Professional Documents
Culture Documents
(FLORES)
BASELINE DEMAND & SUPPLY, MARKET DEMAND
FORECASTS, AND INVESTMENT NEEDS
PREPARED BY:
FOR:
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conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive
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Economic Affairs (SECO). The views expressed in this publication are the author’s alone and are not necessarily the views
of the Kingdom of the Netherlands, Australian Government and the Swiss Confederation.
TABLE OF CONTENTS
INTRODUCTION.................................................................................................................. 1
BASELINE DEMAND & SUPPLY ........................................................................................ 5
1. DESTINATION CHARACTERISTICS ................................................................................................ 6
1.1 GEOGRAPHY....................................................................................................................................... 6
1.2 CLIMATE ............................................................................................................................................... 7
1.3 NATURAL AND CULTURAL RESOURCES................................................................................ 7
2. DESTINATION DEFINITION .............................................................................................................. 9
2.1 KEY ATTRACTIONS & TOURISM AREAS .................................................................................. 9
2.2 CONCLUSION ON ATTRACTIONS ......................................................................................... 12
3. VISITOR ARRIVALS & DEMOGRAPHICS....................................................................................... 13
3.1 LEVEL OF CURRENT DEMAND .................................................................................................. 13
3.2 ORIGIN OF VISITORS ..................................................................................................................... 15
3.3 AVERAGE LENGTH OF STAY (alos) AT COMMERCIAL ACCOMMODATIONs ........ 16
3.4 SEASONALITY OF VISITS .............................................................................................................. 17
3.5 MARKET SEGMENTATION BY BOOKING METHOD ......................................................... 18
3.6 AWARENESS AND IMAGE OF THE DESTINATION AMONG INTERNATIONAL
MARKETS .......................................................................................................................................................... 19
3.7 TOURISM PROMOTION / DESTINATION MARKETING ................................................... 21
3.8 CONCLUSIONS ON VISITOR ARRIVALS & DEMOGRAPHICS ........................................ 23
4. ACCESSIBILITY HIGHLIgHtS ............................................................................................................. 24
4.1 EXISTING MODE OF TRAVEL AND VISITORS’ MOVEMENT ........................................... 24
5. HOTELS & LODGING OPTIONS (AMENITIES) .......................................................................... 26
5.1 VOLUME OF ROOMS & PERFORMANCE: KABUPATEN MANGGARAI barat ............. 26
5.2 ESTIMATED PERFORMANCE BASED ON INTERVIEWS ..................................................... 29
5.3 HOTEL FACILITIES........................................................................................................................... 29
5.4 CONCLUSIONS ON EXISTING HOTEL SUPPLY .................................................................. 31
6. SME: SUPPORTING TOURISM INFRASTRUCTURE (AMENITIES) ........................................ 32
6.1 INDEPENDENT FOOD & BEVERAGE........................................................................................ 32
6.2 TRAVEL AGENCIES ......................................................................................................................... 33
6.3 GUIDES ................................................................................................................................................ 33
6.4 OTHER SERVICE PROVIDERS ...................................................................................................... 33
6.5 CONCLUSIONS ON SMES SUPPORTING TOURISM ACTIVITIES................................... 34
7. INVESTMENT ANALYSIS .................................................................................................................... 35
7.1 DIRECT INVESTMENT .................................................................................................................... 35
7.2 KEY PLAYERS / INVESTORS.......................................................................................................... 36
7.3 INVESTMENT SENTIMENT: DOMESTIC & FOREIGN INVESTORS .................................. 37
8. SKILLS ASSESSMENT ............................................................................................................................ 40
8.1 TRAINING SCHOOLS .................................................................................................................... 40
8.2 WHAT SKILLS EXIST (gleaned from interviews)? .................................................................... 40
DESTINATION SWOT & VISION .................................................................................... 42
9. DESTINATION SWOT ........................................................................................................................ 43
9.1 STRENGTHS....................................................................................................................................... 43
9.2 WEAKNESSES .................................................................................................................................... 43
9.3 OPPORTUNITIES.............................................................................................................................. 44
9.4 THREATS............................................................................................................................................. 45
10. RECOMMENDED DESTINATION VISION ................................................................................... 46
10.1 PRODUCTS AND ACCOMMODATION TO BE DEVELOPED ......................................... 46
10.2 UNIQUE SELLING POINTS ........................................................................................................... 46
MARKET DEMAND FORECASTS..................................................................................... 47
11. FUTURE MARKET DEMAND ANALYSIS ....................................................................................... 48
11.1 FORECAST OF VISITOR ARRIVALS ........................................................................................... 48
11.2 IMPACT ON GUEST NIGHTS AND EXPENDITURE ............................................................ 50
INVESTMENT NEEDS ........................................................................................................ 51
12. AMENITIES: KEY RECOMMENDATIONS...................................................................................... 52
12.1 KNOWN PIPELINE DEVELOPMENT.......................................................................................... 52
12.2 POTENTIAL ACCOMMODATION GAPS ................................................................................ 53
12.3 FORECASTING FUTURE SUPPLY NEEDS ................................................................................ 53
13. STAFF REQUIRED & SKILLS NEEDED ............................................................................................ 55
13.1 ACCOMMODATION STAFF REQUIRED ................................................................................. 55
13.2 WHAT SKILLS ARE NEEDED? ...................................................................................................... 55
13.3 ACCOMMODATION STAFF REQUIRED ................................................................................. 56
13.4 ADDITIONAL MANGGARAI Barat DESTINATION STAFF REQUIRED ......................... 58
14. TRANSPORT INFRASTRUCTURE BASELINE & NEEDS ........................................................... 60
BASELINE ............................................................................................................................................................... 60
14.1 ROAD TRANSPORT ....................................................................................................................... 60
14.2 AIR TRANSPORT ............................................................................................................................. 64
14.3 WATER TRANSPORT ..................................................................................................................... 67
TRANSPORT INFRASTRUCTURE INVESTMENT NEEDS ...................................................................... 70
14.4 FUTURE MODE OF TRAVEL ........................................................................................................ 70
14.5 ROAD TRANSPORT NEEDS ........................................................................................................ 72
14.6 AIR TRANSPORT NEEDS .............................................................................................................. 74
14.7 SEA TRANSPORT NEEDS .............................................................................................................. 75
15. BASIC CAPACITY INFRASTRUCTURE (AMENITIES) ................................................................ 77
BASELINE ............................................................................................................................................................... 77
15.1 BACKGROUND FOR PHYSICAL INFRASTRUCTURE ASSESSMENT.............................. 77
15.2 WATER SUPPLY ................................................................................................................................ 77
15.3 WASTEWATER AND SANITATION ......................................................................................... 81
15.4 DRAINAGE ......................................................................................................................................... 83
15.5 SOLID WASTE INFRASTRUCTURE ........................................................................................... 84
15.6 POWER SUPPLY ............................................................................................................................... 86
15.7 TELECOMMUNICATION INFRASTRUCTURE ....................................................................... 87
15.8 SUMMARY OF EXISTING BASIC INFRASTRUCTURE .......................................................... 88
BASIC CAPACITY INFRASTRUCTURE INVESTMENT NEEDS ............................................................. 91
15.9 FORECAST POPULATION & VISITOR ARRIVALS ................................................................. 91
15.10 WATER SUPPLY ........................................................................................................................... 91
15.11 WASTEWATER AND SANITATION ..................................................................................... 96
15.12 DRAINAGE .................................................................................................................................... 97
15.13 SOLID WASTE INFRASTRUCTURE ....................................................................................... 97
15.14 POWER SUPPLY ........................................................................................................................ 100
15.15 TELECOMMUNICATION INFRASTRUCTURE................................................................ 103
KEY RECOMMENDATIONS ............................................................................................ 104
16. WHAT WILL TRIGGER INVESTMENT? ...................................................................................... 105
16.1 RECOMMENDATIONS ON DESTINATION ENHANCEMENTS ................................... 105
16.2 LEGAL & REGULATORY ENVIRONMENT ENHANCEMENTS....................................... 106
16.3 SME DEVELOPMENT INTERVENTIONS ................................................................................ 106
16.4 KEY RECOMMENDATIONS FOR TRANSPORT INFRASTRUCTURE INVESTMENT
109
16.5 KEY RECOMMENDATIONS FOR BASIC INFRASTRUCTURE INVESTMENTS.......... 109
16.6 RECOMMENDATIONS FOR SPATIAL PLANS ..................................................................... 110
APPENDIX 1: SOURCES OF INFORMATION USED .................................................. 115
APPENDIX II: SUPPORTING DATA FOR TRANSPORT ANALYSIS ....................... 117
APPENDIX III: MARKET-LEADING HOTELS .............................................................. 118
APPENDIX IV: ROAD CAPACITY ASSESSMENT ....................................................... 124
TABLE OF FIGURES
FIGURE 1: LOCATION OF 10 PRIORITY TOURISM DESTINATIONS IN INDONESIA ....................... 2
FIGURE 2: MAP OF KABUPATEN MANGGARAI BARAT ..................................................................... 6
FIGURE 3: MONTHLY TEMPURATURE AND RAINFALL, KABUPATEN MANGGARAI BARAT,
2015 ........................................................................................................................................................ 7
FIGURE 4: MAP OF KEY ATTRACTIONS IN FLORES ........................................................................ 9
FIGURE 5: COMMERCIAL AIR TRAFFIC & PASSENGER MOVEMENT AT KOMODO AIRPORT ... 13
FIGURE 6: ARRIVALS OF INTERNATIONAL & DOMESTIC VISITORS TO KNP, 2010 – 2015 ........ 14
FIGURE 7: SEASONALITY OF INTERNATIONAL AND DOMESTIC VISITORS KNP, 2015 ............. 17
FIGURE 8: BREAKDOWN OF FOREIGN VISITORS TO KNP, 2015 .................................................. 16
FIGURE 9: ACTIVITIES AND PRODUCTS ASSOCIATED WITH LABUAN BAJO ON TRIPADVISOR
WEBSITE .............................................................................................................................................. 20
FIGURE 10: CAUSES OF SATISFACTION AND DISSATISFACTION, ACCORDING TO
TRIPADVISOR ...................................................................................................................................... 20
FIGURE 11: PLACES ASSOCIATED WITH LABUAN BAJO IN PACKAGES OFFERED BY TOUR
OPERATORS INTERVIEWED.............................................................................................................. 21
FIGURE 12: LABUAN BAJO TOURISM DESTINATION AND VISITOR’S MOVEMENT .................... 25
FIGURE 13: ACCOMMODATION AND ROOM CAPACITIY, MANGGARAI BARAT, 2010 – 2015 .... 27
FIGURE 14: MANGGARAI BARAT, ROOM NIGHT SUPPLY AND DEMAND, 2010 – 2015 .............. 27
FIGURE 15: MANGGARAI BARAT, ROOM OCCUPANCY, 2011 – 2015 ........................................... 28
FIGURE 16: FOREIGN & DOMESTIC DIRECT INVESTMENT TO MANGGARAI BARAT HOTELS &
RESTAURANTS, 2011 – 2016 YTD JUNE (USD)................................................................................ 35
