Design and Development of Hope Island Tourism Village as an Incentive Travel Destination in the Special Area of Jakarta, Indonesia

Yosi Erfinda*, Rinie Octaviany Hasan, Revi Agustin Aisyianita, Raihana Hafidzah Jumartin, Nardiin Jaumil, Naura Kamila

Travel Business Study Program, Faculty of Social Sciences, Jakarta State University, Rawamangun Muka Raya, East Jakarta City, 13220, Indonesia

*Corresponding Author’s Email: yosi.erfinda@unj.ac.id

Abstract

Incentive travel is a business strategy that companies use to motivate employees by encouraging them to travel to a specific destination. This is a unique and effective way to increase consumer motivation and interaction within the company. Indonesia was chosen as one of the top incentive destinations, also prioritising incentive travel as one of its economic driving engines. MICE (Meeting, Incentive, Convention, and Exhibition) destinations play an important role in the success of MICE activities, have strategic value in the right destination competitiveness, and are able to handle efficiently and effectively the changing and dynamic environment that surrounds the tourism industry. The advantages of the city of Jakarta as an incentive travel destination are not optimal, but the city of Jakarta has a tourist village that can be developed as a destination for incentive travel activities. Tourism villages as destinations have good accessibility, tourist attractions, community participation, stable security, accommodation, communication, and labour in the village, and tourist attractions are quite well known to tourists. This study uses TOWS (Threat, Opportunity, Weakness, Strength) as an analysis method to evaluate the condition of the Harapan Island area as an incentive travel destination in Jakarta. This study focuses on internal and external factors to determine the condition of the Pulau Harapan area to be considered as an incentive travel destination. The main informants include tourism awareness group academics, and experts in the field of MICE. These findings reveal that Harapan Island has tourism potential, with a comfortable transportation system, recreation, homestays, and diverse flora and fauna. This study shows that improving the condition of the Harapan Island area as an incentive travel destination can increase quality tourist visits.

Keywords: Incentive Travel; MICE; TOWS analysis; Tourist Destinations

Introduction

Incentive travel is one of the business scopes of the MICE (Meeting, Incentive, Convention, and Exhibition) industry, which offers a tourist travel program to a destination for companies to motivate their workers. Incentive travel It is an efficient way to apply many of the ideas and concepts found in value theory and the goal- setting view of valuable motivation if one pays attention to the relationship between effort and performance and believes in ability (Hastings, Kiely & Watkins, 2015). Another definition mentions incentive travel is a state-of-the-art management tool used to achieve unusual business goals by providing participants with an exceptional travel experience after they have achieved an unusual goal (Sheldon, 2008). Meanwhile, incentive travel, according to Rudatin and Wardhani (2024), explains incentive travel as a business trip because the overall budget for incentive travel comes from the company, and the recipient of the prize is a high-performance worker who has a big impact on the company. Furthermore, the incentive travel program consists of various activities that are usually carried out as expressed by Chinnakum, Saosaovaphak and Buranasiri (2017), among them accommodation, transportation, banquets, meetings, CSR, tourist attractions, and team building. Another opinion states that incentive travel is a decision-making process carried out by the company guided by individual/personal preferences. Based on SITE Global, 2019, Indonesia was selected as one of the top incentive destinations, also prioritising incentive travel as one of the engines driving its economy. However, the data does not specifically show which Indonesian destinations are targeted as incentive destination choices. The Indonesian Ministry of Tourism and Creative Economy said that Jakarta is one of the main MICE destinations in Indonesia (Ministry of Tourism and Creative Economy, 2023), although incentive travel is not a strong business in this city. Jakarta has a tourist destination of the Thousand Islands, but the demographic condition of Jakarta City, which is an urban area, can be said to make Jakarta not a favourite destination of choice.

Destinations in the MICE industry play an important role in the successful implementation of MICE activities, have strategic value in destination competitiveness, and are able to handle efficiently and effectively the changing and dynamic environment that surrounds the tourism industry (González-Rodríguez, Díaz- Fernández & Pulido-Pavón, 2023). Destination in MICE is also expressed by Crouch (2011) based on the resource capability of the comparative advantage objectives and the capacity to mobilise the resources of competitive advantage. Beyond its status as a country's capital, Jakarta plays a crucial role in determining whether its destination competitiveness in the MICE industry remains superior or lacks advantages. This, in turn, can significantly influence the interest in visiting Indonesia as a MICE destination. According to Bire, Conterius, and Nasar (2021), destination competitiveness is generally defined as the capacity of a destination to perform exceptionally in both product and service dimensions. The incorporation of destination references is emphasised as a critical factor in implementing incentive travel as one of the key performance indicators. According to Potgieter and Geldenhuys (2016), when choosing an incentive travel destination, there are five components to consider: attraction, accommodation, friendliness of local people, accessibility, culture, and food. Gilsdorf (2009) explains the same concept. Each important destination empowers its recreational, transportation, food & beverage resources, and tourist attractions.

