CHAPTER 1 INTRODUCTION 1.Research Background Indonesia, a beautiful country, is most famously known for its archipelagos consisting of more than 17,000 islands adorned with volcanoes, rainforests, turquoise beaches, and a lot of travelers who would travel far away just to see these wonders of the country. Millions of tourists would travel to areas such as Bali Island, Lombok’s beautiful coastline, Borobudur’s ancient temples, and other beautiful areas to experience such amazing nature in first person perspective. This brings a huge impact to the Indonesian economy due to foreign tourists spending billions of dollars for their travel to Indonesia. According to research, Indonesia was ranked as 20th in the world tourist industry in 2017, and also was ranked ninth-fastest growing tourist sector in South East Asia. The tourism industry that can contribute more than 1.5 billion dollars (UNWTO, 2020) globally has no less than 50 million jobs (BBC, 2020) that can provide welfare for millions of families worldwide. Tourism industry growth has also increased 4% from the previous year (UNWTO, 2020) and can contribute about 6.4% to the world economy (Lew, 2011). Until finally, the COVID-19 pandemic changed many things, especially in the tourism industry. Figure 1. 1 Foreign Tourists Growth Rate in Indonesia Source : Trading Economics. “Indonesia Tourist Arrivals.” Tradingeconomics.com, 2019 When COVID-19 was spread across the world in early 2020, the tourism industry in almost all countries was deeply impacted. In the case of Indonesia, international arrivals went down to become a fraction of their previous levels, leaving all the beautiful islands, beaches, and cultural landmarks deserted. The economic impact that COVID-19 has brought to the world has rippled 1 throughout all of Indonesia which affected millions of Indonesians who rely on tourism for their livelihoods. Hotels became empty, shops were closed, and countless jobs were lost. In islands like Bali which is a really famous tourism site which would normally be crowded by tourists, the streets would be silent, which highlights the profound dependence of many communities on this sector. The pandemic served as a reminder of the vulnerability of tourism-dependent economies in the coming future. However, in recent years after COVID-19 in 2020, the growth rate of foreign tourists in Indonesia grew exponentially as shown in Figure 1.1. This could also become a prediction for the upcoming years, showing us the potential growth of future Indonesian tourism. This would create both positive and negative impacts towards the Indonesian community. The impact of the growth of tourism in Indonesia will vary significantly across different regions, in which there will be communities that would experience more benefits and drawbacks compared to others. Economic growth is one of the key benefits, as increased visitor arrivals generate income and impact sectors such as hotels, restaurants, transportation, and regional crafts, raising living standards and creating job opportunities. According to a study by Tien Pham and Anda Nugroho published in 2022, tourism provides countries with limited natural resources with job opportunities and improves international trade relations. In 2018, the tourism sector accounted for 5.8% of Indonesia’s total gross domestic product. Bali remains the most popular destination in the country, accounting for more than 40% of Indonesia’s total international tourism revenue. This economic boost can reduce poverty and encourage citizens to pursue better opportunities, ultimately advancing the country. The increase in the number of foreign tourists to Indonesia not only contributes to economic growth but also puts pressure on infrastructure and the environment. This requires effective strategies to manage sustainable and inclusive tourism, which benefits not only the economy but also preserves the environment and scoial culture. The expansion of tourism in Indonesia has also brought negative impacts on the environment. Unsustainable magazine highlights that “Certain areas simply aren’t equipped to handle the sheer volume of people, leading to increased pollution, traffic congestion, and unsustainable practices. It’s heartbreaking to see natural wonders like the beaches in Uluwatu and national parks in northern Bali overrun with tourists, leaving trails of litter and damage in their wake. The challenge now is finding ways to balance the economic benefits of tourism with the need to preserve these destinations for future generations to enjoy.” Infrastructure development is also accelerated by tourism, with investments in construction, modernized highways, airports, and public transportation. This improves daily mobility, increases trade, and provides tourists with better connectivity and accessibility. Additionally, tourism plays a significant role in cultural preservation by promoting a greater 2 understanding of regional customs, handicrafts, and artworks, fostering cultural pride among locals. Tourists become supporters of