FIGURE 17: FORECAST OF VISITOR ARRIVALS TO LABUAN BAJO, 2015 – 2041 ....................... 49
FIGURE 18: FORECAST OF VISITOR GUEST NIGHTS AND EXPENDITURE IN LABUAN BAJO, 2015
– 2041 ................................................................................................................................................... 50
FIGURE 19: LE PIRATE ....................................................................................................................... 52
FIGURE 20: NUMBER OF ROOMS REQUIRED, 2015 – 2041 ........................................................... 54
FIGURE 21: ESTIMATED NUMBER OF STAFF BY HOTEL CATEGORY ......................................... 58
FIGURE 22: EXISTING ROAD CONDITION AT KABUPATEN MANGGARAI BARAT ....................... 60
FIGURE 23: EXISTING ROAD LENGTH AND PAVEMENT IN OTHER KABUPATEN ....................... 61
FIGURE 24: MAIN ROADS CONNECTING KEY ATTRACTIONS AREA ............................................ 62
FIGURE 25: NUMBER OF REGISTERED VEHICLES IN MANGGARAI BARAT ................................ 63
FIGURE 26: KOMODO AIRPORT MAP ............................................................................................... 64
FIGURE 27: KOMODO AIRPORT FACILITIES .................................................................................... 65
FIGURE 28: EXISTING GAPS IN AIRPORT FACILITIES AT KOMODO AIRPORT ........................... 65
FIGURE 29: KOMODO AIRPORT MASTER PLAN ............................................................................. 66
FIGURE 30: LABUAN BAJO PORT FACILITIES ................................................................................. 67
FIGURE 31: LABUAN BAJO PORT FACILITIES ................................................................................. 69
FIGURE 32: SURVEY OF TRANSPORT MODAL SPLIT .................................................................... 70
FIGURE 33: FUTURE SCENARIO OF TRANSPORT MODAL SPLIT ................................................. 71
FIGURE 34: ESTIMATE OF TOURISM PASSENGERS BY TRANSPORT MODES IN 2021 ............. 71
FIGURE 35: ESTIMATE OF TOURISM PASSENGERS BY TRANSPORT MODES IN 2041 ............. 72
FIGURE 36: NUMBER OF VEHICLES IN PAST AND FUTURE.......................................................... 72
FIGURE 37: TRAFFIC VOLUME ESTIMATION IN 2021 ..................................................................... 73
FIGURE 38: TRAFFIC VOLUME ESTIMATION IN 2041 ..................................................................... 73
FIGURE 39: TRAFFIC VOLUME ESTIMATION IN 2021 AND 2041 (ADT) ......................................... 73
FIGURE 40: KOMODO AIRPORT – INFRASTRUCTURE NEEDS ..................................................... 75
FIGURE 41: LABUAN BAJO TOURISM DESTINATION AND KEY ATTRACTIONS .......................... 77
FIGURE 42: CAPACITY OF PDAM WATER SOURCES IN LABUAN BAJO ...................................... 78
FIGURE 43: LOCATION OF WATER SOURCE AND WATER RESERVOIR AT LABUAN BAKO ..... 78
FIGURE 44: CAPACITY OF WATER RESERVOIRS AT LABUAN BAJO ........................................... 79
FIGURE 45: EXISTING COVERAGE OF PDAM WATER SUPPLY .................................................... 80
FIGURE 46: EXISTING COVERAGE OF STBM STANDARD SANITATION ...................................... 82
FIGURE 47: FLOOD DISASTER RISK INDEX MAP ............................................................................ 83
FIGURE 48: PROCEDURE OF SOLID WASTE COLLECTION AND DISPOSAL ............................... 84
FIGURE 49: LOCATION OF TPS AND TPA IN LABUAN BAJO .......................................................... 85
FIGURE 50: EXISTING COVERAGE OF POWER SUPPLY NETWORK ............................................ 86
FIGURE 51: EXISTING AND PROPOSED POWER PLANTS IN MANGGARAI BARAT .................... 87
FIGURE 52: TELECOM TOWERS IN MANGGARAI BARAT .............................................................. 88
FIGURE 53: SUMMARY OF EXISTING BASIC INFRASTRUCTURE ASSESSMENT ....................... 88
FIGURE 54: FORECAST OF POPULATION........................................................................................ 91
FIGURE 55: FORECAST OF COMMERCIAL ROOMS REQUIRED.................................................... 91
FIGURE 56: WATER DEMAND PROJECTIONS (L/S) ........................................................................ 93
FIGURE 57: ESTIMATED WATER DEMAND RATIO .......................................................................... 94
FIGURE 58: WATER CONSUMPTION RATE ...................................................................................... 94
FIGURE 59: SEWAGE GENERATION PROJECTION (L/S) * ............................................................. 96
FIGURE 60: ESTIMATED SEWAGE GENERATION RATIO ............................................................... 96
FIGURE 61: SOLID WASTE GENERATION PROJECTINO (L/DAY) .................................................. 98
FIGURE 62: ESTIMATED SOLID WASTE GENERATION RATIO ...................................................... 98
FIGURE 63: RATE OF SOLID WASTE GENERATION ....................................................................... 98
FIGURE 64: POWER DEMAND PROJECTION (MWH) .................................................................... 100
FIGURE 65: ESIMATED POWER DEMAND RATIO .......................................................................... 100
FIGURE 66: POWER CONSUMPTION RATE ................................................................................... 102
FIGURE 67: RTRW MANGGARAI BARAT REGENCY MASTER PLAN 2010 .................................. 112
FIGURE 68: KMP PROPOSED ZONING ........................................................................................... 113
FIGURE 69: GAPS IN SPATIAL PLANNING FRAMEWORK, LABUAN BAJO .................................. 113
FIGURE 70: SINGLE RUNWAY OCCUPANCY TIME ....................................................................... 117
FIGURE 71: JAYAKARTA KOMODO FLORES.................................................................................. 118
FIGURE 72: BINTANG FLORES ........................................................................................................ 119
FIGURE 73: LA PRIMA ....................................................................................................................... 120
FIGURE 74: KOMODO DIVE RESORT .............................................................................................. 121
FIGURE 75: SERAYA HOTEL ............................................................................................................ 122
FIGURE 76: ANGEL RESORT ........................................................................................................... 123
FIGURE 77: FLOWCHART OF VISITOR TRAFFIC VOLUME ESTIMATION ................................... 125
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INTRODUCTION
The Government of Indonesia in the National Medium-Term Development Plan (Rencana
Pembangunan Jangka Menengah Nasional, RPJMN) 2015 to 2019, has set a number of objectives
to increase the role of tourism in the Indonesian economy. Between 2015 and 2019, its goals
together with the Ministry of Tourism’s goals are to increase:
• tourism foreign exchange revenues from IDR120 trillion to IDR240 trillion p.a.;
• Indonesia’s Travel and Tourism Competitiveness Index ranking from 70th to 30th place;
and
To achieve these goals President Joko Widodo urged his cabinet in late 2015 to accelerate
the development of 10 priority tourism destinations (Figure 1):
• Mandalika (Lombok)
The 3 destinations in bold are considered high priority destinations with additional effort
being expended to encourage and develop tourism.
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The World Bank has been requested by the Government of Indonesia to support, through
financing, advisory support, and analytics, the Government’s efforts to accelerate tourism
development in the 10 priority destinations. As part of this support, in August 2016 the
World Bank engaged Horwath HTL (HHTL) and Surbana Jurong to conduct a market analysis
and demand assessment for the 10 priority destinations, with a focus on Lake Toba, Lombok
and Borobudur.
The key objective of the Assessment is to assist the Government of Indonesia in identifying
and prioritising infrastructure, skill and SME development, planning and other tourism-related
expenditures to accelerate the development of the 10 priority tourism destinations thereby
helping to achieve the arrivals and economic goals as listed above. The scope comprises of
(1) market demand and supply analysis, plus investment analysis and (2) demand assessment
(projections) and investment needs (including infrastructure).
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Appendix I contains a list of interviews undertaken with both the public and private sectors
to gather primary research that was used to supplement secondary research. The list
includes the number of interviews, the organisation (where appropriate), the location and
the dates.
• reports for the 3 high priority destinations (Borobudur, Lake Toba, Lombok); and,
The 3As terminology (Attraction, Amenities and Accessibility) can help explain how the
supply and demand analysis and needs assessment was carried out for the destination with
respect to the destination boundary and the key tourism areas.
• Accessibility: methods of reaching the destination via the main gateways (external
accessibility) plus transport links between gateways, attractions and key accommodation
areas all of which support the destination (internal accessibility). For external
accessibility, the focus is on the gateway hubs (such as airports and ports). For internal
accessibility, the Report assesses the transport infrastructure; the existing, the gaps and
the required transportation network that facilitates accessibility within the destination.
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• Amenities: support the destination and the attractions such as hotels, restaurants and
entertainment facilities together with basic services infrastructure. Within the
destination boundary, and generally within the key tourism areas, the Report assesses:
- the existing basic services infrastructure capacity (water supply, power supply,
telecommunication, waste water and waste management, etc.);
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1. DESTINATION CHARACTERISTICS
1.1 GEOGRAPHY
Covering the westernmost area of Flores, Kabupaten Manggarai Barat (West Manggarai) is
one of 8 Kabupaten on Flores Island in the Province of Nusa Tenggara Timur (NTT, East
Nusa Tenggara). The area boasts breath-taking nature on land and under water including
jungles, caves, lakes, waterfalls, unique beaches and stunning marine life. Kabupaten Manggarai
Barat is subdivided into 7 Kecamatan including Kecamatan Komodo.1
Kabupaten Manggarai Barat covers an area of 9,450 square kilometres although a large
percentage is undeveloped.
Located on the far west cost of the Kabupaten Manggarai Barat, Labuan Bajo is a small fishing
town and the regional capital. Transportation to the town, by land, sea and air continues to
improve as it is the gateway to the Komodo National Park (KNP), home of the famous
Komodo dragons and unique marine life. KNP was declared a World Heritage Site by
UNESCO in 1991, and drives tourism development to Kabupaten Manggarai Barat and much
of Flores Island.
1 In Indonesia, subnational governance includes four levels: (1) province/Provinci, (2) city/Kota and Kabupaten/Kabupaten, (3) sub-district/Kecamatan or district/Distrik,
and (4) urban community/Kelurahan or village/Desa.
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1.2 CLIMATE
Kabupaten Manggarai Barat has a typical monsoon climate, also known as the tropical wet
climate. The region receives moderate amounts of rainfall, with a dry season from April to
September and a rainy season from October to March. The average temperature in
Kabupaten Manggarai Barat does not fluctuate much throughout the year, ranging from 20
to 35 degrees Celsius during the relatively hot months, and 19 to 32 degrees Celsius during
cooler months.
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During the colonial period, the Portuguese introduced Christianity, which has become the
dominant religion on the island. However, ancient traditions and rituals are still very much
alive and have been interwoven into Christianity.
The majority of people along the coast are from the Bajo, Bugis, and Bima ethnic groups,
who work as fishermen. The remainder consist of merchants, entrepreneurs, craftsmen, and
government employees. Within the boundaries of KNP, there are 3 villages occupied by
several ethnic groups or tribes. The villages are inhabited by people from tribes of Komodo,
Bima, Manggarai, and Bajo.
While Bahasa Indonesia is the main spoken language in the region, Bahasa Manggarai is widely
spoken among the indigenous people. Bajo, Bugis, Bima, and other indigenous languages are
spoken among different social groups along the coast and small islands of Manggarai Barat.
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2. DESTINATION DEFINITION
The following section provides an assessment of the existing and potential key attractions
that define the destination and the destination boundary.
The 2 key attractions that we have identified that will drive tourism to Flores are the KNP
and the town of Labuan Bajo, both within Kecamatan Komodo and Kabupaten Manggarai
Barat (the defined Destination Boundary). These sites can be seen in Figure 4 with the red
outline indicating Kabupaten Manggarai Barat:
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The KNP is one of the world's richest and most diverse marine environments (included in
the Coral Triangle2), home to over 260 species of coral, as well as mangroves, seagrass beds,
seamounts, and semi-enclosed bays. Large marine fauna found in KNP include more than
1,000 species of fish, 10 species of dolphins, 7 species of whales, as well as numerous species
of sharks, manta rays and turtles.
The terrestrial fauna is not as diverse in comparison to the marine fauna. The number of
terrestrial animal species found in the Park is not high. Still, Komodo Island and Rinca Island
are two of only a few islands where the famed Komodo dragons can be found. This unusually
large species of lizard, which can reach up to 3 metres in length and weigh over 70 kilograms,
has made Komodo and Rinca Islands popular attractions for tourism in recent years.
Protected under Indonesian law, the Komodo dragon population is relatively stable with
around 2,000 to 2,500 animals in the park.
Other than the Komodo dragon, several terrestrial snake species, lizards, and other reptiles
can be found on the islands. Mammals include the Timor deer—the main prey of the Komodo
dragon—, horses, water buffalo, wild boar, and the endemic Rinca rat. Over 150 species of
birds have been identified in KNP, many of which are migratory and more representative of
Australasian than Asiatic species. Distinctive species include orange-foot scrubbing fowl,
yellow-crested cockatoos, imperial pigeons, and white-breasted sea eagles.
