CC BY-NC-ND
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Original article
DOI: 10.17323/1999-5431-2024-0-5-163-177
PUBLIC-PRIVATE PARTNERSHIP MODEL TO MANAGE COASTAL TOURISM IN INDONESIA: CAN IT IMPROVE THE COMMUNITY WELFARE?
Sri Untari1, Sumarmi2
1 2 State University of Malang, Malang, Indonesia; 5 Jalan Semarang, 65145, Malang, Indonesia.
1 Ph.D. in Public Administration, Associate Professor in Department of Civic Education, Vice Dean in Faculty of Social Science; ORCID: 0000-0003-4956-3800
2 Ph.D. in Environmental Resource Management, Professor and Senior Lecturer in Department of Geography Education, Dean in Faculty
of Social Science; sumarmi.fis@um.ac.id; ORCID: 0000-0002-3102-0376
Abstract. The public-private partnership and local communities play an important role in the development of coastal tourism. The welfare of coastal communities depends on the synergy of the partnership built. The study aimed to determine (1) the management of coastal tourism by public-private partnerships and local communities, (2) the balance between the public-private partnerships and local communities in coastal tourism management, and (3) the contribution of coastal tourism management to community welfare. A mixed method approach was used in the research. Data were collected through in-depth interviews, observations, semi-open questionnaires, and documentation. The results showed that the management of coastal tourism developed through a public-private partnership between private institutions, regional governments, and community groups was properly implemented. The balance of partnerships between the Forest Village Community Organization (Lembaga Masyarakat Desa Hutan), Tourism Awareness Group (Kelompok Sadar Wisata or POKDARWIS), and local communities was well implemented in many community activities around the tourism area. The public-private partnership established with a mutually beneficial agreement was able to improve the community welfare.
Keywords: public-private partnership, tourism management, community welfare.
© HSE, 2024
163
For citation: Sri Untari and Sumarmi (2024) 'Public-private partnership model to manage coastal tourism in Indonesia: Can it improve the community welfare?', Public Administration Issues, 5, pp. 163-177. (In English). DOI: 10.17323/1999-5431-2024-0-5163-177.
JEL Classification: H54, L33, O13, O18.
Introduction
Tourism is a very important economic sector to be developed, as it has an impact on various economic sectors in the community (Robertson, 2011). Tourism can be used to drive economic change and open up employment opportunities, increase income and improve the quality of life of local people (Jarvis et al., 2016; Katunian, 2019; Setiawan et al., 2012). One approach that can be used in the development and planning of tourism studies is the community-based approach model (Keyim, 2018). This approach is based on the partnership of the community to maintain their local culture and to improve welfare (An-szperger, 2017; Ardianto, 2012; Ernawati et al., 2017).
The concept can guarantee economic growth from which all parties benefit fairly and proportionally (Ibrahim and Hegazy, 2015). In order to achieve the objectives, the essential elements of the ICZM concept, Integrated Coastal Zone Management (ICZM) is an approach used to manage coastal areas by considering ecological, economic, and social sustainability. It involves activities such as natural resource management, development control, community welfare improvement, and marine environment conservation. Such as integration and coordination, must be used (Hou and Hou, 2020).
There are several forms of partnerships to develop community empowerment, including increasing marketing and accessibility, and improving the quality and service of human resources (Goodwin, 2002; Haywood, 1988; Pauliukeviciüté, 2010; Timothy, 1999). Important things that must be considered in coastal management are partnerships between communities, private institutions and government (Dunayev et al., 2020; Vinogradov and Shadrina, 2018; Yoety, 1997).
In-depth studies on public-private partnerships have been widely discussed. These partnerships have been extensively debated in various contexts, including water management between countries and communities (Beisheim and Campe, 2012; Lemos et al., 2002), construction and sustainable development (Allard and Trabant, 2008; Caloffi et al., 2017), and improving the quality improvement of education (Latham, 2009; Untari, 2014). These studies also reveal that public-private partnerships help increase trust between partners and reduce work and project risks (Grimsey and Lewis, 2004; Robertson, 2011).
However, there has been limited in-depth research on public-private partnerships in coastal tourism management in Indonesia. Coastal tourism management involves various issues that impact the local community. These problems not only affect tourist visits but also have implications for income and welfare. Therefore, it is crucial to investigate the public-private partner-
ships in the management of coastal tourism in Indonesia and their contribution to community welfare.
Previous research findings indicate that public-private partnerships in various sectors have shown positive results. One contributing factor to the success of these partnerships is the existence of fixed-cost contracts with actual verification from one of the parties (Vinogradov and Shadrina, 2018). Hence, this study aims to examine the public-private partnership in coastal tourism management in Indonesia and its impact on community welfare.
