Innovation Strategy for Developing Herbal Medicine Products and Traditional Medical Tourism in Rural Areas

I Nyoman Parta¹*, Ida Bagus Gede Udiyana², I Gede Nurjaya Sindu³, Ni Nyoman Seri Astini⁴, Putu Mela Ratini⁵, Ida Bagus Ngurah Wimpascima⁶

^1,2,3,4,5,6STIMI Handayani Denpasar, Indonesia, ²Universitas Mahasaraswati Denpasar, Indonesia

Email: parta.kmbp@gmail.com¹, udiyanaidabagus63@gmail.com², desindu15@gmail.com3^, sriastini70@gmail.com⁴, melaratini@gmail.com⁵, idabagusngurahwimpascima@gmail.com⁶

KEYWORDS	ABSTRACT
SWOT analysis, EFAS, IFAS, herbal medicinal products and traditional medical tourism	The diversification of the business sector in Bali, particularly in the development of herbal medicinal products and traditional medical tourism, is essential for reducing the region's dependence on the tourism industry. This study aims to identify the strengths, weaknesses, opportunities, and threats faced by Catur Village, Kintamani, Bangli Regency in its efforts to develop these sectors. The research utilizes qualitative data, primarily gathered through interviews with key informants. SWOT analysis, encompassing both internal and external factors, was employed to analyze the data. The findings suggest that an aggressive expansion strategy, focused on community participation, the enhancement of herbal and traditional medical tourism products, and the implementation of digital marketing, is necessary for the village's sustainable development.
DOI: 10.58860/ijsh.v3i8.217

Corresponding Author: I Nyoman Parta*

Email: parta.kmbp@gmail.com

INTRODUCTION

The livelihood/source of life for most Balinese people and the main source of local revenue of the province of Bali, especially south Bali tourism centres (Tabanan, Badung, Gianyar, and Denpasar City), is the tourism sector and other tourism supporters. The tourism sector is a sector that has a high multiple influence on local communities, with the opportunity to do business, open employment for local communities around tourist attractions, can develop creative industries in the agricultural, fishery, plantation, and MSME sectors.

The impact of the COVID-19 pandemic, which lasted from November 2019 to January 8, 2022, has lasted for more than 2 years, resulting in the Bali economy being at its lowest point. This has a direct impact on the Balinese economy: massive layoffs, the number of unemployed increases, and the purchasing power of the Balinese people decline; all of this has accumulated with the decline in economic resilience, social culture of the community, and vulnerability to public security (Pedersen, Engel, & Sheridan, 2024).

Based on these situations and conditions, in an effort to maintain community business activities, they continue to run (Kathan, Matzler, & Veider, 2016). Maintaining the health, security, and safety of the socio-cultural life of the community and restoring the community's economic burden gradually, consistently and sustainably. Therefore, it is necessary to take a strategy for the economic recovery of the Balinese people through a strategy of diversifying the livelihoods/sources of life of the Balinese people, not depending entirely on the tourism sector (Dorjsuren, 2014). So, it is necessary to take a strategy to diversify the sources of life for the Balinese people through the following: (1) A sustainable tourism innovation strategy based on the participation of local communities, the environment, culture, and digital technology transformation. Implementing strategies in the form of infrastructure strategies, organizational & management strategies and service quality (Udiyana et al., 2018). Innovative strategy for agricultural, plantation and fishery development based on technology, added value and integrated management. Implementation of a collaborative strategy between the local government, food and beverage industry, and farmers (Long, Looijen, & Blok, 2018). Innovation strategy for developing small and medium enterprises and creative industries based on integrated management and digital technology transformation. Strategy implementation through the entrepreneurial orientation of SME actors, the dynamics of the business environment, government support and SME business performance (Prasannath, Adhikari, Gronum, & Miles, 2024)