The most popular tourism activity within the KNP is to hire a boat and island hop, visiting:
2
“The Coral Triangle is a marine area located in the western Pacific Ocean. It includes the waters of Indonesia, Malaysia, the Philippines, Papua New Guinea, Timor Leste
and Solomon Islands. Named for its staggering number of corals (nearly 600 different species of reef-building corals alone), the region nurtures six of the world’s seven
marine turtle species and more than 2000 species of reef fish.” https://www.worldwildlife.org/places/coral-triangle
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• Kalong Island at sunset to watch the many thousands of Sunda Flying Foxes flying from
the island to the mainland.
Accommodation is limited to a few island resorts, live-aboards and to the accommodations
in Labuan Bajo (more below).
- Melo Village: Situated beside Mount Mbeliling, Melo Village offers a range of
village-based tourism activities where visitors can watch exciting cultural art
performances such as the ‘Ndundu Dake’ dance and the well-known Caci
performances. The village is run as a cultural cooperative known as Compang To’e
and is a popular place to experience the distinct Manggaraian culture.
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Meanwhile, as the main gateway to the National Park, Labuan Bajo has also become an
important tourism hub with the increase in accommodation and ease of access to other
areas of interest.
However, the destination still lacks the infrastructure and hospitality establishments to
handle the growing number of travellers, as well as lacking essential medical services for
emergencies. The general lack of public safety standard, food hygiene, and environmental
protection regulations are key issues that must be tackled for the destination to effectively
compete against other established destinations in the region.
Other areas that can be developed to attract more tourist arrivals to the greater Flores
region include: adventure excursions, historical and cultural tourism. Beside the attractions
listed in the previous sections, other areas of interest outside the destination boundary
include:
• Kelimutu National Park in Kabupaten Ende is famous for Mount Kelimutu, which
has the three coloured lakes (blue, green, and brown) at its summit and attracts visitors
mostly at sunrise.
• Wae Rebo village, is the famous Manggarai’s traditional village. Its main characteristics
are unique houses, that are tall and conical in shape and are completely covered in lontar
thatch from its rooftop down to the ground.
Going forward, the success of the destination will be dependent on good flight connectivity,
easier land and sea travel, as well as improved facilities, attractions, activities, and services.
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Between 2011 and 2015, the number of passengers and aircraft arrivals increased by a
compound annual growth rate (CAGR) of 20% and 18% respectively. The significant growth
in arrivals is driven by growing awareness of the destination domestically and globally.
The airport recorded a significant growth in passenger arrivals following the runway
extension mid-2013. The improved connectivity has contributed to unlock the potential for
increased tourism demand in a location as remote as Flores. Figure 5 shows the growth in
passengers at Komodo Airport.
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In 2015, the KNP recorded a total of 61,257 visitors, increasing at a CAGR of 8.3% over the
past 5 years. For the same period, international visitors increased at a CAGR of 3.5% and
domestic visitors at 40.5% off a very small base.
In 2015, international visitor arrivals reached more than 45,000, while domestic arrivals were
approximately 16,000 (Figure 6).
50000
40000
30000
20000
10000
0
2010 2011 2012 2013 2014 2015
Foreign Domestic
The period from 2010 to 2012 saw a decline in foreign tourism arrivals, before it bounced
back in 2013. The decline is believed to be based on a couple of factors:
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• Reduction in global publicity of the Komodo National Park following the removal of PT
Putri Naga Komodo3’s permit to manage the KNP; and
• Severe weather issues, particularly in 2012 when the ports, servicing daytrips to the
KNP were closed.
• Long-haul visitors (Europe, USA, and Australia), represent the major source of demand,
particularly for resorts and star-rated hotels within the KNP. These guests will tend to
use Labuan Bajo as a transit point where they will spend the first or last night of their
trip.
• There is also a growing demand from backpackers who prefer to stay at homestays in
Labuan Bajo or liveaboards to save on their accommodation expenses and for the unique
experience of both.
• Visitors are attracted by the natural scenery, tranquillity, and beautiful diving sites. Their
most popular activities are diving and snorkelling, in combination with a visit to see the
Komodo dragon.
• Asian visitors are almost absent from the destination, which is due to the lack of
awareness of the destination and the limited air connectivity (which restricts short-stay
visitors). According to local hoteliers, it is also due to the lack of star-rated hotels,
shopping malls, souvenir shops, etc. (particularly affecting visitors from Southeast Asia
and China).
3 In 1995, the government gave a single 30-year tourism concession license to PT Putri Naga Komodo, a non-for-profit tourism
destination management company to provide technical expertise and support to science-based management initiatives within
KNP. The company was a joint partnership majority owned by The Nature Conservancy (60%) and PT. Jaythasha Putrindo
(40%), a private tourism company of Malaysia-born hotel businessman Feisol Hashim. The deal collapsed in 2010, when PT Putri
Naga Komodo’s permit was revoked.
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Other
Australia
15%
20%
Netherland
14%
USA
19%
France
15%
Germany
17%
• As seen in Figure 6, the number of domestic visitors has significantly increased over the
last 5 years at a CAGR of 40.5%.
• The majority of domestic visitors come from Bali, Jakarta, Lombok, and Sumbawa.
• Domestic visitors are predominantly middle to upper middle class urban residents who
go to KNP for the weekend. They are attracted by the Komodo dragon, natural scenery,
and beautiful beaches.
• The leisure segment contributes to the bulk of domestic demand while there is limited
demand from corporate and government segments.
• The most popular activities for domestic visitors are visiting Komodo Island and/or Rinca
to see the Komodo dragons and hiking on Padar Island. Limited time is spent on diving.
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Foreign visitors who travel longer distances to reach Labuan Bajo stay longer (up to 5 or 7
nights for European an Americans) than regional guests (Australian and SE Asian generally
stay an average of 3 to 4 nights)
Figure 8 illustrates the monthly arrivals of international and domestic visitors to KNP in 2015:
8000
7000
Number of visits to KNP
6000
5000
4000
3000
2000
1000
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Domestic visitors Foreign visitors
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• August is the most popular month for international visitors to KNP, as it is both
European summer with longer holiday periods and Australian winter with respite sought
in the tropics. While Christmas, New Year, and Easter are generally peak months for
international visitors to most South East Asian destinations, the KNP experiences a
decline in visitors between December and March due to the monsoon season. Many
resorts are also closed during these months due to weather restrictions on activities
available for guests.
• The seasonality fluctuation is less pronounced amongst domestic visitors; however,
numbers also decline during the monsoon season.
• The logistical challenges involved in getting to and from the resorts/islands imply that
package tours will continue to be preferable to avoid inconvenience;
• Higher-yielding travellers prefer to have third parties manage their travel schedule;
• Scheduling boat transfers remains unreliable and unpredictable, while chartered private
boats can be very expensive;
• Guests are generally unable to book homestays or community-based village lodges
directly;
• Many local destination management companies (DMCs) and international travel agents
have been able to market the destination by providing one-stop services for guests by
arranging their accommodation, transportation and activities under one package; and
• Lack of hotels managed by international chains that can leverage their strong distribution
and reservation systems.
Direct free independent travellers (FIT) represent a secondary source of demand, and book
directly with the resorts or via online travel agencies such as Traveloka or Agoda. The
proportion of direct FIT demand is increasing as more travellers, particularly from the
domestic market and Asian markets including expats living in Asia, opt to arrange their own
holidays. Nevertheless, the percentage of FIT bookings will still be curbed by the logistical
challenges associated with getting to the islands.
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Generally speaking, interviewed travel trade professionals associate Labuan Bajo with Flores
Island, and moreover with KNP, while Rinca Island is also mentioned. Incoming agencies,
tour operators and tour guides alike stressed the importance of KNP for the reputation of
the destination: Labuan Bajo is mainly considered to be a getaway for the KNP.
Just over one third of the interviewed operators offered packages which included KNP: (0/6
in China, 1/3 in France, 0/4 in Malaysia, 3/5 in UK, 3/7 in Singapore, 4/4 in Germany, 0/5 in
Japan and 5/7 in Australia).
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Activities and products associated with the destination on TripAdvisor are primarily scuba
and snorkelling, nature & wildlife tours, boat tours and water sports, cultural tours, beaches
and hiking. However, while several islands off shore are covered by reviews, the only
attraction located in the town of Labuan Bajo which attracts reviews is the fish market (Figure
9).
The destination and identified attractions and activities generally enjoy extremely positive
reviews from users. Poor transportation conditions and the lack of cleanliness of beaches
are the main causes of dissatisfaction, as summarized in Figure 10.
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While tour operators generally consider the accommodation and tour offerings in KNP to
be satisfactory, they stress the lack of quality accommodations in the park as the main
obstacles for the inclusion of Labuan Bajo in tour packages (Figure 11). Interviewed tour
operators in international markets consider the town of Labuan Bajo a compulsory step to
begin a cruise or to reach KNP or Rinca Island, but not a stand-alone destination due to
relatively poor, yet not necessarily cheaper, visitor infrastructure.
Planning and coordination by the tourism industry in Labuan Bajo seems weak. For instance:
the Association of Indonesian Hotels and Restaurants (PHRI) chapter in Manggarai Barat
developed a road map 2015 – 2018 business plan which included a vision, mission, strategic
program, and work plan; however, little has been implemented.
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The WISATA program funded by the Swiss State Secretariat for Economic Affairs (SECO)
started in 2009 covering the island of Flores. WISATA is carried out in close cooperation
with the Indonesian Ministry of Tourism. The main goal of the program is to contribute to
economic development through sustainable tourism; which creates employment and income
to improve the livelihood of the local population5.
• Participated in ITB Berlin 2016, Komodo Travel Market, ASITA Fam Trip 2016, BBTF
2016, PATA Mart, and ITB Asia Singapore.
• Tour de Flores 2016.
4
The DMO was established in August 2011 with a regulation constituted by the Directorate General of Destinations
Development (Ministry of Tourism and the Economy Creative), in accordance with the Regulation of the Minister of
Tourism Republic of Indonesia No.50/Permen/2011 of the National Tourism Development Master Plan (RIPPARNAS)
starting from year of 2010 to 2025.
5 More details can be found at: http://florestourism.com/about-us/
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Due to the lack of awareness of the destination and the weak air connectivity with the hubs
of Jakarta and Bali, the destination is largely unknown for the Asian market. Furthermore,
there is currently a lack of branded hotels, and supporting facilities (F&B, shops, essential
medical services for emergencies, etc.) which also deter Asian travellers from the destination.
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4. ACCESSIBILITY HIGHLIGHTS
Komodo Airport is the main gateway airport for Labuan Bajo. Almost 100% of visitors arrive
by air. The Island is internationally accessed primarily via Denpasar International Airport,
Bali—though daily flights from Jakarta began in 2016 with air links to Komodo Airport. The
number of flights between Labuan Bajo and Bali is 42 per week. Currently there are no
available international flights serving the Komodo Airport. Fewer visitors arrive by cruise
ships with KNP recording only 42 cruise visits in 2015. The Island is also accessed by the
Labuan Bajo Port, mainly for transporting regional passengers and goods. The visitors use
this port for chartered boat services to access KNP.
• As per market study, tourism demand for KNP is dominated by international travellers,
contributing up to 74 percent of total demand in 2015. In 2015, international visitors
were more than 45,000, while domestic arrivals were approximately 16,000.
• The demand from domestic travellers has been rising significantly for the past 5 years,
growing at a CAAG rate of 40.5 percent.
The majority of visitors to and from Labuan Bajo travel by air and Komodo Airport is the
main Gateway airport for Labuan Bajo. Hence, the connectivity from airport to the places of
accommodation is important. Further to this, the internal road connectivity in Labuan Bajo
and the sea connectivity between Labuan Bajo and the National Park are important.
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• At the end of 2015, Kabupaten Manggarai Barat had a total of 994 hotel rooms (of which
707 were star-rated rooms) spread across 60-registered accommodation
establishments.
• Between 2010 and 2015, the hotel room supply in the Kabupaten increased at a
compound annual growth rate (CAGR) of 12%.
• While the supply of rooms in classified hotels has doubled over this period, the market
continues to be dominated by small non-star-rated properties, representing 90% of all
hotels at the destination (quick development, low investment, lower risk). The
investment risk associated with a new destination and the high investment costs and
operational expenses for hotels/resorts on remote islands has not enticed many
investors to date.
• Most of the star-rated resorts/hotels are relatively new and well-maintained.
