TOURIST VILLAGE MULTIPLIER EFFECT STUDIES: SMALL SCALE APPROACH BEST PRACTICE OF DESA WISATA NGLANGGERAN, YOGYAKARTA, INDONESIA

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.


INTRODUCTION
In Indonesia, tourism has significantly contributed to the economic sector, especially through foreign exchange since 2008, which has continued to increase consistently until now. BPS (the Central Bureau of Statistics) statistics (BPS, 2020) show that since 2008, foreign exchange growth has, on average, been above 10%. Meanwhile, only in 2019, tourism foreign exchange was recorded at a deficit of 14%. This data shows how the tourism sector plays an essential role in the macroeconomic sector. Although this industry can compete with the oil and gas sector, the tourism business is often criticized for its micro benefits or direct impact on local communities. Local people, especially those living in rural areas, are considered not to have benefited optimally. In fact, they tend to be acted only as objects, not as subjects of development.
This phenomenon has also been in the spotlight for many countries that rely on tourism as a source of economic growth. In fact, towards the end of the second world war (1939 -1945), the UN has realized the importance of the role of government in rural development (Amaliatulwalidain, 2019;Torre & Wallet, 2016). At present, attention to local communities or even rural areas has become an increasingly campaigned issue. Concretely, on the World Tourism Day 2020 agenda, UNWTO (2020) is campaigning for tourism development that pays attention to local communities' welfare and rural areas. This year, they focus on the issue of "tourism and rural development." This agenda is a concrete action for equitable distribution of tourism development, which previously tended to be centered in urban areas. Even the benefits were only felt by some people (venture capitalists).
Indonesia has a long history related to the role of rural areas and local communities in tourism development. Before the term tourism became known, reputedly that aristocrats often traveled to various rural areas on Java island and its surroundings (Spillane, 1991;Sunjayadi, 2017). Even during the colonial era, visitors from Europe were recorded as having visited several villages in the archipelago, especially to some areas controlled by the Dutch due to security This achievement may be considered one of the government program's successes to continue to encourage village development. Even since 2015, the government has consistently increased village funds to 111.8 trillion or 1.5 billion per village in 2019 (Kementerian Keuangan, 2019). With considerable financial support, several regions in Indonesia have transformed into tourist villages. At least 1,734 Tourist villages have been spread across 8 major islands in Indonesia (Kemenpar, 2019). Economic or capital support for local communities is expected to strengthen their role in maintaining, preserving, and developing village potential, from cultural heritage to the environment ( Currently, several tourist villages of ITSA 2017 winners have developed independently. One of them is Nglanggeran tourist village, which has successfully received international recognition, such as the ASEAN Community Based Tourism (CBT) Award in Singapore and the 2018 ASEAN Sustainable Tourism Award in Thailand. This recognition has influenced the image or popularity of the tourist village and significantly increased the number of visits. As a result, local people have begun to adapt to become entrepreneurs in the tourism business. They started running a homestay, producing chocolate, and raising Etawa goats. The number of homestays in this tourist village is 80 homestays, with a capacity of up to 280 persons (Nglanggeran, 2016). This village is also a tourist village pioneer that adapts digital tourism and adopts a data-based development system. The significant economic growth has made the Nglanggeran tourist village a role model for developing a Tourist village in Indonesia. This success story encourages other regions to apply identical rural tourism development models.
The massive growth of the tourist village has actually raised concerns about the preservation of nature and the social life of rural communities. Stakeholders and academics have begun to question the benefits of developing tourism in rural areas, especially local communities. Environmental sustainability and economic benefits are some of the questions regarding programs considered to commercialize village potential. The village as a tourism commodity is also considered to change the community's mindset to become more individualistic and capitalist. This phenomenon then encourages this research to examine the economic benefits for local communities. Some of the issues questioned in this study include, what are the characteristics of businesses, entrepreneurs, employees (local people), and tourists visiting Nglanggeran Tourism Village? In addition, the issue related to how much economic benefits will be received by local communities, either directly, indirectly, or induce? is the main issue that will be examined in this research. Therefore, this study has an objective to determine the economic impact on rural communities, otherwise known as the multiplier effect. This study also identifies tourists' characteristics, entrepreneurs, and employees' profiles in the Nglanggeran tourist village area. If multiplier effect analysis is used to look at the macroeconomic impact (Shuifa et al., 2011;Var & Quayson, 1985;Wagner, 1997), in this study, the multiplier effect formula is used to assess the microeconomic impact on local communities (Hughes, 1994). Specifically, this study measures income generation (direct, indirect, and induced), employment generation, and the multiplier effect. This study's results can answer doubts about the economic benefits received by local communities from the development of the Tourism Village.
This study has limitations on the sample used (Desa Wisata Nglanggeran). Besides, this study limits tourism's impact from an economic perspective, so that environmental and socio-cultural impacts need to be further studied. It is hoped that further research can reach out to other tourist villages and expand its studies to other environmental and socioculture issues. With a more comprehensive study, concerns about tourism development in rural areas can be answered.

