Journal of Management Information and Decision Sciences (Print ISSN: 1524-7252; Online ISSN: 1532-5806)

Research Article: 2022 Vol: 25 Issue: 1

The strategy of expanding tourism product destinations to increase community income

I Gusti Ngurah Putra Suryanata, Universitas Pendidikan Nasional

Citation Information: Suryanata, I. G N. P. (2022). The strategy of expanding tourism product destinations to increase community income. Journal of Management Information and Decision Sciences, 25(1), 1-9.

Abstract

This study examines the strategy of expanding tourism product destinations to increase community income in Tegallantang Village Ubud Bali. The expansion of tourism products opens the door for tourists to determine their preferred choices to avoid boredom for a long period. Market research will identify broad market needs or specific market demands that will encourage the expansion of tourism products supported by technological advances. Tourist demand represents an external force driving the expansion of tourism destinations. The success in expanding tourism destinations in Tegallantang Village Ubud Bali is driven by external and internal factors, so the strategy for expanding tourism destination products is successful. The study results that the expansion of tourism product destinations can increase community income in Tegallantang Village Ubud Bali because it creates jobs for the workforce in the village, so people's income will increase. The conclusion is that it is important for tourism actors in Tegallantang Ubud Bali to see a competitive market share, so the parties concerned should facilitate collaboration to ensure the provision of appropriate information and encourage communication peer-to-peer, in the successful expansion of tourism destination products by utilizing technological advances.

Keywords

Expansion strategy; Tourism destinations; Community income.

Introduction

A business is said to be successful if it succeeds in getting, maintaining, and growing tourist demand. Creating loyal tourists is at the core of every business (Rogers et al., 2017). The value created by the company is the value that comes from the tourists, including all the values that are owned now and the values that will be in the future. The demand for tourists is one of the bases for the government and private sector to expand tourism destinations in Tegallantang Village, Ubud to increase community income. Without tourist demand, there will be no sustainable tourism business. The expansion of tourism product destinations is at the core of efforts to increase community income in the future. The mindset of expanding tourism destinations extends throughout Bali.

The expansion of tourism products allows each tourism destination to differentiate between national and international markets. The expansion of tourism products opens the door to an increase in tourist visits in a certain period, by adopting modern technology that is faster in carrying out the process, and a community environment that is ready for change. It also makes work fun, challenges employees, and increases income. Two key strategies for success in the expansion of tourism products are described. First, determine the relationship between technological progress and the expansion of tourism products in Tegallantang Village Ubud Bali and community income before and after the expansion of tourism destinations is carried out. Second, matching the priorities of tourism destination expansion and technological advances in meeting tourist needs (Kustina et al., 2019; Sunariani et al., 2019; Borges et al., 2020). The government and the private sector apply best practices in the expansion of tourist-driven and profitable tourism products.

Activities in this area represent a lower investment and lower risk. Although the anticipated return is also lower, due to the smaller potential user base, this activity becomes very important with tourists to build a sense of responsiveness and develop the best service. Furthermore, because tourists are involved, the government and the private sector work together to adopt technological advances to accelerate the expansion of tourist product destinations in Tegallantang Village Ubud Bali. Tourist-based activities also create a fertile environment for developing complementary ideas and enlarging the tourism product portfolio. Also, the process can strengthen potential traveler relationships and lead to future collaborations and mutual success. Internally, the expansion of tourism products also offers meaningful rewards for entrepreneurs engaged in the tourism sector as well as employees who contribute to it (Peace, 2011).

Expansion is a mechanism to adapt in a dynamic environment, therefore it is demanded to be able to create new thoughts, new ideas, and offer unique tourism products and improve the best services that satisfy tourists. On the other hand, the expansion of tourism products is a process of using new technology to expand tourism products to create added value. The expansion of tourism product destinations can increase people's income both now and in the future. Based on the above phenomena, the main problems can be formulated (1) what is the strategy for expanding tourism product destinations to increase community income in Tegallantang Village Ubud Bali? (2) How does the government realize the expansion of tourism product destinations through a combination of market research and tourist demand? (3) How to measure the success of expanding tourism product destinations to increase community income in Tegallantang Village Ubud Bali?

