Agrotourism as an alternative form of tourism in Bali I Gusti Bagus ...

Subject: Tourism Studies
Agrotourism as an alternative form of
tourism in Bali
I Gusti Bagus Rai Utama
Bali Indonesia

Agrotourism as an alternative form of tourism in Bali
Case Studies:
Bayung Gede, Candikuning, Blimbingsari, and Pelaga Villages
Paper for:
GLOBAL DEVELOPMENT NETWORK NEWSLETTER
by
I Gusti Bagus Rai Utama
2007
i

Abstract
This study discusses the general preview of tourism and agriculture in Bali, the
opportunities and barriers of agrotourism development in Bali, stakeholders’ opinions
concerning the development of agrotourism in Bali, agrotourism contributions toward
economy and social situation improvements of the local communities, and contributions
of agrotourism toward contribute for sustainable tourism development.
This data collected through survey method using questionnaires distributed to
60 respondents from four groups of farmers comprise: Bayung Gede, Candikuning,
Blimbingsari, and Pelaga Villages as samples. This study also used 35 expert
respondents who come from each local community, universities, NGOs, and local
governments. The data are descriptively and statistically analysed using SWOT
analysis.
This study finds that (1) the most potential opportunity of agrotourism is
increasing family, followed by employee involvement, generating tourism income and
increasing value of the village; (2) the hardest barriers of agrotourism development in
Bali is inadequate infrastructures, other barriers are limited public facilities, imperfect
human resource skills, scarce investments, and insufficient government supports; (3)
the ecological resources particularly lakes, social life especially farmers and their lives,
and cultural resources such as unique traditions are the strength factors of agrotourism
development in Bali; (4) lacks of government support, investment, infrastructures, and
human skills are weakness factors; (5) generating related tourism businesses are the
most potential opportunity of agrotourism development in Bali. Other opportunities
generated from agrotourism are providing local employments, increasing family
incomes, and increasing value of the village; (6) degradation of natural resources
regarded as the riskiest threat of agrotourism development in Bali. The second most
serious matter is land-using problems. Other threats are pollutions, host attitude
changes, increasing criminalities, and tradition commercializations; (7) agrotourism
contributes lots in improving the economy of the local communities. The contributions
are on agricultural product improvements and stimulations of related tourism
enterprises; (8) agrotourism helps improving the social situations particularly poverty
alleviation, decreasing unemployment, and declining urbanization; (9) nature
conservation is the greatest contribution toward sustainable tourism development in
Bali. Other contributions are visitor increase and generating economic income.
Based on the findings, the recommendations are formulated as follows: (1)
promote the uniqueness of each village to strengthen the destination by combining with
other related activities to reach the goals of agrotourism. (2) propose agrotourism to the
provincial government and national government. (3) develop agrotourism using the local
indigenous and uniqueness and apply the principles of sustainable tourism
development. (4) government empowerment, investment in agricultural sectors,
infrastructure development, human skill improvement, public facilities development, and
local communities empowerment and involvement need to be immediately committed to
apply an ideal agrotourism in Bali.
Keywords: uniqueness, opportunities, barriers, stakeholders, farmers
ii

Executive summary
This dissertation entitles “Agrotourism as an Alternative Form of Tourism in Bali”. The
introduction describes the background, problem statement, research questions, and
purposes of the research. The problem statement is how could agrotourism contribute
innovation upon the tourism sector and improve the economy, social and environmental
situations of local communities in Bali? The study is aimed at formulating the best
strategies to develop agrotourism in Bali. The research problems are formulated as
follows; how is the current situation of agrotourism in Bali? What opportunities are
available to develop agrotourism in Bali? What barriers are found in developing
agrotourism in Bali? What are the tourism stakeholders’ opinions toward agrotourism
development in Bali? How could agrotourism improve of the economy of local
communities in Bali? How could agrotourism improve the social situation of local
communities in Bali? How could agrotourism sustain the tourism development in Bali?
Chapter two discusses definitions and theories of agrotourism and rural tourism,
identification of main relevant theories and concepts as well as their relationships, main
claims, and main arguments. The literature reviews comprise agriculture, tourism, and
agrotourism. The reviews comprise tourism as an interdisciplinary, sustainable tourism
development, rural tourism, agriculture and rural areas in Indonesia, potencies of
agrotourism in Indonesia, definition of agrotourism, history of and trends in agrotourism,
philosophy of agrotourism, contribution of agrotourism to tourism, factors relate to
agrotourism development, impacts of agrotourism, chances and trends of agrotourism
in the world, chances of agrotourism in Indonesia and Bali, agrotourism and Balinese-
Hindu philosophy, quality and sustainability of agrotourism, and the roles of tourism
stakeholders.
Chapter 3 converses the research framework applied in this study. The research design
figures out the method and process of analysis to draw conclusions. Two types of
researches qualitative and quantitative researches are used. The selected case studies
are focused in Bali Province since it is the icon of tourism in Indonesia. Bali has
developed a number of agrotourism objects in potential villages, however only four case
studies selected in this research, they are; (1) Bayung Gede Village, Kintamani District
in Bangli Regency is promoted as rural tourism especially for orange agrotourism and
unique tradition. (2) Candikuning Village, Baturiti District in Tabanan Regency is
promoted as an agrotourism especially for strawberry and vegetables farms
collaborated with beautiful panorama. (3) Blimbingsari Village, Melaya District in
Jembrana Regency is promoted as rural tourism especially for coconut and cacao
farms. (4) Pelaga Village, Petang District in Badung Regency is promoted as Pelaga
Agrotourism particularly for vegetables and organic farming. The data collected through
survey method using questionnaires questioned to sixty farmers from Bayung Gede,
Candikuning, Blimbingsari, and Pelaga Villages. Besides, it also used thirty five expert
respondents who come from each local community, universities, NGOs, and local
governments. The data are descriptively and statistically analyzed using SWOT
analysis.
The findings are descriptively and clearly discussed in Chapter 4. This study found that
(1) agrotourism development in Bali has a number of opportunities such as increasing
family incomes, creating working fields for the local communities, generating related
tourism businesses, and increasing value of the village. Family income increases are
considered to be the most potential opportunity compare to others. (2) Agrotourism
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development in Bali has a number of opportunities such as increasing family incomes,
creating working fields for the local communities, generating related tourism
businesses, and increasing value of the village. (3) The stakeholders predominantly
agree that ecological and cultural resources are the strength factors of agrotourism
development in Bali (4) The weaknesses of agrotourism development are lack
government support, lack of investment, lack of infrastructures, and lack of human
skills. Meanwhile, incomplete public facilities are not considered as weaknesses factors
(5) Establishments of related tourism businesses are the most potential opportunity of
agrotourism development in Bali. Other opportunities are; providing local employments,
increasing family incomes, and increasing value of the village. (6) Degradation of
natural resources supposed to be the riskiest threat of agrotourism development in Bali.
The second most serious matter is land using problems. Other threats such as
pollutions (including air, water, and land pollutions), host attitude changes, increasing
criminalities, as well as commercialization of traditions are also supposed to be threats.
(7) Agrotourism contributes lots of things in improving the economy of the local
communities. The contributions are in the forms of agricultural product improvements,
and stimulations of other related tourism enterprises such as handicraft shops,
restaurants, and accommodations. (8) Agrotourism plays roles in improving the social
situations of the local communities particularly poverty alleviation, decreasing
unemployment as well as declining urbanization. (9) Nature conservation as one the
sustainable tourism development indicators is contributed by agrotourism development
in Bali. Other contributions such as international tourist arrival increase and generating
economic incomes are the roles of agrotourism in applying the sustainable tourism
development in Bali.
Chapter 5 elaborates the conclusion and four strategies recommended for agrotourism
development in Bali which formulated from the identified strengths, weaknesses,
opportunities, and threats in the case studies.
(1) SO strategy, is a strategy which uses the strengths to take advantages of the
opportunities. The ecological resources such as lakes, rice fields, plantations and farms
as well as forests; the social and cultural resources such as existing farmers, unique
traditions, agricultural organizations, events, agricultural ceremonies, organizations
linkages, human resources, agriculture regulations, information systems, heritages
should be well developed, and promoted since these strength factors are able to
generate potencies for other tourism business establishments, employment
opportunities, enhance the family income and value of the village. The uniqueness of
each village should be well promoted and described to position strong images of the
villages, indeed to combine agrotourism with the local indigenous and uniqueness.
• The main attractions of Bayung Gede Village are “Kuburan Ari-ari” (placenta grave)
which used as the icon of the village and orange farm shall be used as the icon of
agricultural products.
• The foremost attractions of Candikuning Village are organic farm and beautiful
panorama of Beratan Lake and Eka Karya Bali Botanical Garden. They should be
promoted as the icon of agrotourism of this village.
• The primary attractions of Blimbingsari Village are the unique tradition of Christian
communities; Balinese-style church, and story of the village becoming a Christian
village in Bali should be promoted as icon of pluralism and harmonic situation in
Bali. Meanwhile the coconut and cacao farms should be used as the icon of
agricultural products of this village.
iv

• The core attractions offered at Pelaga Village are beautiful panorama of mountain,
rice fields, and organic farms. They are used as the icon of the village.
The programs which should be formulated such as entire cooperation with tourism
operators, packaging events in the village, and provide village information system.
(2) WO strategy, is a strategy which overcomes the weaknesses by taking advantages
of opportunities. Government support, investment in agricultural sector, development of
village infrastructures, human resource skills, and public facilities are identified as the
weakness factors of agrotourism development in Bali, therefore the local “village”
government and all stakeholders should propose agrotourism development to the
provincial government and central government to play more roles in order to apply the
agrotourism concepts and reach the primary goals of rural economic empowerment.
The programs which should be formulated are provide accessibilities for the agricultural
investors to invest in the village to rise up the numbers of local SMEs “Small and
Medium Entrepreneurs”, providing regulations, developing infrastructures and public
facilities, as well as giving training and certain kinds of live-skills to the local
communities in order to master tourism skills particularly agribusiness skills
(3) ST strategy, is a strategy which use the strengths to avoid threats. Local uniqueness
and indigenous used as tourism attractions shall be well managed and controlled to
avoid the matters such as degradation of natural resources, land using problems such
land for non agricultural sector, pollution, host attitude changes, criminalities, and
commercialization of traditions. The programs which should be formulated are providing
environment controller system, provide business related agribusiness, and promote
organic farms system.
(4) WT strategy, is a strategy which minimizes the weaknesses and avoids threats. The
weaknesses such as lack of government support, investment in agricultural sector,
development of village infrastructures, human skills, and public facilities shall be
immediately improved to develop agrotourism well. Furthermore the local communities
should be actively involved in policy and planning makings. The programs which should
be formulated are involving the local communities as controller in many levels of
organizations, issuing policy, using bottom-up planning system, enlarge cooperation
with investors to develop agrotourism.
v

