An Assessment of Sustainable Tourism Development in North

Sumatra

Kalu Kingsley Anele

Research Fellow, Cultural Heritage Preservation Research Institute,

Pusan National University, Busan, South Korea.

Keywords: North Sumatra, Lake Toba, sustainable tourism, government, private sector, local communities.

Abstract: This paper aimed to critically assess the existence of sustainable tourism development in North Sumatra, using

Lake Toba as a case study. This became imperative given the plethora of art-crafts, cultural heritage, and

tourist destinations that exist in North Sumatra. The methodology used in achieving this objective included

data analysis, dialectical review of existing literature, and SWOT analysis of tourism in Lake Toba. The

findings of the study revealed that despite the tsunami of art-crafts and cultural heritage in North Sumatra,

many factors including lack of effective enforcement of government laws, policies and regulations, and

funding limitations impede sustainable tourism development in the region. Also, private sector participation

and investments and local community assistance were inadequate. This paper suggested a tripartite model

involving the joint efforts of the government, the private sector, and the local communities in introducing,

strengthening, and maintaining sustainable tourism development in Lake Toba. Consequently, the government

must introduce and effectively enforce laws, policies, and regulations that would establish a friendly

environment that would strengthen sustainable tourism in Lake Toba. Additionally, the active participation of

the private sector and the contributions of the local communities are instrumental in introducing,

strengthening, and maintaining sustainable tourism in Lake Toba.

1 INTRODUCTION

North Sumatra is one of the provinces in Indonesia

with a plethora of cultures, cultural heritage, tribes,

and art-crafts. For example, Lake Toba (Danau Toba)

is a cultural heritage site, while ulos is an art-craft that

is common in the region. Moreover, tourism plays a

cardinal role in the development of North Sumatra.

Data reveals that foreign tourists that visited North

Sumatra increased from 229,288 in 2015 to 231,465

in 2018 (Lake Toba: World’s Largest Volcanic Lake,

2019. Compare and contrast with the data in Table 1

below). It is significant to note that the increase in the

number of foreign tourists that visited Lake Toba,

from 2014 to 2019, with its attendant increase in

foreign exchange earnings, is in part because of the

government’s vision and strategy to bolster tourism in

North Sumatra (see Figure 1 below). The import of

these data is that tourism contributes to the economic

development of North Sumatra through - inter alia -

job creation, foreign exchange earnings, and

infrastructure development. At the central level,

tourism is a veritable mechanism introduced by the

present government to achieve economic

diversification and growth in Indonesia (Ollivaud &

Haxton, 2019).

According to the World Trade Organisation

(WTO), sustainable tourism development entails

meeting the needs of contemporary tourists -

including the host communities - at the same time

“protecting and enhancing opportunity for the future.

It is envisaged as leading to management of all

resources in such a way that economic, social, and

aesthetic needs can be fulfilled while maintaining

cultural integrity, essential ecological processes,

biological diversity, and life support system”

(Sustainable Tourism Development in UNESCO

Designated Sites in South-Eastern Europe). A cursory

look at the above meaning of sustainable tourism

shows that it engenders meeting the expectations of

tourists and the prospects of the tourist destinations

while protecting the natural environment.

Despite the importance of tourism in the

economic and socio-political development of North

Sumatra as revealed by the above data, many factors

impede the introduction, management, and

Anele, K.

An Assessment of Sustainable Tourism Development in North Sumatra.

DOI: 10.5220/0010306200003051

In Proceedings of the International Conference on Culture Heritage, Education, Sustainable Tourism, and Innovation Technologies (CESIT 2020), pages 207-218

ISBN: 978-989-758-501-2

 2022 by SCITEPRESS – Science and Technology Publications, Lda. All rights reser ved

207

strengthening of sustainable tourism development in

the country. For instance, it is common knowledge

that inadequate funding by the government affected

sustainable tourism development in North Sumatra in

terms of training of artisans and employees in the

tourism sector and other related sectors, procurement

of modern facilities, infrastructure development, and

engendering conducive environment for investment

in the sector (Anele, 2020; Tanjung & Hutagaol,

2019; and Sutono, et al, 2018). In addition to

inadequate private sector participation, the

implementation of government laws, policies, and

programmes in relation to tourism has been

ineffective. There is also a dearth of foreign direct

investment (FDI) and the contributions of the local

communities to the preservation of cultural heritage

items and locations, art-crafts products, and tourist

sites are inadequate (Anele, 2019a; Singgalen, et al,

2019; Hulu, et al, 2019; Haan, 2018; and Cholik,

2017).

