• I G. A. Oka Suryawardani Lecturer at Doctoral Program in Tourism, Udayana University, Bali Indonesia
  • I Komang Gde Bendesa Lecturer at Doctoral Program in Tourism, Udayana University, Bali Indonesia
  • Made Antara Lecturer at Doctoral Program in Tourism, Udayana University, Bali Indonesia
  • Agung Suryawan Wiranatha Lecturer at Doctoral Program in Tourism, Udayana University, Bali Indonesia



Tourism has been a driving force of economic development and has become the leading economic sector in Bali Province. However, the economic impacts of tourism development have not been fully beneficial for the Balinese community. Tourists' expenditure has not been totally remaining in Bali's economy. Some of the expenditures by tourists leak out of the destination, called tourism leakage, in the form of payments for imported products and services, payment of wages for foreign employees, and profits transferred to foreign owners. So far, the amount of tourism leakage in Bali has not been calculated. Therefore, there is a need to ascertain the current amount of leakage in Bali tourism. This paper estimates the amount of tourism leakage from the accommodation sector in Bali through a micro analysis at the industrial level. There were 79 hotels selected as a sample based upon a purposive probability to size sampling method in four main tourist destinations in Bali, namely Kuta, Nusa Dua, Sanur and Ubud. Four types of accommodation were considered in estimating tourism leakage. The results showed that the highest percentage of leakage was in the 4 & 5 Star-rated chain hotels, i.e. 51.0 % of total revenue. It was followed by the 4 & 5 Star-rated non-chain hotels (22.7 %), and 1, 2 & 3 Star-rated hotels (12.0 %). Meanwhile, the lowest leakage was on the Non star-rated hotels (8.8 %). Overall, the average tourism leakage on accommodation sector in Bali was 18.8 %. These results indicate that (i) the higher the level of hotel classifications, the more leakage will be; and (ii) accommodation which was owned by a foreigner and/or managed by an international chain had more leakage than other types of accommodation. The more leakage, therefore the less revenue from tourism will be directly received by hotel and undirectly by the local community as tourism is the main source of economic development of Bali Province.


Antara, M. (1999). Dampak Pengeluaran Pemerintah dan Wisatawan Terhadap Kinerja Perekonomian Bali: Pendekatan social accounting matrix (Impacts of Government and Tourism Expenditures on Bali's Economy Performance: A Social accounting matrix approach). Unpublished Ph.D. Thesis. Bogor Agricultural Institute. Bogor.

Bali Statistical Office. 2011. Bali in Figure. Denpasar. Bali.

Bali Statistical Office. 2013. Bali in Figure. Denpasar. Bali.

Bull, A. 1991. The Economics of Travel and Tourism. Second Edition. Pitman and Wiley, Melbourne. Australia.

Dewi, N.G.A.S. (2009). Peran Bali Tourism Development Corporation (BTDC) Dalam Pengentasan Kemiskinan di Desa Bualu dan Tanjung Benoa, Kawasan Pariwisata Nusa Dua - Bali (The Role of Bali Tourism Development Corporation (BTDC) in Poverty Alleviation in the Villages of Bualu and Tanjung Benoa, Nusa Dua Tourism Area - Bali). Unpublished Master Thesis. Udayana University. Denpasar.

Dwyer, L. and Forsyth, P. 1994. Foreign Tourism Investment Motivation and Impact. Annuals of Tourism Research, 21(3), 512-557.

Fridgen, J.D. (1996). Dimensions of Tourism. Educational Institute of the American Hotel & Lodging Association. The United States of America.

Harrison, D. (1992). Pro-Poor Tourism: A Critique. Third World Quarterly. 29(5), pp. 851-68.

Hudman, L.E., and Hawkins, D.E. (1989). Tourism in Contemporary Society, Prentice Hall, Englewood, NJ.

Hughes, H.L. (1994). Tourism Multiplier Studies: A more judicious approach. Journal of Tourism Management, 15: 405-406.

Kim, H. and T. Jamal. (2007). Touristic Quest for existential Authenticity. Annals of Tourism Research, 34(1): 181-201.

Kish, L. (1965). Survey Sampling. Copyright by John Wiley & son, Inc. Library of Congress. United State of America.

Lacher, R. G., and S. K. Nepal. (2010). From Leakages to Linkages: Local-level Strategies for Capturing Tourism Revenue in Northern Thailand. Tourism Geographies Journal. 12(1): 77-99.

Lundberg, D., Krishnamoorthy, E.M., and Stavenga, M. H. (1991). Tourism Economics, John Wiley. New York.

Mill, R. C., and A.M. Morrison. (2009). The Tourism System. Kendall Hunt Publishing Company. The United States of America.

Meyer, D. 2007. Pro-Poor Tourism: From Leakages to Linkages. A Conceptual Framework for Creating Linkages between the Accommodation Sector and "?Poor"Y Neighbouring Communities. Current Issues in Tourism Journal. 10(6): 558-583.

Rodenburg, E. 1980. Evaluation of The Social Economic Affects of the Three Scales. Annals of Tourism Research, 7(2):177-196. Department of Anthropology University of California.USA.

Sevilla, C.G., J.A. Ochava, T.G. Punsalam, B.P. Regala and G.G. Uriarte. (1993). Research Method. University of Indonesia.

Smith, C. & Jenner, P. (1992). The Leakage of Foreign Exchange Earnings from Tourism. EIU Travel & Tourism Analyst, No. 3, 52-66.

Suryawardani, I.G.A.O. (1999). A Marketing Strategy for Australian Apples and Oranges in Indonesia. Graduate School of Management. Faculty of Economic Business and Law. Unpublished Master Thesis. The University of Queensland. Australia.

Suryawardani, I.G.A.O. (2010). Branding Strategies for Agribusiness Enterprises. Journal on Socio-Economics of Agriculture and Agribusiness. Vol 10 (1). 14 February 2010.

Unluonen, K., A. Kiliclair and S. Yukel. (2011). The Calculation Approach for Leakages of International Tourism Receipts: The Turkish Case. Tourism Economics Journal. 17(4): 785-802.

Wiranatha, A.S. (2001). A Systems Model For Regional Planning towards Sustainable Development in Bali, Indonesia. Unpublished Ph.D. Thesis. Department of Geographical Sciences and Planning. The University of Queensland. Australia.

Wiranatha, A.S. and A.A.G.R. Dalem. (2010). Implementation of Local Knowledge "Tri Hita Karana" on Ecotourism Management in Bali. Journal on Socio-Economics of Agriculture and Agribusiness. Vol 10 (1). 14 February 2010.

Yamane. (1973). Determining Sample Size. Chapter 3. Methodology. [cited 2012 Jun. 6]. Available from URL:

Zheng, Z. (2011). Strategies for Minimizing Tourism Leakages in Indo-Chinese Development Countries. Asia Pacific Journal of Tourism Research. 5(2): 11-20.




How to Cite

Oka Suryawardani, I. G. A., Gde Bendesa, I. K., Antara, M., & Suryawan Wiranatha, A. (2016). TOURISM LEAKAGE OF THE ACCOMMODATION SECTOR IN BALI. ASEAN Journal on Hospitality and Tourism, 13(1), 3-18.