List of contents
Abstract…………………………………………………………………… Ii
Executive summary………………………………………………………. ii
List of contents………………………………………………………….. vi
List of tables………………………………………………………………. viii
List of charts, figures, and graph………………………………………... ix
List of pictures……………………………………………………………. x
INTRODUCTION……………………………………………... 1
1.1 Background………………………………………………………... 1
1.2 Stage of tourism development……………………………………... 3
1.3 Problem Statement and Research Question……………………… 6
1.3.1 Problem statement………………………………………………… 6
1.3.2 Research question…………………………………………………. 6
1.4 Research Aims ……………………………………………………. 7
LITERATURE REVIEWS……………………………………… 8
2.1 Tourism as an Interdisciplinary…………………………………… 8
2.2 Sustainable Tourism Development………………………………... 9
2.3 Rural Tourism…………………………………………………….. 9
2.4 Agriculture and Rural Areas in Indonesia………………………… 10
2.5 Potency of Agrotourism in Indonesia…………………………….. 10
2.6 Agrotourism……………………………………………………….. 11
2.6.1 Definition of agrotourism…………………………………………. 11
2.6.2 History of and Trends in Agrotourism…………………………….. 11
2.6.3 Philosophy of agrotourism………………………………………… 12
2.6.4 Contribution agrotourism to tourism………………………………. 12
2.6.5 Factors related development of agrotourism………………………. 13
2.6.6 Impacts of agrotourism……………………………………………. 13
2.6.7 Prospect and Trend of Agrotourism in the World ………………… 13
2.6.8 Prospects of Agrotourism in Indonesia and Bali………………….. 15
2.6.9 Agrotourism and philosophy of Hindu…………………………. 15
2.6.10 Quality and sustainability of agrotourism…………………………. 16
2.7 The roles of tourism stakeholders…………………………………. 16
METHODOLOGY…………………………………………….. 18
3.1 The Conceptual Framework………………………………………. 18
3.2 Research Design…………………………………………………… 19
3.3 Case Study design…………………………………………………. 19
3.4 Qualitative Research approach…………………………………….. 20
3.5 The analysis………………………………………………………… 21
3.6 Factors and Variables……………………………………………….. 21
3.7 Procedures…………………………………………………………… 22
FINDING AND ANALYSES……………………………………. 23
4.1 A Glimpse of Bali…………………………………………………... 23
4.2 Current situation of agrotourism in Bali …………………………… 24
4.2.1 Bayung Gede Village, Kintamani District-Bangli Regency............... 24
4.2.2 Candikuning Village, Baturiti District-Tabanan Regency.................. 25
vi

4.2.3 Blimbingsari Village, Melaya District, Jembrana Regency............... 27
4.2.4 Pelaga Village, Petang District, Badung Regency............................ 28
4.3 Farmers’ Opinions toward Agrotourism Opportunities ……………. 29
4.4 Barrier Factors of Agrotourism Development in Bali………………. 31
4.5 Stakeholders’ Opinions toward Agrotourism Development in Bali .. 33
4.6 Contributions of agrotourism toward economy improvement of the
local communities ………………………………………………….
36
4.7 Contributions of agrotourism toward improvement of social 37
situation…………………………………………………………….
4.8 Contributions of agrotourism toward sustainable tourism
development ……………………………………………………….
CONCLUSION AND RECOMMENDATION………………………. 39
5.1 Conclusions………………………………………………………….. 39
5.2. Recommendation Strategies…………………………………………. 40
Bibliography……………………………………………………………….. 43
Curriculum Vitae of writer ……………………………………………………… 47
37
vii

List of tables
Table 4.1 Farmers’ Opinions toward Agrotourism Opportunities………
Table 4. 2 General Perceptions of Farmers toward Agrotourism
Opportunities in Four Case Studies…………………………..
Table 4.3 The Barriers Factors of Agrotourism Development in Bali….
Table 4.4 General Perceptions of Barrier Factors of Agrotourism
Development in Bali………………………………………….
Table 4.5 The Strengths Factors of Agrotourism Development in Bali…
Table 4.6 The Weakness Factors of Agrotourism Development in Bali.
Table 4.7 The Opportunities Factors of Agrotourism Development in
Bali…………………………………………………………
Table 4.8 The Threats Factors of Agrotourism Development in Bali……
Table 4.9 The Contributions of Agrotourism toward Economy
Improvement …………………………………………………
Table 4.10 The Contributions of Agrotourism toward Improvement of
Social Situation……………………………………………..
Table 4.11 The Contributions of Agrotourism toward Sustainable
Tourism Development…………………………………………
Table 5.1 SWOT Matrix: Agrotourism Development in Bali…………..
29
31
31
33
34
35
35
36
37
37
38
41
viii

List of charts, figures, and graph
Charts
Chart 1. The Growth of Foreign Tourists Visiting Indonesia period 1989
to 2005…………………………………………………………..
Chart. 2. Number of direct international visitors to Bali for periods 1969
to 2005…………………………………………………………..
Graph
Graph 1 Bali Tourism Lifecycle from 1900 to 2007……………………… 4
Figures
Figure 2. 1 Tourism Interdisciplinary …………………………………….
Figure 2. 2 Sectors Relate to Rural Tourism ……….................................
Figure 3.1 Research Conceptual Frameworks …………………………… 18
2
3
8
14
ix

List of pictures
Picture 4.1 Map of Bali Island…………………………………………….. 23
Picture 4.2 Placenta Grave at Bayung Gede Village……………………… 25
Picture 4.3 Orange Farm at Bayunggede Village………………………….. 25
Picture 4.4 Eka Karya Botanical Garden………………………………….. 26
Picture 4.5 Vegetables and Fruits Market at Candikuning Village……… 26
Picture 4.6 The Balinese style Church building…………………………… 27
Picture 4.7 Cacao and Coconut Farms…………………………………….. 27
Picture 4.8 Central of Pelaga Village……………………………………… 28
Picture 4.9 Strawberry Plantation at Pelaga Village ……………………… 28
x

1. Introduction
Current Situation Tourism in Bali
1.1. Background
Before the 1998 economic crisis, Indonesia belonged to a new Asian Tiger
simultaneously with Malaysia and Thailand and was a model to other developing
countries for the achievements on rapid and sustainable economic growth and rapid
structural change (Tambunan, 2006).
The Indonesian economy has undergone a massive structural transformation from an
economy where the agriculture sector plays a dominant role in the country. Presently,
approximately 45% of the total Indonesian workers are engaged on agriculture which
accounted for 17% of GDP in 2001. Some 31 million ha (76.6 million acres) are under
cultivation, with 35% to 40% of the cultivated land devoted to the production of export
crops. Some 60% of the country's cultivated land is located in Java (Indonesian
Agricultural Department, 2005).
The agriculture sector includes food crops, horticulture, plantation, forestry, fishery, and
animal husbandry. Since of various factors such as housing development, industries
development, etc, the contribution of agriculture sector to Gross Domestic Product
(GDP) becomes much less important replaced by secondary and tertiary sectors such
as manufacturing industry as a new leading sector, for instance, West Java was leaded
by manufacture industries, Bali by tourism sector, and Jakarta by retailing industries.
As the population increases rapidly, the government seeks to achieve food selfsufficiency
through expansion of arable acreage and improve the farming techniques
especially the use of fertilizers and seeds, and extension of irrigation facilities, as well
as expanding training for farmers. Production of rice and the staple food have increased
gradually therefore rice production almost comes close to meet domestic requirements.
On the other hand, the tourism sector in Indonesia has expanded as a prospective
contributor to earning of a number of local governments. Nowadays, the tourism sector
is not only potential in Bali but also probable in all parts of Indonesia. The International
Ecotourism Society states that Indonesia has been identified as a prospective country
to develop tourism especially ecotourism. In addition, Indonesia has lots of wildlife flora
and fauna as well as cultural diversities, black and white sand beaches, natural
landscape, marines, mountains, etc. The tourism sector becomes a more prospective
sector in Indonesia as illustrated in the growing number of international tourist arrivals
shown in Chart 1.
1

Visitors
1,625,965
1989
2,177,566
1990
2,569,870
1991
3,064,161
1992
3,403,138
1993
Arrivals to Indonesia
4,006,312
1994
4,324,229
1995
5,034,472
1996
5,185,243
1997
4,606,416
1998
Years
Chart 1, The Growth of Foreign Tourists Visiting Indonesia period 1989 to 2005.
Source: Statistic Agency of Indonesia, 2006
The chart 1 above illustrates that tourist arrivals grew inconsistently although tourism
sector in Indonesia had grown a lot with mean value of approximately four millions
visitors per year. The mean also indicated clearly that the tourism sector is prospective
for the future.
The gradual increase tourist arrivals for the period of 1989 to 1997 were the growth
stage of tourism in Indonesia. Since 1969, the government of Indonesia had been
engaged into account of tourism development on national policy and planning called
“Pelita I” the first step of five periods of development policy and planning. Unlikely, by
the end of 1997, the economic crisis in Asia particularly Indonesia had broken down the
tourism sectors and other sectors which then declined the number of arrivals in 1997 to
1999 which caused by internal and external factors. The internal factors were not only
caused by economy crisis, but also by other factors such as politic, disaster, etcetera.
The decline in 2001 to 2003 was caused by external factors such as terrorist attack
destroyed World Trade Center (WTC) in United States of America and Bali bombing
tragedy in Legian, Kuta-Bali.
Tourism has played an important role and essential source of earning. It can be
evidently seen that almost all of economic activities in Bali were depended on and
leaded by tourism sector. According to Pitana (2005), tourism sector is an incredible
contributor to Product Domestic Regional Bruto (PDRB) for Bali. The tourism sector
contributed 12.95% by 1970, 17.98% by 1990, 30.50% by 1997, 30.49% by 1998,
31.26% by 1999, and 33.19% by 2000. Examining further to the great contributions
generated by tourism, therefore tourism sector in Bali is considered as an awaiting
sector for now and upcoming year.
Furthermore, the prospective of tourism in Bali can be seen in Chart 2 that describes
the number of international visitors and the growth of arrivals to Bali for periods 1969 to
2005.
4,727,520
1999
5,064,217
2000
5,153,620
2001
5,033,400
2002
4,467,021
2003
5,321,165
2004
5,002,101
2005
4,162,730
Mean
2

Visitors
Foreign Tourists Visiting Bali periods 1969 to 2005
1,140,988
1,015,314
1,032,476
885,516
738,533
555,939
490,729
436,358
360,415
309,294
243,354
211,244
189,460
170,505
152,364
158,926
146,644
120,084
133,225
119,095
115,220
75,790
57,456
53,803
47,004
34,313
24,340
11,278
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1,230,316
1,187,153
1,355,799
1,412,839
1,356,774
1,285,844
993,039
1,458,309
1,386,449
Chart 2, Number of direct international visitors to Bali for periods 1969 to 2005
Source: Bali Tourism Board, 2006
1987
1988
Years
Chart 2 also indicates that the growth of international tourists visiting Bali since 1969 to
2005 fluctuated by mean of 559,356 visitors per year. The numbers of tourists’
fluctuations were caused by internal and external factors as well, such as terrorist
attack occurred in September 2001 in World Trade Center.
At the same time, new competitors in South East Asia such as Malaysia, Thailand,
Vietnam, and Philippines confronted Bali. Inauspiciously, global issues like terrorism as
Indonesia is predominantly a Moslem country also affected the inconsistency of the
tourist arrivals to Bali. The decline occurred in 1998 was caused by economic crisis.
Meanwhile the sharp decrease in 2001 to 2003 caused by terrorism issues and by the
end of 2005 by disaster issues.
Even though, the tourism sector was growing inconsistency but it’s still as important
sector in Bali. The development of tourism sector should be continued sustainability
because the infrastructures such as international and local hotels, restaurants, travel
agencies and others local business were growing in Bali.
1.2 Tourism Development Stages
According to Butler (1980), quoted by Gilbert (1990), the stages of tourism development
comprises four stages such as discovery, launch, stagnation, and decline stages where
the stages of tourism development in Bali are illustrated in the Graph 1 below.
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
559,356
2005
Mean
3