Against this backdrop, the purpose of this paper is

to highlight the importance of tourism and measures

to introduce, manage, and strengthen sustainable

tourism development in North Sumatra. Lake Toba is

used as a case study. Therefore, the paper briefly

discusses the tribal make-up, cultures, cultural

heritage, and some tourist destinations in North

Sumatra, focusing on Lake Toba and sustainable

tourism. Afterwards, by dialectically analysing

primary and secondary materials like literature on

tourism in Lake Toba, data, laws, policies, plans and

SWOT analysis table, the paper interrogates the

introduction of sustainable tourism development in

Lake Toba. It further addresses the challenges in its

introduction and management, and assesses measures

for its enhancement. It is observed that the

government plays a central role in introducing,

managing, and strengthening sustainable tourism

sector in Lake Toba. Unlike previous literature, this

paper adopts a tripartite model involving the joint

efforts of the government, the private sector, and the

local communities to underscore the importance of

introducing, managing, and strengthening sustainable

tourism development in Lake Toba in today’s

digitalised and globalised society. In other words, the

paper reiterates the significant role the joint efforts of

the government, the private sector, and the local

communities plays in introducing and bolstering

sustainable tourism development in North Sumatra in

contemporary society.

2 CONCEPTUAL

CLARIFICATIONS

2.1 A Brief Assessment of Tourism in

North Sumatra

Aside from being the 7th biggest province by regional

gross domestic product (GDP); there are about 14

million people with a growth rate of 1.8 per cent per

year in North Sumatra, Indonesia (Lake Toba:

World’s Largest Volcanic Lake, 2019). Additionally,

income per capita is approximately 44 million

Indonesia Rupiah (IDR) (approximately 3,007 USD)

per year and employment rate is at 70 per cent with a

low minimum wage level of under 2 million IDR

(approximately 137 USD) per month in North

Sumatra (Lake Toba: World’s Largest Volcanic Lake,

2019).

North Sumatra is made up of the Batak and

Malayu peoples with different art-crafts and cultural

heritage, customs, traditions, norms, including

natural heritage destinations as succinctly portrayed

in Figures 5-12 below. Take, for example, the Batak

ethnic group comprises Toba, Karo, Pakpak and

Simalungun. Note that Mandailing - which was part

of the Batak - has become a separate tribe. Some of

the art-crafts, cultures, and cultural heritage that play

key roles in North Sumatra tourism include Batak

Toba traditional house (see Figure 11 below), ulos,

padung-padung, close-knit family system, kinship,

and communication with the ancestors through

symbols (Anele, 2019b).

In light of the foregoing, according to the cultural

milieu of the Batak; ancestors, plants, animals, and

inanimate objects - such as craft items - are

considered to possess souls that could be compelled

or lured into action by male priests. Indeed, this has

influenced the features of art-crafts in Batak. This is

a significant characteristic of tourism in North

Sumatra (Anele, 2019b). Put differently, the making

as well as the symbolic nature of art-crafts in North

Sumatra is greatly influenced by ancestral and cosmic

beliefs, including belief in nature.

Another unique future of the cultures and cultural

heritage of the Batak is the decoration of the Batak

traditional architecture, which has been enhanced in

Toba (see Figure 11 below). The Batak Toba

traditional house is decorated with ornaments (gorga)

made up of wood or metal carvings and paintings.

From Figure 11 below, the shapes of the gorga are

inspired by the geometric shapes of humans, plants,

natural objects, celestial objects and animals. The

uniqueness of the gorga and the design of the Batak

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Toba traditional house are central to tourism in North

Sumatra as foreign tourists are attracted to their

unique, aesthetic, and symbolic representations and

shapes (Anele, 2019b).

