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CONTENTS

1. Accounting Practices for Carbon Credits of ASEAN Countries 1-16A. Rattanaphan, P. Parnphumeesup, P. Lakkanawanit &A. Kongrungchok

2. Co-Production and Local Governance Development 17-31Anchana Saengkaew and Sataporn Roengtam

3. Agile Project Management as One of the Critical Success Factors in 33-50Project Risk Management in Machinery Industry in Slovakia

Daniela Hilčíková, Monika Dohnanská,Daniel Lajčin, Gabriela Gabrhelová

4. Islamic Values in Sustainable Tourism: An Applicable Methods 51-60Ahmad Yunus Mohd Noor, Asmilyia Mohd Mokhtar,Zaizul Ab Rahman, Sabri Mohamad Sharif,Kamarudin Salleh and Najwa Amalina Abdul Wahab

5. Analysis of a Water Treatment in the EU Countries and Slovakia as a 61-79Part of Environmental Policy

Ižová, K., Počiatková, M., Hilčíková, D.

6. Main Tourism Sectors in Malaysia: A Contribution Towards 81-88Economic Growth

Ahmad Yunus Mohd Noor, Asmilyia Mohd Mokhtar,Sabri Mohamad Sharif, Ahmad Sunawari Long,Zaizul Ab Rahman & Najwa Amalina Abdul Wahab

7. Moderating Role of Trust between eWOM Communication and 89-99Purchase Intention

Musab Kamal Alharbi, Yuhanis Abdul Aziz,Raja Nerina Raja Yusof & Abu Bakar Abdul Hamid

8. Chinese and German Management Accounting and Controlling 101-122Practices Analyse

Michaela Počiatková, Daniela Hilčíková

9. Touch-based System and Development of Braille Writing System 123-132Ahmad Yunus Mohd Noor, Asmilyia Mohd Mokhtar,Sabri Mohamad Sharif, Zaizul Ab Rahman,Mohd Najib Abd. Kadir & Mazlan Ibrahim

10. Digital Nomads Tourism in Bali 133-145Agung Suryawan Wiranatha, Made Antara,Agung Cahyawan Wiranatha, Putu Saroyini Piartrini,Ida Bagus Gde Pujaastawa & I Gusti Ayu Oka Suryawardani

COMMUNICATIONS ON STOCHASTIC ANALYSISVOLUME 13 NUMBER 8 SPECIAL ISSUE 2019

11. The importance of contribution from tax paid in revenue structure of 147-152Slovak non-profit organizations

Jaroslav Mazanec, Viera Bartosova and Erika Kovalová

12. The Effects of Board Composition and Ownership Structure on 153-163Earnings Quality

Hiroshi Uemura

13. Identification Tourism Products and Services Provided at the Rural 165-181Tourism Destinations in Bali

I Gusti Ayu Oka Suryawardani, Agung Suryawan Wiranatha,I Gusti Raka Purbanto and Vilas Nitivattananon

Communications on Stochastic AnalysisVol. 13, No. 8 (Special Issue 2019), 133-145

DIGITAL NOMADS TOURISM IN BALI

AGUNG SURYAWAN WIRANATHA, MADE ANTARA, AGUNG CAHYAWAN WIRANATHA,PUTU SAROYINI PIARTRINI, IDA BAGUS GDE PUJAASTAWA AND

I GUSTI AYU OKA SURYAWARDANI

ABSTRACT: The development of tourism is significantly influenced by thedevelopment of digital technology. This new development leads to a new tourismtype, known as Digital Nomads Tourism, which is a combination of two activitiesnamely digital nomads with tourism. The number of digital nomads is estimatedto reach 4.8 million in America in 2018 (MBO Patrtners Inc., 2018), and someexperts estimate the number of digital nomads to be more than 1 billion peoplein 2035 (WYSE Travel Confederation, 2019). Ubud and Canggu in Bali areamong the most popular destinations in the world as hub for digital nomads.This study aims to: (i) identify the characteristics of digital nomads who livetemporarily in Bali, (ii) analyze their perceptions of Bali as a tourism destinationfor digital nomads, and (iii) develop criteria the appeal of destinations for digitalnomads. This research was conducted in two popular tourism destinations inBali, namely: Ubud and Canggu. This study uses a qualitative approach withinterview and survey methods using questionnaires, and is supported byappropriate literature review. Data analysis was performed by descriptivestatistical analysis and descriptive qualitative description. The results of thefirst year research showed that for the development of digital nomads tourism inBali, we must pay attention to the pull factors for digital nomads in choosingtheir destination destinations, namely: (a) affordable living costs, (b) availabilityof adequate amenities, (c) community hospitality; and (d) many variations ofweekly events are offered.