Literature Review

Case studies on corporate strategy have been widely researched by local and foreign researchers. However, specific research on the strategy of expanding tourism product destinations to increase community income in Tegallantang Village Ubud Bali is interesting to research because none has been appointed as research to obtain research findings.

Research from Khotimah (2017) with the title “Strategy of developing cultural tourism destinations in the Trowulan site area as a leading cultural tourism in Mohokerto Regency”. One of the things that can be developed in the field of tourism is cultural diversity. The Trowulan site area is one of the leading cultural tourisms in Mojokerto Regency, East Java. However, there are problems in the Trowulan site area related to community involvement, promotion of tourist attractions, the cooperation of stakeholders, and accessibility and supporting infrastructure for tourism. Therefore, a strategy is needed related to potential tourist attractions, accessibility, amenities, supporting facilities, and tourism institutions in developing tourism destinations in the Trowulan site area. This research uses a qualitative approach with an explorative type. The data in this writing were taken through interviews, observation, and documentation. The result of this paper is the formulation of strategies that can be used in the development of cultural tourism destinations in the Trowulan site area including 1) Packaging tourist attraction products through special interest tour packages. 2) Destination Image Development. 3) Promoting development through print and electronic media and following national events. 4) Development of road accessibility, transportation, directions. 5) the development of amenities in the form of hotels, homestays, tourism information centers, and arts and crafts centers. 6) Additional supporting facilities in the form of health clinics, tourism security posts, money changers, ATMs. 7) Establishment of a management agency for the Trowulan site area and 8) Human resource development in the tourism sector (Dewi, 2020; Martini, 2020; Pratama & Mandaasari, 2020).

Furthermore, research from Brahmanto (2018) entitled Kulonprogo faces the opening of Yogyakarta International Airport. The airport is an important element in tourism. Without an airport, access to tourist attractions will be disrupted and will result in fewer tourists. Yogyakarta is one of the favorite tourist destinations for tourists. With the opening of the new Yogyakarta International Airport (YIA) and becoming an international-class airport, it is a challenge for the Kulon Progo area to develop its tourism potential. Kulon Progo tourism potential is very much, for example, tourism in the village of Pule Payung, batik crafts in Lendah, there are Kamijoro dams, and so on, which can be developed into Kulon Progo's mainstay destinations. The tourism awareness group in Kulon Progo has agreed to combine tour packages to make it more attractive (Morley, 1992; Rust & Zahorik, 1993; Nichter & Goldmark, 2009). The government in this case as a tourism agent helps develop tourism destinations in Kulon Progo in the context of opening a new international airport. This research method uses a qualitative descriptive method. The results of this study indicate that tourist destinations in Kulon Progo with a SWOT analysis strategy can be developed into attractive tourist objects through the participation of the government, village officials, and the community aware of tourism. From the two studies above, this study is different in terms of research location, discussion results, and research findings.

Methodology

Types and Sources of Data the data used in this study are (1) Primary data, namely data and information obtained directly from sources/respondents. This data was obtained by conducting interviews with the Gianyar Regency Tourism Office and Tourism Entrepreneurs in Tegallantang Village Ubud Bali. By using a proportional sampling technique with a sample of 2 State Civil Servants, 2 tourism entrepreneurs, and 14 workers in the tourism sector. (2) Secondary data, namely data and supporting information obtained from the Tegallantang village office in Ubud, Bali.

The theory of Analysis Strength, Weakness, Opportunity, Threatness (SWOT) is used to analyze the potential and challenges of expanding tourism product destinations in Tegallantang Village Ubud Bali. SWOT analysis, namely identification of various factors systematically to formulate strategies. This analysis is based on the logic that maximizes the strengths (strengths) and opportunities (opportunities), but simultaneously can minimize your weaknesses (weaknesses) and threats (threats). The strategic decision-making process is always related to making the mission, goals, strategies, and policies of the management of tourism destinations in Tegallantang Village Ubud Bali. SWOT analysis compares external factors, opportunities, and threats, with internal factors, strengths, and weaknesses (Rangkuti, 2016; Mayer, 2008; McPherson, 1996; Moore & Manring, 2009). This analysis is principally a strategy that produces a strong harmony between internal capabilities and external situations. According to Rangkuti, the stages in the preparation of strategic planning go through three stages of analysis, namely 1) the data collection stage; 2) the analysis stage; 3) the decision-making stage.