Evidently, gorga has spiritual and symbolic

meanings, such as the expression of faith, belief,

emotion etc. A case in point, a carving in the form of

a person riding a horse - hoda-hoda - symbolises

greatness (Anele, 2019c). Another example is that a

painting or carving of a lion - singa-singa -

symbolises the law of justice and truth (Anele,

2019c). Beyond the gorga, the architectural design of

the Batak Toba traditional houses is influenced by

environmental factors. Lending credence to this

point, it should be noted that the Batak are

geographically located close to Lake Toba, which is

prone to volcanic eruptions, flooding and animal

invasion. Consequently, the architectural design of

the Batak Toba traditional houses suggests that it is

structured to prevent or reduce the effect of these

environmental factors on the inhabitants of these

traditional houses (Anele, 2019b and Figure 11

below).

Some of the cultural heritage destinations that

boost tourism in North Sumatra include but not

limited to Bagas Godang Pidoli Dolo, Mandailing;

Tongging Tourist Village, Karo; Huta Siallagan

Village, Samosir (see Figure 11 below); Sianjur

Mulamula, Samosir (Historical & Culture); and Bukit

Lawang, a small tourist village on the other side of

the Gunung Leuser National Park known as the centre

for the rehabilitation of orang-utan (Indonesia Tour

Planner, Natural Wonders, and Historical & Culture).

Given the existence of many cultures, art-crafts,

cultural and natural heritage locations in North

Sumatra; tourism becomes a lucrative industry in the

region (Anele, 2019b and Hind).

More importantly, 12.1 million domestic tourists

and 231,465 foreign tourists visited North Sumatra in

2018 (Lake Toba: World’s Largest Volcanic Lake,

2019). This means that tourism not only culminates

in financial benefits to the region but also creates

employment for the artisans and the indigenous

peoples in North Sumatra. Besides, foreign tourists

increasingly visit the region for its attractive and

popular tourist destinations, like Lake Toba, Samosir

Island and tropical rainforest of Sumatra (Tropical

Rainforest Heritage of Sumatra, 2003 and Figure. 1 &

5 below) and also to enjoy the local cuisines (Chairy

& Syahivar, 2019). Similarly, due to the geographical

location of North Sumatra, coastal tourism

development and other hospitality management

sectors, like hotels, resorts, restaurants, food industry,

beaches, among others, contribute to the tourism

development of the region (Noor & Muzambiq and

Figure 4 below).

2.2 A Brief Assessment of Tourism in

Lake Toba

In Indonesia, North Sumatra is among the leading

tourist destinations and it has 339 tourist attractions

spread across its 33 municipalities (Jaya, 2019).

Whereas 120 of the tourist destinations in North

Sumatra have been promoted and marketed, Lake

Toba remains the tourist attraction that is promoted

and marketed for its natural beauty and it is the

bastion of tourism in the region (Jaya, 2019 and

Figure 12 below). Illustratively, the government used

the vision of making Lake Toba a prime “super

volcano Geopark” and strategy of connectivity and

bolstering tourism institutional development through

Lake Toba Tourism Authority to increase the number

of foreign tourists in Lake Toba (see Figure 1 below).

Historically, Lake Toba has always occupied a

strategic position in the Indonesian tourism industry.

It is located at the highland of North Sumatra, 176

kilometres (km) to the West of the region’s capital,

Medan (Azmi, et al, 2018). Lending credence to this

point, some of the developing spots in Lake Toba -

like Parapat - had been made as resorts by the colonial

authority, whilst in the post-colonial period, some

spots - for example - Tomok, developed to cater for

foreign tourists, especially because of the provision

of high-class accommodation (Lumbanraja, 2012).

Jaya (2019) remarks that the beauty and affluent

natural resources of Lake Toba attract tourists.

Beyond its tourism propensities, Lake Toba is used as

the source of electricity power plant, drinking water

processing, and fish farming (Jaya, 2019). In their

own view, Tanjung and Hutagaol (2019) opine that

one of the important characteristics of Lake Toba that

attracts foreign tourists to the Lake is the cleanness of

the water. And Azmi, et al (2018) observe that Lake

Toba’s blue water, gracious community, fascinating

Batak cultures, and beautiful sceneries, which are

shown in Figures 5-12 below, attract foreign tourists

to the Lake.