Jakarta's advantages as an incentive travel destination are not optimal, but Jakarta has a tourist village which can be developed as a destination for incentive travel activities. The concept of a tourist village includes various services in the rural area, such as 1) accommodation, 2) local food, 3) vehicles, and 4) tourism activities that are available to visitors (Utami, Dhewanto & Lestari 2023).

Therefore, in determining the facilities and services of the event, it is necessary to have a comprehensive understanding of how the chosen destination affects the overall event (Handyastuti et al., 2023). According to data from the Indonesia Tourism Village Network, managed by the Indonesian Ministry of Tourism and Creative Economy, there were 31 tourism villages in Jakarta in 2022. These consist of 26 villages in urban areas and five in the Thousand Islands. One of the tourism villages in the Thousand Islands is Harapan Island, located in the northern region of Jakarta, which has significant potential to be developed as an incentive travel destination. Harapan Island offers extraordinary opportunities for this purpose. Its natural beauty, with its white sandy beaches, mesmerising coral reefs, and marine biodiversity, creates an attractive backdrop and presents a unique experience in the lives of the local community for incentive travel organisers. In addition, the existence of simple accommodation facilities such as homestays and residential lodging provides a unique lodging alternative for incentive travel participants. Having a diversity of cultures and traditions of the local community can be integrated into the incentive travel program, providing an opportunity for participants to experience the authenticity of local culture. Despite being part of the Thousand Islands, Harapan Island is relatively easily accessible from Jakarta. The existence of a port in the area allows the company to easily arrange sea transportation for incentive travel participants. The conditions described above aim in this study to design a model for the development of tourism villages on Harapan Island so that it can become an attractive and sustainable incentive travel destination.

Literature Review Incentive Travel

Business tourism, commonly called MICE (meeting, incentive, convention, and exhibition), as explained by Kononenko (2014), refers to people who travel for purposes related to their work. Business travel is seasonal, with people generally continuing to travel during the holiday season. However, business travellers are generally less flexible because they are tied to the agenda of activities (such as conferences), but nevertheless, this type of traveller provides Income is much higher because they are willing to pay more to buy products, given the inflexible schedules, and destinations can increase their multiplier effect because some business travellers use local services that demand much greater quality than leisure tourists (Buhalis, 2000). In fact, the trend of business tourism in the form of incentive travel has been widely discussed today for companies and their workers. Incentive travel, one part of MICE (meeting, incentive, convention, and exhibition), is the most important segment in travel and tourism (Huabcharoen & Viriyasuebpong, 2018). Even incentive travel involves a consolidation in travel for winners and business events for organisers who have paid for travel to motivate workers to, in turn, increase company loyalty and achieve sales goals (Lee & Chiang, 2017). Seebaluck, Naidoo and Ramseook Munhurrun (2015) describe incentive travel as a general management tool that provides exceptional travel experiences to reward employees for achieving improved performance levels in support of organisational or company goals. This is justified (Lichy & McLeay, 2018) as a major segment of business-related leisure, where it describes incentive travel as a hybrid because it is a type of fun leisure travel that has been financed for business reasons. Thus, the people in incentive travel are tourists, and the travel agenda is business. Even (Trusheva & Syzdykbaeva, 2018), incentive travel creates the greatest impact on the company's environment when providing premium travel programs to workers, including training with recreation, conferences with visits, congresses with participation in sports competitions, and seminars with visits to cultural events. Most of the tourist attractions on Harapan Island still focus on natural tourism, such as snorkelling, diving, and beach tours. There is no diversification of attractions that can attract different market segments, such as cultural tourism or education. This makes Harapan Island dependent on one type of tourism, so that its attraction becomes less extensive. All of the above, as it allows a company, which seeks to shape or enhance its image, to find the best way to establish strong bonds and create friendly relationships with customers and workers, because it is best to form a relationship of mutual trust in an informal setting.