Graph 1, Bali Tourism Lifecycle from 1900 to 2007.
Source: http://geographyfieldwork.com
2001 - 2007
1961 - 2000
1900-1960s
Discovery Stage
The early 1900s brought a different type of invasion and tourism began to rise. Bali's
exotic beauty and culture as well as Balinese people’s hospitality began to draw
foreigners to the island. Some, including German painter named Walter Spies, whose
home now formed as a part of Hotel Tjampuhan Ubud, decided to settle down there.
Spies and other foreign artists helped to stimulate the growth of Balinese arts which
were originally produced mainly to decorate temples and palaces
(http://uk.holidaysguide.yahoo.com).
Launch Stage
The second president of Indonesia, Soeharto, saw Bali as one of potential tourism
destinations and reopened it to tourism in the late 1960s. One of the first big hotels built
was Inna the Grand Bali Beach Sanur. The host communities respond and welcome it
respectively to increase the number of tourist visits by providing facilities. Businesses
remain family based and the visitor-resident relationship is still harmonious. Later in this
stage, the numbers of tourists increased dramatically and the local communities
involved in certain tourism industries.
The tourism was launched for both domestic and international tourists. For the purpose
of supporting the tourism sector, the government, investors, private sectors, and smalllocal
enterprises working together by providing infrastructures such as hotels,
restaurants, travel agencies, tourism objects such as beaches, retailing, roads, airport
etcetera. On the other hands, the superstructures such as supporting tourism
organizations for instance BTDC (Bali Tourism Development Centre), BTB (Bali
Tourism Board), PHRI (Indonesian Hotels and Restaurants Association), and Tourism
and Hotel Colleges are established professionally.
Stagnation Stage
Nowadays, the growth of tourism Bali is indicated as stagnation stage, while tourism
sector has been developed in such contemporary way nevertheless the growth of
tourist visit is still stagnant even though a number of promotions are continuously and
intensively conducted. Furthermore, there are lots gaps between sectors, for instance:
degradation of natural resources, overland using to build hotels and tourism
infrastructures, air and water pollution; gap between rural and urban area, etcetera.
4

Presently, modern tourism development in Bali continues to attract all kinds of tourists.
Some of international industries such as international-chain hotels and resorts lie on
alongside the island. Its people continue to struggle over the choice between
modernization and tourism, and their rich tradition. Although it has suffered some
adverse social and environmental effects as a result of rapid tourism developments,
Bali's cultural heritages have withstood the test of time and remained slight changes
today.
The stagnation stage has been identified since 2001 up to present, where the number
of international arrivals is stagnant of approximately one million visitors per year. The
developments of Bali really depend on tourism sector even though dominantly the
populations of Bali are still working in agriculture sector. The stagnation stage is caused
by internal and external factors. Internal factors consist of urbanisation problem, unecological
development, unequal spatial where tourism development was focused
southern part of Bali for instance Sanur, Kuta, and Nusa Dua without design guidelines.
Meanwhile the external factors contributed to stagnation are terrorism issues, Irak war
II, SARS disaster in Asia, new tourism destinations, etcetera (Pujaastawa, et al, 2005).
Additionally, according to Butler (1980), quoted by Gilbert (1990), the stagnation stage
should be seen as a signal to innovate and find out alternatives to avoid the declining
stage and to refine the growth of tourism. The tourism sector in Bali shall be
immediately innovated and continuously developed based on sustainable tourism
development concept.
According to Pitana (2005), the vision and planning development of tourism in Bali shall
be based on Balinese culture, as it is the only island that dominated by Hindus
worshipers in Indonesia. Furthermore, Bali has a number of man-made tourism
attractions and natural attractions such as lakes, mountains, beaches, and agriculture
areas which should be persistently managed.
The goal of tourism development in Bali is to realize the sustainability of cultural-based
tourism which developed in accordance with Tri Hita Karana concept as well as both
the global market competition and improving quality of life of local communities. Tri Hita
Karana is the philosophy of Balinese-Hindu which comprises three main elements
namely harmonious relationship among the human being, between human and
environment, and human, and the Almighty God (WTO, 2003).
One of the visions of tourism development in Bali is to develop rural tourism based on
local indigenous. It means whereas the tourism shall be developed in accordance with
sustainable development principles by equality of people, profit, and planet. Without
sustainable development, tourism will fail definitely to achieve the authentic goal of its
development. One of the failure factors of tourism development identified by Subadra
(2006) is that tourism is un-ecologically developed. In the similar study by McIntosh, et
al. (1984) quoted by Subadra (2006) describes that the development of tourism is not
always successful even though developed in an ecotourism model. Yet it sometimes
fails to achieve the authentic objective of development since it also causes many
negative impacts such as; solid waste generation, habitant disturbance, and forest
degradation which is caused by the path erosion. Therefore, tourism may not be
overdeveloped and many tourists should not visit rural destinations at the same time.
Moreover it sometimes fails to give economic benefits while the local communities do
not directly accept the profit generated from tourism development. In many cases, local
5

communities are frequently left out since they normally do not have adequate
knowledge, skill, and attitude to involve in tourism.
Furthermore, United Nation (UNEP, 2003) mentions that development of tourism should
be based on the guidelines of sustainable tourism principles and agrotourism was
identified as a tourism development model which is based on environment, nature, and
biodiversity. In a similar study conducted by Sudibya (2002) explains whereas the
international tourists particularly the educated tourists prefer visiting the destinations
which concern much on environment sustainability and nature conservation to
destinations which serve modern developments.
Conversely, Pitana (2005) mentioned that the agriculture sector in 1970 contributed
55.99% for Product Domestic Bruto of Bali Province, 32.53% by 1990, 19.33% by 1997,
23.31% by 1998, 22.10% by 1999, and 20.61% by 2000. These data illustrate that the
agriculture sector is the second important sector after the tourism sector. While the
current situation, the tourism sector in Bali is capitalistically and unequally developed
since the development dominated in Southern part of Bali Island only. There is a gap
between Northern and Southern part of Bali especially development of tourism sector
(Pujaastawa, 2006). The great potencies of agriculture resources in Western, Middle,
Eastern, and Northern parts of Bali Island have not been well developed and
collaborated with tourism sector.
In this study, the research is focussed on economic, social and environmental benefits
of agrotourism for the local communities and the demand of agrotourism among the
tourists. The study is aimed at formulating the best strategies to innovate and develop
agrotourism in Bali.
1.3 Problem Statement and Research Questions:
1.3.1 Problem Statement
How could agrotourism contribute innovation to the tourism sector and improve the
economic, social, and environmental situations of local communities in Bali?
1.3.2 Research Questions
The questions of this research are formulated as follows:
1. How is the current situation of agrotourism in Bali?
2. What opportunities are available to develop agrotourism in Bali?
3. What barriers are found in developing agrotourism in Bali?
4. What are the tourism stakeholders’ opinions toward agrotourism development in
Bali?
5. How could agrotourism improve of the economy of local communities in Bali?
6. How could agrotourism improve the social situation of local communities in Bali?
7. How could agrotourism sustain the tourism development in Bali?
1.4 Research Aims
The research is aimed at exploring the potencies of agrotourism in contributing
innovation on tourism sector and to improve the economic, social and environmental
6

situations of the local communities in Bali. Furthermore, the purposes can be detailed
as follows:
1. Obtaining information concerning the current situation of agrotourism in Bali
from general perspectives.
2. Identifying the opportunities to develop agrotourism from Balinese farmers’
opinions.
3. Identifying the barriers in developing agrotourism from Balinese farmers’
opinions.
4. Understanding the tourism stakeholders’ opinions concerning the agrotourism
development in Bali from many perspectives such as entrepreneurs,
government, tourism industries, NGOs, universities, local communities, and
tourists.
5. Identifying the contributions of agrotourism in improving the economy of local
communities from stakeholders’ opinions.
6. Identifying the contributions of agrotourism in improving the social situation of
local communities from stakeholders’ opinions.
7. Identifying the contributions of agrotourism in sustaining tourism development
from stakeholders’ opinions.
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2. Literature Reviews
Conceptual Framework and Previous Research
This paper will describe some reviews related with tourism, agriculture, and agrotourism
itself.
2.1 Tourism as an Interdisciplinary
According to Jafari and Ritchie (1981), tourism is an interdisciplinary and integrates a
variety of subjects, disciplines and focuses and can be seen from numerous points of
views and approaches. The tourism as a central study can be studied from many
focuses and created into a new form tourism development model as pictured at Chart 1.
However tourism development model can be made in varying forms such as focus on
agriculture as agrotourism, ecology as ecotourism, culture as cultural tourism, religion
as religious tourism, etcetera.
Culture
Cultural Tourism
Retailing Tourism
Economy
Geography
Rural Tourism
Tourism
Spiritual Tourism
Religion
Other
disciplines
Agro Tourism
Agriculture
Figure 1, Tourism Interdisciplinary
Source: Adopted and modified from McIntosh and Goeldner (1990).
Furthermore, Wall and Mathieson (1989) quoted by Tjokrowinoto (2002), identifies three
elements of tourism system; (1) a dynamic element which involves travel to selected
destination; (2) a static element which involves the stay in the destination; and (3) a
consequential element resulted from the two preceding elements which is concerned
with effects on the economic, physical and social subsystems.
Some external variables such as rising earnings, mobility increase, level of education
increase, and desire to escape from pressure of day-to-day urban living generate
effective demands on tourism which stimulate the rise of various forms of tourisms such
as recreational tourism, cultural tourism, health tourism, conference tourism, historical
tourism, eco tourism, etcetera.
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2.2 Sustainable Tourism Development
Becken (2004) identifies several factors affected tourist destination sustainability in New
Zealand such as sensitivity and capacity of environment, accessibility and supporting
tourist infrastructure, existence of a cluster of attractions, and community attitude,
support and participation in tourism development.
A similar research conducted by Syamsu, et al (2001) which took a case study in
agrotourism object which grow salak pondoh located in Sleman, Yogyakarta- Indonesia
identified many factors related to sustainability of the destination such as scarcity,
uniqueness, nature, improving host community, as well as equality between
stakeholders. Furthermore, these factors turn into more important things to apply the
tourism destination sustainability.
According to WTO (2003), sustainability as a concept involves a number of
perspectives comprises environmental, ecological, social, cultural, and economic
issues. Furthermore, according to UNEP (2003) to apply the sustainable tourism
development, the strategies should be based on a formal expression of principles for
sustainable tourism. Moreover, the guidelines, techniques and principles are presented
important for national governments, destinations and organizations which wish to be
guided by the ethics of sustainable and responsible tourism. The guidelines and
principles include: community participation, stakeholder involvement, local ownership,
establishment of local business linkages, sustainability of the resource base, community
goals, cooperation between local attractions, businesses and tourism operators,
carrying capacity, monitoring and evaluating, accountability, establishment of education
and training programmes, and positioning.
2.3 Rural Tourism
Rural tourism is a complex multi-faceted activities as Lane (1994) explains which
quoted by Page and Getz (1997), it is not only farm-based tourism but also comprises
special interest nature holiday and ecotourism, walking, climbing and riding holidays,
adventure, sport and health tourism, hunting and angling, educational tourism, art and
heritage tourism, and in some areas, ethnic tourism.
In addition, Page and Getz (1997) explain that rural tourism should be based on rural
areas, small scale enterprise, open space, contact with nature, traditional, long-term
good of the area development, and representing the complex pattern of rural
environment, economy, history and location.
While, UNDP (2005) interprets that rural tourism is any form of tourism that showcases
the rural life, art, culture and heritage in a rural location, thereby benefiting the local
community economically and socially as well as enabling interaction between the
tourists and the locals for a more educational tourism experience which can be termed
as rural tourism with essentially any activity which takes place in the countryside.
Nevertheless the future perspective of recreation and tourism in rural areas really
depend on the successful integration among the traditional and the new forms of leisure
and the traditional and new forms of other economic activities in these areas. The
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stakeholders involvements are highly required to assure the recreation and tourism in
rural areas are sustainable and meet the future directions of tourism development.
2.4 Agriculture and Rural Areas in Indonesia
According to Indonesian Agriculture Department (2002), about 55% or 125 million
Indonesian people occupies in agriculture and 45% in other sectors. Therefore the
agriculture sector is still considered as a vital sector which involves a great number of
workers, and the majority of Indonesian citizens are living in rural areas, and most of
their incomes are generated from agricultural activities.
At present, Indonesia is utilizing about 64 million ha land for agriculture and home
gardens, i.e. 8.3 million ha for lowland rice, 30 million ha for annual upland farming and
grassland, and 25.5 million ha for perennial crops. About 8.5 ha land is covered by
grassland. Area for plantation, especially for oil palm expands rapidly in response to the
increasing demand of international and domestic markets (Mulyani et al., 2003).
Since 1970s, the agricultural policies in Indonesia have been merely concerned on
production-based policies which specifically designed to meet food self-sufficiency. This
goal was reached in 1984, when the first time, domestic rice production exceeded
domestic rice consumption (Barbier, 1989). The agriculture sector in Indonesia consists
of food crops as mentioned as rice, estate crops, livestock, fishing, and forestry. Except
for rice, agricultural commodities have been addressed for export interests and
developed to be the second sector besides oil and liquefied natural gas as earning
contributors of Indonesian economy.
2.5 Potency of Agrotourism in Indonesia
Dalem (1999) describes that Indonesia is the world’s largest archipelago, consisting of
more than 17 000 islands. Indonesia is located around the Equator between Asia and
the Australian continent, and between the Pacific and Indian oceans. Biogeographically,
the western part of Indonesia (Sumatra, Kalimantan, Java and Bali) has Asian
characteristics, while the eastern part, Maluku and Irian Jaya (Papua), has Australian
characteristics. Unlike Sulawesi and Nusa Tenggara have separate characteristics. In
addition, the diversities of ecosystems reflect the diversities of flora and fauna in the
country.
Furthermore, Indonesia is the second-most biodiversity country after Brazil mentioned
by Primack et al. (1998) and the diversity of flora, fauna and their ecosystems, as well
as the diversity of culture, are very potential to be developed as ecotourism and
agrotourism destinations.
Schurink (2000) states that the development of agricultural tourism in Indonesia very
potential because agriculture sector and government have positive perception toward
tourist and tourism furthermore Indonesia has other resources included the agricultural
tourism such as rivers, mountains, and natural environment. In relation to agricultural
tourism implementation in Indonesia, stakeholders should be surely harmonised on
perceptions and policies. Furthermore Schurink initiates that the government as well as
universities play essential roles in the development of rural areas and agrotourism.
NGOs hardly ever have influence on government policies for tourism. His finding
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suggests that the development of agrotourism in Indonesia shall be organized
according to the alternative tourism development theories and the sectors involved in
the development should be very watchful in order to sustain the objects and not to lose
their authenticities.
2.6 Agrotourism
This chapter explains specific agrotourism terms which refer to definitions, philosophy,
and related agrotourism case studies.
2.6.1 Definition of Agrotourism
Agrotourism is collaborations between tourism and agriculture because the visitor go to
travelling as tourist to enjoy, relaxation, spend time and money for enjoyable and
happiness in addition to visiting agricultural area, doing activities related agricultural
such as harvest, planting, fishing, etc (http://www.farmstop.com)
Reynolds (2005) mentions that agrotourism is businesses conducted by farmers whose
working agricultural operations for the enjoyment and education of visitors. In
extensions meaning, agrotourism presents the potential generating farm revenues and
increasing profitability. Additionally, visitors of agrotourism contact directly with farmers
and support the increase of agriculture products indirectly.
Furthermore, according to WTO (2003), that agrotourism is part of rural tourism and
relates to tourism on farms. It gives farmers options to expand their activities and
receive more income. Agrotourism is a small part of rural tourism and agricultural
practice worldwide, excluding in some European countries such as Austria, France,
Italy and Switzerland, the number of farms that offer some form of tourism is remarkably
large. In some areas and countries, agrotourism forms a large part of rural tourism as a
whole.
This study refers the definition of agrotourism from WTO as special interest tourism
which is developed as an alternative tourism development form in Bali.
2.6.2 History and Trends of Agrotourism
Formerly agrotourism was recognized as a part of ecotourism because both have
similar principles to conduct nature attractions (Rilla, 1999). In this case, the history of
ecotourism can also be seen as history of agrotourism. Agrotourism started from rural
tourism as well. In addition, both have been identified as the fastest tourism
development model in the world, and get very serious responses. They have been
widely developed in developing countries as a potential development models as natural
resources and support of local society economically (OTA, 1992).
At the moment, agrotourism has successfully developed in many countries, for instance
Switzerland, New Zeeland, France, Netherlands, Australia, and Austria (Rilla 1999). In
Indonesia, there are eight provinces trying to develop agrotourism such as North
11

