Micro Small Medium Enterprise as A Media to ...

Micro Small Medium Enterprise as A Media to Optimize Tourism Resources (Case Study in Kubangkangkung Resevior,Cilacap, Central Java, Indonesia)

Rizki Dwi Purbojati 1 , Bima Cinintya Pratama2 and Business Faculty of Universitas Muhammadiyah Purwokerto (dwipurbojatirizki@g mail.co m) 2 Economics and Business Faculty of Universitas Muhammadiyah Purwokerto 1 Economics

ABSTRACT Tourism place is a huge potential area for promoting local resources. Small Medium Enterprise (SME) can be used to manage the promotion activities dealing with the natural resources and the society. Reservoir is a natural or artificial lake functioning to store water. Surrounding area of the reservoir has beautiful scenery that attracts many people to come, such as Kubangkangung which is a reservoir located in Cilacap, Central Java, Indonesia. This paper is written because there are many tourism places that have not been explored optimally either the human resources or natural resources. Kubangkangkung reservoir is a public natural tourism opened in 2014. It’s necessary to have mutual supporting cooperation between the local government and local society in order to improve the local society economy. It’s also important to build a good management of tourism place in SME, such as socialization and training for local society about SME in order to optimize the results of natural and human resources. Thus, it will be able to create a good tourism place with good society economy. The data of this paper were derived from several supporting books and research journals, one of them is about government role in managing SME management in Kubangkangkung located in Cilacap, Central Java, Indonesia.

Keywords: SME, Tourism Place Management, Society Empowerment

1. Background The poverty rate in Indonesia is a problem that will continue to haunt development. Poverty can be characterized by unemployment, backwardness and helplessness. Therefore, poverty is a top priority to be solved in the implementation of national development (Saputro, 2016). The tendency of fulfillment in term of tourism ranging from enjoying the mass tourism to niche tourism that are based on the environment such as agro tourism. Development and cohesion between the tourism sector and the agricultural sector will produce an agriculture based consept that is sellable. The aim is to broaden the knowledge, experience, recreation, preserve local culture and technology, and maintain the condition of the natural environment.

Consumption of environmental services in the form of tourist commodities for some communities in Indonesia has become one of the necessities as the development of the times that result in changes in the lifestyle, preference and motivation of people that are constantly changing and evolving. The agricultural tour is getting popular in the society and community as they usually want to know about the agricultural products and the atmosphere in that location (Deptan, 2008). Tourism place has the potential to attract both local and foreign tourists if managed properly and can be developed well. The government also need to empower local communities to continue to innovate and to develop their potential. The role of local government as the initiator, motivator and

facilitator could determine the success of tourism development. (Purwanto et al, 2016) SMEs that are well-managed and involving the society around the area of business will boost the local economy and community empowermen t around the location, because the absorption of local labor will decrease unemployment. There will be a community development and potential optimization process. The formation of the SMEs in productive society on tourism sites can improve the economy of these tourism areas. It will also reduce the poverty rate in Indonesia in general. It also adds the interest from the tourists, both local and international, to visit the tourism site because it is a beautiful natural attraction and it also supported by the good people's economic condition so that the tourist will feel be comfortable with the condition of society around the tourism sites. Vision of national tourism development confirms that tourism development is an important part of the process of national development because it has an important role in improving people's welfare. Tourism also plays a role in promoting national identity and encourage awareness and community pride in the natural and cultural wealth of the nation. (Arief, 2016) 2.

Research Methodolog y

The method in this study is description method with type of survey on tourism sites Kubangkangkung reservoir. The data obtained using questionnaires and interviews method. And as support materials, added with literature, and online data searches.

alone, carried out by an individual or business entity that is not subsidiaries or branches of companies owned, controlled, or be a part either directly or indirectly by the Small Business or large enterprise with total net assets or annual sales revenue as regulated by the Law. The role of micro, small and mediu m enterprises (SMEs) are shown by the large number of business units and entrepreneurs, as well as its contribution to the national income, and employment. Indonesia has a large number of SMEs compared to most other countries. Currently, there are approximately 57.9 millio n SMEs that provide employment up to 97.30 percent. Although the contribution of SMEs to GDP ratio is only 58.92 per cent (2014), it is still larger than corporations that only contribute to a small amount. With these conditions , SMEs could potentially become a place of communit y empowerment and driving dynamics of the economy. The role of cooperatives and SMEs in Indonesian economic has shown its strategic position in supporting the growth of the national economic which is characterized by: a. its position as a major player in economic activity in various sectors, b. the largest provider of employment, c. an important player in the development of local economic activities and communit y empowerment, d. creators of new markets and sources of innovation, as well as e. contribution in maintaining the balance of payments through export activities. (Rafinaldy, 2006) 3.1.1 the characteristics of SMEs

3.

