The Implementation of Multimedia in Tourism Promotion - to

Increase: The Original Local Government Revenue (OLGR) of

Pagaralam City Government

Jovan Febriantoko¹* and Hendra Rotama²

¹Accounting Study Program, Polytechnic of Palcomtech, Palembang, Indonesia

²Visual Communication Design Study Program, Polytechnic of Palcomtech, Palembang, Indonesia

Keywords: Implementation multimedia, tourism, promotion, OLGR

Abstract: This research aimed to evaluate the tourism promotion activities carried out by the Pagaralam City

government and project the implementation of promotional activities with the use of motion graphics. The

results of this research are expected to be able to improve the economy of the community and to increase the

Pagaralam City Original Local Government Revenue (OLGR). The types of research which are performed

are mixing method with case study method by calculating the regional independence ratio and logic model

approach. Data collection techniques are interviews, documentations, and observations. The validity test data

which are used are triangulation techniques and member checking. Based on the evaluation results of tourism

promotion activities, it is found several obstacles, namely lack of budget, lack of human resources experts in

the field of multimedia and lack of understanding in using the interactive multimedia such as motion graphics

as a promotion media.

1 INTRODUCTION

Tourism is a sector which is able to change the

economy of a region. The regional economy is closely

related to the level of capability and independence of

the community and the region in terms of planning

the income and realizing the predetermined targets.

The development of tourism in Indonesia shows the

role of the tourism sector which is increasing

significantly, and it can be seen from the increasing

number of domestic and international tourists that

visit tourist destinations in Indonesia. The

destinations are famous for their natural beauty from

the mountains to the sea, friendly residents and

diverse cultural wealth.

The world of tourism is expected to increase the

revenue both the central government and local

governments that have prospects to provide benefits.

This is in accordance with what is stated in Law

Number 10 of 2009 on tourism. It states that the

implementation of tourism is intended to increase the

national income in order to improve the welfare and

prosperity of the people, expand and equalize the

business opportunities and employment, encourage

the regional development, introduce and utilize the

tourist objects and attractions in Indonesia and foster

a sense of love for the country and strengthening the

friendship between countries. Foreign exchange

generated from tourism in 2011 increased by 12.51%

and in 2012 increased by 6.62% 9(Data Center and

Information Ministry of Tourism and Creative

Economy, 2012). Tourism has been seen as an

activity that has multidimensionality from a series of

processes to increase the development of a region.

Development of the tourism world concerns the

socio-cultural, economic and political aspects (Leigh

et al, 2012).

One of the tourist areas in Indonesia is the

Pagaralam City which is located in the Province of

South Sumatra. One of the priorities of the Pagaralam

City Government is the tourism sector. The

government expects the tourism sector is able to grow

the rate of Original Local Government Revenue

(OLGR). OLGR is income derived from and

collected by the local government itself. The sources

of OLGR are local taxes, regional retribution, profits

from regionally owned enterprises, and other

legitimate local revenue (Jia et al, 2014). One of the

sources of the Pagaralam City OLGR is in the tourism

sector. The tourism sector OLGR comes from

Rotama, H. and Febriantoko, J.

The Implementation of Multimedia in Tourism Promotion to Increase the Original Local Government Revenue (OLGR) of Pagaralam City Government.

DOI: 10.5220/0009152900002500

In Proceedings of the 2nd Forum in Research, Science, and Technology (FIRST 2018), pages 88-94

ISBN: 978-989-758-574-6; ISSN: 2461-0739

restaurant taxes, hotel taxes, entertainment taxes, and

recreation and sports retribution and

lodging/accommodation/villa fees. From the

Pagaralam City Budget Realization Report shows that

the OLGR contribution to the tourism sector in

Pagaralam City to the total OLGR has not shown any

expected impact, evidenced by the average

contribution of tourism sector OLGR in the last 3

(three) years which is not exceeding 2.5% of the total

OLGR (Febriantoko and Mayasari, 2018).