Keywords: co-working, co-living, internet, tourism destination, Ubud, Canggu,Bali

Introduction

Background

Global tourism has been developing rapidly in the past decade, in addition tourismhas become one of the fastest growing industry across the globe. UNWTO highlights(2018) announced that the number of international tourist arrivals have been elevatedfor 7% in 2017, reaching over 1.32 billion or 84 million greater than the number in2016. Tourism has also become the motor to develop the world economic to raisethe country�s National Income, creating employment opportunities, and providingincome. Furthermore, UNWTO Highlights (2018) have mentioned that tourismhas create 1.6 trillion US$ in 2017.

Centre of Excellence in Tourism Udayana University, Bali, Indonesia1Corresponding Author: [email protected] [email protected]; [email protected]

134 AGUNG SURYAWAN WIRANATHA, MADE ANTARA & ET AL.

Indonesia�s tourism has significantly rise due to the number of internationaltourists who comes to Indonesia reach 14.04 million visitors or increasing 21.44%comparing to year 2016. The number of international tourists during 2018 havebeen elevating and reaches 15.81 million people. The national income for tourismreached 13.5 billion US$ in 2016. National income from tourism held the secondtop rank below crude palm oil (CPO) with the amount US$ 15.9 billion. In 2017,national income from tourism reached US$ 16,8 billion (fakta.news, 2017).

Tourism has long time being the major sector for the economy in Bali whichable to stimulate the other sectors. Tourism in Bali become more popular andbecome the top rank as the world most famous tourist destination in 2017 aboveLondon (second rank) and Paris (third rank) according to trip advisor (2017). In2017, the number of foreign tourists who directly come to Bali was 5,697,739people(Bali Province Tourism Office, 2018). Bureau Centre of Statistic Bali Province(2019) mentioned the total number of tourists who visited Bali in 2018 was6,070,473or increasing 6.54% from 2017. The total of foreign tourist who visitedBali contributed 38.4% of total foreign tourist who visited Indonesia in 2018.

Development of digital technology and information plays a great role for thedevelopment of the world tourism. Digital communication technology throughinternet commonly applied for the tourism development, especially for the tourismmarketing which include promotion and transaction for tourism business (Mechaetal., 2019; Bhaskara and Sugiarti, 2019; Ritchi, 2018).Breakthrough of digitalcommunication technology via internet have changed the promotion transactioncycle which majorly occur between the tourist and the tourism industry (businessto costumer) without middle man (travel agent) (Karisma et al., 2019).

The development of digital technology has not only utilized by tourism industryto aid and fasten the services for the tourists and increasing the accountability of theservice providing company, however tourists can use the digital technology to increasetheir working effectivity and productivity while enjoying the tourist destination.Nowadays, internet seems to be difficult to release internet from daily life. Thisinclude occupation. It could not be denied that internet can create many jobopportunities. This situation creates many freelance workers such as writer, dataentry, designer, programmer, and many more. Furthermore, long distance work usinginternet create changes towards mindset of the youth nowadays. They don�t feel thatregular job required, because freelance job can create income to support their dailylive. This kind of phenomenon becomes more popular throughout the presence oftourist which are freelance workers. These people are called the digital nomad.

Ikhsanti (2017) states that digital nomad is a term for those people who do notstay in a certain place for long time and work in long distance by using internet.These digital workers working in several business sectors just by using smartphoneas well as laptops. Certainly, they must provide themselves with internet connectionto do their work. These digital nomads can do their works in their living place suchas hotels and apartments. However, several of them decide to work in coffee shopor restaurants while enjoying foods and view. That is the reason why tourist spotsin Bali are filled with young people from around the world searching for restaurantand co-working space with Wi-Fi access.