Review of Literature

3.1 Overview The role of SMEs Micro business is a productive business enterprise belonging to individuals and / or entities that meet the criteria of micro businesses, as regulated by the law. Small Business is a productive economic business that stands alone, performed by an individual or business entity that is not a subsidiary or not a branch of the company owned, controlled, or be a part either directly or indirectly from medium or large businesses that meet the criteria for Small Business as defined by the law. Medium business is a productive economic activity that stand

Characteristics of SMEs is a nature or conditions attached to the business activity and the behavior of employers running the business. These characteristics became the distinguishing feature between business operators in accordance with the scale of its business. Based on the business management aspects, SMEs can be described as follows: a. Micro business Micro business has the following characteristics:

1) the type of commodity changing overtime and at any time can change the product / business, 2) the business is not always settled or may move at any time 3) the absence of good financial records of the business, 4) the average human resource educations are very low, i.e. primary and junior school, 5) are generally not familiar with banking and is more often associated with loan sharks, 6) this business generally does not have the business permission. b.

Small business Small business typically characterized by the following characteristics: 1) the type of goods or commodities are not easily changed, 2) has a wealth of up to 200 million and could receive a maximu m credit of 500 million, 3) the location or place of business in general has been settled, 4) own bookkeeping, although still using modest writen which means financial administrative records of the companies have already been separated. 5) have a legal business permission, 6) human resources have been pretty good, from the aspect of average education level of high school students, 7) have started to recognize the banking system.

c.

Medium Business Medium business usually has the following characteristics: 1) the wealth could be around 200 million to 10 billion, and can receive a credit of 500 million to 5 billion. 2) having better management organization and clear division of labour between unit 3) having a system of financial management , making it easier to do auditing, including by the public auditor, 4) have been making adjustments to government regulations in the field of employment, Social Security and others, 5) having a complete legal requirement, 6) are often partnered with banks and other businesses, and 7) human resources are far better and reliable in the level of Manager and Supervisor.

In addition, based on the aspects of the commodities produced, SMEs also has its own characteristics, among others: a. The quality is not standard, it is because the majority of SMEs do not have a standard technology and products are usually produced in the form of handmade, so in terms of quality it is relatively diverse. b. Limitations of design products owned by SME products because of limited knowledge and experience about the product. SME usually work based on the work order, yet many are brave enough to try to be creative by trying new design, c. The limited types of products, SMEs usually only produce a kind or limited product, so that if there is demand for a new model from a buyer. It will be difficult to meet because of the difficulty in adjustment and usually needed a very long time to fulfill the order, d. The limited capacity and price list of products, product capacity is usually difficult to set prices and not measurable easily so it can be difficult for buyers or consumers. e. Less standardize raw materials, raw materials are usually obtained fro m various sources and do not meet the standards f. Continuity product is not guaranteed and less than perfect, because production is not regular, then usually the products produced often unperfect.

3.1.2 The problems of SMEs In general, the problems faced by Small and Medium Enterprises (SMEs), among others, include: a. Internal factors a) Lack of Capital Capital is a major factor that is necessary to develop a single business unit. Lack of SMEs capital, because in general, small and medium enterprises are individual enterprises or companies that are enclosed in nature, which rely on capital from the owner who is very limited, while the loan capital from banks or other financial institutions are difficult to obtain, because of the requirements of administrative and

technical demanded by banks cannot be met. b) Limited Human Resources (HR) Most small businesses grow traditionally as a family business that is hereditary. Limited human resources of small businesses both in terms of formal education as well as knowledge and skills greatly affect the management of the business, so that the business is difficult to develop optimally. Besides, with its limited human resources, the business unit is relatively difficult to adopt new technological developments to enhance the competitiveness of the products it produces. c) Lack of Network Operations and Capabilities of Market Penetration Small businesses which are generally a business unit of the family, have very limited business networks and the ability of market penetration is low, because the resulting product is very limited and has qualities that are less competitive. In contrast to large businesses that already have a network that is solid and supported by technology that can reach international market and have a good promotion. b. a)