The focus of the diversification strategy in this research is to focus on business development innovations based on herbal medicinal products and traditional medical tourism in Catur Kintamani Tourism Village, Bangli Regency, Bali Province. Researchers chose Catur Tourism Village as the research subject because Catur Village is one of the tourist villages in Kintamani, Bangli Regency, Bali Province based on the Bangli Regent's Decree in 2018 which is unique in addition to being famous as the best coffee producer in Bangli Regency, Catur Village also has homestays with a large number of as many as 40-45 units. Another attraction owned by Catur Tourism Village is the development of plants as raw materials for herbal medicines (Wahyuni, Astara, & Dewi, 2023). Currently, the Catur Tourism Village already has a special mother garden for herbal plants. There are 160 types of herbal plants developed there. The herbal plants have been processed by the community who are members of the Women Farmers Group (KWT) into various kinds of herbal medicinal products. Besides that, the development of traditional medical tourism indirectly participates in implementing sustainable tourism while maintaining the natural conditions of these medicinal plants to grow (Ghasemi, Mehdiabadi, Spulbar, & Birau, 2021).

The research was conducted by Prasiasa (2017) on the Strategy for Development and Empowerment of the Timbrah Tourism Village Community, Karangasem District, Karangasem Regency. The results of the study indicate that a strategy that needs to be carried out for the development and empowerment of the Timbrah Tourism Village community is the need to involve community social institutions in Operational Management (MO) and the development of formal partnerships with partnership programs among tourism stakeholders. Research conducted by Dewantara (2018) on the Development of Medicinal Plant-Based Medical Tourism in Wanagiri Village – Bedugul. The results of the study show that in relation to tourism, the use of medical plants can certainly be an attraction for tourists to find out the types, utilization and processing of medical plants for ready consumption. In addition, the efficacy of medical plants to cure diseases and treat health can be a medical service for tourists. This alternative tourism activity is expected to be useful for tourists who come (of course in the form of healing diseases), as well as for the surrounding community in Wanagiri Village, Bedugul.

The purposes of this study are to determine the advantages and disadvantages of Catur Village for the development of herbal medicinal products and Traditional Medical Tourism in rural areas, to find out the opportunities and threats that Catur Village might have and accept in developing herbal medicinal products for Traditional Medical Tourism, Formulating a development strategy formulation that needs to be carried out by Catur Village in developing herbal medicinal products and Traditional Medical Tourism and providing a reference source for villages throughout Indonesia, especially in Bali in terms of the use of medicinal plants to support the maintenance and care of public health. Formulating a business diversification strategy based on the development of creative industries/small and medium enterprises, herbal medicines, and alternative sustainable tourism (Aggarwal, Larson, McDermott, Katila, & Giessen, 2021).

METHOD

This research focuses on innovative strategies for developing herbal medicinal products and traditional medical tourism in rural areas with an approach using community participation, products, and digital marketing. The subject of this research is in Catur Village at an altitude of 1,250 m above sea level. Located at the western end of Kintamani District, this village is famous for producing coffee and oranges, bordering Badung Regency in the south and Buleleng Regency in the west. The location of the village is very strategic and the provincial road access is very adequate. Catur Village is 60 Km from Denpasar City, 45 Km to Bangli Regency and 35 Km to Singaraja. The types of data used in this research are quantitative data and qualitative data. Quantitative data in this study is data sourced from EFAS and IFAS analysis. The type of qualitative data collected in this study is the organizational structure of village officials and organizations that will be involved in the development of herbal medicinal products and traditional medical tourism in Catur Village, Kintamani, Bangli Regency and other required documents. While the source of data used in this study is primary data, obtained directly by means of observations and interviews. Primary data was obtained by conducting interviews with village administrators and the community of Catur Village, Kintamani, Bangli Regency. Secondary data in this study obtained from other people or other agencies needed in the research (Fosso Wamba, Akter, Edwards, Chopin, & Gnanzou, 2015). Data collection techniques in this study used the technique of Observation, Documentation and Interview. The data analysis technique used is SWOT analysis based on IFAS and EFAS.