Aside from the iconic Batak Toba traditional

architecture (see Figure 11 below), there are other

cultures and customs of the people of Batak Toba who

inhabit the Lake Toba area that appeal to foreign

tourists. For instance, in relation to kinship, people

are seldom referred to by their real names; instead,

substitute names, like angkkang for elder brother,

anggia for younger brother etc., are used

(Simanjuntak & Sarjono, 2012). Moreover, the

existing cultures and customs of the Batak create the

An Assessment of Sustainable Tourism Development in North Sumatra

209

platform for the indigenous people to familiarise

themselves with the visiting foreign tourists who are

also intrigued by the peculiar and unique cultural

heritage of the local people. As a result, foreign

tourists enjoy Lake Toba and its beautiful environs

and are curious about the sociocultural lives of the

indigenous people of Batak. The implication is that

foreign tourists admire the indigenous people

working in the fields and fishing in the Lake.

One of the highlights of such sightseeing is the

explanation of the salient cultural differences and

meanings among the local communities to foreign

tourists by experienced tourist guides (Simanjuntak &

Sarjono, 2012). In addition to the above, the

recognition of Geopark Kaldera Toba by the United

Nations Education, Scientific and Cultural

Organization (UNESCO) contributes to the foreign

exchange earnings of Indonesia and strengthens the

introduction and management of sustainable tourism

development in Lake Toba (Azly, 2018).

Ranked 40th in the Travel and Tourism

Competitiveness Index in 2019, Lake Toba is one of

the four special priority tourist destinations

designated by the Indonesian government to boost the

country’s tourism industry (Lake Toba: World’s

Largest Volcanic Lake, 2019. See Figure 1 below).

Lake Toba is the largest volcanic lake in the world,

the second largest lake in the world, and one of the

deepest lakes in the world, with a depth of about 500

meters deep (Lake Toba: World’s Largest Volcanic

Lake, 2019). On account of its features, Lake Toba is

a “huge historical and archaeological patrimony.

A diversified tourism supply (eco-rural tourism,

nature and local culture and ethnic)” (Marpaung, et

al, 2016 and Figure 12 below). The significance of

Lake Toba in tourism development in North Sumatra

is further strengthened by the establishment of Toba

Caldera Resort. This resort incorporates natural,

heritage, leisure, and community tourism in Lake

Toba, thereby facilitating the introduction,

management, and strengthening of sustainable

development in North Sumatra (Lake Toba Tourism

Development Investment Opportunities).

In terms of tourism and economic importance,

1,000,000 foreign tourists visited Lake Toba in 2019,

with a growth of 53.85 per cent and foreign exchange

of US$ 525, 000,000 and it has been projected that in

2021 - barring the effect of COVID-19 - the number

of foreign tourists visiting the Lake will be 2,560,000,

representing a growth of 60 per cent and foreign

exchange of US$1,344,000,000 (91,850 USD) (see

Table 1 and Figure 1 below). Furthermore, in 2019,

Lake Toba contributed 346 trillion IDR (23,648,818

USD) to the GDP, 16 trillion IDR (1,093,001 USD)

in foreign exchange earnings, and 300,000 jobs to

North Sumatra (Tourism Development Investment

Opportunities: Lake Toba.)

2.3 Overview of Sustainable Tourism

Given the importance of tourism in North Sumatra, it

becomes imperative to introduce sustainable tourism

industry in the province. Consequently, informed

participation of relevant parties and strong political

leadership are needed to achieve wide participation

and consensus in realising sustainable tourism

development in the region (Hind). Additionally,

sustainable tourism can be attained through a

continuous process that requires “constant

monitoring of impacts, introducing the necessary

preventive and/or corrective measures whenever

necessary” (Hind).

More importantly, the existence of sustainable

tourism implies an enhanced level of tourism

satisfaction through meaningful experiences,

protection of the environment, raising the awareness

of tourists “about sustainability issues and promoting

sustainable tourism practices amongst them” (Hind).

In all, it is imperative to state that sustainable tourism

development represents tourism in terms of

globalisation, digitalisation (smart tourism etc.),

natural disasters, and the spread of diseases. Thus, the

introduction and enhancement of sustainable tourism

in Lake Toba will facilitate the strengthening of

tourism in the region in the era of digitalisation (smart

tourism, internet of things (IOTs), virtual realities

(VRs) and augmented realities (ARs)); social media

platforms; globalisation (Western education, foreign

cultures, religion etc.); natural disasters (volcanic

eruption, tsunami, typhoon, etc.); and the outbreak of

diseases (SARS, MERS, Ebola, COVID-19 etc.).