External factors

Not Fully Favorable Business Climate Government policy to develop the Small and Medium Enterprises (SMEs), although from year to year continue to be refined, but it felt not to be good and applicable enough. This can be see by among others, still there is an unfair competition between small entrepreneurs with great entrepreneurs. b) Lack of Facilities and Infrastructure Lack of business information relating to the progress of science and technology, leading facilities and infrastructure that they have also not fast developing and less support to their business growth as expected. c) New Regulation Systems and Levies Implications of Regional Autonomy with the enactment of Law No. 22 Year 1999 about Regional Autonomy, the regional authority has the autonomy to organize and manage the local community. This system changes will have implications for small and medium businesses in the form of new goverment levies imposed on Small and

Medium Enterprises (SMEs). If the condition is not done it will reduce the competitiveness of Small and Medium Enterprises (SMEs). Besides, the excessive spirit of regionalism, sometimes creating conditions that are less attractive to entrepreneurs from outside the region to expand its business in the area. d) Implications of Free Trade Area As we know that AFTA which enacted in 2003, AEC 2015, and APEC 2020 has important implications to the small and medium enterprises to compete in the free trade. In this case, Small and Medium Enterprises (SMEs) are required for doing the production process productively and efficiently, and can produce the products according to the level of the global market with quality standards such as followin g the issue of quality (ISO 9000), environmental issues (ISO 14,000) and the issue of Human Rights as well as labor issues. This issue is often used unfairly by developed countries as a barrier (NonTariff Barrier for Trade). Therefore, it is expected that SMEs need to prepare in order to compete both a comparative advantage or a sustainable competitive advantage. e) Short lifetime Nature of Products Most small enterprise products have traits or characteristics of short lifetime product such as craft, etc. f) Limited Access of Market limited market access will cause the resulting product cannot be marketed competitively in both national and international markets. Table 1. Difficulty Factors faced by Small Business Medium Enterprises (SMEs) Difficulty Factor Percentage Capitalization 51.09% Marketing 34.72% Raw materials 8.59% Employment 1.09% Distribution of 0.22% transportation Others 3.93% Source: Ministry of Research Results of ministry with BPS (2003) in Suhendar Sulaiman, Pengembangan Usaha Kecil Dan Menengah Dalam Menghadapi Pasar Regional Dan Global, Infokop No. 25 Tahun XX, 2004

3.2 agro-tourism and its potential for SMEs 3.2.1 Definition In accordance with the Law of the Republic of Indonesia No. 10 Year 2009 on tourism, explains some sense of the term tourism, among others: a. Travel is a travel activity undertaken by individuals or groups to visit a place and purpose for recreation, personal development, or to learn about the uniqueness of the attractiveness of a tourist spot visited in a while. b. Tourism is a wide range of tourist activities are supported by a wide range of services provided by community facilities , businesses, governments, and local governments. c. Tourist destination can be referred to as a geographic region that are within one or more administrative regions in which there is a tourist attraction, public facilities , tourism facilities, accessibility, and community are interrelated and complementary realization of tourism.

culture in the use of land, is expected to increase the income of farmers while conserving land resources, and preserve local culture and technology (indigenous knowledge) that have generally been in accordance with the conditions of their natural environment (Deptan, 2008). 3.2.2 Benefits of agro tourism Benefits that could be felt from the agro tourism is to conserve natural resources, preserve local technology, and increase the income of farmers / communities around tourist sites (Deptan, 2008). The benefits of agro tourism, among others (Tirtawinata and Fachruddin, 1996): a. Improving environmental conservation b. Improving the aesthetic value and natural beauty c. Provide recreational value d. Improving scientific activities and the development of science e. Economic gains 3.2.3 Development of agro-tourism locations to improve SMEs in surrounding communities

According to asosiasi wisata agro Indonesia (2004), agro tourism is a form of travel that is very specific, where visitors can enjoy the beauty and uniqueness of nature while enjoying agro products or can live on a farm, is involved in the production process, all of which is done to be able to experience, enjoy, learn, and live a part of daily life that lasts sector in the agricultural environment.