The factors why economic development must be sustainable, the first factor concerns moral reasons. The current generation enjoys goods and services produced from natural resources and the environment, so it is morally necessary to pay attention to the availability of these natural resources for future generations. This moral obligation includes not extracting natural resources that can damage the environment and can eliminate opportunities for future generations to enjoy similar services. The second factor, related to ecological reasons, Biodiversity, for example, has a very high ecological value, therefore economic activities should not be directed at exploiting natural resources and the environment alone, which in turn can threaten the ecological function. The third factor, which becomes the reason for the need to pay attention to the aspect of sustainability, is economic reasons.

The location of this research is in Tegallantang Village Ubud Bali by observing and mapping community activities in a measured manner. Observation time as the object of analysis is the condition of 12 (twelve) months from January to December running in 2019. Considerations for the use of 2019 were taken to facilitate the recording of information to respondents, namely, craftsmen of printed statues and wooden sculptures, as well as the consumer community. The instrument used in this research is descriptive research through literature surveys and field surveys and in-depth interviews. The interviews conducted were open-ended questions and closed-ended questions (Hanssen, 1999; Lélé, 1991; Lordkipanidze et al., 2005).

Results and Discussion

The theory of Analysis Strength, Weakness, Opportunity, Threatness (SWOT) is used to analyze the strengths, weaknesses, opportunities, and threats of tourism destination managers to increase people's income. The function of SWOT analysis is to get information from the situation analysis and separate it into internal issues (strengths and weaknesses) and external issues (opportunities and threats). Ferrel & Harline (2015), SWOT analysis will explain whether this information indicates something that will help the company managing tourism product destinations achieve their goals or gives an indication that there are obstacles that must be faced or minimized to meet the desired income. SWOT analysis can be used in several ways to improve the analysis in strategy setting efforts (Hadad et al., 2011; Garbie, 2015). Generally, what is often used is as a systematic framework/guide in discussions to discuss basic alternative conditions that may be considered by managers of tourism product destinations in Tegallantang Village Ubud Bali.

Strength (S), namely an analysis of the strengths, situations, or conditions that are the strengths of a tourism destination management organization in Tegallantang Village Ubud Bali at this time in terms of 1) Support from the government through the existence of the Ministry of Tourism and Creative Economy, 2) Instruments of legislation invitation and policies of the Government of Indonesia related to the expansion of tourism product destinations. 3) Powered by intense Tegallantang Village Ubud Bali. 4) Availability of human resources 5) has an attractive destination for tourism products 6) Has an attractive reflection of local culture, crafts, and tourism products, 7) Has an artificial attraction such as packaging package tours both group and individual. 8) Easy accessibility from the cities of Denpasar, Gianyar, Badung, Bangli, and Klungkung 9) the status of the land is owned in the form of village land and owned by residents so that it is easy to manage.

Weaknesses (W) is an analysis of weaknesses, situations, or conditions which are the weaknesses of a tourism destination management organization in Tegallantang Village Ubud Bali at this time in terms of 1) Weak participation and community institutions in Tegallantang Village Ubud Bali, especially communities around the area 2) System bureaucracy that causes high economic costs 3) Issues of problems and conflicts in the region that are more prominent than existing regional potentials 4) Weak support from science and technology 5) Weak coordination, integration, and synchronization between various sectors 6) Lack of resources human resources, in managing finances properly and correctly. 7) There are still many potentials that have not been developed due to limited capital.

Opportunity (O) is an analysis of opportunities, situations, or conditions that are opportunities outside of a tourism destination management organization in Tegallantang Village Ubud Bali and provides opportunities to develop for organizations in the future. In this case, 1) Commitment of policymakers at the national and provincial levels to companies managing tourism destinations. 2) Commitment and support from the international and national communities to the cultural creativity of the community to create jobs and increase income as widely as possible (Kumar & Mishra, 2018; Kholbadalov, 2021; Purnomo, 2021). 3) Support from community organizations at the local level to the expansion of tourism destinations to create jobs. 4) The potential for investment in the tourism industry sector and cultural creativity is suspected of being an investment that produces 5) The high interest of tourists to see the natural beauty and cultural creativity is a sign that the sustainability of new tourism destinations in Tegallantang Village, Ubud Bali can be maintained 6) Promising domestic market developments that continue to show improvement domestic tourist visits.