RESULT AND DISCUSSION

IFAS (Internal Factor Analysis Summary)

By using the SWOT analysis, the IFAS analysis is identified as strengths and weaknesses. The strengths and weaknesses are as follows:

Strengths

Especially for the development of herbal medicinal products and traditional medical tourism (traditional medical tourism), the chess village already has the following:

a. Herbal tourism activities, namely processing plants into herbal medicines, of course have almost no harsh side effects to users.

b. Having nature is still beautiful as a place to grow and develop various herbal plants.

c. Has a farmer group to cultivate and process herbal plants into various health products, namely KWT (Female Farmer Group) Kenjung Wana Sari.

d. Has a mother plantation for herbal plants.

e. Assisted by the community in cultivating herbal medicinal plants, namely various types of TOGA (Family Medicinal Plants) in their respective yards as first aid before deciding to be referred to a health facility.

f. Has been able to process herbal plants into health and beauty products such as Catur Wangi oil which is believed by residents to cure various diseases, massage oil which is used for massage, facial scrub for the face made from coffee.

g. The price of the product is still affordable because the raw materials are the result of natural wealth from the main gardens and community yards.

h. Collaborating with external parties such as universities/universities in training human resources in the field of traditional medicine activities such as product processing, human resource training to become massage workers and training as acupressure personnel.

i. Still clinging to social culture in carrying out herbal plant processing activities, namely still referring to the Taru Pramana book.

1. Weaknesses

a. There are still some raw materials that must be imported from outside the village.

b. Processing takes a long time, namely 6-10 hours for a product.

c. There is no permit from the relevant department issued for health products such as Catur Wangi oil to circulate in the market

d. Most of their products are still marketed within the village due to limited distribution permits.

e. The marketing method is still done through word of mouth and has not used social media actively.

EFAS (Eksternal Factor Analysis Summary)

Opportunities

Of the various strengths possessed by Catur Village in the context of developing as a producer of herbal medicines and traditional medical tourism (traditional medical tourism). The opportunities that can be achieved are, among others:

a. It is possible to cultivate more types of medicinal plants because the natural conditions are still beautiful.

b. Can be a pioneer in the development of herbal medicines and traditional medical tourism in Indonesia, especially in Bali.

c. Can produce more various types of health and beauty products with herbal plants.

d. Increasing the welfare of rural communities and ensuring the health of the community through industry and the maintenance of medicinal plants.

e. Maintaining the authenticity of nature and socio-culture even though it is engaged in the tourism industry is always experiencing development.

1. Threats

a. From time to time there can be a shortage of raw materials if there is a problem from suppliers of raw materials for products that cannot be obtained and cultivated in the village environment.

b. Limited number of products to be marketed.

c. Must increase the price which is quite affordable in case of scarcity and product limitations.

d. It is forbidden to distribute products both commercially and privately due to licensing matters/not having lab test results for safe use.

e. It will take a long time to introduce and market products more widely and freely because of the issue of product safety permits and marketing methods that have not utilized social media even though they have partnered with parties outside the village.

Table 1

IFAS Assessment (Internal Factor Analysis Summary)

No	Internal factors	Weight	Rating	Score	Comments/Notes
Strenghth
1	Have a beautiful nature	0,12	4	0,48	Nature is a potential as well as a location facility for the development of herbal plants as traditional medical tourism products
2	Can cultivate various herbal plants	0,10	4	0,40	Cultivation of herbal plants is important to increase biodiversity and types of herbal plants used as processed products
3	Having a community group that is engaged in producing traditional health and beauty products made from herbs	0,11	4	0,44	In a development and development, it is necessary for the role of the community around the environment to participate in the process
4	Affordable product prices	0,10	2	0,22	Price is one of the reasons for consumers to consume a product
5	Still adhering to social culture in the process of cultivating and producing health and beauty products made from herbs	0,10	3	0,30	Socio-culture is an additional attraction that underlies every activity carried out by local communities from generation to generation in an area
Score		0,53		1,84
Weaknesses
6	There are some raw materials imported from outside the village	0,09	1	0,09	Indicates that there is still a shortage of raw materials that may or may not be cultivated in the village
7	Processing takes a long time	0,09	1	0,09	Maybe a research or innovation is needed to make production activities more efficient
8	The product does not have a permit or certification from the relevant department	0,09	4	0,36	It is needed so that the product is more trusted and can be marketed freely by the manufacturer
9	Products are still dominantly marketed in the village because of problems with permits and certifications	0,10	2	0,20	The finished product is not well known
10	Marketing has not used other social media besides the village website	0,10	2	0,20	Social media is used more often than opening a website page
Score		0,47	10	0,94
Total Strengths and Weaknesses		1,00		0,90

Source : Primary data processed (2020)

Source : Primary data processed (2020)

Based on Table 1, the total IFAS score on the flat row is 0.9 (positive vector line) which means that the strength factor is more dominant than the weakness factor in Catur Village, Kintamani.