The development of agro-tourism requires the support of all government, private entrepreneurs mainly agro tourism, related institutions such as the travel, hospitality and other, higher education, and community. The government acts as a facilitator in supporting the development of agro-tourism in the form of ease of licensing and more. Government intervention is limited to the regulation in order to avoid business climate killing each other. For that kind of cooperation between employers of agro tourism, agro-tourism business as well as with supporting institutions (travel, hospitality and other) is very important. Breakthrough joint activities in order to further develop agro business is required. (Deptan, 2008).

In Indonesia, Agro tourism defined as a form of tourism activities that utilize agro business (agribusiness) as a tourist attraction with the purpose of expanding knowledge, experience, leisure and business relationships in the field of agriculture. Agro tourism is part of the attraction that utilize agriculture (agro) as a tourist attraction. The aim is to broaden the knowledge, experience leisure and business relationships in agriculture. Through the development of agro-tourism that highlight local

There are two development strategy models of tourism areas. First, the conventional model of tourism development model that is purely economic purpose. This tourism development is only emphasized on the increasing of the number of visits without attention to the environment and culture. The second, non-conventional models that is multipurpose, which is not merely economic but also ecological and social culture. Nonconventional models emphasize the

Agro Tourism can be generally defined as a combination of tourism and agriculture. Visitors can visit the gardens, farm or winery to buy products, enjoy the show, take part activity, eat a meal or spend the night together in a plantation or garden (Farmstop, 2008)

development of tourism should be based on community and the neighborhood revitalization efforts, the discovery and preservation of the environment and the return of indigenous cultural communities (Madison, 2010). Thus, the development of tourism based on non-conventional models put local community participation as a key development. Without the alignment and sufficient public participation, the sustainability of tourism is not going to be successful. (Soedarso, 2016) According to David (2006), strategic management will help the company in viewing of the threats and opportunities in the future, thus enabling the organization to be able to anticipate the ever-changing conditions. In addition, management also presents strategic objectives and a clear direction for the future of the company so that the company is developing a strategic management system that has a greater likelihood of success rate than those not using this system. Management strategies can be defined as the art and science in formulating , implementing and evaluating cross -functional decisions that enable an organization to achieve the goal (Fred R. David, 2010). Based on the above definition implied that the management strategy focusing on efforts to integrate management, marketing, finance / accounting, production / operations, research and development, and computer informatio n systems to achieve organizational success. (Mujanah, 2016) The definition of promotion according to Kotler (2005) are the various activities undertaken by the manufacturer to communicate the benefits of its products, persuade, and remind the target consumer to buy the product. According Assauri (2004), the promotion is an attempt of company to influence and seduce (persuasive communication) prospective buyers, through the use of all elements of the marketin g reference. A product will not be purchased and known if the consumers do not know the uses, advantages, where the product can be obtained, and at what price. For that purpose, consumers that are being targeted needs to be given clear information. Marketing effectiveness of a company is strongly influenced by marketin g communications systems done. The more effective the communication system done, the

more proportional the marketing will be. To carry out marketing communications needed some means of communication called marketing communications mix (promotional mix), which consists of five main ways of communication, namely: advertising, sales promotion, public relations, personal selling, and direct marketing (Kotler, 2005). The top and primary travel objects also have to be really prepared as a tourist attraction. Each attraction should be something that is at the center of a tourist attraction and can give satisfaction to tourists. Attractions can be classified into three types: a) natural attractions such as beaches, landscapes, mountains, forests and others, b) Cultural tourism such as museums, temples, galleries, and the like, c) Tourism activities for example in the form of outbound activities, daily activities of a community, dances, carnivals, festivals, etc. (Wardiyanta 2006).