DIGITAL NOMADS TOURISM IN BALI 135

Novriandi (2017) states that there are five benefit of being digital nomad: (i)Independent location, (ii) Simple to initiate working mood, (iii) Unlimited Creativity,(iv) Flexible working time and Coworking space support. The development createsnew tourism model which known as Digital Nomads Tourism which is thecombination of two activities digital nomads and tourism. Digital nomads areindividuals who does not depend on fixed working area and special rooms forworking, however the only things required by them is high quality internet connectionto assist their work (Makimoto and manners, 1997; Dal Fiore et al., 2014; Mohn,2017; Koeswologito, 2018). Even though difficult to predict, their numbers canreach 4.8 million people in the United States (MBO Partners Inc., 2018) severalexperts predict the number of digital nomads can reach more than 1 billion peoplein 2035 (WYSE Travel Confederation, 2019). Ubud and Canggu are amongst thepopular destination worldwide as a hub for digital nomads (Koeswologito, 2018a).Tourism market which targeting the digital nomads is a new market opportunityeven though the amount and contribution are still insignificant toward localeconomics, however early preparation should be performed.

According to Leiper (1990) and Mill and Morrison (2009), to create sustainabletourism, maintaining tourist satisfaction and ensuring to gain good experience andincreasing tourist awareness about tourism sustainability (UNEP, 2010; UNWTO,2010). To be able to provide satisfaction for the tourist during accommodatingdigital nomads tourist market, several aspects such as characteristics, perception,and satisfaction of the digital nomads tourist towards the Bali tourist destination,therefore anticipation of their requirements so they choose Bali as their favouritetourist destination.

According to the backgrounds above, digital nomads is potential as a futureaspect for Bali tourism in the future, however preparation for that aspect has notbeen performed and require preliminary study. Research about digital nomadstourism has not been done in Bali and Indonesia.

Purpose of The Study

The purpose of this study:

1. Identify the characteristic of digital nomads

2. Analyze perception of the digital nomads tourists who live temporary inBali

3. Synthesize destination ideal criteria for digital nomads tourist.

Research Method

Research Framework and Approach

Bali tourism is famous due to the culture uniqueness, art, local wisdom as well asthe polite local society which are supported by natural landscape and the beachesin Bali. With the presence of various tourist facilities with international standardhas made Bali to become one of the favourite tourist destination which canattract tourists for revisit. Bali tourism can enhance the other sectors in Bali,


furthermore it can elevate the income for the society in Bali as well as providingjob opportunities.

Digital technology trends as well as tourism trends amongst millennials whichare highly dynamics creating new trends as known as tourism by digital nomadswhich involve millennials professionals who are working outside the office, thereforethe digital nomads searching for location which they consider to be comfortable towork and meet the other digital nomads. However, nowadays the potential ofdigital nomads has not taken attention of the tourism industry in Bali compared toother tourism such as marine tourism, sports tourism, wellness tourism, and spiritualtourism. By conducting this research, the writers can identify the presence ofdigital nomads tourists in Bali more clearly so planning for the policy to increasethe visiting number of digital nomads to Bali.

This research using qualitative approach with interview method and survey withquestioner and supported by appropriate previous study. The data analysis performedby descriptive statistic analysis. Several factors which is studied in this research are:

1. Characteristic of digital nomads tourist who live temporary in Bali.

2. Perception of digital nomads tourist towards Bali tourism destination.

3. Ideal criteria of a certain destination for digital nomads tourists.

Research Time and Location

This study was held from May-October 2019 in two different tourist destination inBali which are: Ubud and Canggu (Kuta). The research location was chosen due toseveral reasons such as:

1. Bali and Thailand are the only amongst ASEAN country which is thefavourite for digital nomads (Conaway, 2017).

2. For Bali, only Canggu and Ubud which has been categorized as popularspot for digital nomads (Koeswologito, 2018a).

3. Similar research has not been conducted in Bali.

Respondents and Informants

The respondents of this research is the digital nomads who is living temporary inUbud and Canggu. The total respondents of this research are 50 people touristswhich is categorized as digital nomads. This number is selected because the totalpopulation of digital nomads has not been noted in Bali, so the minimalrespondentsfor this research is 30 respondents as the minimum requirement forsocial research. The selection of the respondent used purposive accidental sampling,where respondents are digital nomads in the research location.

Meanwhile, informant in this research is the manager or the owner of the co-working space or digital nomads in Ubud or Canggu. In this research, the informantonly four people.

Types and Source of Data

The types of data which are gathered in this study divided into quantitative andqualitative data. Quantitative data is data in form of number which includes the


total of hub for digital nomads in both destinations (Ubud and Canggu), the totalof tourist visiting, length of stay, and other data supporting the research.

The source of data is from primary and secondary data. Primary data wasgathered by questioner which has been prepared for digital nomads as well as deepinterview to the owner of the informant who owned or organize the co-workingspace.