local heritage, ensuring its preservation and appreciation, while also fostering mutual respect and understanding between cultures. Community empowerment is another significant benefit, as community-based tourism programs put local communities in charge of tourist management and direct benefits. This empowers communities by allowing them to manage their resources, earn money through ethical business practices, and engage in decision-making processes. Active participation ensures that local needs are met and cultural identities are preserved. Although there is hope in these good outcomes of the growth of tourism in Indonesia, it is crucial to recognize possible obstacles. With those possible outcomes, acknowledging responsible actions and practices would be highly needed. By harnessing the positive and reducing the negative, Indonesia could guarantee that tourism turns into a force for sustainable development and shared prosperity for everyone. Sustainable tourism, in general, has three dimensions, namely economic, environmental, and social. According to Choi and Sirakaya (2001), sustainable tourism’s economic dimension means it does not damage the commercialized resources for tourist activities and is for the long term. The social dimension reduces socio-cultural divisions by maintaining balance and harmony between communities through cooperative initiatives and social networking efforts between local groups, requiring attention and emphasis on local community participation. Sustainable tourism management provides socio-economic benefits for the community. People around tourist sites participate in tourist activity because of economic motives (additional income and employment opportunities) (Tosun, 2000). Tourism is one of the key sectors in the economy of a country, including Indonesia. With its natural beauty and cultural richness, Indonesia attracts millions of tourists every year. However, the growth of the tourism industry also brings negative impacts, one of which is environmental degradation. According to The World Tourism Organization (UNWTO), tourism is responsible for 5% of global greenhouse gas emissions (UNWTO, 2019). The existence of tourism activities has had both positive and negative impacts on the local population, resulting in fluctuations in the welfare and quality of life of the population (Bimonte et al., 2016). The positive impact of tourism is the improvement of tourist facilities by the government, resulting in an increase in the welfare of the local population. However, this also triggers the pollution that is presented due to tourist visits which can cause environmental degradation such as increased waste, exploitation of natural resources, and high population density in tourist areas (Wang & Yotsumoto, 2018). In Indonesia, the growth of tourism in several regions has led to environmental problems such as air pollution, habitat destruction, and increased waste (Suryawardani & Dewi, 2015). 3 The research will be targeting locals in Lembang, Bandung, due to the amount and the size of the tourist attraction sites that are located in Lembang. Lembang is a popular tourist destination for both locals and foreigners located in the Bandung Regency, West Java, Indonesia. It is well known for its chilly mountain climate, beautiful natural scenery, and diverse attractions, thus making Lembang a perfect getaway for solo travelers, couples, families, and friends. In recent years, the development of tourist attractions has significantly influenced local communities and their way of living. This research focuses on three notable tourist sites in Lembang, Indonesia: The Great Asia Afrika, The Farmhouse, and the Floating Market. Established in 2019, 2015, and 2012 respectively, these attractions have transformed the landscape and socio-economic dynamics of the region. There are also natural waterfalls and hot springs to cool off under the refreshing cascades of Curug Maribaya, or to try and dip inside the natural hot springs of Maribaya Hot Springs Resort. Another famous tourist attraction is Floating Market Lembang that provides unique experiences to shop for souvenirs and local delicacies from traditional boats. The Great Asia Afrika is a cultural park that showcases replicas of famous landmarks and traditional houses from various Asian and African countries, providing an educational and recreational experience for visitors. The Farmhouse is a European-themed park that offers a picturesque setting with a range of activities and culinary experiences, drawing tourists seeking a taste of European ambiance. The Floating Market, the oldest of the three, is a unique attraction where goods are sold from boats on a lake, offering a traditional market experience with a modern twist. Due to the amount of tourist attraction sites and activities located in Lembang, there is a wide range of accommodation options from budget-friendly guest houses to luxurious resorts, catering to all types of travelers and budgets. Overall, Lembang is normally a must-visit destination for people