Department of Agriculture (2008), identify the factors associated with the success of an agro-tourism in relation to the attractions offered as a tourist attraction as follows: a. Scarcity If tourists do travel in an agro-tourism area, travelers will expect an experience of farm or garden that contains elements of scarcity because these plants are very rare at the time. b. Natural Natural agro-tourism attractions will also greatly determine the sustainability of agro tourism developed. If the tourist attraction has been polluted or filled with falsehoods, tourists will surely feel very deceived and could not have been back again. c. Uniqueness The uniqueness is something completely different from the existing tourist attraction. The uniqueness can be in the form of culture, traditions, and local technology where the tourist attractions were developed. d. Involvement of Labor Agro Development is expected to involve local labor, at least minimize the unemployment of local communities as a result of the development of the tourist attraction. e. Optimizing the Use of Land Agricultural land or plantations are expected to be used optimally, if this agro object to be

f.

g.

function properly. Vacant land is utilized , but the development of this agro must bring positive impact on land management, and also not to be exploited arbitrarily. Justice and Equity Considerations The development of agro-tourism is expected to drive the economy of society as a whole, both the farming community / village, investor / investors, and regulators / government. By coordinating in the detailed development of the existing inputs. Region Governance Agro tourism is an activity that integrates the system of agriculture and tourism system in order to form an interesting tourist attraction.

Business prospects of SMEs in the era of free trade and regional autonomy depends on the efforts made by the government in developing the SME business. One of them through the development of a conducive business climate. This requires the creation of a conducive policy environment for SMEs. Favorable policies can be interpreted as a policy environment that is transparent and does not burden the SMEs financially and excessively. This means that a variety of excessive government intervention, both at national and regional levels should be abolished, especially removal of regulatory and administrative requirements are cumbersome and hinder the activities of SMEs and the growth of new businesses. (Rafinaldy, 2006)

a chance to set up business information based on observations done by themselves from the potential of the site. It can be concluded that the role of local government and the manager of the tourist sites in providing information about the business potential of SMEs and develop a sustainable and community empowerment is still only a little and have not give benefit to public yet. To achieve the success of the tourism targets. The efforts made by arranging adequate system in the form of tourism promotion and development of tourism potentials that are supported by the production design and the activities held local government is required (Getz, 2008). 4.2 The increase in number of businesses each year Table. II business owners kubangkangkung reservoir No. Year Percentage 1 2014 60% 2 2015 20% 3 2016 20% Source: Personal Data Research

4.1 information business potential 50% of business owners in Kubangkangkung Reservoir, said that information about chance to set up business in the tourism area were obtained from employees of PTPN IX, which is the company which manages the Kubangkangkung reservoir tourist sites. Although, the employee who gave the information is not an employee who directly participated managing the tourist sites. while the remaining 50% are people around who get

the

60% said that they had started his business at the time of the tourist sites opened to the public in 2014, 2015 as much as 20%, and in 2016 is amounted to 20%. Diagram I. The increase of businesses in the Kubangkangkung reservoir

4 Results and Discussion Based on the research conducted in kubangkangkung reservoirs on January 29, 2017 using questionnaires and interviews directly with 10 business owners at the site, generating data as follows:

in

SMEs 12 10 8

6 4 2 0 2014

2015

2016

source : Personal Data Research From the diagram I. Indicates that business owner are always increased every year, even though in only a few amounts but it is already helping to reduce unemployment

by giving the people around the a chance to start a business and develop it.

also to increase earnings (Simanjuntak, 2010)

The basic principle of tourism development is to be truly beneficial create employment opportunities and creating livelihood diversification in the community . In addition, also need to an anticipation, because sometimes the development of tourism has the potential to change the customs, culture, traditions and other customs and way of life that has been embedded in the comunity. On the one hand, the development of tourism can promote the area and improve the welfare of society, but on the other hand can also bring various new social problems that harm society itself if earlier without preceded broad and deep a review and consideration as well as preparation and anticipation (comprehensive and adequate) (Wardiyanta, 2006; Madison, 2010; Hasan, 2011). Agro tourism management that is developed or built needs to be done by involving local communities in a variety of activities that support agro business. With community participation in the development of agro-tourism, it is expected to be cultivated positive interaction in the form of a sense of ownership for maintaining the existence of attraction (Deptan, 2008).

Forms of local community participation in the development of tourism areas will not be enough to manage all of the tourism area development. Big capital needed should still be fulfilled by industrial investors, the local community should only manage what they can. As exemplified in the development of tourism in the Nusa Dua area of Bali, then the public, fishermen and indigenous people remain guaranteed access to the beach utilization to maintain the original work of the community activity, although it is a tourism region (Madison, 2010).