Figure 13 to Figure 15 show the accommodation, room capacity, and occupancy in Manggarai
Barat between 2010 /2011 and 2015:
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FIGURE 14: MANGGARAI BARAT, ROOM NIGHT SUPPLY AND DEMAND, 2010 –
2015
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• Between 2011 and 2015, the total room night demand grew at a CAGR of 13%, slightly
stronger compared to the supply growth for the same period.
• Despite increases in arrivals and room night demand, occupancy at non-star rated hotels
has not improved much since 2011 and in 2015, still under 20%.
• On the other hand, occupancy at star-rated hotels doubled since 2011 to between 40%
and 45% in 2014 and 2015—thus almost all the growth in demand over this period was
absorbed by star-rated hotels. Based on historical performance, it appears that the star-
rated accommodation has induced much of its room night demand by offering good
quality product, good service, and/or unique concept that has drawn overnight stays that
would not have otherwise been attracted to the destination.
• Demand is significantly lower during the raining season, particularly for resorts on
remote islands. Several hotels mentioned that income earned in the high season was also
their livelihood during the low season, and some expressed that in the low season it was
sometimes quite difficult to get by. Some resorts, such as Komodo Dive Resort, only
operate during high season due to (1) low demand during rainy season and (2) high
operating costs.
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• Resorts (star-rated hotels): Most of the resorts are on private islands with private
beaches and star-rated. These resorts are particularly popular among international guests
and high-spending domestic travellers, allowing them to command higher rates compared
to those on the main island. The achieved ADR is ranging from IDR 800,000 to IDR
1,000,000. Due to their remote locations, the resorts’ occupancy levels are much lower
during rainy seasons. As a result, the overall occupancy rates are estimated at
approximately 25% to 30%.
• Mainland star-rated hotels: have consistently outperformed non-star-rated hotels in
terms of occupancy, and the gap has been widening over the years. The estimated
occupancy rate of these hotels is around 30% to 40%. Star-rated hotels generally
achieved higher average daily rates (ADR) compared to non-star-rated hotels, with
estimated ADR from IDR 500,00 to IDR 700,000.
• Non-star-rated hotels: Non-star rated hotels’ ADR are estimated at IDR 200,000 to
IDR 300,000 per room.
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• All hotels offer either a separate bar or bar-cum-restaurant. This provides guests,
particularly those who stay in the remote islands, with a place to relax when other
recreational activities are no longer available.
• Given the lack of alternative local food offerings, together with the inaccessibility
between the islands, many resorts offer half-board or full-board packages.
• Due to the lack of quality suppliers in the region, the restaurants’ menus are simple and
relatively limited. Aside from a few locally sourced ingredients, such as fish, much of the
restaurants’ ingredients are shipped directly from Bali.
• Most non-star-rated hotels in Labuan Bajo feature an all-day dining restaurant. Some
only provide breakfast, while the other meals of the day are offered on request.
• Homestays offer mainly home cooked Indonesian dishes.
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While star-rated hotels (both resorts and hotels in Labuan Bajo) induced much of their own
demand and have seen significant growth the past 5 years, these properties have yet to reach
their full capacity due to: (1) lack of destination awareness, (2) lack of supporting
infrastructure and facilities, (3) limited air connectivity and (4) strong seasonality with weak
performance during the wet season.
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Below are different food and beverage options available in Labuan Bajo:
• Street Stalls: there are many street stalls along the main streets, which mainly offer local
delicacies. The fish market on Jalan Soekarno Hatta is one of the most popular spots for
visitors, particularly international visitors.
• Restaurants and Bars: There are several restaurants and bars in the town centre. Most
of the popular restaurants are owned and managed by expatriates. Below are some
examples of popular F&B outlets in Labuan Bajo:
- Made in Italy: is one of the market leaders in Labuan Bajo. It is a refurbished shrimp
boat that houses a fine-dining restaurant with capacity of 10 guests. It features a
seven-course degustation menu matched with champagne.
- The Lounge: is the classic Labuan Bajo restaurant lounge, built on the steep hill in
the heart of town.
- Paradise Bar: located on the hill and offers stunning sunset views. The restaurant/bar
offers live music by local bands, as well as a DJ.
Whilst hotels and restaurants buy some supplies of food at the local markets, ingredients are
insufficient for most hotels and restaurants that import from surrounding islands including
Bali, Sumbawa, and Java. While the prices are relatively low at the local food stalls, many top-
tier restaurants and bars in Labuan Bajo import the majority of their ingredients, leading to
relatively high prices.
Beside four villages located within the park, there is still little in terms of tourism
infrastructure inside the KNP. Loh Liang and Loh Buaya, the tourism villages on Komodo
Island and Rinca Island respectively, provide basic accommodation and food only. Being
maintained and operated by staff of the national park authority, the facilities in these villages
are in poor condition, and food in the attached restaurants are limited to a handful of menu
items.
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• Accommodation, transportation, and diving excursions under one package are generally
the most common product being offered;
• Excursions around KNP;
• Liveaboard trips touring the KNP;
6.3 GUIDES
• Each travel agency has 3 or 4 guides. Freelance tour guides are employed during peak
season to meet increased demand.
• Guides have good knowledge of the fauna and flora in the region.
• Guides have relatively good understanding of the cultural and historical heritage of
Kabupaten Manggarai Barat.
• The park authority generally provides guides, who are trained in conservation and
wildlife monitoring, and have basic English language skills.
• Laundry services.
• Hawkers from Komodo village sell woodcarvings and other handicrafts from stalls set
up near the boat landing.
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While tourism has a considerable impact on the regional economy, many tourists arrive on
pre-organised packages and some arrive by cruise ship (only 42 cruise visits recorded in 2015
as mentioned in Chapter 4), and thus spend comparatively little in the actual locality. As a
result, most tourism revenue has thus far been generated outside of the local economy, by
tour and cruise ship operators in Lombok, Bali, Java, and abroad. If the destination is to
develop in the future, the number, variety, and quality of SMEs must be developed and
enhanced further to meet increasing tourism needs.
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7. INVESTMENT ANALYSIS
7.1 DIRECT INVESTMENT
7.1.1 FOREIGN & DOMESTIC DIRECT INVESTMENT
Figure 16 illustrates the realized direct investment for the tourism related sector including
hotels, restaurants, and other supporting services in Kabupaten Manggarai Barat. According
to the investment statistics on hotels and restaurants in Manggarai Barat, the total investment
value to the Kabupaten grew at a compound annual growth rate (CAGR) of 52% between
2011 and 2015. The investment to the region has witnessed some fluctuations in the past 5
years, with the peak in 2014 at USD 840,000. Poor data collection is blamed for the significant
drop shown in 2013.
As of first half 2016, the region received a total investment of approximately USD 299,000.
Source: BPMPPT Mabar & BKPM NTT (Badan Penanaman Modal dan Pelayanan Perijinan Terpadu Manggarai Barat)
We have been unable to ascertain how the increases in realised FDI and DDI investment
amounts in 2012, 2014 and 2015 in Figure 16 correspond with the increases in hotels/rooms
as per Figure 13.
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Currently the main investors are local investors or small partnerships between foreign and
domestic investors, including:
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• Local communities on the inhabited islands who turn their houses into non-star-rated
hotels, homestays, or other supporting facilities such as restaurants, convenience stores,
bike rental, water sports, etc. They both invest and operate these facilities.
6 Investment sentiment gleaned from interviews with 25 potential and existing foreign investors from Australia, China, Japan, Malaysia, and
Singapore. The questions were designed to better understand their thoughts on pros and cons of SEZs, the tourism investment climate in
Indonesia, the future of tourism investment and possible investment opportunities in KNP and Labuan Bajo.
7 Due to the lack of transparency and guarantees, particularly on land ownership or land usage extension, investors do not have confidence in
investing large amounts of capital in Manggarai Barat.
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- High quality PR and social media by the local and central governments;
- Potentially attractive for a broad segment of visitor types; and
- The cruise / yacht market has enormous potential.
• There has been no government support for investment and business. Promises of basic
infrastructure improvements have not been fulfilled.
• Securing supplies is difficult for firms, as the majority of materials/ingredients must be
transported from Bali.
• There is no waste treatment process which is problematic for continued development.
8 Investment sentiment gleaned from interviews with 9 existing Indonesian tourism investors. The investors chosen had interests in various
tourism assets including hotels, restaurants, ground transportation and travel agencies. The questions were aimed at gathering their thoughts on
the pros and cons of SEZs, the tourism investment climate in Indonesia, the future of tourism investment and possible investment in KNP and
Labuan Bajo.
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• Lack of willingness amongst locals to work in the industry is another limiting factor.
This lack of community initiative could be explained by a lack of awareness among locals
about ecotourism and by the fact that most individuals feel as though tourism benefits
are not being felt within their communities.
• The different status between foreign investors with leasehold interests and
local investors with freehold interests, is a disincentive when investing in the long
term, as some projects may only reach maturity after 20 years, and some land leases (i.e.
20-30 years) do not allow for maximum enjoyment after maturity due to the land lease
expiring (which is typical across Indonesia).
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8. SKILLS ASSESSMENT
8.1 TRAINING SCHOOLS
• Hospitality Business Coaching Program (HoCo) is a hospitality-coaching program
managed by Swisscontact WISATA, to support small local hotels and guesthouses to
become more competitive, enhance guest satisfaction, and learn the benefits of being
environmentally friendly. During 2015, the program approach, process, and training
materials were developed, and a first pilot was conducted in Labuan Bajo.
• Trainings by Flores DMO9: to ensure sustainability and build local capacity, the Flores
DMO trains local training service providers, a pool of local resource trainers to
informally train the local tourism businesses. Jayakarta Hotel in Labuan Bajo has been a
major player in providing a venue for training programs.
• SMKs: a partnership between the three SMKs (vocational high schools) in Flores (SMKN
1 Labuan Bajo, SMK Swakarsa Ruten, and SMK St. Thomas Maumere) with two SMKs in
Bali (SMKN 3 Denpasar and SMK Pariwisata Harapan) has been established. All targeted
SMKs in Flores have formed a development team for local contents of their curriculum.
Further, the Ministry of Education designated SMKN 1 Labuan Bajo as a model school
for other SMKs in the region.
• Flores Homestay Network (FHN) is run by the Eco Flores Foundation 10 an
accommodation community based initiative that provides local communities with
knowledge and guidance on how best to run local homestays. This support is offered
through workshops, conferences, and the assistance of professional volunteers.
9 The DMO was established in August 2011 with a regulation constituted by the Directorate General of Destinations
Development (Ministry of Tourism and the Economy Creative), in accordance with the Regulation of the Minister of Tourism
Republic of Indonesia No.50/Permen/2011 of the National Tourism Development Master Plan (RIPPARNAS) starting from year
of 2010 to 2025.
10 http://www.ecoflores.org/en/top/home/
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9. DESTINATION SWOT
9.1 STRENGTHS
• Labuan Bajo is a strategic location, being the gateway to KNP.
• Komodo Island and Rinca Island are two of the few Indonesian islands where the famed
Komodo dragons can be found.
• KNP is a famous World Heritage site and one of the new 7 Wonders of Nature.
• Diverse tourism attractions including: pristine beaches with white sand and clear water,
rich and dense marine life, adventure trekking/cycling, historical sites, and interesting
cultural events year-round.
• Rich natural resources and marine biodiversity provide an excellent environment for
diving and eco-tourism. There are several world-class diving spots within the KNP and
outside the park.
• Diverse lodging facilities including hotels, luxurious resorts, hostels, cruises, etc., that
accommodate various types of travellers. Good supporting facilities: F&B (restaurants,
bars, local food market, etc.), travel agents, and dive masters.
• The nature is unspoilt and well preserved.
• Newly opened international-standard hospital.
9.2 WEAKNESSES
• No international flights; travelling to Labuan Bajo continues to be dependent on flights
from Denpasar or Jakarta.
• Transportation options between islands are limited and can be expensive.
• Remoteness of Labuan Bajo and the KNP.
• As activities in the KNP are largely water based, seasonality has an effect on tourism
levels.
• Limited public transportation from Labuan Bajo to the eastern parts of Flores.
• Not enough marketing to promote the destination and potential travellers do not have
sufficient travel information about Labuan Bajo.
• Limited or no access to clean water and electricity, particularly on the remote islands.
• Lack of a sewage management plan, waste is not being processed and dumped in the
ocean.
