INNOVATION OF TRANSPORTATION INFRASTRUCTUREFINANCING SCHEME IN TOURISM DEVELOPMENT USINGVIRTUOUS VALUE CYCLE APPROACH (CASE STUDY:DEVELOPMENT OF PACIRA TOURISM DESTINATION INBANDUNG DISTRICT)

Abstract

Several studies have examined the importance of the role of transportation infrastructure in tourism development, but not many studies have discussed the sources of funding to build the transportation infrastructure. On the other hand, local governments have limited fiscal capacity to be able to finance infrastructure. So the purpose of this research is to find alternative sources of funding to finance the development of transportation infrastructure without relying on subsidies from the central government. This study uses a virtuous value cycle concept approach which is implemented in the context of a case study. Methods of collecting data through literature studies and institutional surveys are discussed in depth using content analysis methods. The results of this study indicate that the development of transportation infrastructure must be in line with the development of areas capable of creating economic activity. The capital to build activities is not only borne by the government but also the beneficiaries of infrastructure assets captured through land acquisition and adjustment instruments, self-financing, and partnership financing. Growing economic activity will generate profits that come from tax revenues and can then be used to finance other transportation infrastructure.