As one of the comparison districts/cities in

Indonesia which has high OLGR in the tourism sector

is Badung Regency in the structure of Badung

Regency's Gross Regional Domestic Product (GRDP)

in 2010 the contribution from the trade, hotels and

restaurants sector was 45.68%, even in 2016 the

tourism sector contributed more than 70% to the

OLGR of the Badung Regency. Based on the

distribution of 9 sectors in the GRDP, the tourism

sector is a mainstay sector of Badung Regency

(Badung Regency Central Bureau of Statistics, 2012).

The influential factors of regional revenues in the

tourism sector are (Febriantoko and Mayasari, 2018):

Inadequate human resources. Lack of taxpayer

compliance. For example, many hotels are delinquent

in tax payments because of various reasons, and they

do not routinely take care of licensing. Low socio

economic conditions. Unstable economic conditions

have an impact on the trade and services sector. Lack

of promotion of the tourism sector by the government

To overcome the obstacles that occur, it is

necessary to have the right strategy to manage

resources economically efficiently and effectively.

To introduce superior tourism objects in Pagaralam

City, tourists are needed for promotion and publicity.

The purpose of tourism promotion activities are to

increase the number of tourist visits to tourist

destinations, to increase a good picture of an area, to

provide information about supporting facilities and

accommodation, and as a communication facility as

one of the regional attractions (Job and Paesler,

2013). The tourism sector development strategy is

directed at the implementation of marketing for the

fulfillment of accommodation and interest of

prospective tourists by considering the readiness and

resources they have. One form of strategy that is quite

effective in efforts to increase local revenue is

through media promotion with motion graphic

techniques (Fattahi, et al., 2014). In this case, the

media must be able to be positioned as information

that can reach this whole area, so that the tourism

potential of Pagaralam City can be widely known by

tourists. Pagaralam City attractions that can be

offered include natural tourism, historical tourism,

cultural tourism, and culinary tourism. To realize the

program and promotion of Pagaralam tourism

objects, the community, and local parties need to

work together so that this design can be realized.

Motion graphic of Pagaralam city tourism

promotion provides information to people who want

to visit Pagaralam city attractions. The visiting

tourists are expected to increase the regional income

of Pagaralam City. Motion graphic can be accessed

by potential tourists on the website and social media

of the Pagaralam City Tourism Office. The Motion

graphic will inform about tourist objects in Pagaralam

city. This motion graphic design contains information

on tourism, objects designed in vector form to make

it more attractive and easily recognizable, some icons

of Pagaralam City attractions are simplified into an

icon that can represent the shape of Pagaralam City

tourism objects.

Based on the description of the background above,

the formulation of the problem that can be taken is

how is the strategy that will be used by the Pagaralam

City Government in an effort to increase OLGR

through tourism objects? How to increase local

revenue in the tourism sector through a promotion

with motion graphic techniques? The problem

formulation aimed to evaluate the tourism sector

programs and activities of the Pagaralam City

Government to use the logic model, and design

strategies as well as project promotion strategies that

can increase the original revenue of Pagaralam City.

The Researchers limit the object of research only

to the tourist locations located in the area of the

municipal government of the Pagaralam city

government and the use of the local government

financial documents of Pagaralam City Government

from January 2016 until March 2018 period.

The results of the research (Fattahi et al, 2014)

show that the number of the tourist visits,

entertainment taxes, hotel and restaurant taxes (HRT)

has a significant effect on the OLGR of Gianyar

Regency in the Fiscal Year 1991-2010. From the

standardized regression coefficient value shows the

highest HRT variable value, it can be concluded that

HRT has the most dominant influence on the OLGR

of Gianyar Regency. The researcher advice the local

governments to improve the HRT collection

mechanism and re-record the number of hotels and

restaurants. The research which is conducted by

(Fetters and Freshwater, 2015) regarding the tourism

promotion uses the data collection techniques such as

direct observation, questionnaires, and interviews

with stakeholders. The results of the study stated that

promotion through multimedia such as the use of

short films has a positive impact on tourism visits

The Implementation of Multimedia in Tourism Promotion to Increase the Original Local Government Revenue (OLGR) of Pagaralam City

Government

because it is able to expose the real beauty (Fetters

and Freshwater, 2015).

