TOURIST VILLAGE MULTIPLIER EFFECT STUDIES: SMALL SCALE APPROACH

Abstract

Purpose of the Study: Tourism stakeholders and academics have begun to question the benefits of developing tourism in rural areas. This study aims to identify tourists, tourism entrepreneurs, and employees' characteristics and measure the multiplier effect for local communities in Nglanggeran tourist village, Yogyakarta. Specifically, this study measures income generation (direct, indirect, and induced), employment generation, and the multiplier effect of both. Methodology: This research uses a descriptive quantitative approach. Primary data collection was carried out by the non-participant observation method (for four months). While the technique of determining the sample size (100 tourists, 51 entrepreneurs, and 62 employee respondents) used is non-probability sampling, referring to the Slovin formula with a margin of error of 10%. Main Findings: This study found that local entrepreneurs can be categorized as small and medium-sized enterprises (SMEs). Data analysis results show that tourism village had an important economic impact for local communities with a Keynesian income multiplier effect value of 2.57, 1.74 for the Income multiplier type I ratio, and 2.23 for the type II. While the employment multiplier value is 0.0000041. Implication/Applications: This study's results can answer doubts about the economic benefits received by local communities from the development of the Tourism Village. The originality of the study: This study is the latest research, especially considering the implementation of the multiplier effect formula on a small scale. However, this study has some limitations, such as the sample area used (Desa Wisata Nglanggeran) and the context of the tourism impacts studied. Further research is expected to reach other tourist villages and expand its studies to environmental and socio-culture issues.