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Economic Management of Income Earned by Cruise Ship Workers from Denpasar Municipality in Their Place of Origin

A.A Manik Pratiwi 1), Putu Diah Kesumadewi 2)

1Faculty of Tourism, Udayana University, Jl. DR.R Goris No.7 Denpasar. Phone/Fax: 0361223798

2Faculty of Tourism, Udayana University, Jl. DR.R Goris No.7 Denpasar. Phone /Fax: 0361223798

ABSTRACT

This study aims to identify the ways applied in the economic management of the income earned by cruise ship workers from Denpasar Municipality in their place of origin and to identify the benefits enjoyed by families of the cruise ship workers and their place of origin through the economic income management. This study examines the ways employed in the economic income management. This research took place in Denpasar Municipality of Bali Province. Samples were taken by the random sampling technique. The informants are cruise ship workers from Denpasar Municipality and their families. The thematic content analysis is applied in this study. The main findings of this study indicate that cruise ship workers have managed their income economically. They do so by investing their income to do a business, buy land, and build a boarding house. They also join Bali Seafarers Cooperative as a member. Their families enjoy many benefits with the economic income management by cruise ship workers.

Keywords: income management, economic, workers, cruise ships, and place of origin.

  • I.    INTRODUCTION & LITERATURE REVIEW

A. INTRODUCTION

Currently, most of the Balinese workforce working abroad prefer to work on cruise ships. By working on cruise ships, they can earn far more income than working in the tourism sector in Bali. The income earned from working on a cruise ship is used to meet their primary and secondary needs. By working on a cruise ship, in addition to earning a much higher income compared to working in the tourism sector in Bali, they can also travel abroad. However, apart from nice stories they have after working on a cruise ship, there are also the unfavorable ones. Some workers return home empty-handed because they were unable to save the salary they earned while working. Many cruise ship workers do not keep and send some of their money to Bali through government financial institutions because the government regulation which regulates this matter does not yet exist. So far there seems to be a tendency that workers working abroad do not spend their salaries wisely. As a result, their family in Bali and them, themselves will continue having financial difficulties when they no longer work on cruise ships. 1.2 Problems of the Study

Based on the background above, the formulated problems of the study are as follows:

  • 1.    How do cruise ship workers from Denpasar Municipality manage their income economically?

  • 2.    What are the benefits enjoyed by the families of cruise ship workers and their place of origin with the economic management of cruise ship workers’ income?

  • 1.3    Specific aims of this study are as follows:

  • 1.    To assess the economic income management of the cruise ship workers from Denpasar Municipality.

  • 2.    To assess the benefits enjoyed by the families of cruise ship workers and their place of origin with the economic management of cruise ship workers’ income.

  • 1.4    Urgency of the Research

The urgency of this research is to identify the ways employed in the economic management of cruise ship workers’ income so that the income can benefit their families and their place of origin. Hence, this research will be able to provide and develop economical ways of managing cruise ship workers’ income.

  • B.    LITERATURE REVIEW

Definition of Household Economic Management

Household economic management is an act of planning, executing, monitoring, evaluating and controlling the earning and use of family economic resources, especially the financial resources, in order to achieve an optimum fulfillment of the needs of all family members and ensure family economic stability and growth. The benefits of household economic management that are properly executed are as follows:

  • -    The economic needs of all family members can be met optimally;

  • -    The stability of family economic life is maintained; and

  • -    The family economy grows.

Definition of Remittance

Initially, the term ‘remittance’ referred to cash or goods sent by migrants to their place of origin, while they still reside at the place of destination (Connell et al., 1976). Eventually, this definition expanded, in that it did not refer to just money and goods, but also skills and ideas which are also classified as remittances to the place of origin (Connell, 1980). The skills gained from migrating experience will be of great benefit to migrants when they return to their home village later. New ideas also significantly contribute to the development of their home village, for example, work methods, how to create good homes and surroundings, and healthy living.

  • II.    RESEARCH METHODS

Research Design

This research is a type of research that uses a qualitative approach, which was conducted using the data collecting technique through direct observation, in-depth interviews, and questioner distribution. The presentation of the result of data analysis can be conducted either formally (in a tabular form) or informally (in a narrative form).

  • III.    DISCUSSION

Overview of Cruise Ship Workers

The need for professionals to be employed on cruise ships is very high. This is evidenced by the fact that every year many foreign cruise companies seek to hire. Workers from Bali who work on cruise ships are pretty high in number. This is because they have adequate abilities in terms of mastery of foreign languages and skills. All this time, Bali has been the main gateway in dispatching formal Indonesian workers to various countries all over the world. This has an impact on the prevention of protection risks and labor problems for Indonesian workers overseas.

Cruise Ship Workers’ Income

The cruise chip workers’ income varies. It starts from as little as US $1,700 to US $3,800 per month. Converted to Rupiah currency, it makes up to approximately IDR. 22,100,000 to IDR. 49,400,000 per month. The income varies according to the position held by the cruise ship workers.

Use of Remittances from Cruise Ship Workers

The salaries earned by cruise ship workers are used for home and sanggah (family shrines) construction, buying cars, and also for purchasing electrical appliances and furniture such as a sideboard, sofa, wardrobe, TV set, air-conditioning unit and parabolic antenna. As for newly hired cruise ship workers, the salaries earned are used for paying off the loan for their initial departure fees. Cruise ship workers’ income is also used for investment. A portion of the workers’ income is usually kept in savings accounts to be used for buying a plot of land and building a boarding complex. This investment is expected to become a source of income after the workers no longer work on cruise ships.

Economic Management of Income Earned by Cruise Ship Workers

The result of this study indicates that the income earned by cruise ship workers has been economically managed. Many cruise ship workers build a boarding complex business. A large portion of the income earned by cruise ship workers is spent on investments. These investments include self-managed and group businesses. Another business they invest in is Koperasi Pelaut Bali (Bali Seafarers Cooperative). The cooperative was established to manage the income earned by cruise ship workers.

Benefits of Economic Income Management Enjoyed by the Family

The economic income management yields a very positive impact for the family. In addition to benefiting from the business profits, families who take part in managing the business also have economic activities.

  • IV.    ACKNOWLEDGEMENT

Thank you to the parties who support the writing of this paper, both from LPPM and the Faculty of Tourism.

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