3 METHODOLOGY

The methodology and tools adopted in achieving the

above objective include a dialectical review of

existing literature, data analysis, and SWOT analysis

of tourism in Lake Toba. The data analysed are

contained in the ‘Figures’, and ‘Tables’ below.

Thereafter, a dialectical review of literature on

sustainable tourism in Lake Toba as well as a

discussion about the limitations as contained in some

of the ‘Figures’ and ‘SWOT analysis table’ below is

undertaken. The data, ‘Figures’, ‘Tables’ and

literature on Lake Toba were obtained from books,

journals, laws, regulations and online sources. These

primary and secondary materials were dialectically

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210

analysed. In closing this section, it is imperative to

state that the location of the research is Lake Toba,

North Sumatra, Indonesia.

Figure 1: Vision and Strategy for Lake Toba.

Source: “Tourism Development Investment Opportunities: Lake

Toba”,<http://indonesiainvestmentforum.info/wp-

content/uploads/2017/04/Lake-Toba-Investment.pdf>.

Figure 2: Sipinsur Geosite, Lake Toba.

Source: K. Lemon & R. A.R.A Hamid, 2018, 2.

Figure 3: Foreign Tourists’ Expenditure.

Source: Ollivaud & Haxton, 2019, 11.

Figure 4: Potential Attractions and Amenities.

Source: Tourism Development & Investment Lake Toba, North

Sumatra, Indonesia, 2018, 21.

Figure 5: Tropical Rainforest Heritage of Sumatra.

Source: Tropical Rainforest Heritage of Sumatra, 2003.

Figure 6: Highland Nature: Sampuran Putih Waterfall.

Source: Natural Wonders, 10-11.

Figure 7: Natural Wonder: Natumandi Cave.

Source: Natural Wonders, 14.

An Assessment of Sustainable Tourism Development in North Sumatra

211

Figure 8: Natural Wonder: Linting Lake.

Source: Natural Wonders, 22.

Figure 9: Simamora Island.

Source: Natural Wonders, 26-27.

Figure 10: Sejarah Beach.

Source: Natural Wonders, 73.

Figure 11: Huta Siallangan Village.

Source: Historical Culture, 10-11.

Figure 12: Lake Toba.

Source: Natural Wonders, 16-17.

Table 1: Performance & Projection for International

Tourist Visitors for Lake Toba.

Source: “Tourism Development Investment Opportunities: Lake

Toba”,

<http://indonesiainvestmentforum.info/wp-

content/uploads/2017/04/Lake-Toba-Investment.pdf> .

Table 2: International Tourist to North Sumatra 2012-2017.

Source: Tourism Development & Investment Lake Toba, North

Sumatra, Indonesia, 2018, 14.

Table 3: Indonesian Tourism Competitive Index Compared

with Association of Southeast Asian Nations (ASEAN)

Countries.

Source: A Promising Investment Destination Indonesia’s

Ecotourism, 2019, 16.

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212

Table 4: International Arrivals to Southeast Asia 2010,

2015 and 2020.

Source: ASEAN Tourism Marketing Strategy 2017-2020, 2017,

19.

3.1 SWOT Analysis of Lake Toba as a

Tourism Destination

Strength

1. Government policies

2. Government

regulations (land, PPP,

funds etc.)

3. Availability of tourist

sites

4. Rich cultures

5. Availability of

cultural heritage

6. Availability of

artisans

Weakness

1. Lack of funds

2. Inadequate

infrastructure

3. Absence of

preservation facilities

and mechanisms

4. Limited PPP & FDI

5. Limited

participation by local

communities

Opportunity

1. Availability of

resources

2. Population

3. Existence of the art-

craft industry

4. Existence of the

creative industry

Threat

1. Regional

competition

2. Inadequate training

of artisans

3. Natural disaster

4 DISCUSSION

4.1 Introduction of Sustainable

Tourism in Lake Toba

According to Fig. 1 and Tables 1 & 2 above, the

number of foreign tourists that visits North Sumatra,

including Lake Toba has increased, with its attendant

economic importance to Indonesia. It is one of the 10

designated priority destinations in Indonesia (Hind).