Sumatra with rubber and palm plantations, Riau with cacao plantations, West Java by
botanical gardens, Central Java and Daerah Istimewa Yogjakarta by salak pondoh
agrotourism in Sleman, East Java by sugar plantations, Nusa Tenggara Barat by
Rinjani ecotourism, Middle of Kalimantan and West of Kalimantan by palm plantations.
Commonly they are still simply managed with limited facilities and are not developed on
community-based model, and have not been well promoted (Indonesian Agriculture
Department, 2005).
In addition, agrotourism attraction previously, interpreted as panorama attractions and
plantations area, but the new notion of agrotourism has been interpreted as a linkage
system between tourism and agriculture sectors as well as a model of region
development (Indonesian Agriculture Department, 2005).
2.6.3 Philosophy of Agrotourism
The philosophy of agrotourism is inspired to improve the farmers’ earnings and the
quality of rural society lives which then expectedly represents opportunity to educate
the societies on agriculture and ecosystems.
Related and similar opinions described by Lobo, et al (1999), whereas the development
of agrotourisms will offer opportunities for local farmers to increase their earnings and
improve their lives as well as sustain their operations. The opinions can be detailed as
such: (1) it educates people or society about agriculture and contribute to local
economic, (2) it decrease the flood of urbanization as people are able to get jobs and
earnings from agrotourism, (3) it promotes local products, and regional in marketing
effort and create value added and direct-marketing and stimulate economic activity as
well as give benefit to society where agrotourism developed.
Rilla (1999) describes more clearly the reasons of developing agrotourism as such; (1)
it educates for the purpose of keeping the relationship among local societies, interest
sectors, and visitors. (2) it improves the health and freshness of visitors, (3) relaxation,
(4) adventure, (5) natural food or food organic, (6) unique experiences, (7) cheap
tourism.
2.6.4 Contributions of Agrotourism to Tourism
At the moment, the information of agrotourism contributions in many destinations is still
limited since agrotourism is a newly tourism development model. Though, Afandhi
(2005), asserts that the main purpose of agrotourism development is an innovated
tourism attractions. Besides, it also has a number of purposes such as media promotion
of agriculture products, increasing foreign exchange and farmers’ earnings.
In tourism product concept, agrotourism as a tourism attraction may not be separately
measured as the total of tourism product is actually the interaction and interconnection
among transportation sectors, accommodations, and food and beverage sectors, etc.
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2.6.5 Factors Relate to Agrotourism Development
The Indonesian Agriculture Department (2005), identifies there are some aspects
relating to agrotourism development which should be well concerned such as human
resources, natural resources, promotion, infrastructure, and also organisations linkages.
Spillane (1994), mentions whereas areas developed area as agrotourism should be
able to provide five elements such as attraction, facilities, infrastructure, transportation,
and hospitality. They relate and work systematically and holistically in an agrotourism
system.
A similar assumption, Postma (2006) states there are three stakeholders which should
be harmonized to create a successful agrotourism destination, such as; tourists as
consumers, providers as business owners, and host communities.
2.6.6 Impacts of Agrotourism
Almost all models of tourism developments have dilemmas both positive and negative
impacts. Developments of agrotourism in many destinations in Indonesia have been
positively seen as opportunities for the local communities to undergo diversification and
investment, as well as increasing awareness and responsiveness on environmental
conservation (Indonesian Agriculture Department, 2005).
Rural tourism or agrotourism generates a significant contribution to the rural
development process in rural areas and does indeed do so in many cases (Butler et al.
2003). The contributions could be in the forms of income increase and job opportunities,
exchange between rural and urban areas, multiplier effects particularly for small-scale
direct investments, strengthening local or regional structures by creating networks and
the like, stimulating physical infrastructure developments, increasing the diversity of
economic activities, raising awareness of the value of an area, such as its landscape,
nature and culture, and the economic potencies, as well as improving the infrastructure
which enable to provide opportunities for other economic developments.
The negative impacts of agrotourism development will occur when the development
ignores the development principles and ethics. The potential negative impacts which
may occur such as degradation of environment and local culture qualities, and
economics gaps among the regions (Sutjipta, 2001).
2.6.7 Prospect and Trend of Agrotourism in the World.
Many tourism policy makers have notified that tourism is a prospective business. WTO
(2003) forecasts that international tourist arrivals around the world will increase year to
year and in the year 2010 will reach one billion and 2020 will increase and achieve 1,6
billion people.
Nugroho (1997) mentions that the tourist motivations to travel visiting particular
destinations have changed a lot since now the tourists are more preferably interested in
unique or specific things, novelty, more challenging and enthused activities, and the
most important is to experience the quality of tourism products and services.
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Moreover, rural tourism is now a trend in Europe, and it grows gradually. Worldwide, the
increase of rural tourism is three times more than tourism in general as the World
Tourism Organization (WTO) estimates an annual growth of approximately 6% as
against 2% for tourism in general. From this tendency, it can be interpreted that the
market for rural tourism has increased sharply. Additionally according to the experts,
the maturation of people leads to an increasing demand for nature and culture-related
activities. Moreover, the growth of demand on tourism has now become an increasingly
important alternative source of incomes for farmers and other rural inhabitants (WTO
2000, 2002, European Commission, 2001, 2003).
According to Veer and Tuunter (2005), the tourism product is often highly complex
since it often involves chains of activities and facilities, and aesthetics. The tourism
product usually exceeds the business level. Each part of the chain constitutes an
aspect of the total product. The strength of the connections between the different
aspects may vary, however. The various components of the rural tourism products are
shown in the following figure.
Events
Facilities for activities
Attractions
Transports
Services
Rural
Tourism Accommodations
Supporting services
Figure 2, Sectors Relate to Rural Tourism
Source: Richards (1996), modified by Veer and Tuunter (2005)
Figure 2 illustrates, that the rural tourism in its run involves other sectors such as
accommodation, activities, attractions, events, transports and amenities, and other
services. These sectors are very potential for the local people particularly farmers to
earn extra money. They are able to offer more guided tours in their farm, nature areas,
mountains, and other interesting objects and attractions available in their regions.
In many places, agrotourism grows rapidly since tourists presently intend to experience
activities which completely different from their daily lives and places which have been
visited previously. Normally people travel to certain destinations to escape from the
stress of traffic jams, cellular phones, office cubicles and carpooling. More particular,
parents who love their children much really want their children to know and understand
where food, drink or milk actually comes from. Nowadays, the idea of the family to take
a pleasant drive to the country sides to spend the day together with their family is
extremely appealing for the purposes of visiting farms, ranches or wineries to buy
14

products, enjoying entertainment, participating in farming activities, and having meals or
spending the night (http://www.farmstop.com).
2.6.8 Prospects of Agrotourism in Indonesia and Bali
Agriculture sector plays an important role and represents dominant and leading sector
of economics of Indonesia. A number of improvements on agriculture have been
intensively and continuously improved by interest parties such as government
especially Department of Agriculture to revise polices relate to agriculture and intensify
speech on agriculture to farmers, academician to discover new method of land
cultivation and superior seed to harvest faster, and farmers to improve the quality of
agriculture productions. These improvements have stimulated and created new
opportunities to develop agrotourism. Besides, Indonesia also has beautiful panorama,
nature resources, rural regions, and population which dominantly farmers (Indonesian
Agricultural Department, 2005).
According to Sudibya (2002), a number of regencies in Bali are very potential to be
developed agrotourism destinations, for instance;
a) Bangli Regency is potential to be developed as orange and lemon agrotourism
which can be combined with the two nearest tourism objects such as Batur
Mount and Batur Lake.
b) Buleleng Regency, particularly Pancasari Village is potential to be developed as
strawberry, vegetables, and flowers agrotourism.
c) Tabanan Regency can be intensified to develop a park named Eka Karya
Botanical Garden and horticultural which can be combined with rice field view in
Baturiti, Bedugul.
d) Karangasem Regency, exactly in Sibetan Village is potential to develop salak
(light brown snake skin fruit) agrotourism combined with panorama and
surrounding natural environment.
2.6.9 Agrotourism and Philosophy of Hindu
The philosophy of Hindu called Tri Hita Karana which mainly consists of three principles
of harmonic relationship among human and being, humans and the environment, and
humans and God has been used as a fundamental concept in all developments in Bali.
Agrotourism is identified and considered to relate and be relevant with this philosophy,
represent one of the traditional values and cultures to pay attention on environment
sustainability (Pujaastawa, 2006). Additionally, Pujaastawa (2006) lists three
fundamentals of Tri Hita Karana concept namely; parahyangan (spiritual environment),
pawongan (social environment), and palemahan (nature environment).
As agrotourism has been identified as a tourism development model which is based on
the principles of sustainable development, therefore agrotourism is prospective to be
developed in Bali Island for the purpose of improving motivations of working by spirit
“parahyangan”, increasing local earnings “pawongan”, and conserving the nature
“palemahan”.
15

