COMPETITIVENESS AND THE INCREASING STRATEGY OF COMPETITIVENESS IN TOURISM SECTOR OF TERNATE CITY, NORTH MALUKU PROVINCE

Muharto Laode (), Bernhard Tewal (), Silvya L Mandey () and Altje Tumbel ()
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Muharto Laode: Student at University of Samratulangi/INDONESIA
Bernhard Tewal: Sam Ratulangi University/INDONESIA
Silvya L Mandey: Sam Ratulangi University/INDONESIA
Altje Tumbel: Sam Ratulangi University/INDONESIA

JOURNAL OF LIFE ECONOMICS, 2017, vol. 4, issue 4, 11-31

Abstract: A tourism sector that has high competitiveness can draw a great number of tourists that can result in well-improved regional economy growth, increasing rate of society’s income, and bigger opportunity into the work field. The growth rate of tourist visits in Ternate City from 2011-2015 is increasing, yet its growth percentage is changeable and tends to decrease. This research aimed at: 1) analyzing the competitiveness position of tourism sector of Ternate City against other regions in North Maluku Province; 2) formulating the strategy to increase tourism sector of Ternate City. The data were collected through documentation and interview. The data were obtained from Government Tourism Office, Central Bureau of Statistics, Regional Revenue and Asset Management Office, Development Planning Agency at Regional Level, Environmental Agency and Ministry of Finance of the Republic of Indonesia. The data obtained were analyzed using mix-methods consisting of shift share analysis, indexation, and SWOT. The result of this research showed that the performance of tourism sector in Ternate City from 2011-2015 had positive growth better than that from North Maluku Province. This contributed to better society’s economy and employment absorption in Ternate City. The use of Diamond Porter model helped explain that tourism competitiveness in Ternate City is in the top position surpassing the other regencies/ cities in North Maluku Province. The main factor of its competitiveness is the existence of supporting and related industrial activities such as hotel, inn, man power, restaurant and cafe as well as the number of tourist visits. Meanwhile, the less competitive indicators are the number of tourist spots and the regional strategy. Moreover, the government’s role was still considered lower than those from North Halmahera, Morotai, West Halmahera, Tidore, and Central Halmahera. Based on SWOT analysis, the strategies that can maintain and increase the tourism competitiveness in Ternate City are: 1) utulization of Information technology to attract domestic and foreign tourists; 2) building up the cooperation system with the surrounding regions in managing the integrated tourism sector; 3) cooperating with the local and central government in developing the tourism sector; 4)empowering tour operators in attracting the tourists; 5) improving the quality and the quantity of scientific and cultural tourism; 6) facilitating the tourists to enter the tourist destination area.

Keywords: Competitive Advantage Diamond Theory; Tourism Sector Index Strategy Ternate (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:jle:journl:v:4:y:2017:i:4:p:11-31

DOI: 10.15637/jlecon.224

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