Literature review
Public-Private Partnership
The public-private partnership that has evolved to manage coastal tourism aims to provide wealth for the community and protect the environment in a sustainable way (Caloffi et al., 2017; Ezreth, 2014). The benefits of the public-private partnerships include the ease of organizing the system (Yankholmes, 2018), public sector accountability (Thomas, 2007), efficiency and productivity, innovation and flexibility (Haywood, 1988), strengthening local networks and bringing in community experiences (Wahyuni, 2016), and increasing the ability to manage tourism (Latham, 2009; Menon and Edward, 2014).
The public-private partnerships are a collaboration between the government and the private sector to achieve their organizational goals. Public-private partnership arrangements can include a combination of public institutions, private organizations and non-governmental organizations (Lemos et al., 2002; Untari, 2014). The public-private partnerships also regulate institutions and finances (Khanom, 2010). The public-private partnerships provide an opportunity for collaboration between public and private partners using resources and competencies (Ezreth, 2014; Latham, 2009). The public-private partnerships are cooperative relationships between the government and private or non-governmental organizations in providing goods and services to citizens (Untari, 2014). Therefore, public-private partnerships also involve small community groups in their management (Ernawati et al., 2017).
The partnerships in this study are partnerships between the Tourism Board and PERHUTANI (a government-owned company that manages forests in Indonesia) as public institutions, the Tourism Awareness Group (Kelompok Sa-dar Wisata or POKDARWIS) and the Forest Villages Community Organisation (Lembaga Masyarakat Desa Hutan or LMHD) as private institutions and local communities.
The use of public-private partnerships is adjusted to the partnerships and management objects. One model of public-private partnerships emphasizes the responsibility of private contractors in designing and operating the project (Grimsey and Lewis, 2004). Other public-private partnerships models provide the opportunity to design and construct projects, while operations are managed by the government (Allard and Trabant, 2008). Also, there is a public-private partnership model where the government only buys services provided by private partners (Untari, 2014).
Coastal tourism management
The concept of Integrated Coastal Zone Management (ICZM) encompasses the holistic management of coastal areas, considering various aspects such as economic, social, environmental, and technological factors (Hou and Hou, 2020). Its primary objective is to achieve sustainable long-term economic growth. Any policy and strategy related to the use of coastal resources should be based on several key considerations. Firstly, a thorough understanding of natural processes (eco-hydrology) is crucial (Wahyuni, 2016). Secondly, the economic, socio-cultural, and political conditions of the local community must be taken into account (Jarvis et al., 2016). Lastly, the present and future needs of coastal areas should be considered (Purnomo et al., 2020). The implementation of ICZM requires the active involvement of government organizations, the private sector, and local communities.
The community welfare
Community welfare is the ultimate goal of public-private partnerships. Community welfare can be realized with collaboration between the government, the private sector, and local communities (Alexander et al., 1999; Jarvis et al., 2016). Development and resource utilization policies in coastal areas must be implemented to (a) increase community income and welfare, (b) enhance community participation, and (c) promote development to increase income (Anszperger, 2017; Argyo, 2009; Setiawan et al., 2012). Integrated strategic policies are needed to develop coastal areas. The policies include (a) economic policies, (b) natural resource policies, and (c) institutional development policies aimed to provide legal certainty (Khanom, 2010; Pemkab Malang, 2016). Therefore, community welfare highly depends on the performance of the partnership system that is built.
Research methods
The research design combined qualitative and quantitative methods (Johnson and Christensen, 2019). The study was conducted in Ungapan Beach, Gajah-rejo Village, Gedangan District, Malang Regency, East Java. Qualitative methods were employed to examine the patterns of partnership between the Forest Village Community Organization (Lembaga Masyarakat Desa Hutan or LMDH), the Tourism Awareness Group (POKDARWIS), and the local community in managing Ungapan Beach, and to assess the equilibrium of partnerships between the parties involved. In-depth interviews were conducted with the management of LMDH, POKDARWIS, and several community members to gather qualitative data. The interview guide was designed based on the partnership between LMDH, POKDARWIS, and the community in the management of Un-gapan Beach. Additionally, information about the landscapes and phenomena observed at the research site was collected through documentation. The location of Ungapan Beach Tourism is shown in Figure 1.