2.6.10 Quality and Sustainability of Agrotourism
The new tourism paradigm, the modern tourists prefer visiting environmental-based
tourism destinations, self-supporting and experienced which aimed at looking for
flexible vacations, special enthusiasm in several of natural attraction and experiences.
According to Eadington and Smith (1995), agrotourism is the best alternative to be
applied as it has all of qualifications mentioned above.
Jamieson and Noble (2000) elaborate whereas there are five important principles which
shall be applied to achieve sustainable tourism and agrotourism in particular, such as:
1. Tourism has to initiate and involve the local societies to be controller and conserver
of tourism;
2. Tourism has to provide labour opportunity and improve the quality of local societies’
lives;
3. Tourism has to be regulated by national and regional governments as well as host
communities which formulated into an international agreement standard;
4. Tourism has to provide guidance concerning operation, evaluation, analysis and
critical of tourism impacts;
5. Tourism has to educate the local societies through education and training programs
to increase their awareness on tourism development which finally assist to preserve
the cultural heritages and existing natural resources.
2.7 The Roles of Tourism Stakeholders
The stakeholders of tourism development consist of six groups namely government,
tourism industries, local communities, tourists or visitors, universities, and NGOs. They
play roles differently and shall work simultaneously in applying the principles of
sustainable tourism development. The descriptions of their roles are elaborated as
below.
• Government comprises central government represented and specifically ruled by
Culture and Tourism Department, tourism authority, regional governments. The
roles of government as stakeholders are to provide policies and site plan and other
planning documents, and functioned as regulator.
• Tourism industries comprise hoteliers, restaurant owners, travel agents, and other
related tourism entrepreneurs. Tourism industries play role in providing investments
on main and supporting tourism facilities, small-scale infrastructures, and other
tourists’ demands.
• Local communities comprise Desa Adat (customary village legal body), farmers who
own the land, and other societies residing in the area where tourism developed.
• Tourists or visitors comprise domestic and foreign tourists who intend to experience
a high quality of tourism activities and attractions.
• Universities comprise Agriculture Department, Tourism Department, and Tourism
Higher Schools which provide qualified human resources, research results on
agriculture and tourism by issuing scientific recommendations to form new and
alternative tourism development models.
• NGOs comprise Non Government Organizations which specifically concern on
agriculture, rural area, and tourism function as independent controllers.
16

Postma (2006) states more specifically that tourism destinations should convey benefits
and other forms of values to all tourism stakeholders. Government shall receive gains in
the form of state and regional revenues, local residents enable to improve the quality of
their lives, tourists may experience a qualified tourism attraction as expected, tourism
industries generate profits to expand their industries and grant prosperities to their
employees, and NGOs are expected to obtain donations from other stakeholders to
survive their organizations in order to be able to play their roles smoothly.
17

3. Methodology
Research Method
This chapter deals with conceptual framework, research design; instruments used in
collecting data, sampling technique, justification of selected method, analysis
techniques, and limitations of the research.
3.1 The Conceptual Framework
Innovate and Find an Alternative Form of Tourism
Development in Bali to Avoid Stagnation
Agrotourism as an Alternative Form of Tourism in Bali
Strengths and
Weaknesses
Factors
Demand for Agrotourism
Supply:
Present Initiatives of
Agrotourism
SWOT Analysis
Threats and
Opportunities
Factors
Recommendation Strategies to develop Agrotourism
as an alternative form of tourism in Bali
Figure 1.1 Research Conceptual Frameworks
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Descriptions of the Conceptual Framework
• Tourism sector has been developed by interactions and interconnections among
linkage sectors. In the context of tourism destination as a product, it follows product
lifecycle. It interacts between demand and supply dynamically. Innovations and
creativities should be done to sustain the tourism development in Bali.
• The demand and supply should be identified and known by those who intend to
develop tourism as well as agrotourism. The opportunity of agrotourism can be
predicted by demand and supply. The demand is needed to identify the chances of
agrotourism as tourism product from the consumer side and the supply is an
important thing to identify of opportunities to develop agrotourism especially to host
communities, providers, and government as policy maker.
• This study will assemble the opportunities and chances of agrotourism in Bali as an
alternative form of tourism. Information and opinions of stakeholders (farmers,
government, tourism industries, NGOs, Universities, and visitors), will be analysed
and formulated using SWOT analysis. Finally, the finding of this study will be used
as a recommendation and strategy to develop agrotourism in Bali.
3.2 Research Design
Cooper and Schinder (1998) define research design as a plan of selecting sources and
types of information used to answer the research questions. It specifies the
relationships among the studied variables and outlines each procedure from the
hypothesis to the data analysis. It deals with issues as techniques for data collection,
sampling technique as well as time and cost constrains.
3.3 Case Study Design
Veal (1997) characterizes a case study as a research that involves a study of a
phenomenon being exemplified and researched which is aimed at understanding the
phenomenon clearly by examining an exacting example. The case study of this
research will be focused in Bali Province since it is presently used as the icon of tourism
in Indonesia. According to Pujaastawa, et al (2005), Bali has villages which have been
developed in rural tourism form. The villages are collected as case studies of
agrotourism in Bali, they are:
a) Bayung Gede Village, Kintamani District in Bangli Regency is promoted as rural
tourism especially for orange agrotourism and unique tradition.
b) Candikuning Village, Baturiti District in Tabanan Regency is promoted as an
agrotourism especially for strawberry and vegetables farms collaborated with
beautiful panorama.
c) Blimbingsari Village, Melaya District in Jembrana Regency is promoted as rural
tourism especially for coconut and cacao farms.
d) Pelaga Village, Petang District in Badung Regency is promoted as Pelaga
Agrotourism particularly for vegetables and organic farming for hotels’ supplies
in Bali.
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3.4 Qualitative Research Approach
This research uses qualitative approach which involves some library researches and
observation. Qualitative method according to Veal (1997), refers to the methods and
techniques which describe and emphasize more on qualitative rather that quantitative
information. This research is designed using qualitative descriptive research methods.
1. The data used to answer the problem statement and research questions are
collected through:
a) Direct observation, by observing agriculture areas in Bali particularly the areas
which used as case studies such as; Bayung Gede, Candikuning, Blimbingsari,
and Pelaga Villages.
b) Structured interview (questioner and open questions), by having direct
interactions with the agrotourism stakeholders in Bali. They are government,
tourism industries, local communities, tourists or visitors, universities, and Non
Governmental Organizations.
c) The interviewees or respondents determined through purposive sampling
technique. The number of respondents and techniques used definitely described
below.
1) The respondents from farmers or local communities determined through
purposive sampling which comprise fifteen (15) local farmers or communities
from each case study (Bayung Gede, Candikuning, Blimbingsari, and Pelaga
Villages).
2) The respondents from universities as expertise determined through
purposive sampling which comprise 5 lecturers from Agricultural Department
of Udayana University, 1 lecturer from Tourism Studies of School of
Graduate Studies of Udayana University, and 2 lecturers from Tourism
College of Dhyana Pura.
3) The respondents from NGOs determined through purposive sampling which
comprise respondents from Maha Boga Marga Foundation (4 respondents)
which concerns on rural society development and Dian Buana Lestari
Faundation (2 respondents) which concerns on ecotourism development.
4) The respondents from governments determined through purposive sampling
which comprise local governments of Bayung Gede, Candikuning,
Blimbingsari, and Pelaga Villages of 5, 5, 5, 3 respondents in order.
5) The respondents from tourism indusrties which comprise one respondent
from Dyana Pura Hotel and Resort.
2. Combinations of Qualitative and Quantitative Data
According to Trochim (2006), qualitative data is extremely varied in nature. It includes
virtually any non-numerical information captured during the research. This research
uses two kinds of collecting data techniques, namely:
• Structured Interviews
Individual interviews are conducted to collect data and information about external
and internal factors relate to agrotourism developments in Bali.
• Questioners
The questioners are designed on Likert-scale interval to collect the stakeholders’
opinions on agrotourism developments in Bali.
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• Direct Observation
According to Trochim (2006), direct observation is a technique of collecting data
which taken from research field where one lives in another context or culture for a
period of time to photographs that illustrate some aspects of the phenomenon. The
data can be recorded in many of the same ways as interviews (stenography, audio,
and video) and through pictures, photos or drawings (e.g., those courtroom
drawings of witnesses are a form of direct observation). In this case, the collected
date relate to resources of agrotourism in Bali.
3. The analysis
This study uses SWOT survey and combined with qualitative and quantitative data
which analysed and focused on the following key areas: Strengths, Weaknesses,
Opportunities, and Threats. The collected data are descriptively analysed using
software Microsoft Excel 2003 to determine the means, scores, and ranks of the
internal factors (strengths and weaknesses), and to determine the external factors
(threats and opportunities) of agrotourism as an alternative form of tourism
development in Bali. While the data from direct observation used as primary data to
compare opinions and factual described into check list tables, chart, photos, and
pictures.
3.5 Factors and Variables
The variables are quoted from literature reviews to answer the research questions,
detailed as follow:
1. Variables relate to the current situations of agrotourism in Bali are measured by
ecological, social, and cultural resources both tourism and agriculture sectors
(Pujaastawa et al, 2005).
2. Variables relate to the opportunities of developing agrotourism obtained from the
farmers’ opinions comprise; generating income and jobs, multiplier effect for local
farmers, stimulating developments, increasing economic activities, increasing value
of village, and opportunities for other developments (Lobo et al, 1999).
3. Variables relate to the barriers of developing agrotourism from the farmers’ opinions
comprise; investment in the villages, human resources relate to agrotourism, local
governments support, infrastructures and facilities, ecological resources, and social
and cultural resources (Lobo et al, 1999).
4. Variables relate to the tourism stakeholder’s opinions of agro tourism development
in Bali from many perspectives such as government, tourism industries, NGOs,
Universities, and local communities comprise: ecological resources for agrotourism
comprise rice fields, plantations, forestry, mountains, lakes, rivers, and etcetera; and
social and cultural resources for agrotourism comprise local cultures, traditions,
religion, and etcetera (Pujaastawa et al, 2005). Meanwhile, information from visitors
comprises; education trips, improvement on health and freshness, relaxation,
adventure, natural food or organic food, unique experiences, and cheap tourism
(Rilla, 1999).
5. Variables relate to the contributions of agrotourism toward economy improvement of
local communities comprise; village accommodations, village restaurants, and
souvenir shops (Spillane, 1994).
21