Threats (T) is a threat analysis, a way of analyzing the challenges or threats that must be faced by a tourism destination management company to deal with various kinds of unfavorable environmental factors in a tourism product destination management company that cause setbacks. In this case, 1) The still high level of social vulnerability, such as the income gap of the people who work in the tourism sector by working as farmers in Tegallantang Village, Ubud Bali causes disturbances, 2) The general level of community education in Tegallantang Village, Ubud Bali is still low 3) Economic conditions people who are still very dependent on the tourism sector if the slightest turmoil in the country cancellation of visits 4) There is the competition between tourist destinations and destinations for similar tourism products 5) Investment policies in the capital-intensive tourism sector are often a concern for investors. 6) Limited environmental carrying capacity for the accumulation of activities to expand tourism product destinations which will have an impact on decreasing the number of tourism products and their types. In the context of a SWOT analysis, every company that manages tourism product destinations in Tegallantang Village, Ubud Bali, there are always strengths and weaknesses as well as opportunities and threats, but if observed carefully and always with the continuous expansion of tourism product destinations, it will change the paradigm of the Tegallantang Village, Ubud Bali community both among the class. The middle and upper class to increase people's income sustainably.

From the above phenomena, it can be concluded that the strategy of expanding tourism product destinations in Tegallantang Village, Ubud Bali has succeeded in changing a new paradigm, namely encouraging public trust to continue to work hard and always make breakthroughs in expanding destinations for value-added tourism products for tourists visiting Ubud who are not bored and even always wanted to visit again by inviting more of his friends and staying longer in the area. Thus creating job opportunities and increasing community income and community prosperity becomes a reality (Thaler, 1980; East, 1993).

The factors that cause economic development must be sustainable; the first factor concerns moral reasons. The current generation enjoys goods and services produced from natural resources and the environment, so it is morally necessary to pay attention to the availability of these natural resources for future generations. This moral obligation includes not extracting natural resources that can damage the environment and can eliminate opportunities for future generations in Tegallantang Ubud Bali to enjoy similar services. The second factor, related to ecological reasons, biodiversity, for example, has a very high ecological value, therefore economic activity should not be directed at exploiting natural resources and the environment alone, which in the end can threaten ecological functions. The third factor, which becomes the reason for the need to pay attention to the aspect of sustainability, is economic reasons.

The reason from the economic point of view is that there is still a debate because it is not known whether or not economic activity has met the sustainability criteria, especially concerning the expansion of tourism destinations in Tegallantang Village, Ubud Bali, that the sustainable economic dimension itself is quite complex, so that the economic aspect of sustainability is often considered only limited to the measurement of intergenerational welfare (intergeneration welfare maximization). In the concept of sustainable economic development, intersection with policies occurs between the need to explore natural resources to fight poverty and the need to prevent environmental degradation, which needs to be avoided and as far as possible can run in a balanced manner. Sustainable economic development also requires meeting the basic needs of the community in Tegallantang Village, Ubud Bali with the wide opportunity provided for community members to pursue their dreams of a better life without sacrificing future generations (Cronin et al., 2000).

The development of the concept of sustainable economic development needs to consider socially and culturally reasonable needs, disseminate values that create different consumption standards within the limits of environmental capacity, and naturally, everyone can aspire to it. For entrepreneurs managing tourism destinations, they must have a place to develop and compete healthily with other companies. However, there is a tendency that the fulfillment of these needs will depend on the need for economic growth or the need for production at a maximum scale. Sustainable economic development requires economic growth in places whose primary needs are not yet consistent with economic growth, as long as entrepreneurs managing tourism product destinations are taken into account and given opportunities, the atmosphere of growth reflects the principles of sustainability. However, in reality, high production activities can coincide with widespread poverty. This condition can endanger the environment. So sustainable economic development requires the community in Tegallantang Village, Ubud Bali to fulfill their needs by increasing their production potential and at the same time ensuring equal opportunities for everyone.