The qualitative method was utilized to collect data aimed at examining the changes of the local economy. The research population consisted of individuals residing in the vicinity of the Ungapan Beach tourism site. Quantitative data,was gathered through structured questionnaires composed of semi-open-ended ques-
tions, which were distributed and directly administered to the respondents. To analyze the qualitative data, an interactive analysis method developed by Huberman (2002) was employed. This analysis process involved three stages: (1) data reduction, which entailed selecting, simplifying, abstracting, and transforming the raw data obtained from the website; (2) organizing the data based on themes and subjects to facilitate interpretation by the researchers; and (3) drawing conclusions, as outlined by Creswell (2012). The researchers also ensured the verification and cross-checking of each collected data to ensure accurate conclusions were drawn based on the focus or problem of the study. Additionally, the researchers also conducted interviews with the government of Gajahrejo village, Gedangan District. In quantitative data analysis descriptive analysis techniques such as frequency and percentage calculations were used, following Johnson and Christensen (2019).
Figure 1. The map of Gajahrejo village
Source: Gajahrejo village office, Gedangan district, 2019.
Results and discussions
Based on the observations conducted along the southern coast of Malang district, there is a significant potential for the development of several beaches in the region. These include Lenggoksono Beach, Sendiki Beach, Ungapan Beach, Bajul Mati Beach, Batu Bengkung Beach, Religi Nganteb Beach, Selok Beach, Ngliyep Beach, Tambakasri Beach, Tamban Indah Beach, Karang Dowo Beach, Tanjung Sirap Beach, and Bantol Beach. The successful development of beaches depends
on various factors, including the presence of natural tourist attractions, local government policies, community participation, available facilities and infrastructure, and security measures. Other important factors encompass the organization of tourism spaces, effective promotion and marketing strategies, organizational capacity, management of attractions, and the establishment of partnerships between community groups and local governments.
LMDH, POKDARWIS and community partnership in tourism management
Ungapan Beach is situated in Gajahrejo Village, Gedangan District, Malang Regency, East Java, approximately 64 km from Malang City. The beach offers a breathtaking view from two different angles. Facing the ocean, the beach showcases its natural splendor, while on the landward side, the estuary of the Pangulu-ran River adds to its beautiful tourism potential. The river estuary features calm waves and brackish water, even during the rainy season when the water volume remains relatively moderate. The riverbed depth reaches about 2 meters, and the estuary's width is less than 100 meters. The water in the estuary appears greenish, while the waters of Ungapan Beach have a blue hue. Notably, Ungapan Beach experiences significant wave activity, particularly in the mornings.
Partnerships in beach management by the community are a common thing. Indonesians have known partnerships or community services for centuries under such terms as sambat sinambat, mapalus, mitra cai, forest village community partners, and others. However, the understanding of partnership is broader than just a concept of cooperation that has several criteria, including implementation by more than one party, that has individual needs, but agrees to achieve the vision and goals to increase team capacity (Putra, 2013).
The partnership is not only a collaboration but has a strategic value in the implementation of modern management, including the development of tourism (Wahyuni, 2016). Community participation in the tourism system is closely related to 2 main institutions that play a significant role in the tourism areas in the South Malang Regency, which are PERHUTANI in Malang and the Malang District Tourism Office. Based on the results of the interviews with the Head of Promotion Services, PD Jasa Yasa, it is known that there is an agreement on management and tourism partnerships between the community and related parties. Some communities work together with the Government of Malang Regency through the LMDH. The Forest Village Community Organization (Lembaga Masyarakat Desa Hutan or LMDH) plays a bigger role in the management of Ungapan Beach, while POKDARWIS is involved in activities of the Malang Regency Tourism Office.
Along the South Malang coastal tourism corridor, there are several examples of community participation through partnerships between POKDARWIS, LMDH, and the community to develop the coast of South Malang. One of the fundamental strategies to build partnerships was to participate in POKDARWIS, LMDH and several other community groups. Some community groups such as the Clungup Mangroove Conservation (CMC) and the Sendang Biru Bhakti Alam Foundation manage the beaches in Clungup Beach, Tiga Warna Beach and Gatra Beach. Also, there are Tani Maju LMDH that manages Ungapan Beach, Batu Bengkung Beach and Bajul Mati Beach, Wonoharjo LMDH that manages Goa Cina Beach,
and Wonodadi LMDH that manages tourism at Balekambang beach. In general, community participation was divided into communities that participate in POK-DARWIS under the Malang District Tourism Office and communities in LMDH under PERHUTANI Malang (Ramanda et al., 2020).
The community also actively participates with suggestions and ideas and participates in tourism development forums. However, the community cannot act as a decision-maker in this forum. The community participates in management as a ticketing officer, parking guard, security guard, and guide for tourists. Community participation in Ungapan Beach is dominated by functional participations. The participation formed a community to jointly develop, advise and plan tourist destinations as an appreciation for the local community organizations (Katunian, 2019). However, the decision-makers in the planning of PERHUTANI destinations were dominated by parties outside the community, such as Perum Perhutani.