2 LITERATURE REVIEW

The researchers conduct this research in Pagaralam

city, South Sumatra. Pagar Alam City is one of the

cities in the Province of South Sumatra which was

formed based on Law Number 8 of 2001 (Fetters and

Freshwater, 2015). Pagar Alam City was included as

the Administrative City in the Lahat Regency.

Pagaralam city face the problems in the preparation

of the programs and promotional activities in the

tourism sector, the problems are the lack of human

resources, the planning/preparation of programs and

promotional activities that have not been effective,

and it has not oriented towards the results to be

achieved yet. From the purpose of this research, the

rationality of the research used a case study method.

A case study is a type of qualitative research

which finds the meaning, explore the processes, and

gain a deep understanding of individuals, groups, or

situations (Watson, 2015). The research type in this

research is the mixing method which is a combination

of quantitative research and qualitative research

(Fetters and Freshwater, 2015). A quantitative

research method in this research is systematic

scientific research on the parts, phenomena and their

relationships (Watson, 2015). The purpose of

quantitative research is to develop and use

mathematical models, theories and/or hypotheses

related to the natural phenomena. The qualitative

research method is a research method which is used

to examine the condition of natural objects, the

researchers are key of instruments, data collection

techniques carried out jointly, data analysis is

inductive, and the results of qualitative research

emphasize the meaning rather than generalization

(Gelling, 2015).

This study used several techniques to collect data,

such as:

 Interview. Interview is a data collection technique

which is used to get information extracted from

the data sources directly through conversation

(Gubrium and Holstein, 2012). The researchers

use the in-depth interview as an interview

technique. Determination of subjects to be

interviewed using expert/face analysis

techniques. This analysis is an interview with

competent experts or people directly related to the

preparation of programs and activities (Elmer and

Borowski, 2011).

 Documentation. Documents can be in the form of

writing, drawing, or monumental work from

someone in accordance with the research theme

(McLellan, et al., 2003). Research results from

interviews will be more reliable if supported by

documents in the past. The documents used in this

research are the Local Government Financial

Statements, Budget Realization Reports and

Budget Work Plans.

 Observation. Observation is observing and

recording the subject or event that is carried out

systematically (Olsen, 2012). The observation

was made directly on the object of research. Data

collection tools that can be used in making

observations are using anecdotal notes or more

popularly called observation forms. The type of

observation used was observational systematics.

This type of observation is commonly referred to

as frame observation. Before making an

observation, a framework is made first, regarding

various factors and characteristics that will be

observed.

In this research, checking the validity of the data

through credibility testing is a test of accuracy.

Credibility is a measure of the correctness of the data

collected, it describes the suitability of the

researcher's concept with the results of the research.

The researchers check the data credibility through the

completeness of the data obtained from various

sources (Zohrabi, 2013).

Triangulation is part of the data credibility testing

technique. Triangulation is a data collection

technique that combines various data collection

techniques and data sources. The purpose of

triangulation is to collect data and test the data

credibility. The technique used in triangulation by

checking data credibility through various data

collection techniques and various data sources (Fusch

and Ness, 2015).

 Source triangulation is a method used to obtain

data through different sources using the same

technique (Bryman, 2011). The triangulation of

sources to test the credibility of the data is

performed by checking the data obtained from

several sources. In this research, data testing

would be carried out to the Head of the Pagaralam

City Tourism Office, the Head of the Reporting

Section of the Pagaralam City Government

Regional Finance Agency and the Head of the

Bina Marga Section of the Pagaralam City

Government. The data that has been analyzed by

FIRST 2018 - 2nd Forum in Research, Science, and Technology (FIRST) – International Conference

the researcher would produce a conclusion, then

confirmed with the three data sources.