Destinations of Incentive Travel

Incentive travel destinations refer to locations or places that are chosen as the destination of a company's event, usually as a form of reward or incentive for employees who have achieved certain performance targets or have made an outstanding contribution to the company. The design of these destinations aims to offer a unique, opulent, and significant experience, fostering motivation, fortifying team relationships, and rewarding employees for their accomplishments. As stated by Mair (2015), the factors identified in his research for selecting destinations are commonly used by decision-makers and meeting planners. These factors include (1) accessibility,

(2) local support, (3) additional support during the meeting, (4) accommodation facilities, (5) meeting facilities, (6) availability of information, (7) the meeting location's environment, and (8) other criteria. However, Giacomo (2012) noted that incentive travel planners do not regard destination accessibility as being as important as other meeting planners do. This may be because a certain degree of inaccessibility can make destinations more desirable, helping to differentiate incentive travel locations as unique and exclusive.

Tourism Village

Tourism village is the ability to describe tourism as more distinct and specific, making it a substitute and reduction of tourism patterns that are already known for their effects on the social and environmental aspects of tourist destinations (Nazura, Akbar & Safira, 2023). The understandings of tourism villages, also known as rural tourism, are: 1) location in a rural area that is a village is useful for open space related to nature, cultural heritage, and customs; 2) ratio of rural areas that have buildings and dwellings; 3) character and habits of the local community; 4) agricultural-based villages and small villages; 5) substitution of complex relationships of rural environment, economy, and history, and location (Maulana, Ulinnuha & Chandra 2021). Components of the tourism village presented (Soeswoyo et al., 2022), such as tourist destinations, accommodation and lodging, transportation facilities & services, other tourist facilities & services, and institutional factors, 2020.

Methodology

The research was carried out using the TOWS method (Threat; Opportunity; Weakness; Strength), a method of strategic analysis which involves a systematic and comprehensive assessment of external and internal factors that determine the current competitive position and capabilities in the growth of an organisation (Kulshrestha & Puri, 2017). Qualities in an organisation that are strong and weak can be seen in the various functions of their activities. External environment analysis is defined as the process used by the main strategic planner to evaluate external factors in order to identify opportunities or threats to the organisation.

In this study, it will begin with an analysis of internal and external factors in the selection of destinations for the implementation of incentive travel developed by Sood, Sajnani, and Gautam (2023) to find out the condition of the Pulau Harapan tourism village and whether it can meet the requirements of becoming an incentive travel destination as follows:

Table 1: Internal and External Factors in the selection of Incentive Travel destinations

Source: (Sood, Sajnani & Gautam, 2023)

As stated above, after identifying these internal and external factors, the data will be analysed using the TOWS matrix to provide an overview of appropriate strategies for Harapan Island as a tourist village destination for incentive travel organisers in Jakarta. According to the theory of motivation (Ihensekien & Joel, 2023), the hierarchy of needs is divided into five levels, ranging from the most basic to the highest needs. This framework can be applied to incentive trips in tourist villages, as the hierarchy of needs helps understand the motivations of employees or incentive trip participants. These levels include:

1. Physiological needs: Basic needs such as food, drinks, and shelter are primary concerns when selecting incentive travel destinations. The chosen tourist village must meet participants' physiological needs by providing comfortable accommodations and adequate dining facilities.

2. Safety needs: A sense of security, both physical and health-related, is also a priority. Tourist villages that are safe from natural hazards or crime and have adequate health infrastructure will be more attractive to participants.

3. Social needs: Incentive travel often aims to strengthen relationships among employees. Tourist villages that facilitate social interaction through group activities or engagement with local communities are more likely to appeal to participants by addressing these social needs.

4. Reward needs: Participants in incentive travel often seek recognition and rewards. Destinations offering memorable and exclusive experiences, such as awards or special welcome ceremonies, enhance their satisfaction.

5. Self-actualisation needs: Some companies design incentive trips to promote personal and professional growth. Tourist villages that offer educational, training, or community-based activities provide opportunities for participants to meet their self-actualisation needs.

Furthermore, Rasoolimanesh et al. (2019) suggest that individual characteristics, such as sociodemographic and sociopsychological factors (e.g., motivation, values, confidence, and lifestyle), play a significant role in influencing participants' preferences for specific tourist destinations. Demographic factors, as noted by Kara and Mkwizu (2020), also affect the choice of destinations, with findings indicating a relationship between these factors and participation in tourism activities. For instance, increased leisure time and disposable income enable people to engage in outdoor activities. Additionally, different age groups have varying needs and preferences. Younger participants may favour destinations offering adventure activities and physical challenges, while older employees may prefer relaxing and educational experiences in tourist villages.

