What tourism revenue means for conservation in Labuan Bajo

Labuan Bajo — Tourism in Labuan Bajo should return part of its economic benefits to protect the forests, water, sea and local culture on which the sector depends, an analysis published on 20 October 2026 said.

The analysis reported that Manggarai Barat’s receipts from hotel and restaurant taxes rose from Rp58.7 billion (about US$3.7 million) in 2022 to Rp285.2 billion (about US$17.8 million) in 2025, an increase of 386 percent. It said the growth raised questions about how much tourism income is returned to protect the natural resources that attract visitors.

The article said tourism financing for conservation should be permanent, transparent and linked to measurable results. It also said Manggarai Barat already has a legal basis for connecting tourism income with environmental and cultural protection.

Regional Regulation Number 4 of 2014 on tourism administration and management, particularly Article 41, requires the local government to allocate part of tourism income to protect nature and culture. The analysis said the rule does not mean all hotel and restaurant tax receipts can be used directly for conservation, because regional authorities also fund public services, development and public facilities.

The article said implementing rules are still needed to establish how funds are collected, allocated, managed and publicly audited. It proposed that the local government first calculate tourism receipts and conservation costs, including the needs of villages that protect forests and water sources.

Why tourism revenue matters for Labuan Bajo’s resources

The analysis used Wae Lolos village in the Mbeliling landscape as an example. The area’s hills and forest form a water-catchment zone for Labuan Bajo, while the village promotes a waterfall alongside agrotourism and cultural activities.

Data from Wae Lolos’ community tourism group showed 11,015 visits in 2024 and gross income of Rp107.4 million (about US$6,700). The group used Rp37.8 million (about US$2,400) for maintaining the tourism site, cleaning and social and cultural activities. The article said the village still had no dedicated environmental-protection fund because other needs were also urgent.

The analysis said the wider community, businesses and Labuan Bajo residents benefit from the forest, while villages around it carry much of the cost of protection and lose some opportunities to use land for gardens or other purposes. It argued that this imbalance supports compensation for communities that maintain ecosystems.

The proposed next step is a meeting between tourism villages, residents, businesses and relevant institutions to agree on funding sources and management arrangements. The analysis said tourism success should be measured not only by visitor numbers and revenue, but also by its ability to finance protection of the forests, water, sea and culture that underpin the destination. The proposal links the destination’s economic performance with the long-term condition of the resources that support tourism and local livelihoods.

Sources

• Floresa — independent analysis
• bpolbf.kemenpar.go.id