LITERATURE REVIEW
One way to build sustainable tourism is by protecting natural resource ecosystems and trying to guarantee the income and economy of local communities (Wagner, 1997). Therefore, welfare or micro-economic impacts are quite important issues in tourism development, especially in rural areas. This study adopts several concepts and theories relevant to the study's context, including rural tourism, tourist village, sustainable tourism, tourist spending, the impact of tourism, and the multiplier effect.

Rural tourism and tourist village (Desa Wisata)
Rural tourism and tourist village are often used to refer to the phenomenon of tourist activities in rural areas. Although there is not much literature discussing it, the fact is that the two terms have different histories and purposes of use. (Andayani et al., 2017) argues that rural tourism is an activity to enjoy culture and traditions in a village. Besides, rural tourism is often characterized by small-scale industries in rural areas dominated by natural potential, culture, and traditional local life (Chan et al., 2016;Whitney-Squire, 2016). This potential is believed to be able to attract tourists to visit (Fletcher et al., 2016).
While the tourist village is a representation of Indonesia to refer to the Desa Wisata, a program initiated by the Ministry of Culture and Tourism in developing rural tourism, Desa Wisata is defined as a product that is integrated between attractions, accommodation, and supporting facilities that are packaged in the frame of community life and local traditions. Meanwhile, the main supporting elements are villages and communities with a direct, indirect, or induced relationship or impact with tourism activities in an area/destination (Kemenpar, 2019).
As a phenomenon, the tourist village can be considered as part of rural tourism. But specifically, tourism villages are formed based on several criteria, including ownership and management by the community, contributing to social welfare, contributing to maintaining and improving the quality of the environment, encouraging active participation of local communities and tourists, travel services and guides, availability of food and drinks, accommodation (homestay), and tour operators. Currently, tourist village is considered as one of the tourism products that represent sustainable tourism development. Especially in accelerating economic, social, cultural, and environmental growth in rural areas by involving local communities (

Sustainable tourism
Sustainable development is believed to be beneficial for local communities, destinations, and even tourists ( This concept involves local communities in campaigning for environmental awareness and providing positive experiences for tourists (Pickel-Chevalier, 2015). There are three main pillars of sustainable development currently recognized, including economic, social, and environmental sustainability (Hall et al., 2015). Meanwhile, UNWTO defines sustainable tourism as "tourism that meets the needs of present tourists and host regions while protecting and enhancing opportunity for the future" (UNWTO, 1996). Currently, sustainable tourism has been defined variously, according to the characteristics of a region. In general, some of these views emphasize the ability of a product or tourism development concept to minimize negative impacts and at the same time maximize the positive impacts of tourism

Tourist Expenditure
According to (Stynes, 1999), economic impact analysis tracks the flow of economic expenditures and activities associated with policies or actions. To calculate the tourism sector's economic impact, it must be started by surveying tourists to determine the estimated tourist expenditure (Frechtling & Horváth, 1999).