Lake Toba has features of both cultural (cultures of

the indigenous people) and natural (environment)

attractions (Azmi, et al, 2018 and see Fig. 4 above).

Using human resources as a case study, education,

training, and skill acquisition contribute to

entrenching a sustainable tourism development

(Hind). Due to the nature of the environment in

which it is located, especially the existence of an

island (Samosir Island) in the middle of the Lake; the

introduction of sustainable tourism in Lake Toba

becomes inevitable (Marpaung, et al, 2016).

Indonesian government laws (regulations) and

policies play a significant role in introducing,

managing, and strengthening sustainable tourism in

Lake Toba. For example, President Regulation (2014)

relates to Lake Toba management in terms of

comprehensive action towards a sustainable

ecosystem (see also Government Regulation, 2009

and Lukman, et al, 2019). These laws are

instrumental in the introduction and management of

sustainable tourism development in Lake Toba.

Therefore, the effective implementation of these laws

is critical in the maintenance of sustainable tourism in

Lake Toba.

Additionally, the Indonesian government policies

to use tourism to enhance the country’s economy, like

the 10 Bali (Mohd, 2017) and the support for cultural

heritage preservation (Hind) contribute to the

introduction, management, and strengthening of

sustainable tourism development in Indonesia, in

general, and North Sumatra, in particular. These

policies involve infrastructure development, the

protection of the environment, including cultural

heritage destinations, and the adoption of

environmentally friendly approaches to tourism and

the art-craft industry in Indonesia. Consequently,

these policies immensely contribute to sustainable

tourism development in Lake Toba. Illustratively, the

existence of laws and policies enhances infrastructure

development, which is crucial in introducing

sustainable tourism. More so, laws and policies

facilitate and culminate in the expansion and

accessibility of the internet to the local communities

where most of the tourist destinations are located.

This will trigger the marketing and sustainability of

these tourist sites, with its ripple effect of attracting

more foreign tourists to Indonesia: Lake Toba.

Given the importance of tourism in the economic

development of Indonesia, the government of

Indonesia introduced plans and programmes that will

strengthen tourism - which is also crucial in

sustainable tourism development - in Lake Toba (see

Fig. 1 above). A cursory look at some of these plans

reveals that they not only align with the tourism

policies of the government but also create a

mechanism to introduce, manage, and maintain

sustainable tourism development in Lake Toba. For

An Assessment of Sustainable Tourism Development in North Sumatra

213

instance, since the prioritisation of tourism in

Indonesia, the national government has introduced

the Medium-Term Development Plan (RPJMN) for

2015-2019, the Long-Term National Development

Plan (RPJP), and the Long-Term National Tourism

Development Plan (RIPPARNAS) for 2010-2025 to

bolster tourism in the country (Ollivaud & Haxton,

2019). It is observed that the Indonesian government

has put in place laws, policies, and programmes that

would create an enabling environment for the

introduction and management of sustainable tourism

development in Indonesia, especially in Lake Toba

area.

4.2 Factors That Affect Sustainable

Tourism Development in Lake

Toba

Some of the challenges in introducing, managing, and

strengthening sustainable tourist development in

Lake Toba are inadequate funds either from the

government or from the private sector, the problem in

land acquisition, limited infrastructure, lack of basic

amenities, inadequate foreign investment,

competition from neighbouring countries,

vulnerability to natural disaster, and inadequate

education, training, and skill acquisition by artisans

and officials of other tourism-related sectors

(Muryani, et al, 2020 and Tourism Infrastructure

Financing: Government Strategy and Creative

Financing, 2018).

In view of the foregoing, owing to inadequate

funding by government and limited private sector

participation, some of the tourist destinations in Lake

Toba are not well maintained and preserved. For

example, Fig. 2 above shows that Sipinsur Geosite is

in ruins due to natural elements - like rain - without

any effort for its restoration. The implication of the

lack of maintenance and preservation of tourist

destinations is a reduction in the number of foreign

tourists visiting the sites (Fig. 3, Tables 3 & 4 above

show that Indonesia ranks very low compared to other

countries captured on the charts).

