How to Calculate Tourism Leakage Using Micro Analysis Approach

Tourism has become the leading economic sector in Bali Province of Indonesia. However, the economic impacts of tourism have not been convinced to be fully beneficial for Balinese community. One of the reasons is tourism leakage that occurs when the industry imports both products and services to support tourism industry in Bali. So far, the amount of tourism leakage in Bali has not been calculated yet. Therefore, there is a need to ascertain the current amount of leakage in Bali tourism. The results show that based on the micro analysis, the highest tourism leakage of accommodation sector in Bali is at 4&5 Star-rated chain hotels (51.0 %), followed by 4&5 Star-rated non-chain hotels (22.7 %), 1,2&3 Star-rated hotels (12.0 %), Non-star rated hotels (8.8 %), and with the average leakage of 18.8 %. Strategies for minimization tourism leakage are optimizing the potential of local products, develop agriculture and livestock; reduce the use of imported products for tourists, improve quality of local products and human resources, empower community, urge government to develop and implement supporting policies in minimizing leakage, establish policy on restriction of foreign investment.