Community participation can be done through: a. Villagers who own land in the area that are developed should still be able to cultivate their land, which supports an increase in agricultural products in the main attraction of agro tourism, and on the other hand will encourage a sense of ownership and responsibility in the management of the region as a whole. b. Involving local villagers in the business activities directly as labor, both for agriculture and for travel services, guides and others. For that the manager needs to perform the steps and efforts to improve the knowledge and skills of specialized manpower from the comunity. c. Provide facilities and the place of sale for agricultural products, handicrafts, and souvenirs for villagers in the surrounding area, so that it can introduce the characteristic of the tourism area and

4.3 Business experience Table III. Having Business Experience Not Having Business Experience Source: Personal Data Research

50% 50%

From the table showed that entrepreneurs in Kubangkangkung reservoirs have business experience by 50%, and 50% remaining are new entrepreneurs. It can be concluded that the interest of a person's attempt to establish a business is always increasing. If their participation supported by the local government, the tourism business owners will foster productive to SMEs participate and help the economic growth of rural communities and support national development, and indirectly add power of attraction of the tourist sites that will increase the number of tourists annually. A harmonious relationship between the community, local government and the tourism operators will form a mutually beneficial relationship. 4.4 Business Progress Table IV. business progress Improved Busines 60% Not Improved Business 40% Source: Personal Data Research Increased effort is only felt by 60% of the entrepreneurs, while 40% do not feel the business improvement. Community empowerment program has not been fully effective during this time due to the type of program that is less in public

participation. And involement existing programs rather than empowering people, on the contrary create new helplessness of community dependency on direct aid. A new approach to developing people's empowerment is needed. This study concluded that the tourism development program has the prospect to be developed as a community empowermen t program. (Soedarso, 2016) Cooperatives and SMEs in general are still facing problems related to the relatively less conducive business climate, among which are: a. uncertainty and vagueness of the licensing procedure which resulted in the high transaction costs, the length of the licensing process, and the emergence of a variety of unofficial levies, b. The business process and unfair business competition, and c. A weak cross-agency coordination role in the empowerment of cooperatives and SMEs. In addition, regional autonomy that is expected to accelerate the growth of a conducive business climate for cooperatives and SMEs, turn out to be not progressed evenly. The number of areas have been identified inhibiting regulations, while trying to reduce the negative impacts, even improve services to cooperatives and SMEs by developing a onestop service. However, there are still other areas that sees cooperatives and SMEs as a source of local revenue by imposing new levies unnecessarily, so the cost of business cooperatives and SMEs increased. In addition, awareness of intellectual property rights and environmental management are still underdeveloped. Therefore, the institutional aspect needs to be taken seriously, in order to obtain a range of results and benefits as much as possible, given the large number, diversity efforts, and the spread of SMEs (Rafinaldy , 2006) 4.5 Difficulty Factors Table V. Difficulty Factor No. Factor Percentage 1. Marketing 80% 2. Capital 10% 3. Employment 10% Source: Personal Data Research

the biggest difficulties Factor of SMEs according to research in Kubangkangkung Reservoir is marketing problem by 80%, capital problem by 10%, and 10% of employment problem. Tourists who travel or visit to an area have differences: (1) sun lust tourist, which is the the type of tourist that visiting an area for rest or recreation to enjoy and feel the climate, facilities, dining and more in accordance with their country of origin, and (2) wonder lust tourist, which is a type of tourists who travel driven by the motivation to gain new experiences, knowing new cultures or admire the natural beauty that has not been seen before, this type of travelers like receiving facilities , dining and more in accordance with the area as a tourist destination (Pitana, 2009). From the results of questionnaires and interviews directly to SMEs, we found that entrepreneurs find difficulty in marketing. They said that limited number of visitors is one of the reason why it is difficulty to promote the product. Visitors only visit on weekends or days of national holidays, the lack of stability of tourists visiting the tourist sites are the biggest difficulty factors experienced by entrepreneurs in the tourist sites Uysal and Hagan (in Zeng, 2015) says there are five factors that can attract tourists to come to the tourist destination, that are: a. Natural and historic Attractions b. Food c. People d. Recreation facilities e. marketed image of the destination The results of this research are different from Table 1. Difficulty Factors faced by small and medium enterprises (SMEs). In sulaeman suhendra research (2004), which in Table 1, show that the the biggest difficulty factor is capital of 51.09%, while the results obtained from research to the SMEs tourist are show that the reservoir Kubangkangkung main difficulty factor is marketing which is 80%. It can be concluded that the tourist areas require the participation of local government, tourism operators, businesses and people around to realize productivity of SMEs. The role of local