The balance of LMDH, POKDARWIS and community partnerships in tourism management
Based on the interview, it was concluded that the management of the South Coast tourist destination in Malang Regency is based on a partnership model. The partnership agreement explained the roles of management and distribution of revenues. The management of beach tourism was PERHUTANI and the Government of Malang Regency with the executor of the Malang Regency Tourism Office. PERHUTANI managed 16 beach tourism destinations (including Ungapan Beach) or about 90% of the beaches in Malang. While the Malang Regency Tourism Office manages only two beach tourism destinations, Balekambang Beach and Ngliyep Beach. The division of the results in tourism management is shown in Table 1.
Table 1
Distribution of the revenue
Stakeholders Percentage %
PERHUTANI 20
Local Government of Malang Regency 35
LMDH 30
Managing Partners:
Village Government 5
Muspika 5
POKDARWIS 5
Sources: Completed by the authors.
Table 1 shows that 20% of the revenue from Perhutani goes to the Malang Regency Government as tax payments, 35% to Perum Perhutani, LMDH receives about 28%-30% and the rest goes to village government partners, such as subdistrict leaders, who receive 2-5%, also for the benefit of the community.
From the interview with one of the employees in the Ministry of Tourism it is stated that tourism management in the East Java region is difficult to meet
an agreement. It is because PERHUTANI owns most of the tourist areas. According to the Malang Regency Government, beach tourism is the main object because the Malang Regency has great potential for beach tourism. The policy should be built through a transparent partnership with a memorandum of understanding (MoU) between the village government and PERHUTANI, so that the Malang Regency Government can support the development of tourism potentials such as improving road infrastructure and other supporting facilities. The partnership becomes a policy innovation to develop Malang coast tourism. The results of the study showed that contracts or agreements for joint operation must support partnerships between communities (Dunayev et al., 2020). The problems in the management of tourist areas were caused by the lack of creating partnerships that share work, capital, results and share risks (Pascariu and Gabriela, 2006; Vinogradov and Shadrina, 2018).
The management of Ungapan Beach tourism is currently managed by two organizations, LMDH and POKDARWIS. Both carry out the management in the work system agreed in the group. Therefore, the tourism office has to supervise the tourism management for adjusting to the tourism service standards. Various studies have shown that the government is unable to manage the tourism sector, and therefore requires partners whether private or community-based (Ezreth, 2014; Kurniawati et al., 2020; Menon and Edward, 2014; Thomas, 2007).
The partnership between organizations has not run optimally, so there are still things that could reduce income, such as illegal fees and parking. Facilities become essential to support tourism. Facilities are infrastructures that meet the needs of tourists when travelling, including restaurants, public toilets, lodging, parking lots and others (Yoety, 1997). The facilities at Ungapan Beach have still developed following the 4A standard in building a tourist destination that is attraction, amenities, accessibility, and ancillary services (Sunaryo, 2013).
Tourist destinations include attractive resources, with emphasis on those providing a comparative advantage, structured by attractiveness categories, competitive potential and target markets; specific infrastructure (transportation, accommodation, restoration, other facilities), general infrastructure (commercial, medical, communication, public services, banking systems); setting and environment (landscapes, weather, attitudes, behaviours); legal and political context (national tourism strategies and regional strategies, policies in complementary fields such as SME, transport, environment); public and private actors that are involved or could be involved; the existing market (identification of interesting resources for existing target segments and providing competitive advantages); vulnerable resources (Pascariu and Gabriela, 2006).
The Ungapan Beach management partnership is suitable for the development of tourism destinations. The partnership between LMDH, POKDARWIS and the local community aims to produce consensus and balance that leads to new opportunities and innovative solutions. In general, partnerships in Ungapan Beach tourism management have not met the standard elements of partnership. The critical elements of a tourism management partnership are (a) all stakeholders are interdependent, (b) solutions are made by constructively dealing with differences; (c) joint ownership of the decision involved, (d) stakeholders take collective re-
sponsibility for future direction, and (e) partnerships remain dynamic (Graci, 2013).Ungapan Beach tourism management is shown in Figue 2.
Figure 2. Diagram of Ungapan Beach tourism management
1. PERHUTANI (a government-owned corporation that manages the forest in Indonesia)
2. Local government of Malang Regency
3. Village community organization (Lembaga Masyarakat Desa Hutan or LMDH)
4. Tourism awareness group (Kelompok Sadar Wisata or POKDARWIS)
5. Local communities
The balance partnerships between LMDH, POKDARWIS and local communities need to be improved through local government policy interventions. The strategy of promoting local community organizations needs to be developed continuously in tourist destination management (Grimsey and Lewis, 2004; Kurniawati et al., 2020). Partnerships between communities need to be developed as social resource network in the villages around the Ungapan Beach tourism area.