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9.3 OPPORTUNITIES
• Manggarai Barat has preserved its natural beauty to give travellers an untouched, natural
experience, yet the overall state of local tourism attractions is still immature and has
opportunities to be further developed.
• Growing popularity of the destination amongst travellers domestically, regionally and
internationally.
• The government is planning to upgrade the runway at Labuan Bajo to accommodate
larger planes and potentially upgrade it to an international airport. Garuda has recently
launched new direct flights from Jakarta to Labuan Bajo, which will facilitate more
international and domestic demand to the region.
• Opportunities to combine maritime and land-based tourism have not yet been exploited.
• Growing interest for cycling adventure tours in Flores. Flores Cycling Tours has recently
developed 6 cycling maps comprising 4 cycling routes for different types of bikers.
• Growing support from the regional government in promoting Labuan Bajo as a cruise
ship harbour (42 cruise visits were recorded in 2015).
• Manggarai Barat is also expected to see improvement in airport infrastructure to
promote tourism.
• The WISATA program, funded by the Swiss State Secretariat for Economic Affairs,
continues to support the economic development of the region through sustainable
tourism, employment creation, and improvement of the local population’s livelihoods.
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9.4 THREATS
• The increase in visitor numbers without proper destination management and capacity
planning will threaten the local environment.
• The demand for developing land for tourism purposes could cut into the Komodo
dragons’ already limited habitat.
• Solid waste is one of the most visible environmental threats to Labuan Bajo. The amount
of waste generated may exceed the capacity of available landfills, which would result in
uncontained open dumps.
• Destructive fishing practices such as dynamite, cyanide, and compressor fishing severely
threaten the Park's marine resources by destroying both the habitats and the resource
itself.
• Pollution inputs, ranging from raw sewage to chemicals, are increasing and may pose a
major threat in the future.
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Ecotourism should be the cornerstone of the destination development, which may be (1)
nature-base adventure tourism, and/or (2) community-based programmes providing cultural
experiences to tourists.
The activities in the National Park are constrained by its sensitive ecosystem, therefore
diving, nature tours, and sailing should be developed in a sustainable way.
The harbour amenities should be developed to attract and welcome visitors (food stalls,
restaurant, etc.) together with limited high end, low impact cruise ships.
Eco-resorts with limited capacity should keep on being developed close to the National Park,
especially on the islands close to the city, whereas Labuan Bajo will develop into a busy,
animated site for accommodations.
Labuan Bajo and KNP is not a standalone destination, but is rather destined to be integrated
into a circuit paired with Bali and/or Lombok, or, for repeat visitors, with the rest of Flores
Island.
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The quantitative approaches focus on identifying a level of increased demand in terms of total
visitor arrivals, visitor nights, and visitor expenditures. The steps are:
1. Assess and analyse potential market demand for Kabupaten Manggarai Barat and
KNP in particular to define the most prospective market segments (based on the
segment’s ability to generate value for the destination in a sustainable manner),
building on the baseline supply and demand analysis;
2. Define different demand scenarios based on the conditions required for the
development of the destination; and
3. Provide quantitative forecasts of future demand from source markets depending on
the scenarios.
The next sections of the Report use this assessment of future demand to identify
opportunities for the development of the destination (accommodation, transportation,
leisure activities, etc.) in terms of scale, location, and timing, and to assess public investment
needs (transport and basic services and infrastructure).
• A past trend approach, based on 5 years of available data (as tourism data collected before that is unreliable and not representative of the destination’s
tourism growth potential) cannot be applied, because the average growth of 8.3% is influenced by recently improved airport infrastructure (refer to
chapter 15.2 on air transport) and is thus of limited use to predict future trends; and
• Another hypothesis is that international visitor demand to Labuan Bajo will follow the future Lombok trend as developed in the Lombok destination
report. This is believed possible considering that both destinations share similar characteristics in terms of attractions, source market, travellers’ behaviour,
proximity to Bali, etc. This hypothesis has not been used for the forecast because the expected tourism increase in Lombok will be mostly generated
by mass tourism in southern Lombok, which has a very different profile from Komodo ecological tourism.
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• In the short term, the increase in the number of foreign visitors is assumed to be in line
with national-level growth projections (6.4% compared with 6.5% at national level). This
assumption is based on the assumption that Labuan Bajo is not and will not become a
standalone destination but rather a side trip from other destinations, particularly Bali
and Lombok. In the short term, the accessibility and the level of infrastructure will be
an obstacle to rapid development of the flow of arrivals to Labuan Bajo, despite the
increasing attractiveness of the destination.
• From 2022 we anticipate a sharp increase in visitors (CAGR 8.0% compared with 4.3%)
due to the improvement of accessibility and the development of accommodation capacity
(400 additional rooms).
• In the medium term (2026 – 2041), visitor growth experience is expected to be more
moderate (2.6%), as the destination develops organically, with some small eco-resorts
developed close in the National Park, and Labuan Bajo developing into a busier
accommodation hub for the KNP. The total number of additional rooms is forecast to
be around 1,000 between 2026 and 2041. The improvement of harbour amenities will
also attract limited high end, low impact cruise ships.
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• Total visitors should spend an estimated USD 99.5 million in 2041 (USD 38.2 million in
2021 and USD 58.7 million in 2026), which is four times the current expenditure level.
Foreign visitors are forecast to account for 97% of this total expenditure. This forecast
is based on the assumption of an average expenditure per day of USD 35 for domestic
visitors and USD 139 for foreign visitors, assumed to grow at an annual average rate of
1% between 2022 and 2041.
Guest nights
Domestic visitors 44 600 49 700 54 000 66 000
Foreign visitors 158 800 262 000 387 600 567 600
Total visitors 203 400 311 700 441 600 633 600
12
Based on an average length of stay of 2.8 nights for domestic visitors and 3.5 nights for foreign visits in 2015, up to 4 nights
in 2021 and the years after.
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INVESTMENT NEEDS
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Clockwise from the Top: Double Harbour View Room. Le Pirate Explorer. Family Sweet. Restaurant.
• Although there are no known star-rated hotels in the pipeline in Labuan Bajo, there are
increasing numbers of non-star-rated hotels and homestays as visitor arrivals to the
region continue to grow.
13 This was used in pipeline development as it had not completed one full year of operations at the time of writing the report.
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• Improve the basic infrastructure such as power supply and fresh water supply for
guesthouses, homestays, and traditional villages.
• Encourage some potential guesthouses or homestays to upgrade their facilities to meet
the standards and expectations of international visitors such as private bathrooms and
availability of Western cuisine.
Investors’ comments14:
• One Singapore investor showed some interest in due course with investment in a 4/5-
star resort with around 200+ rooms “when the time is right”.
14 Investment sentiment gleaned from interviews with domestic and foreign investors, as per section 7.3.
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• The domestic investors were certainly keen to invest in the development of a hotel,
within the next 5 years, options:
- around 100 / 150 keys with F&B outlet;
- glamping type boutique island resort aimed at a rate of around IDR 650,000;
- eco hotel with a small key count of under 100 rooms;
- one investor was very keen to build “any hotel at any level”.
There are currently 707 star-rated rooms in Kabupaten Manggarai Barat. The forecasted
demand for best-case scenario is based on assumed accommodation capacity growth, in
which the number of rooms will be around 1,010 in 2021, 1,410 in 2026 and 2,010 in 2041
(Figure 20).
The number of rooms required is calculated based on an occupancy rate of 40% in 2021, and
45% in 2026 and 2041. The assumed occupancy rate is higher compared to the current
achieved occupancy due to the following reasons:
• A large percentage of rooms will be in Labuan Bajo. With better accessibility and
supporting facilities, these accommodations generally perform better in terms of
occupancy than those on remote islands, contributing to improved overall average
occupancy; and
• Increased awareness of the destination is expected to attract more regional visitors. This
will help to improve occupancy during the low seasons with potential small-scale
corporate off sites, leisure weekenders, and improve the overall annual occupancy.
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The following summarizes the skills gaps identified following discussions with hotel managers
in Labuan Bajo:
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Figure 21 provides an estimate of the number of staff required at entry-level, supervisor, and
management levels by assumed hotel positioning. The hotel positioning is split into 5
categories based on actual achieved daily rates in 2015 across the country (this categorization
is not specific to Labuan Bajo because insufficient information is available from which to draw
staffing ratio conclusions).
Additional assumptions:
• % Total Rooms: the percentage of total rooms per rate category. For example, if the
figure is 0.42 this means that 42% of total rooms are within this rate category. The
estimates are based on the data collected in the Horwath HTL Indonesia Hotel Industry
Survey of Operations 2016;
• Staff / Room Ratio: staffing levels or full-time equivalents (FTE) per room. For example,
if the figure is 0.53 this means, that 0.53 FTE are required per room. The estimates are
based on the data collected in the Horwath HTL Indonesia Hotel Industry Survey of
Operations 2016); and
• The staffing level split or proportion of total staff within each level — entry, supervisor,
and management — are based on estimates from Horwath HTL’s market research:
- Under USD 40 (achieved average daily rate, 2015) is 10% management and 90%
entry level. It is assumed that this category includes homestays, smaller properties,
family owned and less professionally managed properties. These are assumed to
have a slightly different staff split between management (who are often owner
relatives) and entry level, with no supervisor level.
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In other words, by 2021 it is forecast that an additional 266 staff will be required to meet
the needs of the projected additional rooms. Between 2021 and 2026, a further 353 staff will
be required, and between 2026 and 2041 a further 531 will be required.
Other supporting sectors that will benefit directly, should tourism arrivals and tourism
developments continue to grow and meet expectations, include:
• Food & beverage: in support of tourism.
• Retail: as an extension to tourism, souvenirs if produced and marketed correctly, could
also employ a large number of local people.
• Daily diving, fishing and general tourism guides.
• Transport service staff will be required, taxis, buses, boats, etc.
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The volume of current staff in such positions is unknown, so we cannot gauge the potential
for increase; however, it is reasonable to expect staff increases to be in the range of three
times the current levels given the threefold increase in arrivals forecast.
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In 2015, the ratio of paved national roads was 100%. Similarly, the ratio of paved provincial
roads was 91.6%, while that of Kabupaten roads was only 46.4%; hence, many Kabupaten
road sections need to be improved, as shown in Figure 23.
External Access
Other Kabupaten roads within the study boundaries are also important, such as road in
Kabupaten Manggarai, Ngada, Ende, Sikka, and Flores Timur. However, these roads mainly
support the local activities and regional development of all of Flores, beyond the tourist sites
of Kabupaten Manggarai Barat. Therefore, the role of these roads to support the tourism
development would be marginal.
In general, the national and provincial road condition in these Kabupaten is good and mostly
paved enabling good external connectivity of Labuan Bajo to rest of the Kabupatens in Flores.
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In 2015, the ratio of paved national and provincial roads in these Kabupaten was 100%. This
condition not only supports the distribution of goods and commodities within the Pulau
Flores (inner-island trading) but also benefits the visitors.
The key roads providing accessibility to rest of Flores is shown in Figure 24.
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Internal Access
The road connecting Komodo airport to Labuan Bajo is generally in good condition with
spaces for dual 1 carriageway (with median) and sidewalks in major segment of the road.
Jalan Soekarno Hatta is the major road in Labuan Bajo, where most of the accommodations
are located. The road condition of Jalan Soekarno Hatta is generally good with spaces for
dual 1 carriageway (one way loop) and sidewalks in some segment of the road.
The other accommodation cluster is located along the coast in southern Labuan Bajo. The
coastal road Jalan Pantai Pede provides access to this southern accommodation cluster. The
road condition is generally good; however, the road sections are narrow in some segments
(<7 metres width) without dedicated pedestrian path.
The number of vehicles registered in Kabupaten Manggarai Barat was 18,402 in 2015.
Classified by the kind of vehicle, about 90% of the total is motorbikes. This is mainly because
motorbikes are an affordable and convenient means of transport for the residents. The
number of vehicle registration tends to increase over time, which will impact the overall
traffic in the tourism area. Hence, it is necessary to assess the adequacy of roads and manage
motorbikes in the tourism areas.
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There is no information available from the local authority for the traffic volumes for the road
sections between Labuan Bajo and other tourism destinations.
• Development of National Strategic Road (50 km) across north Flores (Labuan Bajo –
Bira – Reo) to improve the accessibility of the Kabupaten in the northern coast.
