Financial Performance of Tourism Businesses in Labuan Bajo Tourist Area, Indonesia

Edhie Baskoro YUDHOYONO; Hermanto SIREGAR; Noer Azam ACHSANI; Tony IRAWAN

doi:10.14505//jemt.12.2(50).13

Edhie Baskoro YUDHOYONO IPB University, Indonesia
Hermanto SIREGAR IPB University, Indonesia
Noer Azam ACHSANI IPB University, Indonesia
Tony IRAWAN IPB University, Indonesia

DOI: https://doi.org/10.14505//jemt.12.2(50).13

Abstract

Labuan Bajo is one of the tourism destinations that are prioritized in Indonesia's national development. However, the contribution of tourism in Labuan Bajo to the economy and welfare of the surrounding community is still less than optimal even though there have been many attempts to stand around the tourist area of Labuan Bajo. This study aimed to analyse the financial performance of tourism businesses in the tourist area of Labuan Bajo, which is one of the tourism destinations prioritized by the Indonesian government. Data was collected through a questionnaire distributed to 221 respondents of tourism business actors in the tourist area of Labuan Bajo. The results of this study revealed that tourism business actors in Labuan Bajo were quite diverse in terms of tourism business permits, business scale, and business entities. Also, the growth of tourism businesses in the tourist area of Labuan Bajo was quite significant in 2017-2018. The results of the financial performance analysis showed that the income was relatively high in tourism businesses that have been operating for a long time. They were funded by bank loans, had large capital, adopted information technology, and members of certain tourism organizations. In general, the financial performance of the tourism business in Labuan Bajo has not been optimal, particularly in managing assets for profit.

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