6. Variables relate to the contributions of agrotourism toward improvement of the
social situation of local communities comprise; attractions or events, public facilities,
accessibilities, organisation linkages, and host attitudes (Spillane, 1994).
7. Variables relate to the contributions of agrotourism for sustainable tourism
development comprise: initiative of local societies to be controllers and conservers
of agrotourism; involving local labour and improving quality of life of local society;
national, regional and host regulations for agrotourism; guidance regarding
operation, evaluation, analysis and critical tourism impacts; education and training
programs (Jamieson and Noble, 2000).
The findings of this research are descriptively and qualitatively described per
opportunity, threat, strength, and weakness. Moreover, to determine which strategy will
be recommended, uses the options described below.
• SO Strategies: Use the strengths to take advantages of the opportunities
• WO Strategies: Overcome the weaknesses by taking advantages of the
opportunities
• ST Strategies: Use the strengths to avoid threats
• WT Strategies: Minimize the weaknesses and avoid threats
4. Procedures
Each instrument (questioners, photos, and documents) is assigned identification
numbers or coding. Before the interview conducted, each selected interviewee will be
asked by phone especially government, NGOs, and universities to know their
willingness as an interviewee and make appointment when and where the interview will
be conducted.
22

4. Finding and Analyses:
Potency of Agrotourism Bali
The collected data are analyzed and interpreted to describe the current situation of
agrotourism in Bali particularly areas selected as case studies comprise Bayung Gede,
Candikuning, Blimbingsari, and Pelaga Villages represent agrotourism objects in Bali
Island. The opportunities and barriers of developing agrotourism from farmers’ opinions
are clearly described in this chapter.
This chapter also discusses the tourism stakeholders’ opinions on agrotourism
development in Bali from entrepreneurs, governments, tourism industries, NGOs,
universities, and local communities; as well as the contributions of agrotourism to the
economy improvement of the local communities, social situation of local communities,
and sustainable tourism development.
4.1 A Glimpse of Bali
Geographically Bali is located in Pacific Ocean exactly in East side of Java Island and
Northwest Australia. Bali consists of Bali Island and other small islands namely; Nusa
Penida, Nusa Lembongan, Nusa Ceningan, and Menjangan islands covering area of
5,632.86 km 2 width. Two volcanic mountains, Mount Agung (the highest of 3,142
meters), Mount Batur (1,717 meters) stretch in the middle part of Bali Island and non
volcanic mountains are Mount Merbuk (1,356 meters), Mount Patas (1,414 meters) and
Mount Seraya (1,174 meters). Some of non-volcanic reach the height between 1,000 to
2,000 meters.
Blimbingsari
Village,
Jembrana
Regency
Candikuning
Village, Tabanan
Regency
Tourism area
of Kuta Beach
Picture 4.1 Map of Bali Island.
Source: http://www.balivillas.com
Tourism area
of Nusa Dua
Beach
Bayung Gede
Village, Bangli
Regency
Pelaga Village,
Badung
Regency
Tourism area
of Sanur Beach
23

Bali Island approximates width of 85% from the total area. Mountains and hills are
decorated and surrounded with green forest and agricultural areas which functioned as
natural water sources for all parts of Bali. On the mountainous areas there are four
lakes namely: Batur Lake, Beratan Lake, Buyan Lake, and Tamblingan lakes. The
geographical condition separates Bali into two parts, North Bali with a narrow lowland
plain and tideland plain; and South Bali with wide lowland plain. South Bali forms
alluvial mainland passed by shallow rivers.
Viewing from sloping land, most areas of Bali island consist of sloping land with the
slope approximately 0-2% located in the South beach area and small part of the North
beach, width area of 96,129 ha. Sloping land between 2-15% mostly located in
Badung, Tabanan, Gianyar, Buleleng Regencies and the rest spread evenly along the
beach with width of 132,056 ha. Sloping land between 15-40% covering area width
164,749 ha dominantly occupies middle part of Bali following the hill areas spread
between West and East areas. While sloping area more than 40% is a hill and
mountainside located in the middle part of Bali and parts of Nusa Penida Island.
Bali has a tropic climate with average temperature between 25 and 32 Degree Celsius
influenced by the high area. Bali has two seasons fixed by climate wind namely Dry
Season (May – September) and Wet Season (October – April). Rain falls at anytime
even during the Dry Season, however rain in the evening could drive away all the dust.
The average rainfalls is 178 mm and reaches 459 mm during the rainy season while the
average humidity in Bali is 79% and the wind speed is between 3.0 and 8.3 knot per
hour.
Bali Province is divided into one city called Denpasar and 8 regencies namely Badung,
Tabanan, Gianyar, Klungkung, Karangasem, Bangli, Buleleng, and Jembrana
Regencies with the capital province in Denpasar. The total population of Bali Island is
2.998.770 people (Bali Statistic Bureau, 2000). The populations are not evenly spread,
while Denpasar is the densest area with the dense population 3,218 people/km 2 .
4.2 Current situation of agrotourism in Bali
4.2.1 Bayung Gede Village, Kintamani District-Bangli Regency
Bayung Gede is the first village surveyed to collect information relate to rural and
agrotourism. It is a rural tourism projected by Government of Bali Regency located
nearby the eco-tourism Kintamani which famous for beautiful sceneries of Batur Lake
and active volcano Mount Batur. The main tourist attraction offered at Bayung Gede
Village is “Kuburan Ari-ari” (placenta grave).
The local communities of Bayung Gede Village believe it as spiritual of inhabitants of
familiarity (picture 4.2). The district government of Bangli sees the potency and develop
it become tourism object which added with some creations and innovations to enrich
alternative tourist attractions in Bali.
24

Picture 4.2
Placenta Grave at Bayung Gede Village
Source: Research Observation
In addition, Bayung Gede Village also has other potencies such as orange farms and
the beautiful panorama that developed as agrotourism (picture 4.3). Besides, lush
vegetables grow in this village. Oranges and vegetables are currently produced to
supply local markets in Bali Province. Tourists who visit Bayung Gede Village are
dominantly still attracted by the unique of “Kuburan Ari-ari” although the village has lots
potencies on agricultural resources (Bayung Gede Village Head, 2007).
Picture 4.3
Orange Farm at Bayung Gede Village
Source: Research Observation
4.2.2 Candikuning Village, Baturiti District-Tabanan Regency
Candikuning Village is a project which was initiated by the district government of
Baturiti, Tabanan Regency. Following the success story of Bedugul “Beratan Lake” and
25

“Ulun Danu Temple” and the botanical garden of Eka Karya Bali (picture 4.4), the
village is surveyed and promoted as agrotourism in Bali.
Picture 4.4
Eka Karya Botanical Garden
Source: Research Observation
The Eka Karya Botanical Garden is one of the leading tourist attractions in Tabanan
Regency contributes lots to the local communities and stimulates related businesses
such as flower “krisan” shops, vegetable traditional market, fruit “strawberry”, and
organic plantations (picture 4.5). The main attractions of Candikuning Village are
organic farm and beautiful panorama of Beratan Lake and Botanical Garden of Eka
Karya Bali. Currently, visitors are dominated by domestic tourists who spend their
week-ends of holidays for relaxation.
Picture 4.5
Vegetables and Fruits Market at Candikuning Village
Source: Research Observation
26

4.2.3 Blimbingsari Village, Melaya District, Jembrana Regency
Blimbingsari is a small village of approximately 200 couple families, located in western
part of Bali Province approximately 120 km from the Capital City of Denpasar. The
village was formed and developed once the Dutch colonized Indonesia. It is
predominantly populated by Christian Protestant communities. Albeit it becomes a
Christian village, Blimbingsari still exists in Balinese culture and tradition practices
(picture 4.6).
Picture 4.6
Balinese-style Church Building
Source: Research Observation
Predominantly, the populations work for agricultural sector. The cacao and coconut
farms are the main products of Blimbingsari Village (Blimbingsari Village Head, 2007).
The opportunity of Blimbingsari to become an agricultural attraction was motivated by
“Suyaga Ayub”, a pastor of Blimbingsari church. Dominantly, tourists attracted by the
unique traditions of Christian communities which are implemented by Balinese-style
church, and its story becomes one of the Christian villages in Bali.
Picture 4.7
Cacao and Coconut Farms
Source: Research Observation
The village is also nearby Palasari Village with Catholics populations, moreover it is
both close to West Bali National Park which functions as ecotourism and conservation
27

and Palasari water irrigation (DAM) which have been developed and promoted by the
local government as tourist destination in Bali.
4.2.4 Pelaga Village, Petang District, Badung Regency
Pelaga is a small town in the middle part of Bali. It is surrounded by mountains and
forests. The agrotourism at Pelaga is motivated by private entrepreneurs for the
purpose of becoming motivators of farmers in Pelaga Village (Astawa, 2007).
Picture 4.8
Central of Pelaga Village
Source: Research observation
Agro Bagus Pelaga is one of the agrotourism objects developed by a Balinese
entrepreneur named Sudibya. The main goal is to supply organic agricultural products
like vegetables and fruits such as strawberry and tomato for hotel industries in Bali
(picture 4.9). Currently, the tourists are attracted by beautiful panorama of mountain,
rice fields, and organic farms as the main attractions (Local Community of Pelaga
Village, 2007).
Picture 4.9
Strawberry Plantation at Pelaga Village
Source: Research Observation
28

4.3 Farmers’ Opinions toward Agrotourism Opportunities
The perceptions of farmers toward agrotourism is predominantly characterized by the
ideas that tourism and tourists provide them opportunities to increase family income,
employment in the village, generating tourism business, and increase value of the
village.
Sixty farmers are chosen as respondents to agrotourism opportunities in their regions.
The selected respondents are farmers who live and specifically work for agricultural
sector in the case studies (15 farmers from Bayung Gede Village, 15 farmers from
Candikuning Village, 15 farmers from Blimbingsari Village, and 15 farmers from Pelaga
Village). The finding is shown in table 4.1 below:
Table 4.1
Farmers’ Opinions toward Agrotourism Opportunities
Case Study Code Indicators
Total
Score
Mean Remark Rank
O3
Increasing
family income
75 5.00 Strongly
O2 Employment 73
agree
4.87
1
Strongly
O1
Generating
tourism
business
71
agree
4.73
2
Strongly
Bayung
Gede
Village,
Kintamani
District,
Bangli
Regency
O4
Increasing
value of the
village
71
agree
4.73
3
Strongly
agree
3
O3
Increasing
family income
75 5.00 Strongly
agree
1
O2 Employment 72 4.80 Strongly
agree
2
O1
Generating
tourism
business
70 4.67 Strongly
Candikuning
Village,
Baturiti
District,
Tabanan
agree
3
Regency
O4
Increasing
value of the
village
70 4.67 Strongly
agree
3
O3
Increasing
family income
75 5.00 Strongly
O2 Employment 73
agree
4.87
1
Strongly
O1
Generating
tourism
business
72
agree
4.80
2
Strongly
Blimbingsari
Village,
Melaya
District,
Jembrana
Regency
O4
Increasing
value of the
village
72
agree
4.80
3
Strongly
agree
3
O2 Employment 75 5.00 Strongly
Pelaga
Village,
agree
1
Petang
District,
O3
Increasing
family income
75 5.00 Strongly
agree
1
29