Participant

The informants for this study were recruited from POKDARWIS (Tourism Awareness Group) Pulau Harapan, incentive planners working in Jakarta, and experts in the field of MICE who served as key informants. When defining a population for a research project, key informants should recognise the various ways their perspectives contribute to the research (McKenna & Main, 2013). The experts included individuals involved in MICE, such as professionals from Incentive House Jakarta and Bali, as well as academics specialising in this field.

Results and Discussion

Existing condition of Harapan Island

The concept of tourism villages as incentive travel destinations aligns with the principles of sustainable tourism, which emphasise environmental conservation, local economies, and community participation. Developing tourism villages as incentive destinations incorporates sustainability into tourism management. Juliana, Sihombing & Suwu (2023) highlight the importance of supporting local communities in managing their natural resources responsibly and sustainably while also offering tourists the opportunity to immerse themselves in local nature and culture without causing environmental harm. The design and development of tourism villages as incentive travel destinations will begin with an analysis of internal and external factors in the selection of destinations for incentive travel implementation, as proposed by Sood, Sajnani, and Gautam (2021). This analysis will assess the condition of the tourist village, Hope Island, and determine whether it meets the requirements to become an incentive travel destination based on the results of IFE and EFE analyses.

Table 2: Matrix of Internal Factor Evaluation

Source: Primary Data, 2024

Based on the IFE matrix in Table 2, after calculation and analysis, it was found that the most influential strength factor for an incentive travel destination on Harapan Island is accessibility, with a total strength score of 2.26. Meanwhile, the most prominent weakness factor is the lack of local cuisine that represents the destination. The total number of weaknesses after the calculation is 1.61. According to Morris, Dwyer and Mulligan (2020), local food can draw in travellers who are passionate about food and specifically seeking an exceptional local culinary experience. From the two, it was found that the strength was greater than the weakness of 2.26.

Table 3: Matrix of External Factor Evaluation

Source: Primary Data, 2024

Based on the EFE matrix in Table 3 after calculation and analysis, it is known that the most influential opportunity factors for incentive travel destinations on Harapan Island are the demographic value of easy-to-reach locations and tourism activities that are integrated with conservation; the total calculation obtained is 3.5. Potgieter and Geldenhuys (2016) posited that the tourist destination serves as the cornerstone of all incentive travel activities, encompassing the essential components of tourism such as tourist attractions, infrastructure, hospitality, and services. Meanwhile, the most prominent threat factor to incentive tourist destinations is the need for hierarchy. Mair (2015) suggests that there are only three basic needs: existence (related to security and physiological needs). However, Harapan Island needs to improve its tourist facilities, and security must be enhanced, as these basic needs are essential for tourists in the context of tourism. The total number of threats, after calculation, is 0.46. From both threats and probabilities, it was found that the opportunity factor was greater than the threat of 1.65.

Development Model of Harapan Island Tourism Village as an Incentive Travel Destination

Source: Primary Data, 2024

Figure 1: TOWS Matrix Quadrant

The results of the External Factor Evaluation (EFE) Matrix and Internal Factor Evaluation (IFE) Matrix indicate that Harapan Island falls within the first quadrant, signifying a promising opportunity to be developed as an incentive travel destination. This quadrant represents a strategic position, as it combines strengths with opportunities. The findings suggest that incentive travel actors, including Tourism Awareness Group should focus on substantial growth initiatives, as the Harapan Island tourist destination possesses the strengths and opportunities required for development. This indicates that the Harapan Island Tourism Village is well-positioned to become a leading incentive travel destination in the Special Region of Jakarta.

Based on the results of the IFE and EFE analysis studies, the Harapan Island Tourism Village is outlined in several development strategies that need to be determined as incentive travel destinations through SWOT analysis, namely:

1. Harapan Island is located in the Thousand Islands, which is within the Jakarta area. The location is very strategic—just a few hours’ drive from the centre of Jakarta. This provides easy access for tourists and internationals, especially for those located in Jakarta for incentive travel activities. The distance is only ±2 hours, easily reachable via sea transportation from several companies in Jakarta, such as Marina Ancol Port and Muara Angke Port. There are transportation options ranging from ferries to fast speedboats, so tourists can choose according to their needs. Also, Harapan Island has many great opportunities to be developed as an incentive travel destination. Many large and multinational companies are located in Jakarta. The company's current trend is often looking for a location that is close and also offers easy accessibility without the need to travel far from Jakarta, making it an ideal choice for incentive travel programs with a more efficient budget and shorter travel time.