The concept of sustainable economic development is simple but complex so that the notion of sustainability is very multidimensional and multi-interpretative (Fauzi et al., 2014). The concept of sustainable economic development contains at least two dimensions. First, the time dimensions because sustainability is nothing but about what will happen in the future. Second, the dimensions of the interaction between economic systems, natural resource systems and the environment. Three basic axioms need to be considered; (1) Present and future treatment that places a positive long-term value on the company managing tourism product destinations in Tegallantang Village Ubud Bali; (2) Recognizing that environmental assets contribute to economic well-being; (3) Knowing the constraints due to the implications that arise on the assets owned by the manager of tourism destinations. This concept is felt to be still very normative so that the operational aspects of the concept of sustainable economic development experience many obstacles (Hall, 2008).

Economic development that is oriented towards equity and social justice must be based on things such as even distribution of land sources and production factors, providing access to tourism product destination managers in Tegallantang Village Ubud Bali to play a role and opportunities for women to do business, economic equality achieved with a balanced distribution of welfare. But equity is not an immediately achievable thing. Equity is a concept, relative, and not directly measurable. The ethical dimension of sustainable economic development is comprehensive, the income gap between rich and poor countries is widening, even though equity in many countries has increased. Another ethical aspect that needs to be addressed by sustainable economic development is the prospect of future generations, which cannot be compromised by the activities of present generations. This means that the development of the present generation needs to consider future generations in meeting their needs.

Sustainable economic development prioritizes the relationship between humans and nature. Humans influence nature in beneficial or destructive ways only by utilizing the understanding of the complex relationship between natural systems and social systems. By using this definition, the implementation of development is more integrative, which is a possible concept for the implementation of sustainable economic development. This is a major institutional challenge (Anand & Sen, 2000; Allison & Horemans, 2006).

Based on the description above, it can be concluded that the community in Tegallantang Ubud Bali tends to consider the present as more important than the future, the implication of sustainable economic development is a challenge that underlies the assessment. Sustainable economic development requires an assessment that is different from the normal assumptions in the discounting procedure. The long-term perception is the perspective of sustainable economic development. Until now, the short-term framework dominates the thinking of economic policy makers, therefore it needs to be considered comprehensively. Ideally, sustainable economic development requires an approach to achieving the sustainability of various aspects of life which includes; ecological, economic, socio-cultural, political sustainability, as well as defense and security sustainability.

Research Findings

First, the strategy of expanding tourism product destinations in Tegallantang Village Ubud Bali has succeeded in changing a new paradigm, namely encouraging public trust to continue to work hard and always make breakthroughs so that tourists visiting Ubud always find novelty and unique. Second, it is hoped that new models will always appear following the development of civilization in the village of Tegallantang Ubud Bali. The change in the paradigm of sustainable economic development always takes into account the behavioral aspects of future generations that require a sustainable approach to various aspects of life that include ecology, economy, socio-culture, politics, defense, and security.

Conclusion

First, the theory of SWOT Analysis discusses Strength (S) in this case supported by the government through the existence of the Ministry of Tourism and Creative Economy, the laws and regulations and policies of the Bali Provincial Government related to the expansion of tourism product destinations, the potential of the village. Tegallantang Ubud Bali is a green and flat stretch of land for the expansion of tourism product destinations. Weaknesses (W), namely the participation and institution of the Tegallantang Ubud Bali Village community, especially those around the area, the bureaucratic system that causes high economic costs, issues of problems and conflicts in industrial estates that are more prominent than the existing potential areas. Opportunity (O), namely the commitment of policymakers at the national and provincial levels to the expansion of tourism product destinations in Ubud Bali, commitment, and support of the Ubud community to the expansion of tourism product destinations. Threats (T), namely the analysis, in this case, the high level of social vulnerability such as the income gap between farmers and people working in the tourism sector in Tegallantang Village, Ubud, Bali, causing a sense of disturbance, the economic condition of the community which is still very dependent on the tourism sector if there is only a little turmoil in domestic, the order cancellation occurs.

Second, sustainability is not a complex concept, because in its operation many things need to be considered by the community in Tegallantang Village Ubud Bali because they are interrelated. Therefore, it is important to improve the understanding of sustainable economic development, especially for policymakers to achieve development goals. To understand the concept of sustainable development, its application requires a conceptual or theoretical basis that can be used as a reference in the direction of development, therefore various concepts and considerations of sustainability aspects must be understood to help identify and formulate various strategies, to become a reference in achieving development goals in a manner comprehensive.

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