Badung
Regency
O1
Generating
tourism
business
Increasing
O4 value of the
village
Source: Research Primary Data, 2007
71 4.73 Strongly
agree
71 4.73 Strongly
agree
In order to interpret of mean using five scales with interval (0.8), remark is:
• 1.00 to 1.80: strongly disagree
• 1.81 to 2.60: disagree
• 2.61 to 3.40: neutral
• 3.41 to 4.20: agree
• 4.21 to 5.00: strongly agree
The finding in each case study is clearly elaborated below:
1. Bayung Gede Village
An agrotourism gives opportunity to increase the family income is strongly agree by
farmers as the mean of 5.00 shown in table 4.1 and reaches the highest rank
compare to other indicators. Involvements of local communities in agrotourism
development come afterward which accounts for mean of 4.87. Meanwhile
generating potential tourism business and increasing value of the village are the
least mean among others.
2. Candikuning Village
Farmers’ perceptions upon agrotourism development at Candikuning Village are
also similar to farmers in Bayung Gede. As shown in the table 4.1, potency of
agrotourism in increasing family income becomes the first reason which reaches the
highest rank and mean which accounts for 5.00, followed with generating work
opportunities as the second rank with total mean of 4.80. The last two indicators,
potency of running tourism business and increasing value of the village nominate
the lowest mean of 4.67 which then bring them to the last rank.
3. Blimbingsari Village
According to farmers at Blimbingsari Village, agrotourism development is definitely
enabled to increase the family income as proven by the utmost mean of 5.00
described in table 4.1. Local employment chance appoints the second rank. The
lowly means among the four indicators are generating tourism income and
increasing value of the village which account for 4.80 each.
4. Pelaga Village
Two opportunities of agrotourism development, local employment prospect and
family income increase are the most opinions conveyed by the farmers at Pelaga
Village which pass them to the first rank with each mean of 5.00. Potency of
developing related tourism business and value increase are the lowest mean which
accumulates only 4.73.
3
3
30

5. Farmers’ perceptions toward agrotourism opportunities in the selected case studies
Table 4.2 which presents 60 respondents who definitely agree that agrotourism enables
to increase the family income as it occupies the highest mean (5.00) and first rank in all
case studies. Involvements of local employees in agrotourism development position on
the second rank with mean of 4.88. Meanwhile, the means of generating related tourism
businesses and increasing value of the village account for 4.73 each which occupy the
third rank.
Table 4.2
General Perceptions of Farmers toward Agrotourism Opportunities in Four Case
Studies
Code Indicators
Total
Score
Mean Remark Rank
O3 Increasing family income 300 5.00 Strongly agree 1
O2 Employment 293 4.88 Strongly agree 2
O1 Generating tourism business 284 4.73 Strongly agree 3
O4 Increasing value of village 284 4.73 Strongly agree 3
Source: Research Primary Data, 2007.
4.4 Barrier Factors of Agrotourism Development in Bali
Five indicators which become the mains barrier factors in developing agrotourism such
as lack of infrastructures, public facilities, human skill, investment, and government
support questioned to 60 farmers in the four selected case studies. The finding is show
at table 4.3 below:
Table 4.3
The Barriers Factors of Agrotourism Development in Bali
Case Study Code
Indicators
Total
Score
Mean Remark Rank
B4 Lack of
69 4.60 Strongly 1
Bayung
Gede
Village,
Kintamani
District,
Bangli
Regency
B5
B2
B1
B3
Infrastructures
Lack of public
facilities
Lack of human
skills
Lack of investment
Lack Government
support
69
68
66
59
4.60
4.53
4.40
3.93
agree
Strongly
agree
Strongly
agree
Strongly
agree
Agree
1
3
4
5
Candikuning B4 Lack of
71 4.73 Strongly 1
Village,
Infrastructures
agree
Baturiti B5 Lack of public 70 4.67 Strongly 2
District,
facilities
agree
Tabanan B2 Lack of human 65 4.33 Strongly 3
Regency
skills
agree
31

B1 Lack of investment 64 4.27 Strongly
agree
4
B3 Lack of
Government
support
59 3.93 Agree 5
B3 Lack of
75 5.00 Strongly 1
Government
agree
Blimbingsari
Village,
Melaya
District,
Jembrana
Regency
B2
B1
B4
support
Lack of human
skills
Lack of investment
Lack of
Infrastructures
73
71
71
4.87
4.73
4.73
Strongly
agree
Strongly
agree
Strongly
agree
2
3
3
B5 Lack of public 70 4.67 Strongly 5
facilities
agree
B3 Lack of
75 5.00 Strongly 1
Government
agree
Pelaga
Village,
Petang
District,
Badung
Regency
B2
B1
B4
support
Lack of human
skills
Lack of investment
Lack of
Infrastructures
73
72
72
4.87
4.80
4.80
Strongly
agree
Strongly
agree
Strongly
agree
2
3
3
B5 Lack of public 70 4.67 Strongly 5
facilities
agree
Source: Research Primary Data, 2007.
The finding is evidently detailed below.
1. Bayung Gede Village
Inadequate infrastructure and public facilities are considered to be the most barrier
factors of agrotourism development at Bayung Gede Village with mean of 4.60 as
stated by the respondents in table 4.3. The mean of human resource skill is just under
the two important indictors above which accounts for 4.53. The respondents also
extremely agree that lack of investment becomes the fourth barrier factor of agrotourism
development. Government support actually plays role in developing agrotourism,
however the respondents regard it as the least barrier factor compare to other
indicators.
2. Candikuning Village
At Candikuning Village, infrastructure scarce is predominantly regarded as the most
barrier factor to establish agrotourism with mean of 4.73, then followed with the limited
public facilities which positions on the second rank. Imperfect skill owned by the local
communities becomes the third obstacle and surely stumble them to involve more in
agrotourism. It has the same mean of 4.27 as negligible local investment which places
32

on the fourth rank. The farmers in addition agree that the agrotourism development in
their village is lack of government support.
3. Blimbingsari Village
The opinions of farmers at Bayung Gede and Candikuning villages toward agrotourism
development are contrary with farmers at Blimbingsari Village since government
support observed as the utmost barrier factor. Meanwhile, the limited human resource
skill is considered to be the second hindrance, and then followed with scarce
investment and infrastructures with mean of 4.73 which convey them to the third rank.
The restricted public facilities are the slightest barrier factor of agrotourism development
at Blimbingsari Village.
4. Pelaga Village
A similar opinion stated by the farmers at Blimbingsari Village where government
support becomes the most problem and occupies the first rank compare to other four
indicators. Inadequate human resource skills have mean (4.87) which appoint the
second rank, and scarce investment and lack of infrastructures have the same mean
(4.80) which appoint the third ranks in sequence. In the meantime, public facilities
assign the least barrier factor as shown by the mean of 4.67 described in table 4.3.
5. Barrier factors agrotourism development in Bali
According to the sixty selected respondents taken from the four case studies, whereas
inadequate infrastructures are assumed as the most barrier factors in developing
agrotourism in Bali compare to other four indicators. This fact can be evidently seen
from the mean (4.72) presented in table 4.4. The means of limited public facilities and
human resource skills are just seven points under infrastructure factor which account
for 4.65. Investment scarce (mean of 4.55) and lacking government support (mean of
4.47) resemble the forth and fifth barrier factors of agrotourism development in Bali.
Table 4.4
General Perceptions of Barrier Factors of Agrotourism Development in Bali
Code Indicators
Total
Score
Mean Remark Rank
B4 Lack of Infrastructures 283 4.72 Strongly agree 1
B5 Lack of public facilities 279 4.65 Strongly agree 2
B2 Lack of human skills 279 4.65 Strongly agree 2
B1 Lack of investment 273 4.55 Strongly agree 4
B3 Lack of government
support
268 4.47 Strongly agree 5
Source: Research Primary Data, 2007.
4.5 Stakeholders’ Opinions toward Agrotourism Development in Bali.
Using SWOT Analysis, this paper attracts research finding by strengths, weaknesses,
opportunities, and treats factors in each case study before formulating the best strategy
33

to develop agrotourism in Bali. The data collected through interview involving 35
respondents which comprise stakeholders from four local governments of Bayung
Gede, Candikuning, Blimbingsari, and Pelaga Villages; and representative respondents
from NGOs, universities, and hotelier (see appendix). The research finding can be
described as below:
1. Strengths
The strengths of agrotourism development in Bali predominantly are resourced by
ecological, social, and cultural resources. The surveyed strength factors used as
indicators consist of lakes, rice fields, plantations, forests, rivers, existing farmers,
unique traditions, agricultural organizations, events, agricultural ceremonies,
organization linkages, human resources, agricultural regulations, information systems,
and heritages (table 4.5).
In general, the respondents who represent agrotourism stakeholders predominantly
agree that ecological, and social and cultural resources are the strengths factors
agrotourism development in Bali. More specifically, the stakeholders strongly agree that
ecological resource particularly lakes, and social and cultural resources especially
existing of farmers and unique traditions as the most strengths factors as means shown
in table 4.5.
Table 4.5
The Strengths Factors of Agrotourism Development in Bali
Code Indicators
Ecological Resources
Total
Score
Mean Remark Rank
S5 Lakes 140 4.00 Strongly agree 1
S1 Rice Fields 138 3.94 Agree 2
S2 Plantations 132 3.77 Agree 3
S3 Forests 128 3.66 Agree 4
S4 Rivers 119 3.40 Neutral 5
Social and Cultural Resources
S12 Farmers 160 4.57 Strongly agree 1
S11 Unique traditions 150 4.29 Strongly agree 2
S14 Agricultural organizations 145 4.14 Agree 3
S10 Events 137 3.91 Agree 4
S13 Agricultural ceremonies 136 3.89 Agree 5
S6 Organization linkages 135 3.86 Agree 6
S8 Human resources 133 3.80 Agree 7
S15 Agriculture regulations 130 3.71 Agree 8
S7 Information systems 127 3.63 Agree 9
S9 Heritages 124 3.54 Agree 10
Source: Research Primary Data, 2007.
34

2. Weaknesses
Although the stakeholders agree that Bali has lots of strength factors to develop
agrotourism, however the weaknesses factors also should be considered. The
weakness factors comprise; lack of government support, lack of investment, lack of
infrastructures, lack of human skills, and lack of public facilities as described in table
4.6.
Table 4.6
The Weakness Factors of Agrotourism Development in Bali
Code Indicators
Total
Score
Mean Remark Rank
B3 Lack of government support 136 3.89 Agree 1
B1 Lack of investment 132 3.77 Agree 2
B4 Lack of Infrastructures 127 3.63 Agree 3
B2 Lack of human skills 124 3.54 Agree 4
B5 Lack of public facilities 100 2.86 Neutral 5
Source: Research Primary Data, 2007.
According to the stakeholders selected as respondents whereas the most weakness
factor contributed to agrotorism development in Bali is lack of government support
which its mean accounts for 3.89. Besides, lacks of investment and infrastructures as
well as limited human skills are still regarded as the weaknesses factors. Yet public
facilities are not supposed to be the weakness factors since its mean only reaches 2.86
and position on the last rank.
3. Opportunities
The stakeholders predominantly agree that the agrotourism development in Bali
generates certain opportunities such as; creating local employment, increasing family
income, and increasing value of the village. In particular, generating related tourism
business opportunities become the primary and most reasons (mean of 4.46) proposed
by the respondents as presented in table 4.7.
Table 4.7
The Opportunities Factors of Agrotourism Development in Bali
Code Indicators
Total
Score
Mean Remark Rank
O1 Generating tourism business 156 4.46 Strongly agree 1
O2 Employment 142 4.06 Agree 2
O3 Increasing family income 138 3.94 Agree 3
O4 Increasing value of village 127 3.63 Agree 4
Source: Research Primary Data, 2007.
35