 Technical triangulation is the use of various data

disclosure techniques carried out to data sources.

Test the data credibility with different technical

triangulation (Denzin, 2012).

 Test the data credibility with time triangulation is

performed by collecting data at different time

(Bryman, 2011). Time difference often affects

data credibility.

Reviewing the credibility of the data with member

checking is the process of checking the data back to

the respondent regarding the validity of the data

obtained. The aim is to find out how far the data

obtained is in accordance with what is provided by

the data provider. If the data found is agreed upon by

the data provider then the data is valid, so it will be

more credible or trusted (Kalra et al., 2013).

In this research, researchers check the validity of

the data through credibility testing and transferability

testing. Credibility testing is a data accuracy test

which is collected by describing the suitability of the

researchers' concept with the results of the research.

The researchers examine the credibility of the data

through the completeness of the data obtained from

various sources (Gelling, 2015). The researchers

carried out the credibility test by using triangulation

techniques. The data collection with triangulation

techniques is a combination of various data collection

techniques and data sources. The purpose of

triangulation techniques is to collect data and to test

the credibility of the data at the same time. It is

checked with various data collection techniques and

various data sources (Kalra, et al, 2015).

Source triangulation is how to get data from

different sources with the same technique (Denzin,

2012). Source triangulation to test the credibility of

the data is done by checking the data obtained from

several sources. In this study, data testing will be

carried out to the Head of the Pagaralam City Culture

and Tourism Office SKPD and the Head of the

Regional Office of Revenue, Management, Finance

and Asset Management of the City of Pagaralam. The

data that has been analyzed by the researcher will

produce a conclusion, then confirmed with the three

data sources.

Technical triangulation is the use of various data

disclosure techniques carried out to data sources. Test

the credibility of the data with different technical

triangulation (Appleton, 2012). Time triangulation

tests the credibility of the data which performed by

collecting data at different times (Zohrabi, 2013).

Time difference often affects data credibility.

2.1 Member Checking

Reviewing the credibility of the data with member

checking is the process of checking the data back to

the respondent regarding the validity of the data

obtained. The aim is to find out how far the data

obtained is in accordance with what is provided by

the data provider. If the data found is agreed upon by

the data provider then the data is valid, so it will be

more credible or trusted (Birt et al, 2016).

2.2 Transferability Test

To make other people understand the results of

quantitative research, so it is possible to apply the

results of the research, the researchers in making the

report must provide a detailed, clear, systematic, and

reliable description.

2.3 Research Model

Figure 1: Research model scheme

2.4 Data Analysis Technique

The quantitative data analysis in this research was

carried out by assessing the increasing of the annual

OLGR derived from the retribution of the tourism

sector. The data analysis in a document form will

support the data analysis obtained through in-depth

interview processes.

The researcher used the qualitative data analysis

techniques with a thematic analysis approach to

analyze the results of the interview in this research.

Thematic analysis is a method which aims to analyze,

identify, and report the theme patterns in a data

(Braun and Clarke, 2016). In this research, the

researcher used the thematic analysis to analyze the

interview themes related to the preparation of the

program and activities of Pagaralam City

Government in empowering the tourism sector.

Thematic analysis steps in this research are data

recognition, coding, theme search, review of main

themes, discussion and naming themes, research

report writing (Hennink, et al., 2011).

The researcher will evaluate the results of

quantitative and qualitative data analysis using logic

models to see correlations between the sources,

activities, outputs, and results related to the specific

The Implementation of Multimedia in Tourism Promotion to Increase the Original Local Government Revenue (OLGR) of Pagaralam City

Government

situations (Longo, 2012) in (Febriantoko and

Febrianty, 2017).