As stated earlier - in the SWOT analysis - regional

competition among other ASEAN countries impede

the actualisation of sustainable tourism development

in Indonesia. Buttressing the above point, Tables 3 &

4 above shows that Thailand, Malaysia, Singapore,

and Vietnam have a comparative advantage over

Indonesia in terms of health and hygiene,

environmental sustainability, safety and security,

human resources and labour market, ground and

infrastructure, and tourist service infrastructure.

Moreover, a study has revealed that customer

satisfaction increases customer loyalty, which implies

that when tourists are satisfied by a tourist

destination, they tend to patronise that particular

tourist site (Azhar & Jufrizen, 2017). Thus, tourist

locations that are not properly and adequately

maintained may lose their attractions to foreign

tourists.

Furthermore, the development of infrastructure,

facilities, and services are impeded by limitations in

land acquisition and ownership by private investors

(Delita, et al, 2019). Additionally, the issue of human

rights and recognition of the owners of the land in

Lake Toba area (Na Opat people) where the

government is building a slew of infrastructure - like

roads - creates tension between the government and

the indigenous people, thereby impeding sustainable

tourism development in the province (Jong, 2020).

This conflict has lingered on despite the introduction

of land regulations to loosen and quicken land

acquisition and expand the entities that can acquire

land for infrastructure development in Indonesia

(Presidential Regulation, 2016). Due to the

difficulties in land acquisition in Indonesia by the

private sector, the provision and management of

modern amenities, infrastructure, and building of

potential tourist destinations shown in Fig. 4 above

are affected.

4.3 Measures to Enhance the

Introduction of Sustainable

Tourism in Lake Toba

The government of Indonesia (including those at the

regional and local levels) play a major role in the

maintenance of sustainable tourism development in

Lake Toba. This can be achieved through adequate

funding of the tourism sector, providing an enabling

environment where the private sector and the local

community would play contributory roles in

sustainable tourism development in Lake Toba. Thus,

effective implementation of government laws,

policies, and programmes are critical to entrenching

sustainable tourism development in Lake Toba. For

example, the introduction of the policy for water

management in Lake Toba through the Presidential

Regulation No. 81/2014 and the Government

Regulation No. 28/2009 relating to water pollution

load capacity on lakes and/or reservoirs is a step in

the right direction (Lukman and Governor of North

Sumatra Decree, 2017).

Again, the effective implementation of the

Presidential Regulation No. 38/2015 on public-

private partnership (PPP) would strengthen the

private sector participation and FDIs in the tourism

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214

sector of the region. Above all, laws are indispensable

in the creation of agencies and institutions that are

saddled with the responsibility of introducing,

managing, and strengthening sustainable tourism in

Lake Toba. For instance, the Presidential Decree 49

of 2016 was enacted to establish the Lake Toba

Tourism Authority, which plays a role in sustainable

tourism development in Lake Toba.

The impact of PPP and FDI in tourism in Lake

Toba cannot be overemphasised. For instance, the

provision of funds, building of infrastructure, and

investment in the tourism sector (see Fig. 4 and the

Strength and the Opportunity in SWOT analysis

Table above) in Lake Toba can be enhanced through

PPP and FDI where the government has provided a

friendly environment for private sector investment

(Ministry of Finance Regulation, 2018; Saragih,

2018; Ministry of Finance Regulation, 2016; Ministry

of Finance Regulation, 2016; Ministry of Finance

Regulation, 2012; and A Brief on Current Indonesia’s

PPP Program). Thus, the private sector should engage

in the provision of online advertisement of Lake Toba

and other tourist destinations in North Sumatra etc.

These facilities are essential in introducing

sustainable tourism in Lake Toba. Given the fact that

information and communication technology (ICT)

(Das, et al, 2016) is a significant factor in tourism in

Lake Toba, access to fast internet plays a key role in

sustainable tourism development in the region

(Annual Report 2017).

Beyond the creation of an enabling environment

by government and the contributory role of the

private sector, the local communities also play a

supporting role in the introduction, management, and

strengthening of sustainable tourism development in

Lake Toba. This can be achieved through concerted

efforts towards preserving and maintaining tourist

sites, cultural performances, the exhibition of local

fashion and culinary dexterities - among other things

- by the local communities (Revida & Purba, 2018).