Economic Impact & Multiplier Effect
The economic implications provide opportunities for researchers to investigate the relationship between tourism and economic growth (Nunkoo et al., 2020). The economic impact of tourism can be grouped into direct, indirect, and induced impacts ( (Vanhove, 2005) also classifies the impacts of tourism into Income generation, employment generation, tax revenue generation, the balance of payment effects, improvement of a region's economic structure, encouragement of entrepreneurial activity, and Economic disadvantages. This study will measure the multiplier effect through the income generation, and employment generation approaches. (Archer, 1976) argues that tourist expenditures that affect income generation include: a. Direct Income Generation is the initial outlay that creates direct income for hoteliers, service stations, and other tourism industries.
b. Indirect Income Generation is the payment of employee salaries and wages of local employees, and tour companies fill their shares.
c. Induced Income Generation represents the wages and salaries of employees in a rising economy. Besides, consumption also increases and provides an additional boost to economic activity.
This variable is calculated based on tourist expenditure during their visiting the tourist village of Nglanggeran. Meanwhile, the multiplier effect of tourism is the total increase in output, labor income, and employment through interindustrial relations in an area resulting from tourism spending (Dube, 1995;Frechtling & Horváth, 1999). The multiplier effect of tourist expenditure can be identified through two formulas. First, the Keynesian Income Multiplier, which is a value that shows how much visitor expenditure has an impact on increasing local people's income (local entrepreneurs and employees). The second is the Income Ratio multiplier, a value that shows how much the direct impact felt by visitor spending has an impact on the local economy (local entrepreneurs' income, labor income, and consumption expenditure at the local level) ( a. If these values are less than or equal to zero (≤ 0), then the tourism activity has not been able to have an economic impact on the local's community.
b. If these values are between zero and one (0 < x <1), then the tourism activity still has a low economic impact value.
c. If these values are greater than or equal to one (≥ 1), then tourism activity has an economic impact on the local community.
Meanwhile, (Mathieson & Wall, 1982) argues that three types of employment affect employment generation, including: a. Direct employment is a type of work that generates income from tourists' expenses, for example, tourist expenses for lodging and travel companies.
b. Indirect employment is a type of work that is still related to the tourism industry but indirectly receives income from tourist expenses, such as doctors serving hotel employees and tourists, traders, and fuel station officers.
c. Further employment is an additional job in the tourism sector carried out by local communities (Vanhove, 2011). (Vanhove, 2005) states that employment generation (Ek) can be analyzed based on the number of workers involved in Nglanggeran Tourist village. Meanwhile, the following formula can use to calculate the employment multiplier.

METHODOLOGY
This research uses a descriptive quantitative approach (Sugiono, 2010). Secondary data sources used include online media articles, scientific literature, and travel promotion media. Meanwhile, to collect primary data, researchers conducted non-participant observation (for four months) in the Nglanggeran tourist village located in Patuk District, Gunungkidul Regency, Yogyakarta. The researcher identifies, interviews, and distributes questionnaires to tourist village managers, local entrepreneurs, employees, and tourists (Sugiyono, 2015). The sample size determining technique used is non-probability sampling, while the formula used is Slovin with a margin of error of 10%. The number of tourist respondents involved in this study was 100 people, which were calculated based on the total population of tourists visiting in 2018 of 138,129 tourists. Applying the same method, 51 (out of 106 total population) local entrepreneurs (9 kiosks, 4 restaurants, 32 inns, 3 souvenir shops, 1 transportation rental, 1 farm, and 1 spa) were respondents who came from business owners. Meanwhile, the respondents consisted of 62 employees from 192 populations (16 Pokdarwis (village organizations), 9 cocoa industry, 10 SPA, 1 tour guide, 7 restaurant staff, 17 breeders, 2 souvenir shop, and 1 kiosk employee. The instruments used are designed regarding the theory of tourist characteristics, the multiplier effect, and the economic impact of tourism, which have been described in the literature review section. The data collected through a questionnaire is then calculated using the income generation formula and employment generation multiplier effect. The calculations' results are then described, combined, and interpreted with other data, such as interviews and secondary data.

Tourist Characteristics
Based on the data collection results, in terms of socio-demographics, most (more than 80%) of the tourists visiting Nglanggeran Tourism Village are millennials or have a productive age between 15-32 years, with student and worker professions. Meanwhile, from the psycho-geographic aspect, tourists who visit are categorized as local and domestic tourists. Besides, they often use online media (Google, Facebook, and Instagram) to obtain the information and have some motivation, such as vacation, having recreation with friends or groups (20 to 50 people), research, and internship program.

Local Entrepreneurs Characteristics
The entrepreneurs are local people, most of whom are aged between 39 to 61 years. They have started a business between one to seven years ago. Their businesses can also be categorized as small and medium-sized enterprises (SMEs) (generally having one to five employees) with an average income of IDR 500.000-1.000.000.

Employee Characteristics
Workers involved in several business units can be categorized as productive age between 19-39 years, with an educational background between junior high and high school. Most of them are spread across several business units such as souvenir craftsmen, breeders, and village tourism managers, with an average income (more than 90% of respondents) of IDR 500.000-1.000.000. The average duration of work in the tourist village of Nglanggeran is three to twelve hours per day (except during the picking season). Based on interviews, the number of people involved in labor-related tourism has consistently increased every year.