3 RESULT AND DISCUSSION

3.1 Quantitative Data Analysis

The results of data collection through documentation

obtained Pagaralam City sector income conditions as

follows:

Table 1: Lodging and recreation retribution revenue

Year

Total of Lodging and Recreation

Retribution Revenue (Rp)

2016 550.711.000,00

2017 855.836.500,00

2018 (until

March)

258.200.000,00

Figure 2: Graphic of lodging and recreation retribution

revenue

The data above shows that the revenue of the

tourism sector retribution in Pagaralam City is

increasing. However, from the nominal value

obtained is less than the total revenue of Pagaralam

City OLGR, which is under 5%.

The results of this research indicate that this

research is not only seeing the growth of tourist visits

to the Pagaralam City but also evaluate the growth of

OLGR.

3.2 Qualitative Data Analysis

Based on the previous description, there were 3

informants in interview techniques, namely:

Informant 1: Head of Section for Highways and

Public Works and City Planning; Informant 2: Head

of Tourism Office; and Informant 3: Head of the

Regional Finance Agency Reporting Section. Based

on the results of the interviews that have been carried

out to informants, an analysis of the results of the

interviews with thematic analysis will be carried out,

the results are as follows:

 Supporting and obstacle factors of tourism

development.

"... Public Works Agency will build infrastructure

based on proposals from the public ..." (Informant

"... Not all communities and tea plantations want

to grant their land to tourism infrastructure ..."

(Informant 1)

"Pagaralam has a lot of megalithic tourism and

can attract international tourists ..." (Informant 2)

"... People feel that the tourist area is owned by

their ancestors, so they don't want to pay even

though it's cheap ..." (Informant 2)

From the results of the interview analysis with

informants, the researchers can conclude that the

supporting factor is the government is ready to build

tourism infrastructure, and Pagaralam has attractive

tourism destinations.

 Strategy carried out by Pagaralam City

Government to increase the OLGR of the tourism

sector

"... prepare the infrastructure for tourist locations

..." (Informant 1)

"... holding exhibitions outside the city, such as

Palembang ..." (Informant 2)

"... will analyze the OLGR potential of other

tourism ..." (Informant 3)

Based on the interview analysis above, the

researchers can conclude that the Pagaralam City

Government has carried out various strategies in

increasing the OLGR in the tourism sector, but it has

not had a significant impacts.

FIRST 2018 - 2nd Forum in Research, Science, and Technology (FIRST) – International Conference

 Tourism promotion strategy

"... the Public Works Agency will support and

carry out the development to the tourism area ..."

(Informant 1)

"... a superior agricultural exhibition outside the

Pagaralam city for example coffee ..." (Informant

"... empower local communities in managing

social media, such as the video community that

uses the drone ..." (Informant 2)

"... we don't have graphics experts working here

..." (Informant 2)

Based on the interview analysis above, the

researchers conclude that the Pagaralam City

Government does not have a digital and multimedia

tourism promotion focus because the human

resources are inadequate.

3.3 Evaluation with a Logic Model

Based on the results of documentation analysis and

interview analysis, evaluation of the correlation

between input, output process and outcome can be

carried out as follows:

 Input: The funds are still lacking, the multimedia

expert has not available yet, the community does

not obey the rules.

 Process: The implementation of government

promotion programs focused on the conventional

promotion

 Output: Direct output from promotional activities

has not been able to cover and attract international

tourists in the near future.

 Outcome: the logic model has not clearly seen the

future projections regarding to the development of

the tourism sector.

4 CONCLUSIONS

The Pagaralam City Government has implemented

various tourism promotion strategies but is still

focused on conventional promotional efforts. This

research is expected to be a reference for the decision

makers and government administrators in making

promotional strategies that have future projections

and focus on the results in accordance with the logic

model. There is no human resource capable of

carrying out promotions through multimedia,

especially motion graphics.

The Pagaralam City Government suggest to create

a promotional strategy that fits the current conditions

that are more efficient and effective with the logic

model approach. Use third parties in the form of

multimedia consultants, or local universities to carry

out digital and multimedia promotions, especially

motion graphic. Although this research is a

continuation of the previous multimedia usage in the

tourism promotion media but it is expected that the

next researcher will be able to expand the research

area.

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