In addition, the local communities are instrumental in

the safety and security of tourist locations in Lake

Toba. In view of that, members of the local

communities where these tourism sites are located

could ensure the safety and security of their

communities by being vigilant to activities that are

taking place in their localities and making sure that

the tourist locations are thoroughly cleared of debris,

especially during holiday seasons when there is an

increase in the number of tourists visiting these

locations.

The local communities must be involved in

driving sustainable tourism policy in Lake Toba given

the cultural, religious, social, and economic

importance of these tourist destinations to the

indigenous peoples. In light of that, laws have been

enacted to bolster the contribution of the local

communities in introducing, managing, and

strengthening sustainable tourism development in

Lake Toba. For illustrative purposes, the Government

Regulation of the Republic of Indonesia No. 72 of

2005 concerning villages, in article 15, stipulates that

Village Government is under obligation to manage

the potential of the village in terms of achieving the

objectives of laying out authority in the

implementation of village autonomy. The objectives

include - inter alia - improving people’s welfare,

equity and justice, democracy and respect for local

culture, and to observe the potential and diversity of

the region (Law No. 32 of 2004 concerning Regional

Government). Simply put, local communities are

enjoined to manage the cultural potential and

prosperities of the communities - in this regard -

tourism potential and prosperities of sustainable

tourism in Lake Toba.

Above all, in its quest to contribute to knowledge,

this paper argues that the amalgamation of the efforts

of the government, the private sector, and the local

communities in Lake Toba area - through laws and

policies - and their simultaneous implementation

would substantially enhance the introduction,

management, and sustainable tourism development in

the area. For instance, the outbreak of COVID-19 and

its impact on tourism in Indonesia have shown the

significance of government intervention through

laws, policies and programmes, the support of the

private sector, and the cooperation by the local

communities in reducing the spread of the virus,

while sustaining the tourism industry in the country

(Indonesia Multi-sectorial Response Plan to COVID-

19, 2020; Coronavirus (COVID-19): SME Policy

Responses, 2020; and Regulatory Updates Due to the

Impacts of COVID-19, 2020).

5 CONCLUSION

The introduction, management, and strengthening of

sustainable tourism in North Sumatra are in line with

the Indonesian government economic blueprint to use

tourism as a vehicle for economic development as

well as to diversify the country’s economy from over-

reliance on natural resources (oil and gas). Using

Lake Toba as a case study, the introduction of

sustainable tourism in Lake Toba, through laws,

regulations, policies, and programmes indicates the

promotion of the use of environmentally friendly

tourism mechanisms that culminate to the protection

An Assessment of Sustainable Tourism Development in North Sumatra

215

of the environment while creating job opportunities

for the indigenous peoples. Also, sustainable tourism

in Lake Toba entails, inter alia, manpower training

and development, provision of basic amenities,

infrastructure development, adequate funding of

tourism and related activities, adoption of smart

tourism, accommodation of globalisation, and

readiness to manage the tourism sector in spite of a

pandemic: COVID-19. Using the SWOT analysis

mechanism, analysis of primary and secondary

materials, the factors that impede sustainable tourism

development in Lake Toba like inadequate funding

and lack of infrastructure were identified and

subsequently examined; while measures to introduce,

manage, and enhance sustainable tourism

development in Lake Toba were dialectically

interrogated. The paper reveals that the government

plays a crucial role in sustainable tourism

development in Lake Toba through the creation of a

conducive environment for private sector

participation, provision of funds, and human

resources development. Beyond the contributions of

government, the private sector, through the provision

of funds, among others, and the local communities

facilitate sustainable tourism development in Lake

Toba. Thus, the joint efforts of the government, the

private sector, and the local communities would

culminate in the introduction, management, and

maintenance of sustainable tourism development in

North Sumatra. Government laws and policies also

create an enabling environment for the

implementation of a tripartite model in introducing,

managing, and strengthening sustainable tourism in

North Sumatra. In closing, given the plethora of

cultures, cultural heritage and art-crafts in North

Sumatra, introducing as well as strengthening

sustainable tourism development would culminate

not only in the creation of job opportunities in the

region but also the socio-political and economic

development of Indonesia.

ACKNOWLEDGEMENT

This research was supported by the Ministry of

Education of the Republic of Korea and the National

Research Foundation of Korea (NFR-

2019S1A2A3096992).

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