• Development of National Strategic Road (60 km) across south Flores (Labuan Bajo –
Warloka – Wae Rebo – Borong) to improve the accessibility of the kabupaten in the
southern coast.
However, investment in these projects is not justifiable solely from the perspective of
tourism development as these roads will contribute to regional socio-economic development
more broadly.
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The airport terminal capacity for Ngurah Rai International Airport in Bali is 20 million
passengers per year; it is currently handling around 17 million passengers, and is estimated
to reach its maximum capacity by 2017. The physical site’s constraints limit the further
expansion of airport infrastructure in Bali. Since Bali Airport is the major international
gateway to Komodo, it is important ensure the airport infrastructure capacity for this
gateway airport is adequate.
Komodo Airport is the major domestic gateway airport for Labuan Bajo, bringing in visitors
to KNP and western Flores. The role of Komodo Airport is significant, with increasing
number of passengers handled. Domestically, it provides access to isolated parts of the Flores
Island that are inaccessible by other modes of transport.
15 http://www.routesonline.com/news/38/airlineroute/268720/garuda-indonesia-expands-domestic-network-from-sep-2016/
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There are six airlines (Garuda Indonesia, NAM Air, Susi Air, Air Fast, Kalstar, Wings Air),
which operate at Komodo Airport. Figure 27 below shows the details of existing airport
facilities.
• Komodo Airport can handle up to 1.7 million passengers. Existing passenger demand was
around 259,106 at Komodo Airport in 2015, indicating that the airport is more than
adequate.
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According to the Airport Master Plan (Ministry Decree KP 869 Year 2014), the following
projects are proposed for Komodo Airport.
• Construction of new terminal facilities including an apron (2 spaces for B-737s, 2 for
smaller jetliners, 4 for propeller aircraft), car parking, and access roads.
16 The Federal Aviation Administration indicates that a gross terminal area space requirement is planned to be between 0.06 and 0.12 sqft per annual passenger. Source:
Planning and Design Guidelines for Airport Terminal Facilities, FAA Advisory Circular AC/150/5360-13, Washington, DC, April 1988.
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Currently, there are three means of water transport available to visitors to the tourism
destination. These include: a government run ferry (ASDP) that travels between Labuan Bajo
and Sape (West Nusa Tenggara); privately operated chartered boats to KNP; and cruise
ships from Bali or Lombok.
• Labuan Bajo port is used mainly for transporting regional passengers and goods. Visitors
staying in Labuan Bajo rent a boat from the private boat operators or local fishermen
to visit the Park. Current port infrastructure in Labuan Bajo is managed by Dinas
Perhubungan Manggarai Barat. The port hosts big and small boats and a new container
terminal. Figure 30 shows the Labuan Bajo port facilities.
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• Charter boats from Labuan Bajo are mostly used by independent travellers, with very
few overnight visitors using liveaboards. According to Dinas Perhubungan, currently
there are about 300 charter boats in service to Komodo.
• The majority of the chartered boats are shared tour boats used by foreign visitors, while
domestic visitors use chartered boats (as they are more affordable) from local fishermen.
The boats range from small boats with a capacity of 8 seats to bigger boats with 20 seats.
• In 2015, 42 cruises visited KNP. There are no existing cruise port facilities on Komodo
Island, so cruise ships are not able to dock, requiring passengers to be tendered ashore.
Cruise ships currently tender at Loh Liang tender pier.
• Regarding other jetty facilities, Loh Buaya Jetty is used to access Rinca Island, which is in
good condition. There are no jetty facilities available on Padar Island.
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However, considering that charter boats and cruise ships offer on-board accommodation
and that these tours have a scheduled timetable; visitors are given very little time in the park
(2 – 3 hours). Hence, the cruise infrastructure improvement will be subject to future demand
study.
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Out of 83,200 visitor arrivals in 2021, around 79% are estimated to be foreign visitors, and
this rate is expected to grow by 2041, with 86% of 165,400 total visitors coming from
overseas.
Hence, air transport remains an important means of transport for visitors. Komodo Airport
will remain the principal gateway and it is important to ensure the adequacy of Komodo
Airport infrastructure. Internal road connectivity in Labuan Bajo and sea connectivity to the
attraction areas will also play an important role.
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Based on the above modal split, Figure 34 and Figure 35 present the distribution of peak
visitors using different modes of transport.
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The traffic volume to and from the tourism attractions in the future will be affected by the
traffic increases as a result of other economic activities in the Labuan Bajo region. The
forecast number of vehicles in 2021 and 2041 in Manggarai Barat is presented in Figure 36.
By 2041, registered vehicles are estimated to increase from the existing 18,000 vehicles to
an estimated 43,000 vehicles.
Since the current traffic volume is not available, the future general traffic volume is difficult
to be estimated.
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The visitor traffic volume generated is an important component that will be distributed on
the road network. Based on the provisional modal split for domestic and foreign visitors, the
number of vehicles generated for each mode and number of visitors per vehicle are shown
in Figure 37 and Figure 38. Refer to Appendix 4 for Visitor Traffic Volume Estimation
Approach.
The summary of visitor traffic in key road corridors is shown in Figure 39.
PCE: Passenger Car Equivalent was adopted from Djohar (1984) Passenger Car Unit value and Saturation Flow for Junctions in Bandung
In summary, the traffic volume generated by visitors is insignificant and will not have any
major impact on the road traffic.
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• The road capacity in Labuan Bajo will be adequate to cater to the expected low traffic
volume in future. In future, all the major roads in Labuan Bajo should be well maintained
in terms of pavement conditions targeting for IRI < 4 (IRI: International Roughness Index
<= Good), including the key segment in Labuan Bajo connecting the city center to
Komodo Airport (20 kilometers). It is also important to improve the sidewalks in key
tourism areas, including beach resort/hotel and port areas.
• In 2015, the ratio of paved national and provincial roads on Flores was 100%. This
condition benefits the visitors’ movement for inner-island trips. Considering the low
traffic volume, regional road capacity is adequate. However, for the connectivity to other
places of interest on the island, it is desirable to upgrade the road width to Bina Marga
standards (7 meters wide). Furthermore, all roads—national, provincial, and
kabupaten—that connect Labuan Bajo to other sites of interest need to be well
maintained in terms of pavement conditions, with a target of IRI <4.
• Air passenger movement at Komodo Airport is forecast to reach 399,000 in 2021 and
about 722,000 by 2041.
• The yearly aircraft movement is forecast to reach 4,555 aircraft in 2021 and 7,831 aircraft
by 2041.
Figure 40 below summarises the demand and capacity for air travel at Komodo Airport. The
air passenger demand for 2021 and 2041 is equivalent to 8 and 13 peak hour movements
respectively. Hence, the 16 peak hour movement that the runway could handle is more than
sufficient to handle the demand.
17 The Future Air Passenger Demand and Aircraft Movement are estimated on a broad basis to assess the airport infrastructure needs for tourism development. A
separate detailed specific Airport Study needs to be conducted to look into the specific air passenger and aircraft demand for individual airports.
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Hence, only certain components of airport improvement plan such as apron expansion will
be needed in the long term.
Based on this assessment, the existing port infrastructure has the capacity to accommodate
projected ferry passengers. The existing passenger terminal facility is sufficient to
accommodate 200 passengers and therefore there is no need for port facility improvements
for the Port of Labuan Bajo.
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Access to the KNP is constrained by sensitive eco-system and the tourism study considers
a sustainable ecotourism within the key tourism areas of Labuan Bajo and the Komodo
National Park. Thus, there will not be a significant increase in demand for boat access to
these islands from Labuan Bajo. While existing jetty facilities need to be well-maintained, a
jetty facility will need to be developed for Rinca Island. In addition, the market study identifies
potential for eco-resorts close to the KNP, especially on the islands close to the city. Basic
Jetty facilities will be needed for these eco-resort Islands as well.
While the privately-owned chartered boats provide sufficient services at this time and will
grow as per the demand increases, the informal services need to be regulated by the
government to ensure the maintenance of quality and safety standards.
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BASELINE
The 2 key attractions that we have identified that will drive tourism to Flores are the
Komodo National Park (KNP) and the town of Labuan Bajo, both within Kecamatan
Komodo, shown in Figure 41. The basic infrastructure assessment is conducted for
Kabupaten Manggarai Barat, the designated Destination, with a focus on Kecamatan Komodo
and selected towns for wastewater and sanitary assessment.
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Water produced is distributed through a piping network to the city of Labuan Bajo. Ten
reservoirs were constructed for storage of water: DRPD, Batu Cermin, Firdaus/ BTN, Golo
Koe, Wae Mata, Tuke Tai Kaba, PT. Sak, PU, Merombik, and Tondong Pengka, shown in
Figure 43. These reservoirs have a total storage capacity of 1,850 cubic metres, broken down
in Figure 44.
Source: Perusahaan Daerah Air Minum, Wae MBeliling Kab. Manggarai Barat
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The national statistical office (BPS) has baseline information on service provision. BPS collects
this information by sample surveys and aggregate data are available at the Provincial level and
sometimes at the Kabupaten/Kota level. In practice, it was not possible to arrive at a reliable
baseline for water supply service provision in the key tourism areas because data were either
not available or were only available at the Provincial level which is not sufficiently detailed to
serve as a baseline for the tourism areas.
As a proxy data have been collected on population connected to piped networks of water
supply companies (PDAM), because these data are widely available by PDAM at Kabupaten
and Kecamatan level. It should be noted however that these data should be regarded as
minimum number of people served by piped water supply, because apart from PDAM many
local networks exist, often community operated, that deliver sustainable water supply.
In the context of this study PDAM data as presented here should therefore not be taken as
absolute figures for current water supply service levels but should be considered as an
indication of variation in service levels between the several tourism areas. More detailed
study at Kecamatan level is needed to arrive at a thorough baseline for each of the key
tourism areas. Existing coverage of PDAM water supply is tabulated below in Figure 45.
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As of 2015, PDAM water supply service has covered 7.53% of households in Kabupaten
Manggarai Barat, and 25.65% of households in Kecamatan Komodo18, where most of the
tourism activities are taking place. Other source of water supply comes from groundwater
(private wells in rural areas), small scale desalination plants and other types of surface water.
Residents of Labuan Bajo also purchase bottled water for their daily use.
Existing capacity of the raw water sources is not fully utilized. Only 68.3% of potable water
are produced from the existing raw water sources. The actual water delivered to the end
users is lesser the high rate of water loss in Indonesia is taken into consideration (about
33%).
Residents in rural areas, especially islands (i.e. Komodo Island, Rinca Island, etc.) where water
distribution networks are difficult to reach, use rainwater as their main source of water
supply. During the dry season when water supply is insufficient, residents of these islands
import water from Labuan Bajo.
Extension of the water supply network to the ports area would help to improve water supply
for port operation. It is recommended that the extension should also cover areas
surrounding the port where most of the hotels are located. However, upgrading the water
treatment plants’ capacity and control in water loss during distribution is equally important
to optimize utilization of the available raw water sources.
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To mitigate the shortfall of water supply in rural areas such as Komodo and Rinca Islands,
sufficient numbers of water storage tanks shall be placed to store and stock water for usage
during the dry season.
The national statistical office (BPS) has baseline information on service provision. BPS collects
this information by sample surveys and aggregate data are available at the Provincial level and
sometimes at the Kabupaten/Kota level. In practice, it was not possible to arrive at a reliable
baseline for sanitation service provision in the key tourism areas because data were either
not available or were only available at the provincial level, which is not sufficiently detailed
to serve as a baseline for the tourism areas.
As a proxy, STBM (Sanitasi Total Berbasis Masyarakat) data have been collected because
these data are widely available to the kecamatan level. It should be noted, however, that
STBM data in general give a much too positive picture of current service levels, because the
STBM service level represents a lesser quality than the level required in the relevant national
standards noted above. STBM’s definition of adequate sanitation includes sanitation facilities
which:
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The STBM definition means that all sanitation facilities are included, even pit latrines and
temporary structures, and only open defecation practices are excluded. The percentage of
population served as indicated by STBM data is therefore much higher than population served
in accordance with national service level quality standards. In the context of this study STBM
data as presented here should therefore not be taken as absolute figures for current
sanitation service levels but should be considered as an indication of variation in service levels
between the several tourism areas. More detailed study at Kecamatan level is needed to
arrive at a reliable baseline for each of the key tourism areas.