Table 2

EFAS Assessment (External Factor Analysis Summary)

No	Eksternal Factors	Weight	Rating	Score	Comments/Notes
Opportunity
1	Have a chance to cultivate more herbs	0,10	4	0,40	Supported by natural conditions that are still natural
2	Can be a pioneer of traditional medical tourism (traditional medical tourism) in Indonesia	0,11	4	0,44	Is one of the development of tourism potential in addition to natural and cultural tourism
3	Can produce more variety of health and beauty products	0,10	4	0,40	Can be an alternative for people/tourists who have allergies to chemical drugs
4	Increasing the welfare of rural communities and ensuring the health of the community through industry and maintenance of medicinal plants	0,10	4	0,40	Making the community more independent and able to provide first aid before being referred to a health facility
5	Maintaining the authenticity of nature and socio-cultural	0,10	4	0,40	In order to maintain the identity of the region/region
Score		0,51		2,04
Threats
6	At times there may be a shortage of raw materials	0,10	2	0,20	It is likely to receive many requests when there are many who have proven the efficacy of health and beauty products from processed herbal plants.
7	Limited number of products to be marketed	0,10	1	0,10	Due to the production process that takes a long time, if possible find new ways of production activities
8	Must increase the price which is quite affordable in case of product scarcity and limitations	0,10	2	0,20	Scarcity of raw materials can reduce the number of products and increase the price of raw materials itself
9	It is forbidden to distribute the product	0,10	4	0,40	Every processed product, whether food, beverage, or drug preparation, requires a permit to circulate and to find out whether there are side effects or not.
10	It will take a long time to introduce and market the product more widely and freely	0,09	2	0,18	A marketing method is needed to introduce products with social media, considering that social media in this day and age is something that can hardly be separated from people's hands.
Score		0,49	11	1,08
Total Opportunities and Threats		1,00		0,96

Source: Primary data processed (2020)

Based on Table 2, the total EFAS score in the vertical row is 0.96 (positive vector line). This shows the opportunity factor (opportunity) is more dominant than the weakness factor (weaknesses) owned by Catur Village.

Figure 2. SWOT Diagram

Figure 3. SWOT Analysis

Source: Rangkuti, (2015)

Based on Figure 2 which is connected to Figure 3 of Catur Village, Kintamani is expected to be able to implement an aggressive SO (Strengths – Opportunities) Strategy in the development process as a producer of herbal medicinal products while at the same time developing alternative traditional medical tourism (traditional medical tourism) as sustainable tourism in rural areas. The formulation of innovative strategies for developing herbal medicinal products and alternative traditional medical tourism (traditional medical tourism) can be formulated into community participation strategies, product strategies, and digital marketing strategies (Widarini & Wijaya, 2022).

The formulation of the Grand Strategy is a very favorable situation for Chess Village because it has many opportunities and strengths (Zhao, Ju, Wang, Su, & Wang, 2022). In this situation, the strategy will be used by Catur Village in the development of herbal medicines and traditional medical tourism (traditional medical tourism) according to the SWOT matrix, which is an aggressive strategy by developing a grand strategy with an expansion strategy because there is a large enough external environment opportunity and large internal strength/strength. Creating community participation, growth and development supported by product technology, and using digital marketing where there is great potential to seize this opportunity, then alternative growth/expansion strategies tend to be chosen. By utilizing all strengths to seize opportunities as much as possible so as to support the development of Catur Village towards being a center for producing herbal medicinal products and developing alternative tourism in the form of traditional medical tourism as a continuation of the development of herbal tourism villages in Bali, especially Bangli Regency.

Strategy Formulation

The effectiveness of carrying out the grand strategy requires strategy formulation based on the results of the analysis of the internal environment and the results of the analysis of the external environment (Rakesh, Abdussalaam, Ravishankar, & Singh, 2022). The strategy formulations chosen in accordance with the author's framework are community participation, herbal & traditional medical tourism products, and digital marketing (Majeed, Lu, & Javed, 2017).