Methods of Gathering Data

Data gathering was performed in several methods as follow:

1. Literature review, gathering data and information about digital nomads,hub for digital nomads and other tourism information related to digitalnomads.

2. Questioner which was given to the digital nomads tourist in the researchlocation.

3. In-depth interview with the owner or manager of the co-working spacewhere the digital nomads do their activity.

Data Analysis Method

Data analysis for the research Digital Nomads Tourism in Bali was performed bydescriptive statistical analysis to explain the output of the statistical analysistherefore the characteristic and perception of the digital nomads who live temporaryin Bali can be determined, and ideal criteria for digital nomads will be arranged.

Research Results and Discussion

Overviewof The ResearchLocations

Digital nomads tourism research was carried out in two well-known tourism areasin Bali, namely UbudandCanggu.

Ubud

Ubud is a very famous tourist destination in Bali. Foreign tourists interested invisiting Ubud because of vibration of art and culture in daily life of community inUbud area which has madeforeign tourists feel happy staying in a typically traditionalvillage of Bali.Natural beauty of landscape in Ubud area has also made foreigntourists want to stay longer in Ubud. Rice field terrace can also be seen in the areaof Ubud supported by surrounding green area which can improve the beauty ofrural atmosphere. Ecotourism can also be found in the area of Ubud, namelyMonkeyForest which attract tourists to visit this place. Other attraction that can be foundin Ubud are white water rafting tours, Ubud castle, Ubud market and many galleries,paintings and museums. In addition,Ubud is famous as centre of artists. Traditionaldance performance is held every night in some places which can make more interestedatmosphere in the evening to attract tourist who enjoy their time.

The Ubud area has been famous for Western tourists since the 1930s. Painterfrom Germany, Walter Spies and from Holland, Rudolf Bonnet used to live in


Ubud. They were welcome by Cokorda Gede Agung Sukawati, from Puri AgungUbud. At the moment, their painting collection can be seen at the Puri LukisanMuseum.

Hubud, a Digital Nomads in Ubud

Hubud is a place in Ubud where digital nomads gather which provides spaces towork as like office for digital nomads. Hubud provides high speed internet connectionwhere the working environment is design for individual work or group work. It alsoprovides good scenery with the scenery of rice field as well as fully air-conditionedmeeting room with LCD projector and whiteboard.

Hubud also provide access for digital nomads to be the member includingHubud online community, H-pass discount card, storage locker, skype room andcanteen. Hubud is not only as co-working space, but also as co-living and co-giving.As a co-living, Hubud also provides accommodation facilities and others facilitiesfor those who lives in Ubud.

Hubud is also as a co-learning where hubud provides various events to increaseknowledge, facilitate career and gaining experience. Hubud also provides co-givingwhich combine social works with entrepreneurship to support local business in Ubud.

Co-giving program facilitate both benefit interaction between businessmanwith local communities. Hubud members take role in supporting the co-givingprogram which bring benefits for the local community. This program also initiatesmembers to learn new skill and providing new knowledge.

Hubud become the place where digital nomads community gather. Friendshipas well as experience will be gained by them in Ubud because they create connectionamongst them in Ubud. Hubud also place to collaborate to make innovation increative business.

Canggu

Canggu is a coastal area in the southern part of Bali which is surrounded by ricepaddy. Several famous beaches in Canggu including Canggu beach and Echo beachwhich has great waves for surfers around the world. Canggu has many goodaccommodations starting from star hotel, villa, non-star hotel and homestay. Cangguhas close distance with Seminyak where luxurious shop and restaurants are located.

Canggu has developed after the development of tourism in Kuta beach, Legianand Seminyak. Many tourists who previously lived in Kuta, Legian and Seminyaknowadays prefer to live in Canggu. They assumed that the price in Kuta, Legianand Seminyak are rising nowadays. Canggu became more popular due to the placeof living of expatriate who induce the development of the Canggu. As a result,Canggu grows rapidly and become coastal tourist destination which still have avillage atmosphere alternative to Kuta, Legian and Seminyak.

Dojo-Bali Co-working in Canggu

Dojo Bali is very famous co-working space which lies in a short distance from EchoBeach, Canggu. Canggu�s big name as popular tourist destination greatly assist


Dojo Bali to become popular amongst tourists. Dojo Bali identic with co-workingBali where they use the facility to collaborate and participating in programs.

