
The concept of post profit is the next face of the triple bottom line which harmonizes the aspects of profit, people and planet which was first coined in 1994 by John Elkinton. The post profit concept is an update of the triple bottom line, but in fact it has been implemented decades ago in Bali, one example is the Tri Hita Karana concept, namely the aspects of Parahyangan, Palemahan and Pawongan, where the element of profit is not an aspect, but the harmony of these three aspects will bring benefits and prosperity, not only profit but benefits, namely wider and more sustainable benefits.
Spirituality
Economic
Figure 1 - The concept of Post Profit for Sustainability
The Marketer Expert's response to the post profit concept has been tested again through Focus Group Discussions (FGD) to obtain input, additions or corrections to the model under study. The results of the FGD concluded that conventional marketing models have not answered the challenges of sustainability issues in Bali, so it is only natural that the orientation of the accommodation business focuses on economic aspects. With the existence of an innovative sustainable marketing model which in this study is called post profit for sustainability, it can be one of the solutions in the field of marketing in Bali towards sustainable tourism. The concept of post profit uses the basic philosophy of Tri Hita Karana and is believed to be able to reduce the gap between the negative and positive impacts of tourism development in Bali. It can be said that the concept of post profit for sustainability is the next level of the triple bottom line concept, because in the post profit concept the company does not make profit the ultimate goal but is committed to thinking about and practicing more macro things to help maintain destinations in realizing sustainable Bali tourism, as described in Figure 1.
A profit-oriented marketing model, either directly, indirectly or a mixture of both, contributes to development gaps that have a negative impact on the environment. From the results of interviews and FGDs, it was identified that there were four negative impacts on the environment, namely (a) accelerating land conversion, (b) accommodation industry waste, (c) plastic waste, and (d) the threat of clean water crisis. While the social impacts were also identified as having four negative impacts, namely (a) cultural degradation, (b) increased crime, (c) hegemony over local residents, and (d) congestion. Harmony is the key word in improving the current marketing model which is only oriented to the profit aspect which is the basis for the company's survival. The concept of post profit for sustainability is expected to be a solution for marketers in Bali in carrying out their marketing strategy, as well as being committed to realizing sustainable tourism development that is not only beneficial for Bali, but at the same time contributing to the global development goals on the agenda of the United Nations (UN) in the 2030 Agenda known as the Sustainable Development Goals (SDGs).
CONCLUSION
From the description above it is clear that the journey of the Bali tourism industry with all its successes and also some of the problems it has faced. The development of Bali tourism as shown in the number of visits, the increasing number of accommodations, and the magnetism of Bali as a tourist attraction is the result of collaboration with stakeholders. What is rarely appreciated in particular is the role of marketers, perhaps because their role is seen narrowly as the frontline business officer or the spearhead of a business in seeking profits and continuing to expand markets. In fact, if you think about it openly, in an effort to bring in tourists and expand market share, the role of marketers is very large. The role of marketers is actually not only in a positive sense, but also the opposite. Marketers are also responsible when there is a tariff war in the hotel industry or the emergence of phenomena that lead to an environmental crisis, excess capacity or carrying capacity leads to over tourism. In this context, marketers need to carry out marketing strategies so that the idea of realizing Bali as a sustainable tourism destination can be realized.
Profit-oriented is a natural thing for companies because profit is the basis of company survival. However, if entrepreneurs only make the economic aspect the only parameter of success, then practical business can lead to unethical business methods. What's even worse is that there is an assumption that unethical business practices are something that is legitimate if you want to get the maximum profit according to economic principles, and this concept is certainly not appropriate to be implemented on the island of Bali which has a Tri Hita Karana philosophy that promotes harmony between humans, the environment and their creators. In other words, entrepreneurs have a big responsibility in maintaining harmonious relations between social culture, economy and environment.
This research presents a marketing strategy, namely post profit for sustainability as a response to the negative impacts caused by the current marketing model applied by most types of accommodation businesses in Bali which are more focused on achieving economic
aspects. The innovation strategy is formulated and tested by marketing experts to serve as a solution in maintaining business continuity while maintaining destinations and aspirations to realize sustainable tourism in Bali.
The concept of post-profit or beyond the bottom line is developed from facts and sporadic practices where companies do not make profit the ultimate goal or just stop at micro profits but go beyond them to participate in more macro practices, namely contributing to realizing sustainable Bali tourism. By providing a commitment to support sustainable tourism development programs in Bali, financial benefits will come in a sustainable manner. Conversely, profits will not be sustainable if Bali tourism experiences a decline. In the context of a business mindset, the post-profit paradigm can be explained by the story of The Goose that Laid the Golden Eggs which has a metaphor that the main goal must be to take care of geese if you want to get eggs, not vice versa to get eggs by forgetting the importance of taking care of geese.
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