government as the initiator, motivator and facilitator to determine the success of tourism development. (Purwanto, edy, et al, 2016) Government and local tourist site managers need to pay attention to this, and seek to overcome the problems faced. Interests from a person with an object would be visible if the object is on target and is associated with a person's wants and needs that are concerned (Sardiman, 2005: 76). 5

Conclusions and Recommendati ons

The tourist destination is a geographical unit which may be a central region, a village or a city, region, island or even countries. How important is a tourist destination depends on three factors: attraction-accessibility-facilities. In addition, the social behavior of local culture also affect a region or area as a tourist destination. If there is no guarantee that the local society is not able to create a good relationship with tourists, then certainly the tourists will not have a desire to visit. Good relations between local residents and tourists are indispensable in a tourist area (Madison, 2010) SMEs is verry dominate compared with large businesses . In addition, the role of SMEs in absorbing labor is relatively large. So that business development is a strategic step in improving public welfare and national economic growth. SMEs also play a role in empowering communities for the establishment of a SME, there will be a process of potential optimization of an area that need to optimize both of the Natural Resources and its human resources. To realize the establishment of SMEs which can empower the society, we need for active guidance of the local authorities and monitored to SMEs that are running the business and guidance to prospective candidates for SMEs that have potential to grow and develop and be able to compete with the global business world. Such development could include socialization and SME training in a simple, socialization and training covers material potential of the area that has not been optimized, accounting activities, organizational management, and licensing or legality of the business, it is expected to form the basic foundation of a strong business which can compete with the global business world. The next is monitoring the effort, always provide direction,

criticism and constructive suggestions to the business. If socialization and monitoring can be run well, the SMEs will be able to grow and develop properly, because businesses already have a basic knowledge of science and business potential, so the empowerment of the community around will take place, reduced unemployment and process optimization of natural resources and human society. It is essential that a harmonious relationship is established between the local government, the owner of the tourist sites and communities by socialization and SME training for the development and formation of better economy and the process of community empowerment As the Indonesian Vision 2020 according to provisions of the MPR i.e. MPR No. V / MPR / 2000, clearly recommends a number of programs that should be followed by all the governments and people of Indonesia. Various courses of action to achieve the Vision Indonesia in 2020 of which is improving the quality of human life as measured by the increase in the Human Development Index, and also a program of action to tackle poverty and unemployment through community empowerment programs. Poverty reduction and empowerment of people who really need the synergy of all parties and all sectors, including government, private and communit y (Sumodiningrat 2009). References Arief, Assaf. 2016. Rancang Bangun Sistem Rekomendasi Pariwisata Mobile Advertising Menggunakan Metode Hybrid Filtering Sebagai Pemberdayaan Masyarakat Usaha Kecil Menengah (UKM) di Pulau Ternate. Fakultas Teknik, Universitas Khairun Asosiasi Wisata Agro Indonesia. 2004. Pengertian Dasar Wisata Agro. Makalah disampaikan dalam Pelatihan Wisata Agro di Yogyakarta tanggal 1519 Juli 2004. Yogyakarta. Assauri, Sofyan. 2004. Manajemen Pemasaran. Dasar, Konsep, dan Strategi. Cetakan ke-4. Rajawali. Jakarta. David, Fred. 2006. Manajemen Strategi. Edisi Kesepuluh, Terjemahan. Prenhallindo. Jakarta Deptan, 2008. Strategi Pengembangan Wisata Agro di Indonesia. www.database.deptan.go.id/agrowisata/index.asp Dr. Ir. Mohammad Jafar Hafsah,2015, UPAYA PENGEM BANGAN USAHA KECIL DAN

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