Dojo Bali co-working is aninternational and local community who are motivatedto learn and collaborate by using working place and high-speed internet connection.Working in Dojo creates productive atmosphere with great access to fresh air.Furthermore, digital nomads in Dojo receive experience to create connection andstarting business with other digital nomads.

Dojo Bali co-working space consist of two stories building with modern facilitieswith six fibre optics, private skype room as well as fully air-conditioned meetingroom. Swimming pool as well as tropical garden also support this Dojo Bali co-working space. Dojo Bali also provides canteen and café with various menus.

Co-living also provided by Dojo Bali similar to Hubud. Accommodation providedby Dojo Bali only five minutes from the Dojo Bali where the digital nomads canlive temporarily during their stay in Bali. The accommodation in Dojo Bali hasbeen designed to be comfortable as private houses.

Figure 1: Facilities and Accessibility Dojo Bali co-working space.


Characteristic of Digital Nomads Tourist

Country Origin

Country origin of digital nomads comes from Australia (13.6%), Germany (13.6%),United Kingdom (9.5%), United States (7.7%), Netherland (7.3%) and France(6.4%). The rest of the digital nomads comes from Czech (4.1%), Poland (3.2%),Russia (3.2%), Canada (2.7%) and other countries 25.9% as shown in Figure 2.

Figure 2: Percentage of Digital Nomads Respondent Based on Country Origin

Age

Majority age of respondent in the range 26-55 years old (68.8%). Followed by touristswith age group 16-25 years old (23.6%) and 56 years old above (7.7%) (Figure 3).

Figure 3: Percentage of Respondent Based on Age


Sex

Digital nomads tourists respondent dominated by male (54.6%) rather than female(45.6%). The difference between male and female is 9.2% (Figure 4).

Figure 4: Percentage of Respondent based on Sex

Visiting Periods

First visit to Bali dominated the respondent of the digital nomads tourist (73.6%),followed by more than fifth visit (10.5%), second visit (9.5%), third visit (3.2%),fifth visit (2.3%), and fourth visit (0.9%) (Figure 5).

Figure 5: Percentage of Respondent based on Visiting Periods


Perception of Digital Nomads Tourists Towards Ubud and Canggu

Several factors which act as full factors that cause digital nomads come to Ubudand Canggu as place for co-working and co-living. Full factor is a specific touristsdestination attribute. Several full factors owned by destination so it can accommodatethe needs of the tourist�s candidate are as follow:

1. Weather.

2. Suitable access to the touristy spot including internet access.

3. Tourist Attraction. Every destination has its own tourist attraction whichinclude the nature, culture and the people.

4. Amenities can be one of the requirements for tourists who will live longerin a certain area. This includes accommodation, food and beverage.

5. The involvement of tourism institution to support tourist destination socan be more suitable to visit. This institution aspect may include securityaspect which can induce convenience for the tourists.

6. Natural as well as man-made environment.

7. Travel services and advertising retails as well as wholesale marketing.

8. Special event.

9. Company Incentive.

10. Visiting friends and relative.

11. Souvenir.

12. Low cost goods.

According to interview with the digital nomads in Hubud and Dojo Bali, thereason they choose Ubud and Canggu as destination for co-working and co-livingare as follow:

1. The popularity of Bali as famous world tourist destination, therefore theyfeel like working while holiday.

2. Simplicity to receive visa (visa free or visa on arrival) as well as extensionof visa in Bali.

3. Affordable cost of living, relative cheaper than their country of origin.

4. Amenities provided for co-living and co-working with affordable price.

5. Easy access to International airport, good internet access.

6. Various weekly events by Huud and Dojo Bali.

7. Polite and friendly community of local people in Ubud and Canggu so theyfeel convenience to live there.

Conclusion

According to the research, can be conclude that:

1. Bali is already well known as place for digital nomads, therefore tourismfor digital nomads can be developed and promoted more serious.


2. Two popular destination for digital nomads are Ubud and Canggu. Openfor developing other destination in Bali.

3. For developing digital nomads tourism in Bali, pull factors must be concernto attract digital nomads such as: a) affordable live expenditure, b)availability of suitable amenities, c) friendly community, d) various weeklyevents.

Acknowledgement

Gratitude and appreciation to Rector of Udayana University, Lembaga Penelitian dan PengabdianMasyarakat (LPPM) Universitas Udayana, for the funding of this research. Gratitude also deliveredfor the surveyor who assist this research by collecting data of the Digital Nomads

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