The Tourism Multiplier Effect in Nglanggeran Tourist Village on The Local Economy
The economic impact of tourism in Nglanggeran tourist village is generated from the flow of money originating from tourist expenses to local business. Tourists need various products and services during their visits, such as lodging, equipment rental, consumption, and other personal needs. If residents can meet tourists' needs through developed business units, there will be economic transactions between tourists and local people. If this happens continuously and benefits the local community, then economic benefits will be created for the community from tourism activities in Nglanggeran village. In general, tourists' expenditures vary, depending on their activities during their visit. However, researchers have provided several variables or expenditure items that are generally offered by tourism village managers. The researcher then processed and analyzed the total and average tourist expenditure on each visit through distributed questionnaires. The cost variables that dominate include lodging (homestay) and equipment rental. To calculate the average tourist expenditure, the researcher uses the following formula: The results of data calculations show that the average tourist expenditure on each visit per person is IDR 465.750.

Income Generation
Nglanggeran tourist village revenue is obtained from entrepreneurs and employee revenue, and employee expenditure data, which are grouped into three parts, namely direct income generation, indirect income generation, and induced income generation. To analyze the Income Multiplier effect, this study collected data through business owners and workers. The assumption is that with this method, the researcher gets an illustration of the direct revenue received by owners, the income of the workers provided by the business owner, as well as the third layer of income that is assumed from the daily eeds' employee expenses variable. This data will then be calculated to obtain the Income Multiplier effect value received by the local community.

Direct Income Generation (D)
Direct income is calculated based on the average income of 51 entrepreneurs per month. The business units in table 6 are the direct beneficiaries of tourism activities in Nglanggeran tourist village. Most of these business units are categorized as small and medium-sized enterprises (SMEs) that have been around for about five years ago and are generally owned by residents. In general, the income of the business unit owner ranges from IDR 1.000.000-2.500.000 per month. The highest income is the souvenir business, with a total income of IDR 20,550,000 per month with a percentage of 38.32% of the total business income. A souvenir shop is a business unit managed by the Pokdarwis group of Nglanggeran tourist village, which offers all products processed by the local community themselves.
The tourist length of stay is linear to the increase in the economic impact. In addition to calculating revenue, this study also identifies the production costs of the above business units. Production cost variables used include labor costs, purchase of raw materials (input), maintenance, daily operational costs (electricity and water), credit repayment, daily food, local transportation, and taxes or levies paid to the local government. The entrepreneur profit (owner's income) is the total income minus the total cost of production. Production costs in the data above are costs incurred by all business units, with the largest percentage for raw materials, daily food, and labor wages. The data above illustrates that tourism activities have created a capital turnover in the business unit of IDR 180.957.000. If classified based on the impact received, most of the capital turnover (98.57%) was received by local communities (business owner income, labor wages, inputs, maintenance costs, daily food, and local transportation costs) or local based. Meanwhile, the other 1.43% is the cost that is not accepted by the local community (leakage), which consists of operational costs, credit repayments, and taxes and levies.   Table 8 shows that the highest employee income is Pokdarwis labor, amounting to IDR 13.320.500 or an average Pokdarwis member income is IDR 740.028 per month.

Induced Income Generation (U)
The local employee income from the business unit influences this further impact due to sourcing from local labor's daily expenses (World Travel and Tourism Council, 2012). The Nglanggeran tourist village local employee expenditure includes daily food costs, local transportation costs, children's education fees, electricity costs, retribution, and taxes.   According to a multiplier analysis result value (≥1), it can be argued that tourism activities in the Nglanggeran tourist village have an essential economic impact on the community. Income Multiplier generally measures additional income (salary, wages, rent, interest, and profit) in the economy due to increased tourist expenditure.

Employment Generation (Ek)
This formula calculates the value of the impact of tourist expenditure on employment opportunities (workers). Although, in theory, based on the interaction, there are only two types of workers (direct and indirect employment), considering the reality in the tourist village, the researcher took the initiative to add one more type (in between employment). This addition considers several professions that technically have direct interaction with tourists but get wages through intermediaries (tourism village managers).

Employment Multiplier Analysis
In general, this formula aims to compare total employees (direct, indirect, and in between employment) with the tourist expenditure in Nglanggeran Tourism Village.
rect I d rect lo e t e d t re s e d g 11 12 1 9 5 5 000 0 00000 1 The analysis above indicates that every tourist expenditure of IDR 1 (one) can involve or create employment opportunities for 0.0000041 employees in Nglanggeran tourist village, both employees who directly and indirectly interact with tourists, or categorized between the two. Therefore, if the average tourist expenditure per visit is IDR 465.750, it will be able to involve or provide employment opportunities for as many as 2 (two) people (1.9).