Only 38.88% of the households in Kabupaten Manggarai Barat and 62.67% in Kecamatan
Komodo are equipped with adequate sanitation facilities according to the relatively low
STBM standard. Meanwhile, percentage of adequate sanitation at towns where most of the
hotels are located varies. Batu Cermin, Goron Talo, Labuan Bajo, and Pasir Putih has
satisfactory access to adequate sanitation (>80%); meanwhile, only 11.46% of the households
in Macang Tanggar has access to adequate sanitation. It is recommended that the existing gap
be closed immediately.
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Improvement and upgrading of wastewater and sanitation facilities are important to promote
hygienic living of residents and visitors in Kabupaten Manggarai Barat. The above-mentioned
plans (especially item (a)) have to be implemented as soon as possible.
15.4 DRAINAGE
15.4.1 ASSESSMENT OF EXISTING DRAINAGE AND FLOODING ISSUES
The entirety of Kabupaten Manggarai Barat is categorized as a high-risk flood zone. Flash
floods often occur in low-lying areas during heavy downpour.
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According to the national service standards for public works and spatial planning, sustainable
solid waste management is defined as having access to a solid waste collection services of at
least twice a week and transport of waste collected to a transfer station or processing unit.
Solid waste management operations must be in accordance with national technical standards
for management of solid waste facilities (Permen PU 03 Year 2013) and for urban waste
management techniques (SNI 19-2454-2002).
A number of TPS are provided in the city of Labuan Bajo. One TPA (open dumping) is located
at Kaper, Desa Golo Bilas, with a capacity of 41.829 cubic metres. Locations of TPS and TPA
in Labuan Bajo are shown in Figure 49.
However, some waste is disposed on the roadside or on unoccupied land due to insufficient
numbers of TPS and a lack of community awareness. The average amount of solid waste
generated at Labuan Bajo is 46,281 cubic metres/ year, but only 38,690 cubic metres are
collected. Coverage of solid waste management is at a satisfactory level of 83.60%.
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Although the percentage of solid waste collected in Labuan Bajo is relatively high (83.60%)
as compared to other cities in Indonesia, pollution caused by solid wastes are still critical.
Uncollected solid waste from the city of Labuan Bajo is disposed of in drains and rivers which
end up in the open sea, and is carried by the waves to the surrounding islands, including the
KNP.
Other than household waste, other sources of waste that are currently not managed and
that pollute the ocean and reefs are the yachts, fishing settlements on some small islands,
and the visitor boats traveling to islands and reefs, which often leave behind plastic bottles
and other litter.
Existing service level data were collected for each of the key tourism areas at the
Kabupaten/Kota level. More detailed and disaggregated data were not encountered. In
Kabupaten, the solid waste collection services are limited to the most densely populated and
urbanized towns, whereas rural areas are often not yet served. More detailed study is needed
to arrive at a thorough baseline for the key tourism areas.
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Though proposals for upgrading and improving solid waste management facilities are in place,
no detailed information such as a timeline, capacities of the proposed TPS and TPA, or
frequency of waste collection have been made known. The existing capacity gap must be
closed as soon as possible.
There are three diesel power plants in Kabupaten Manggarai Barat (2 located in Kecamatan
Komodo and 1 in Kecamatan Lembor). A total of 5.4 MW of electricity is produced and
distributed from these power plants. However, electricity demand during peak hours has
reached 5.8 MW, exceeding capacity. Therefore, rolling blackouts are practiced to overcome
the 0.4 MW power demand deficit. Figure 50 illustrates the location and capacities of the
power plants in Manggarai Barat.
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• Plan to build a diesel power plant at Golo Bilas, with capacity of 1.8 MW.
• Plan to build a gas engine power plant at Kecamatan Boleng. This is a long-term plan and
the proposed power plant would be able to generate 2x10 MW of power.
Existing and planned power facilities are shown on the map below (Figure 51).
FIGURE 51: EXISTING AND PROPOSED POWER PLANTS IN MANGGARAI BARAT
The shortage of power supply, especially during peak hours, can be solved by the completion
of the under-construction geothermal power plant at Golo Bilas, provided that it is finished
and in operation as planned. In the longer term, the proposed power plants are necessary
to fill the gap and to support the growth in power demand.
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The government’s expansion plans were not known during the interview, as most of the
Base Transceiver Stations (BTS) and towers are owned by the telco companies. As long as
there are business opportunities and potential new subscribers, the telco companies are
willing to invest and set up new BTS and telecom towers to widen their coverage and
improve their service.
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Kab.
Coverage at main hotel location varies:
Manggarai 38.88% 61.12%
Batu Cermin – 100%
Barat
Goron Talo – 100%
Wastewater and Labuan Bajo – 100%
Sanitation Pasir Putih – 80.94%
(households equipped/ Macang Tanggar – 11.46%
has access to adequate Kec. 62.67% Note that actual current sanitation
37.33%
sanitation) Komodo coverage is lower because STBM
standards are inferior to national
standards.
Only 7.53% of the households in Kabupaten Manggarai Barat and 25.65% of the households
in Kecamatan Komodo are served by PDAM water supply. Production of potable water from
the existing raw water sources must be optimized. Meanwhile, in Komodo and Rinca Island,
and other islets with a resident population of fishermen, construction of water storage
facilities would help to mitigate the problem of insufficient water sources during dry season.
Accessibility to the adequate sanitation facilities are 38.88% in Kabupaten Manggarai Barat
and 62.67% in Kecamatan Komodo. The existing gap has to be closed as soon as possible,
with focus given to areas where most of the hotels are located, namely Pasir Putih and
Macang Tanggar.
Power supply in Labuan Bajo is insufficient. There is urgent need to ease the shortage of
capacity during peak hours. Generally, coverage of power supply in Kecamatan Komodo is
high (89.72%) as compared to other Indonesian cities, improvement is required as more
visitor arrivals are expected.
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The existing solid waste management system in Labuan Bajo is insufficient and community
awareness of solid waste management and cleanliness issues is low. Existing capacity of the
TPA is unable to cope with the wastes generated. Uncollected solid waste has caused
pollution at the nearby islands, including the KNP. The existing gap, especially the settlements
along the coastline, including settlements on islets, and other sources of pollution such as
yachts and visitor boats, has to be closed as soon as possible.
There are no major issues with regards to the telecommunication infrastructure. Other than
improvement and expansion of existing coverage in Labuan Bajo, focus should be given to
the KNP area.
Kabupaten Manggarai Barat is categorized as a high-risk flood zone. Flooding often occurs at
low-lying areas during heavy downpours and at high tide. Improvement and upgrading of the
storm water drainage system is required.
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The population growth for the key kabupaten is based on the growth rate produced by BPS
at the kabupaten level. As Kabupaten Manggarai Barat is dominated by hotels in Labuan Bajo
(Kecamatan Komodo), projection for basic infrastructure needs are broken down to
Kecamatan Komodo. It is assumed in this assessment that all the existing and future
commercial accommodation are located in Kecamatan Komodo.
Basic infrastructure demand projections are carried out based on the projected population
in the key tourism kecamatan and the number of visitor arrivals staying in commercial
accommodation.
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Figure 56 and Figure 57. Note that these projections represent maximum requirements if all
piped water supply would be provided by PDAM. In reality, many non-PDAM local piped
water supply networks exist, often community operated, that deliver sustainable water
supply.
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Key Assumptions
The average water demand for the study area is estimated by using unit water demand per
capita for local residents and visitors. The SNI 3-7065-2005 standard has been used, meaning
that the population and visitors should have access to sustainable piped water supply which
is defined as having a house connection and 24 hours water supply at 120l/cap/day for
domestic users and 250l/cap/day for visitors staying overnight. The adopted water
consumption rate in lpcd (litres per capita per day) for residents and visitors are tabulated
in Figure 58. The projected water demand is then converted to L/s (litres per second). The
unit rates of water consumption for different usages are expected to increase by 20% – 25%
in 2021 due to an upturn in living standards and water accessibility; and then remain constant
to 2041, considering sufficient water conservation approaches and awareness among
residents.
Based on the above considerations, total existing water demand is forecast to be 60 L/s for
Kecamatan Komodo. From total demand, 25.65% are provided by piped water supply. Water
demand in 2021 and 2041 is estimated to be about 76 L/s and 82 L/s in Kecamatan Komodo.
Existing water demand for tourism activities is about 5.5% of the overall water demand, and
forecast to increase to close to 15% in 2041.
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• Expansion of existing water supply networks and construction of new networks to meet
the above-mentioned targets.
• Expansion of existing water treatment plants to utilize the existing water sources
available.
• Effective and necessary efforts should be put in place to reduce water loss to 20%.
• Construction of new water treatment plant(s) to produce potable water from the
existing and potential new water sources.
• Expansion of existing water supply networks and the construction of networks to serve
the potential growth of population and visitor arrivals.
• Effective and necessary efforts should be made to reduce water loss to 10%.
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The total current sewage generation is estimated to be 48 L/s for Kecamatan Komodo. From
the total generated sewage 62.67% is discharged and managed by STBM standard sanitation
facilities. Sewage generation in 2021 and 2041 is forecast to be about 61 L/s and 66 L/s.
Current sewage generation from visitors is about 5.5% of the overall sewage generation, and
is estimated to increase to close to 15% by 2041.
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• Small scale wastewater treatment plants are recommended at the hotels/ resorts; and
15.12 DRAINAGE
15.12.1 DRAINAGE INFRASTRUCTURE NEEDS
Kabupaten Manggarai Barat (including Kecamatan Komodo) is categorized as a high-risk flood
zone. Flooding often occurs at low lying areas during heavy downpours.
Upgrading of storm water drainage facilities are required, especially in Labuan Bajo. Other
than deepening and widening of the existing drainage system, the authorities should consider
construction of detention and retention ponds to slow the water runoff time. Besides this,
solid waste collection and disposal facilities must be improved so that no trash ends up in
the waterways.
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Figure 61 above showcases estimated solid waste generation (L/day) by different categories
of consumers in 2015 (with amount of sustainable and unsustainable management). Projected
solid waste generation by different categories of consumers in 2021 and 2041 is also
presented. The ratio of estimated solid waste generation from tourism activities with respect
to overall generation is shown in Figure 62.
Key Assumptions
The average solid waste generation for the study area is estimated by using solid waste
generation unit rates per capita for local residents and visitors. The adopted rate in L/c/d
(litres per capita per day) for residents and visitors is tabulated in Figure 63. It is forecast
that there will be no changes in unit rate of solid waste generation over the short term
(2021), but it will increase by 20% in the longer term (2041).
20 Reference: Standard for Setting of Town Environmental Sanitation Facilities, China and Ministry of the Environment and Water Resources, Singapore, Kosuke. K,
Tomohiro. T. Revisiting Estimates of Municipal Solid Wastes Generation per Capita and Their Reliability, 2015.
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Our analysis shows that total solid waste generation in 2015 is forecast to be 114,797 L/day
in Kec. Komodo. From the total solid waste generated, only about 83.60% is collected and
disposed at the designated TPAs. Solid waste generation in 2021 and 2041 is estimated to
be about 120,326 L/day and 154,629 L/day in Kecamatan Komodo. Existing solid waste
generated from tourism activities is about 4.33% of the overall generation, and estimated to
slightly increase to 5.88% in 2021, and further climb to 10.92% in 2041.
KNP is made up of several islands near Labuan Bajo. The environmental health of the park is
crucial and must be preserved. As such, the following solid waste infrastructure projects are
recommended for the short term (2021):
• 100% sustainable solid waste management (collection and disposal at designated TPAs)
in Kec. Komodo, especially in Batu Cermin, Goron Talo, Labuan Bajo, Pasir Putih, and
Macang Tanggar where most of the tourist attractions and hotels are located;
• Education and enforcement is needed to create awareness among the residents of the
importance of solid waste management and to forbid them from disposing rubbish into
the water bodies; and
• Allocation of more Integrated Waste Processing Sites (TPST) will be needed so that solid
waste is sorted and segregated before transporting to Final Disposal Sites (TPA). This
can reduce the amount of waste delivered and is a more sustainable and environmentally-
friendly approach; and
• Development of new TPA sanitary landfill technology. Landfill sites can fill up quickly if
waste is not reduced and reusable waste is not collected, separately and recycled. There
is also the risk of groundwater contamination if not sealed correctly or the liner system
of the landfill site is damaged.