inside or outside of Bandung City, which is why people from outside the city come to Lembang and try a lot of the activities that are provided in Lembang when they visit Bandung. Before the establishment of these sites, Lembang was known for its fresh air and rural charm. However, the influx of tourists and the development of infrastructure have brought about significant changes. The roads, once narrow and unpaved, have been upgraded to accommodate the increasing traffic, leading to a shift in the local landscape and lifestyle. Previous research conducted by Amir et al. (2015) found that sustainable tourism development in rural areas will contribute to increasing the resilience of local communities. Then Butler & Rogerson (2016) revealed that tourism development provides a variety of positive economic and social benefits for local residents. One of the main challenges faced by the tourism industry is how to manage sustainable tourism growth without damaging the environment and the livelihoods of local communities. In 4 Lembang, Bandung, the increase in the number of tourists has led to various problems such as traffic congestion, air pollution, and pressure on natural resources. 2.Problem Statement While Indonesia's magnificent scenery and rich cultural tapestry have made it a tourist hotspot, the rapid growth in the tourism industry of Indonesia could potentially be a problem to the local communities. This rapid expansion of the tourism industry creates issues that can have detrimental effects on local communities and on the environment. At the center of these issues is the risk of environmental degradation. Mass tourism consumes natural resources, resulting in increasing pollution, water scarcity, and deforestation. Beautiful beaches become littered with trash, and coral reefs have potential to be damaged by unethical diving techniques. This not only impacts natural ecosystems, but also reduces the charm and the attraction that draws tourists which results in a self-defeating loop. In addition to its negative effects on the environment, rapid growth of tourism can weaken a community’s traditional customs and rituals. Customs and rituals that have been passed down through the generations may become commodities by losing their meaning and authenticity. Increased prices of real estate brought by tourism growth have the potential to uproot locals, upending social systems. The increase in tourists may also bring with it social issues such as drug abuse and prostitution. This could affect the security and general well-being of the area. These detrimental effects draw attention to how urgently Indonesian tourism growth has to adopt a more balanced strategy. Responsible management, community involvement, and sustainable practices are essential to ensuring that tourism benefits the environment and nearby communities. Then and only then will Indonesia’s actual paradise continue to draw tourists and support an expanding society. This study aims to explore the impact of these tourist attractions on the local community in Lembang. Preliminary interviews were conducted with workers at each site to gather insights into the changes experienced before and after the establishment of these attractions. A total of four interviews were conducted, with participants ranging in age from 23 to 43 years and having been locals for 10 to 33 years. The interviews revealed several common themes. Respondents noted a decline in air quality and an increase in traffic and pollution due to the surge in visitor numbers. While the development of infrastructure has reduced flooding and improved accessibility, it has also led to environmental concerns such as deforestation. On the positive side, the growth of the tourism sector has boosted employment opportunities and economic benefits for the area, along with a rise in small businesses such as street vendors. 5 However, challenges remain. The community faces issues related to traffic congestion, inadequate parking facilities, and stagnant wages. There is a call for the government and tourism site management to address these concerns, particularly by improving road infrastructure, expanding parking areas, and ensuring fair compensation for workers. Sustainable tourism became one of the wellknown words that should be included in the business if one wants to develop strategies related sustainable development goals (SDGs). Entrepreneurs established various models of tourism and community-based tourism (CBT) is another model which can contribute to a sustainable business for local people in local communities in economic, social, and environmental dimensions. This research aims to provide a comprehensive understanding of the impact of tourism development on local communities, with a focus on the balance between positive impacts and negative impacts. 6 3.Research Questions These research questions below are used as a guideline in collecting data 1.How does environmental impacts effect of the tourist site towards the local communities both positively and negatively.