   
   

2. W-O (Weakness and Opportunity) strategy, which is a strategy that minimises weaknesses by taking advantage of opportunities. The W-O strategy forms as follows:

   a. Harapan Island has limitations in accommodation facilities, restaurants, and other services, which can be an obstacle. This has the potential to reduce the experience for incentive travel participants who expect high-quality service. According to accommodation data obtained from the chairman of POKDARWIS, there are 90 homestays in 2023 managed by local communities. However, the accommodation found is only homestays with a limited number of lodgings; tourists may have difficulty finding a place to stay that suits their preferences and budget. This can reduce the attractiveness of the island as a tourist destination. According to Gilsdorf (2009), providing luxury accommodation for tourists is an exclusive travel incentive that can meet their needs through new activities. Although Pulau Harapan offers homestay accommodation, it lacks additional facilities such as swimming pools, spa services, and recreational activities, which could diminish its appeal to tourists. To develop Pulau Harapan, investors have the opportunity to build or improve accommodations that can comfortably accommodate large groups, such as villas or cottages, attract companies that bring many tourists with travel incentives, and add additional amenities to existing accommodation, such as swimming pools, restaurants, and recreational activities.

   
   

3. S-T (Strength and Threats) strategy, which is a strategy that uses Strength to overcome Threats. The forms of ST strategy are:

   
   

   Harapan Island is surrounded by rich coral reefs and diverse marine life, making it an ideal place for diving and snorkelling activities. Tourists can enjoy stunning views of colourful marine life as well as diving experiences in locations that are still preserved in their naturalness and cleanliness. As a destination for tourism preservation, Harapan Island is a habitat for various types of tropical fish, molluscs, and others. Tourists can see rare and unique species that can only be found in a healthy and well-maintained marine ecosystem, making the diving and snorkelling experience even more exciting. And Harapan Island has several famous diving spots, such as shipwrecks and hidden locations that only experienced divers know about. This spot offers different challenges and beauties, suitable for divers with a variety of skills. The threats that occur on Harapan Island are often filled with waste that is not properly managed. This creates an unsightly view and can reduce tourist attractions. Tourism villages may not have adequate facilities to manage and recycle waste, thus creating problems in waste collection and processing.

   
   

4. W-T (Weakness and Threats) strategy, which is a strategy that minimizes Weakness and avoids Threats. The WT strategy takes the following form:

1. The limitations of many food stalls may still serve traditional recipes without the variety or innovation that appeals to tourists who want a unique culinary experience. Local food is a culinary dish that shows the characteristics of a tourist destination and the values that exist within the destination (Krisnanda, Respati & Supriadi, 2021).

   
   

2. Then, the limited skilled workforce in the culinary field can hinder the quality and creativity of cuisine, making it difficult to serve dishes that are in accordance with international standards. Many other tourist destinations offer more diverse and easy-to-know culinary experiences. This can distract tourists from the local cuisine of Harapan Island.

Conclusion

The development of the Harapan Island Tourism Village as an incentive travel destination involves (1) creating tour packages that incorporate team-building activities like snorkelling and diving, with the aim of enhancing employee relationships. This package can offer a complete experience, including underwater exploration and visits to interesting spots on the mainland; (2) providing training for culinary business actors to improve the skills and creativity of local food on the Island of Hope; (3) managing cleaning activities to involve companies, the local community, and tourists in maintaining cleanliness. (4) Conducting training on homestay management and improving service standards for tourists; and (5) Arranging a flexible sea travel schedule to Harapan Island in order to choose the best time to hold incentive travel activities. However, the limitations of this study can be found in the results of the incentive travel destination development model, which employs the TOWS analysis model. This model only interprets one research object using IFE and EFE factors to map the existing conditions in incentive travel destinations. Therefore, there is an opportunity for future researchers to perform an evaluation of the tourism village development model as an incentive travel destination.

Limitations

The findings of this study may be influenced by the method of confirmation, which relies on a limited group of key informants, including members of the Tourism Awareness Group, local community representatives, and experts. This approach could affect the generalizability of the results. Additionally, the research is constrained by the lack of available quantitative data, such as statistics on the number of incentive travel tourist visits to the Island of Hope, which could have provided more robust insights.

Conflict of Interest

The authors are declaring that he has no conflict of interests.

Acknowledgement

The authors are thankful to the institutional authority for the completion of the work.

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