4. Threats
Basically threats toward agrotourism development are classified into two namely
ecological threats which comprise degradation of natural resources, lands using
problems, and pollutions; and social and cultural threats which comprise changing of
hosts’ attitudes, increasing criminalities, and commercialization of traditions.
The agrotourism stakeholders in Bali strongly agree that degradation of natural
resources the most dangerous threat of any tourism developments including
agrotourism in particular. It is clearly described by the mean of 4.51 shown in table 4.8.
Land using problems are supposed to be the second most risky hazard which potential
to destroy the existence and development of agrotourism in Bali. Meanwhile the last
four indicators pollutions, changing of hosts’ attitudes, increasing criminalities,
commercialization of tradition are consider to be the threats factors, yet they are not as
significant as the two exposure factors as degradation of natural resource and land
using problem.
Table 4.8
The Threats Factors of Agrotourism Development in Bali
Code Indicators
Ecological Resources
Total
Score
Mean Remark Rank
T3 Degradation natural
resources
158 4.51 Strongly agree 1
T1 Lands using problems 155 4.43 Strongly agree 2
T2 Pollutions 146 4.17 Agree 3
Social and Cultural
Resources
T5 Changing of host attitudes 144 4.11 Agree 1
T6 Increasing criminalities 136 3.89 Agree 2
T4 Commercialization of
traditions
Source: Research Primary Data, 2007.
131 3.74 Agree 3
4.6 Contributions of agrotourism toward economy improvement of the local
communities
Agrotourism contributes lots to the improvement of economy lives of the local
communities. The contributions are in the forms of agricultural products sales, various
of hand-made souvenirs or handicrafts sold for the tourists, chances to establish food
stalls or restaurants and certain types of accommodation such as home-stay, bungalow,
villa, and hotel, as well as village development. With respect to economy improvement,
the stakeholders predominantly agree that increasing agricultural products are the most
contribution generated from agrotourism development with mean of 3.97 as presented
in table 4.9.
36

Table 4.9
The Contributions of Agrotourism toward Economy Improvement
Code Indicators
Total
Score
Mean Remark Rank
CeL1 Increasing agriculture
products
139 3.97 Agree 1
CeL2 Increasing
handicrafts/souvenirs
135 3.86 Agree 2
CeL4 Increasing village restaurants 131 3.74 Agree 3
CeL3 Increasing village hotels/villas 129 3.69 Agree 4
Source: Research Primary Data, 2007.
4.7 Contributions of agrotourism toward improvement of social situation
There are three indicators which empower the potency of agrotourism development
such as poverty alleviation, decreasing the number of unemployment, and declining the
urban. The stakeholders mostly agree that the agrotourism enables to alleviate
poverties and decrease the unemployment since it provides work opportunities which
can help to improve the quality of the villagers’ lives. These two contributions are
considered to be the most essential contributions of agrotourism development in Bali as
illustrated in table 4.10 below.
Table 4.10
The Contributions of Agrotourism toward Improvement of Social Situation
Code Indicators
Total
Score
Mean Remark Rank
Csc1 Minimizing of poorness 132 3.77 Agree 1
Csc3 Decreasing unemployed 132 3.77 Agree 1
Csc2 Decreasing urbanizations 128 3.66 Agree 3
Source: Research Primary Data, 2007.
4.8 Contributions of agrotourism toward sustainable tourism development
Agrotourism development is highly expected to play role in applying sustainable tourism
development in Bali. Stakeholders predominantly agree that the agrotourism
development contributes toward nature conservation as one of the important goals of
sustainable tourism (sustaining nature, social life, and culture, as well as generating
income for the local societies) as describes in table 4.11.
37

Table 4.11
The Contributions of Agrotourism toward Sustainable Tourism Development
Code Indicators
Total
Score
Mean Remark Rank
Cst3 Natural conservation 155 4.43 Strongly agree 1
Cst2 Increasing tourists/visitors
arrivals
Cst1 Continuity of business at
villages
Source: Research Primary Data, 2007.
147 4.20 Strongly agree 2
140 4.00 Agree 3
Nowadays, tourists are more interested in visiting tourism destinations which serve
natural attractions since their lives and educations improving day by day which
encourage them to pay more attention nature and increase their awareness on the
importance of saving the nature.
This newly paradigm is expected to increase the number of tourists visiting Bali. The
stakeholders also agree that agrotourism facilitates the local communities to run certain
kinds of related tourism businesses in their villages.
38

5. Conclusions and Recommendation
Strategy Agrotourism Development in Bali
5.1 Conclusions
1) The opportunities of agrotourism development in Bali
Agroutorism development in Bali has a number of opportunities such as increasing
family incomes, creating working fields for the local communities, generating related
tourism businesses, and increasing value of the village. Family income increases
are considered to be the most potential opportunity compare to others.
2) The barriers factors of agrotourism development in Bali
The hardest barriers factors agroutorism development in Bali is the inadequate
infrastructures, then followed with limited public facilities. Imperfect human resource
skills, scarce investments, and insufficient government supports are the last three
barrier factors.
3) The stakeholders’ opinions toward agrotourism development in Bali.
The stakeholders predominantly agree that ecological resources particularly lakes,
social life especially farmers and their lives, and cultural resources such as unique
traditions are the strength factors of agrotourism development in Bali.
4) The weakness factors agrotourism development in Bali
A number of weaknesses of agrotourism development agreed by the stakeholders
from the weakest factors until the least weakness contributors as follows; lack
government support, lack of investment, lack of infrastructures, and lack of human
skills. But, incomplete public facilities are not considered as weaknesses factors.
5) The opportunity factors agrotourism development in Bali
Generating related tourism businesses are the most potential opportunity of
agrotourism development in Bali. However there are still numerous opportunities
generated from agrotourism such as providing local employments, increasing family
incomes, and increasing value of the village.
6) The threat factors agrotourism development in Bali
Degradation of natural resources regarded as the riskiest threat of agrotourism
development in Bali. The second most serious matter is land using problems as
many areas have been developed inappropriately and are not in accordance with
the principle of tourism development. Other threats such as pollutions (including air,
water, and land pollutions), host attitude changes, increasing criminalities, as well
as commercialization of traditions are also supposed to be threats factors however
they are not as serious as the two hazardous threats.
39

7) The contributions of agrotourism toward economy improvement
Agrotourism contributes lots of things in improving the economy of the local
communities. The contributions are in the forms of agricultural product
improvements, and stimulations of other related tourism enterprises such as
handicraft shops, restaurants, and accommodations.
8) The contributions of agrotourism toward improvement of social situation
Agrotourism plays roles in improving the social situations of the local communities
particularly poverty alleviation, decreasing unemployment as well as declining
urbanization.
9) The contributions of agrotourism toward sustainable tourism development in Bali
Nature conservation as one the sustainable tourism development indicators is
contributed by agrotourism development in Bali. Other contributions such as
international tourist arrival increase and generating economic incomes which can be
seen from the establishments of tourism businesses for local communities
strengthen argument that agrotourism plays role in applying the principles of
sustainable tourism development.
5.2. Recommendation and Strategies
Based on the research finding, this chapter formulates the strategy of agrotourism
development in Bali by using SWOT analysis which formulated into four strategies
comprises SO (a strategy which uses the strengths to take advantages of the
opportunities), WO (a strategy which overcomes the weaknesses by taking advantages
of opportunities), ST (a strategy which use the strengths to avoid threats, and WT (a
strategy which minimizes the weaknesses and avoids threats (table 5.1)
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Table 5.1
SWOT Matrix: Agrotourism Development in Bali
S – Strengths O - Opportunities
• Lakes
• Rice Fields
• Plantations
• Forests
• Farmers
• Unique traditions
• Agricultural organizations
• Events
• Agricultural ceremonies
• Organizations linkages
• Human resources
• Agriculture regulations
• Information systems
• Heritages
W – Weaknesses T- Treats
• Lack of government support
• Lack of investment
• Lack of infrastructures
• Lack of human skills
• Lack of public facilities
Source: Analysis Primary Data, 2007
1) SO Strategies
• Generating tourism business
• Employment
• Increasing family income
• Increasing value of the village
• Degradation of natural
resources
• Land using problems
• Pollutions
• Changing host attitudes
• Increasing criminalities
• Commercialization of traditions
The ecological resources such as lakes, rice fields, plantations and farms as well as
forests; the social and cultural resources such as existing farmers, unique traditions,
agricultural organizations, events, agricultural ceremonies, organizations linkages,
human resources, agriculture regulations, information systems, heritages should be well
developed, and promoted since these strength factors are able to generate potencies
for other tourism business establishments, employment opportunities, enhance the
family income and value of the village.
The uniqueness of each village should be well promoted and described to position
strong images of the villages, indeed to combine agrotourism with the local indigenous
and uniqueness.
• The main attractions of Bayung Gede Village are “Kuburan Ari-ari” (placenta grave)
which used as the icon of the village and orange farm shall be used as the icon of
agricultural products.
41

• The foremost attractions of Candikuning Village are organic farm and beautiful
panorama of Beratan Lake and Eka Karya Bali Botanical Garden. They should be
promoted as the icon of agrotourism of this village.
• The primary attractions of Blimbingsari Village are the unique tradition of Christian
communities; Balinese-style church, and story of the village becoming a Christian
village in Bali should be promoted as icon of pluralism and harmonic situation in
Bali. Meanwhile the coconut and cacao farms should be used as the icon of
agricultural products of this village.
• The core attractions offered at Pelaga Village are beautiful panorama of mountain,
rice fields, and organic farms. They are used as the icon of the village.
The programs which should be formulated such as entire cooperation with tourism
operators, packaging events in the village, and provide village information system.
2) WO Strategies
Currently, government support, investment in agricultural sector, development of village
infrastructures, human resource skills, and public facilities are identified as the
weakness factors of agrotourism development in Bali, therefore the local “village”
government and all stakeholders should propose agrotourism development to the
provincial government and central government to play more roles in order to apply the
agrotourism concepts and reach the primary goals of rural economic empowerment.
The programs which should be formulated are provide accessibilities for the agricultural
investors to invest in the village to rise up the numbers of local SMEs “Small and
Medium Entrepreneurs”, providing regulations, developing infrastructures and public
facilities, as well as giving training and certain kinds of live-skills to the local
communities in order to master tourism skills particularly agribusiness skills.
3) ST Strategies
Local uniqueness and indigenous used as tourism attractions shall be well managed
and controlled to avoid the matters such as degradation of natural resources, land using
problems such land for non agricultural sector, pollution, host attitude changes,
criminalities, and commercialization of traditions.
The programs which should be formulated, are providing environment controller
system, provide business related agribusiness, and promote organic farms system.
4) WT Strategies
The weaknesses such as lack of government support, investment in agricultural sector,
development of village infrastructures, human skills, and public facilities shall be
immediately improved to develop agrotourism well. Furthermore the local communities
should be actively involved in policy and planning makings.
The programs which should be formulated are involving the local communities as
controller in many levels of organizations, issuing policy, using bottom-up planning
system, enlarge cooperates with investors to develop agrotourism.
42

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The Authoress
I Gusti Bagus Rai Utama
Date of Birth: October 10, 1970
Nationality: Indonesian
Address: Perum Multi Permai IV/11
Kelurahan Sading, Mengwi
Badung, Bali 80351, INDONESIA
Email: raiutama@yahoo.com.au
Blog: http://raiutama-thesis.blogspot.com
Educations:
• 2006-2007, CHN Leeuwarden, Master of Arts International Leisure and Tourism
Studies. http://www.chn.nl
• 2003-2005, University of Udayana, Bali, Master of Management in Agribusiness
(MA in Agribusiness). http://www.unud.ac.id
• 1997-2001, University of Mahasaraswati, Bali, for Economics Departement (BA in
Economic and Development Studies: Population Analysis).
http://www.unmas.org
Work Experiences
• 2001-Current, Economic lecturer for Sekolah Tinggi Ilmu Manajemen Dhyana Pura
(College of Management), address: Jl. Dhyana Pura, Br.Tegal Jaya, Dalung, Kuta,
Badung-Bali. Telp. 0361-426426,51. http://www.dhyanapura.ac.id
• 1996-2001, Computer Instructor for Dhyana Pura Hotel and Tourism Trainning
Center, Bali.
.
47