Society participation

Having the opportunity to cultivate more herbal plants supported by beautiful rural natural conditions, dominated by plantation areas owned by each subak group and increasing and maintaining the consistency of activities carried out by the Women Farmers Group (KWT) Tunjung Wana Sari, Catur Village. Increasing the welfare of rural communities by producing processed health and beauty medicines. It has a selling value and guarantees the health of its people through industry and maintenance of medicinal plants because it is supported by the power of all members of the community by participating in planting family medicinal plants (TOGA) in their respective yards, which can then be picked and processed into a health and beauty drug product as well as aid. The first is when people get sick. Can still maintain the natural and socio-cultural authenticity that has existed for generations as ancestral heritage, namely the plantation system, subak, and the use of plants that grow around the village environment (Sulaiman, 2024).

However, this cannot be done solely by relying on community participation. In an interview with Mr. I Gusti Ngurah Rupa and Mrs. Sang Ayu Ketut Budianingsih, Mr. Gusti stated that in the development of herbal medicinal products and health tourism villages, it is no less important to collaborate with 4 stakeholders that we can invite to develop and promote, one of which is us from managers of tourist villages and the village itself, then from entrepreneurs and from the local government, especially in terms of licensing and legality of herbal medicinal products processed by the tourist village.

Herbal Medicine Products and Traditional Medical Tourism

Can be a pioneer and center for producing herbal medicinal products as well as alternative traditional medical tourism (traditional medical tourism) in Indonesia with the increasing variety of processed products made from herbal plants and the possibility of increasing the types of medicinal products and traditional beauty products processed by the herbal plants themselves.

The production process of herbal medicines is guided by the availability of raw materials of the type and quality of raw materials with the aim of being independent of the village community in providing plants of various types of herbal medicinal raw materials (Mukherjee, 2019). avoiding dependence on herbal medicinal raw materials from outside, if this dependence is not overcome it will have an impact on disturbing the consistency of production and the price of herbal medicines will become uncompetitive in the market. Technological support is needed in the production and packaging process so that it can increase public confidence in consuming these herbal medicines (Obahiagbon & Ogwu, 2024).

The main focus in the development of herbal medicines and traditional medical tourism (traditional medical tourism) is to complete the permits for these products to circulate in the market because they are related to the safety and health of consumers. The development of herbal medicine and alternative tourism for the Catur Village community is a strength and potential, so that it becomes a model for developing and diversifying rural communities not only depending entirely on the tourism sector but being developed into a combination of product innovation with alternative sustainable tourism development.

Digital Marketing

The final strategy formulation is regarding marketing methods to introduce traditional medical tourism products as well as marketing them (Fetscherin & Stephano, 2016). Currently, the Catur Village Government has facilitated by using the official website of Catur Village, namely www.caturdesa.go.id. However, this is not enough because the development of technology is currently so fast, even through the palm of the hand.

The strategy for developing herbal medicinal products can be programmed by introducing and marketing products through other digital media other than village websites or by venturing into social media such as Facebook, Twitter, and Instagram. It is also possible that the government can help by providing training to the human resources/community of Catur Village to create a program such as a special website for ordering goods and making payments online.

CONCLUSION

Based on the discussion, it can be concluded that the development of Catur Village as a reference point for producing herbal medicinal products and traditional medical tourism has both strengths and weaknesses. The village benefits from its beautiful natural environment, the ability to cultivate a wide variety of herbal plants, active community groups producing traditional health and herbal beauty products, and affordable product prices. Additionally, the village maintains a strong adherence to social and cultural practices in the cultivation and production processes. However, there are challenges such as the lengthy processing time, the lack of official permits or certifications from relevant authorities, and the limited market reach, as products are primarily sold within the village due to these certification and marketing constraints.

Catur Village also has opportunities, including the potential to cultivate more herbal plants, diversify its health and beauty product offerings, improve the welfare of the local community, and contribute to public health through the medicinal plant industry. On the other hand, there are threats, such as potential shortages of raw materials, limited product availability, and the possibility of significant price increases if medicinal raw materials become scarce.

To support the development of herbal medicinal products and Traditional Medical Tourism in Catur Village, a comprehensive strategy is needed. This should include the formulation of a Community Participation Strategy, a Herbal & Traditional Medical Tourism Product Strategy, and a Digital Marketing Strategy to enhance the village's growth and reach.

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