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Key Assumptions
The adopted rate Kwh (Kilowatt hours) for residents and visitors is tabulated in
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Figure 66. It is estimated that the unit rate of power consumption will increase in the short
term (2021) and long term (2041).
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Based on the above considerations, existing power demand is forecast to be 51,652 Mwh for
Kec. Komodo. Out of the total demand, 89.72% is fulfilled by the PLN power network.
Power demand in 2021 and 2041 is estimated to be about 130,890 Mwh and 254,388 Mwh.
Power demand for tourism activities remains at about 4% to 6% of the overall demand.
The following key power supply infrastructure projects are recommended for the short term
(2021):
21 Reference: National Energy Council, Republic of Indonesia. Bin Su, Hotel Design and Energy Consumption, 2012.
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KEY RECOMMENDATIONS
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• recommendations for products and services that are suitable for development and
management by SMEs; and
• The destination requires a master plan with clear goals, strategies, and timelines to
develop the destination. Currently, the tourism industry in the region appears to be
disorganised and developing in an ad-hoc way.
• Investors are hoping that there will be more support from government and other NGOs
in developing the destination in terms of market research, joint venture partner
matching, and exhibition/tradeshow coordination.
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• Security of tenure for investors: currently securing land rights continues to be the main
challenge for investors. This is a common issue across Indonesia however in Labuan Bajo
there is the additional challenge of family consensus22 prior to transferring ownership
title. Once title is transferred, the possibility of other family members laying claim to the
land in the future still exists (whether they ultimate succeed or fail it is time consuming
and frustrating). Thus, ensuring security of tenure will provide investors with more
confidence in investing in the region.
• More transparency in legal frameworks. Without a solid grasp of the issues at hand,
businesses are exposed to risk of tax penalties, and even of civil or criminal litigation.
SMEs are integral to the success of a destination, as they play a significant role in creating
local employment and engaging local people in tourism industry, with the potential to foster
long-term and sustainable economic development.
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• Sponsor reef protection, recycling, and waste management for local community.
• Incentive programs for accommodation development with eco-friendly architecture.
• Support for sustainable enterprise development though technical assistance.
• Locally source handicrafts:
- Assist handicraft producers to enhance their product quality and marketing capacity.
- Establish protection of intellectual property rights of locally-sourced products.
• Mariculture:
- Develop business plan for a hatchery outside the KNP that reduces the impact on
the reef eco-system.
- Providing consulting and training for local villages in the area of agriculture, in
particular organic production and the identification of clients.
- To link handicraft producers more closely to the tourism trade and make the
product more competitive, trainings in product development and financial
management should be organized.
- Establish codes of conduct to help visitors to the villages respect and conserve the
culture.
- Introduce entry tickets to the traditional villages for visitors and create event
calendars for these communities.
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The physical road conditions of the national and provincial roads in Flores is good and mostly
paved with adequate road capacity, enabling good external connectivity of Labuan Bajo to
the rest of Flores.
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• The entire Kabupaten Manggarai Barat, including Kecamatan Komodo and the KNP, are
prone to regular flooding. Upgrading of storm water drainage system is required.
Indonesia has an established system for spatial planning and most of the destinations have a
Spatial Plan for the kabupaten/kota or provincial level. As per the National Spatial Planning
Act (Law No. 26/2007 amending Law No. 24/1992), the provincial and local governments
are authorized to implement spatial planning. The Rencana Tata Ruang Wilayah (RTRW) and
the Rencana Detail Tata Ruang (RDTR) are the two major spatial plans prepared at the
regional level (province and kabupaten) and local level (kabupaten or Special Areas within
kabupaten and kota), respectively.
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In general, an RTRW serves as the concept-level spatial plan, providing broad directions for
provinces or kabupaten, while the RDTR serves as the detailed-level spatial plan indicating
detailed land uses such as residential uses by density, commercial use, mixed use, government
use, industrial use, social facilities, etc., for the kota or other designated areas within the
kabupaten.
The RTRW is managed by the provincial or kabupaten-level Bappeda. The RTRW is prepared
for the time horizon of 20 years. It is important to review the Master Plan considering the
changing socio-economic conditions and infrastructure needs, including new tourism targets
and plans. As discussed in the previous sections on Transport Infrastructure and Basic
Services Infrastructure, there are several individual sector plans being prepared by the
respective authorities, some of which are critical, while others are not needed. Based on
the infrastructure needs assessment, the critical plans need to be incorporated into a revised
RTRW. This will remove duplication and provide unified planning direction to the respective
implementing agencies to execute development programmes towards the common vision
and goals.
This section assesses the availability of spatial plans and regulations to ensure that the tourism
assets are protected. The main tourism asset for Labuan Bajo is its marine, cultural, and
natural environment; as such it is critical to have regulation to ensure protection of the
coastal, cultural, and eco-sensitive areas in all potential tourist attractions. Following is the
overview of plans in place for Labuan Bajo.
Rencana Tata Ruang Wilayah (RTRW) Kabupaten Manggarai Barat Master Plan
2010
• The RTRW Kabupaten Manggarai Barat Master Plan is the regional-level spatial structure
plan prepared for Kabupaten Manggarai Barat. It provides broad directions on
development structure with strategic areas for urbanization, and infrastructure such as
major roads, airports, and ports within the Kabupaten, and is shown in Figure 67.
• The plan clearly indicates the environmental protection zones such as protected forest,
nature conservation areas, and mangrove forests.
• Additionally, the plan shows the other cultivation zones indicating areas for community
forest, farmland, residential and industry uses.
• The Plan also covers the broad zoning intentions for above-mentioned zones controlling
the permitted and forbidden activities, minimum infrastructure needed, and highlighting
enforcement mechanisms such as incentives, disincentives and penalties.
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• At the point of study, there is no approved RDTR for Labuan Bajo. In the absence of
such Detailed Master Plan, there could be some inaccuracies in boundaries, especially
with regards to the protected area delineations. An RDTR is also essential to regulate
urbanization, especially in tourist attractions areas and its immediate surroundings.
FIGURE 67: RTRW MANGGARAI BARAT REGENCY MASTER PLAN 2010
Source: RTRW
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• For the Labuan Bajo tourism destination, the RTRW Regency Master Plan and KNP
Management Plan are the two major plans that guide the overall development and identify
eco-sensitive zones for environmental protection. While the RTRW was prepared for
2010-2030 and provides broad directions for spatial development, it is important and
timely to review the RTRW such that it addresses the tourism demand and related
infrastructure needs, along with the changing future socio-economic potentials of Labuan
Bajo. The reviewed RTRW will help to establish common goal for all implementing
agencies to execute the respective sector development plans.
There are no approved RDTR for the tourist/urban areas in Labuan Bajo tourism destination.
The RTRW only provides broad directions for spatial planning and is not enough to regulate
the development especially in the key tourist/urban areas along the coastal areas. Due to the
absence of RDTR for the key tourist/urban area, the exact demarcation of
conservation/protection boundaries may not be clear. Hence, it is important to speed up the
finalization of the RDTR demarcating the clear boundaries of protection areas and further
distribution of land uses especially in key supporting urban and attractions in Labuan Bajo.
23 https://whc.unesco.org/en/list/609
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INTERVIEWS
Interviews were conducted with various government offices at central as well as provincial
& Kabupaten level. The interviews serve to gain a better understanding of tourism
development and investment process in Indonesia and Labuan Bajo.
• Central Government
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- Foreign (total of 41): from the current key arrivals source markets of Australia,
China, Japan, Malaysia and Singapore as well as France, Germany and the United
Kingdom.
STATISTICS
The above data was collected and cross-checked based on the below sources:
• BPS Accommodation Survey for the East Nusa Tenggara Province, with results published
by the BPS of Kabupaten Manggarai Barat.
• BPS Domestic Survey, with results available only at Province Level
• Statistics of KNP
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• Since Komodo airport does not have a parallel taxiway similar to Halim Airport in
Jakarta, landing aircrafts need to run up to the end of the runway, turn at the turn pad
and taxi along the runway up to the exit taxiway. Similarly, departing aircrafts will taxi
along the runway, turn at the turn pad and start for take-off. Since departing and landing
aircrafts occupy the runway for a long time, the runway capacity decreases.
• As shown in Figure 70, the runway occupancy time by landing and departing aircrafts is
calculated at approximately 460 seconds. As a result, assuming that the situation in which
a departing aircraft follows a landing aircraft is continuous, the hourly runway capacity is
calculated at approximately 16 movements.
FIGURE 70: SINGLE RUNWAY OCCUPANCY TIME
Source: Survey from Halim Airport Runway Occupancy Time (JICA, 2012)
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Clockwise from the Top: Hotel Façade. Deluxe Room. Restaurant. Meeting Room.
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Bintang Flores: Located in Labuan Bajo, Bintang Flores is amongst the few star-rated
hotels in the district. The hotel features 61 rooms, an all-day-dining facility, meeting rooms,
dive shop, convenience store, an outdoor swimming pool, and a private white sand beach.
Clockwise from the Top: Hotel’s façade. Guestroom. Meeting Room. All-day dining.
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La Prima: Located 15 minutes from the airport, the 4-star hotel is amongst the newest
hotels in Labuan Bajo. The hotel features 88 rooms with either Sea View or Hill View, an all-
day dining facility, meeting rooms, private beach, outdoor pool, gym, and dive centre.
Clockwise from the Top: King-sized Bed Guestroom. Hotel Façade. Twin Room. All-day Dining.
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Komodo Dive Resort: is the third offshore resort to open on the KNP’s border over the
past 5 years, after Angel Island opened in 2010 and backpacker favourite Kanawa Beach
Bungalows opened in 2011. The resort is one of the famous and best quality resorts in
Kabupaten Manggarai Barat. The resort features 16 seafront bungalows made from teak
wood each with a private bathroom, terrace, and garden. The resort offers an all-day dining
restaurant, a bar, a small open-air gym and a dive centre. The resort is particularly popular
amongst high-end European and American travellers for its luxurious guestroom and diving
cruise. The resort is a few minutes from many famous diving sites in Komodo such as Caste
Rock, Crystal Rock, Batu Bolong, Karang Malassar, the mantas aggregation site, and many
more. As the resort is located on a remote island, Komodo Dive Resorts face high operating
expenses as: food supplies, guest supplies need to be transported from Labuan Bajo and high
electricity expenses. Although the resort has desalination plant to produce water for
showers and toilets, drinking water and laundry are still imported from Labuan Bajo.
Currently, the resort is rebuilding a 30-metre-long traditional boat, the Sea Dragon, which
will offer live-aboard trips beginning in 2017.
Clockwise from the Top: Aerial View. Sebayur Spa. All-day Dining. Guestroom.
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Seraya Hotel: located on a private island, the resort is 30 minutes from Labuan Bajo and 3
hours from Rinca and Komodo Island. The resort is one of the newest resorts in Flores,
featuring 24 luxurious rooms with direct beach access, each with a spacious wooden deck
with recliners out front and a roofless Balinese-style bathroom with outdoor showers and
pebble flooring out back. Leveraging its new, luxurious product, the resort is particularly
popular amongst European travellers and has been able to command high rate. The resort
also offers an outdoor swimming pool, massage facilities, and PADI diving centre.
Clockwise from the top: Outdoor Swimming Pool. Seraya Island. Guestroom. All-day dining.
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Angel Island Resort: Opened in 2010, the resort is the first resort established in Komodo.
Located on a 15-hectare private island of Bidadari, Angel resort is a small eco-resort,
featuring 10 private villas set in a verdant hibiscus garden. The island has 3 white sand beaches
on its south and east sides, whilst the north and west sides present the rough side of the
island. The resort features an all-day-dining offering all-inclusive a la carte meals, and a diving
centre. Surrounded by a coral reef, Angel Island is the only protected island in the area.
Clockwise from the top: Aerial View. Deluxe Room. All-day Dining. Cottage.
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Future traffic volume for general Traffic is estimated by using following method;
• Obtain the number of visitors who enter each tourism destination and potential visitor’s
distribution around the destination.
• Distribute the number of the visitors in each transport facility.
• Based on the number of passengers per vehicle, the total visitor traffic volume is estimated.
Figure 77 illustrates the methodology of visitor traffic volume estimation.
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Apportionment rate
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