Contribution of partnership in tourism management to community welfare
The results showed that the Ungapan Beach destination is potentially suitable for development, due to such reasons as (a) the ecological environment of Ungapan Beach is suitable for beach recreation, (b) the availability of tourism facilities and infrastructure, (c) excellent regional support, (d) reasonably well-managed tourism management system collaborated with PERHUTANI and LMDH, (e) rental services are available to improve the economy such as shop owners, boat rentals, atv rentals, lodging rentals, outbound facilities (f) public perception of the Ungapan coast and, (g) typical culinary specialties such as grilled fish found in almost all food stalls. This factor has motivated the Malang Regency government to accelerate economic growth in the coastal areas.
The strategy to develop Ungapan Beach tourism was implemented by identifying a) beach attractions, b) human resources to support tourism, c) support-
ing facilities for tourism. The tourism development in Gedangan District is described in Figure 3.
3,5 3 2,5 2 1,5 1
0,5
1 1 ■ w 1 *■
Tumpakrejo Sindurejo Gajahrejo Sidodadi Gedangan Segaran Sumberrejo Girimulyo
y2015 1 1 1 0 0 0 0 0
U2016 1 1 1 0 0 0 0 0
B2017 1 1 3 0 0 0 0 0
«2018 1 1 3 0 0 0 0 0
a 2019 1 1 3 0 0 0 0 0
y2015 M2016 H2017 -2018 H2019
Figure 3. Beach tourism objects in the district of Gedangan
Figure 3 shows that the number of beach resorts is increasing. In 2015, there were three beaches in Gedangan subdistrict, now there are five beaches. Gajahrejo village used to have only one beach, but now there are three beaches there (Baju-lmati Beach, Ungapan Beach and Karang Dowo Beach). The growth of beach resorts has a very positive impact on the growth of businesses in the area, especially businesses that support the tourism sector, such as restaurants, eateries, kiosks and others, as described in Figure 4.
Figure 4. The number of restaurants around the beach
Figure 4 shows that the development of Ungapan Beach affects the economy of the surrounding communities. The highest growth of restaurants was in Ge-dangan Village, the capital of the subdistrict. The next highest growth was in the village of Gajahrejo due to the location of Ungapan Beach. It showed that Ungapan Beach could improve the economy of the surrounding community. A growth
in the number of restaurants could increase the income of residents in the tourist areas. In addition to restaurants, there are other facilities that can improve the welfare of people such as hotels and lodging facilities. Figure 5 shows the growth in the number of hotels in Gedangan subdistrict.
7 6 5 4 3 2 1 0
I
II I 1
Tumpakrejo Sindurejo Gajahrejo Sidodadi Gedangan Segaran Sumberrejo Girimulyo
m 2015 2 0 0 0 0 0 0 0
■ 2016 2 0 0 0 0 0 0 0
■ 2017 2 1 6 0 0 0 0 0
U2018 2 1 6 0 0 0 0 0
■ 2019 2 1 6 0 0 0 0 0
«2015 H2016 H2017 u2018 «2019
Figure 5. The number of Hotels/Lodging in the Gedangan district
Figure 5 shows that the development of Ungapan Beach affects the economy of the surrounding community. The highest growth in accommodation/hotels was in the village of Gajahrejo, which was influenced by the location of Ungapan Beach. This shows that Ungapan Beach could increase business activities in the community. The high number of tourists staying in hotels also has an impact on improving the economy and welfare of the community (Allard and Trabant, 2008; Latham, 2009).
Conclusion
The results showed that Perum Perhutani managed the private-public partnership in Ungapan Beach tourism with LMDH partners, Malang district government with POKDARWIS partners and local communities. LMDH acted as a manager of the tourism area, POKDARWIS as a manager of events, and the community that provides facilities and needs of tourists. The Private-public partnership management of Ungapan Beach tourism proves that the partnership between local communities, government organizations and private groups can develop tourism destinations and benefits to the community. The study has shown that partnerships in coastal tourism management must be based on a binding and mutually beneficial agreement. The partnership must accommodate all the information from various parties, including tourism management, by prioritizing common interests.
Acknowledgment. This work was supported by PNBP research grant of Universitas Negeri Malang 2020.
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The article was submitted: 20 September 2021; approved after reviewing: 23 November 2021; accepted for publication: 25 March 2024.
