INTRODUCTION
The tourism sector is one of the sectors that can give benefit to local communities. The tourism industry, including sport tourism, is one of the sectors that may create an impact on social conflict in the destination community due to the difference in sociocultural and economic welfare, and the power gaps between the host community and tourists in purchasing (Tosun, 2002). Several studies on large-sport events such as Olympic Games and FIFA World Cup have focussed on the attitude and perceptions of host communities (Kaplanidou et al., 2013; Knott et al., 2015; Prayag et al., 2013; Zhou & Ap, 2009).
The perception of hosting an event has two insights, both positive and negative impacts. Some literature has discussed several aspects of hosting large-sport events based on the social exchange theory (SET) such as the economic, social, and environmental aspects that affect the sports event (Duan et al., 2021). Some scholars believe that hosting mega-sport events can bring both positive and negative impacts on the community such as challenges in the economic and financial aspects (Knott et al., 2015). The interaction between the event-hosting community and visitors from different backgrounds can give negative attitudes, perceptions, and experiences of the event and tourism.
Although there are different perceptions of tourism development, sports tourism development is one of the fastest-growing and special events in tourism (Daniels & Norman, 2003). More tourists are interested in attending sports activities during their trips, whether sports are the main objective of travel or not. The large-sport event is a catalyst in the tourism sector as a destination branding for visitors. The large-sport events influence several sectors such as developing infrastructure for hosting the event, economic aspects, social benefits, and others.
In Indonesia, sports tourism has begun to be developed and become one of the events included in the calendar of Indonesian tourism events, such as Tour de Singkarak. Since it was first conducted in 2009, this activity has given an impact on the number of visitors to West Sumatra and attracted sports tourism players to participate in this activity (Susanti & Syahar, 2019). Currently, the Indonesian government is focusing on developing sports tourism as one of the tourist attractions in Indonesia such as motorsport (MotoGP and WSBK), International Run Festival, and others.
Furthermore, the Indonesian government developed the Mandalika Circuit to support sports tourism development by hosting the MotoGP event. Mandalika is one of the five super-priority areas developed to become a special economic tourism zone (the government regulation, 25/2014). The development of the Mandalika Circuit is part of increasing tourist attractions in the area of MotoGP. The development of the event will be a permanent icon and improving the image of the destination and increasing tourist visits (Daniels & Norman, 2003).
The development of MotoGP especially large-sports events on tourism will give an impact on several aspects such as the economy, environment, and socio-culture (Turco et al., 2003). In addition, skilled personnel is needed in carrying out MotoGP events because the support of trained, educated, and professional human resources will increase the value of tourist satisfaction and sustainability (Mazanec et al., 2007). A few studies have been undertaken on the local community perspective and community involvement in sport tourism literature based on how the local community’s perception and its effects on destination images (Lee et al., 2013; Turco et al., 2003).
Meanwhile, little research has been undertaken on society’s perceptions of sport tourism development in developing countries, the majority of the studies have been conducted in developed countries such as the United Kingdom, Australia, New Zealand, and others (Sharpley, 2014). However, no study has been done on how the host’s perception of a large sports event of MotoGP in developing countries such as Indonesia. This study aims to examine the host’s perception of the local community of the event of MotoGP toward t tourism development and destinations in Indonesia in early 2022.
As a result, this study is being conducted to fill out the gap by utilizing SET (Social Exchange Theory) to measure the host’s perception of large-sport events from various perspectives, including economic, social, cultural, and environmental aspects. Besides, support for tourism development and a destination image in the context of the MotoGP event in Indonesia has not yet been discussed in the large sports event in tourism studies. This study also contributes to the literature on sports tourism and provides useful information for those involved in organizing major sporting events in Indonesia. As a result, this study helps stakeholders and marketers in sport tourism (MotoGP) to decide the marketing plan for hosting the event to impact the local community and tourism sector in Indonesia.
This study is presented with several parts. Section one discusses the conceptual background and hypothesis development. Section two presents the research methodology. Section three explains the result and discussion of the study. The last section is the conclusion including limitations and future research agenda.
The social exchange theory (SET) was discovered by (Emerson, 1976) and refers to the psychological and sociological perspective from two sides process in two or more groups (Boley et al., 2014). In the tourism literature, social exchange theory was applied to understand both residents and tourists. Several studies in the field of tourism, sports tourism, sports management, and hospitality management have used social exchange theory in examining resident perception, such as a study from (Duan et al., 2021) that examined the perception of the hosting of mega event Marathon in China from their perception of attitude and residents’ quality of life . In addition, the study conducted by (Yao & Schwarz, 2018) used the theory of social exchange theory to explain the residents’ perceptions in the context of the World Golf Championship HSBC, China. Tourists can get benefit from tourism and its cost because the residents are motivated to interact with the tourists (Jurowski et al., 1997). Besides, residents can evaluate these costs, such as the economic, environmental, and social value (Sharpley, 2014).
Hence, it is important to analyze the perception of residents in using Social Exchange Theory (SET) on the mega-sport event in the context of MotoGP toward tourism destinations in Indonesia. the followings are several explanations of social exchange theory from the perspective of hosting the large sports event of MotoGP in Indonesia.
The impact of large sport event
Hosting large-scale of sports tourism events can increase the number of visitors and generate extensive impacts and implications for the host communities (Caiazza & Audretsch, 2015; Chersulich Tomino et al., 2020; Ohmann et al., 2006; Perić, 2018). Hosting sports tourism events has a big chance to enhance the lives of the host’s society by fostering economic growth, expanding social and recreational activities, and building new infrastructure (Fredline, 2005). However, hosting sports tourism events may also give a negative impact on several aspects such as environmental field, noise, and social impact if it is poorly handled (Fredline, 2005).
Many subsequent scholars have attempted to examine hosting large sports events from several perspectives, such as social- economic (Kim et al., 2015; Lee & Taylor, 2005; Perić, 2018; Turco et al., 2003), socio-culture (Caiazza & Audretsch, 2015), destination image (Andersson et al., 2021; Kim et al., 2014; Lee et al., 2005), and an evaluation towards host community
perspectives as well (Ma et al., 2013; Maheshwari et al., 2019; Tichaawa et al., 2015; Yao & Schwarz, 2018). However, the contribution of sports tourism in a broader context discloses various debates concerning its uncertain evaluation. It usually grossly overestimates the economic impact, both short-term and longer-term planning (Hall, 2004).
Economic impact
Large-scale sports tourism events have an impact, especially on the economic aspect. Some researchers (Scheu & Preuss, 2018; Wicker et al., 2012). According to previous research, sports events generally have both positive and negative consequences, with some evidence suggesting that mega-events have more negative than positive effects (Scheu & Preuss, 2018). Several examples showed that hosting a large-sports tourism event can reduce unemployment by 1.9% and increase domestic growth by 1.3% from 1997 until 2005 (Kasimati & Dawson, 2009). Furthermore, hosting the Olympics event substantially impacts the economy, such as tax revenue, income sources for employment, and society during and after hosting the large event (Kang & Perdue, 1994; Madden, 2002). In addition, the study conducted by (Walker et al., 2013) revealed that hosting mega- events is the potential for country or city growth and drives economic mobility. The residents supporting mega-events can contribute to the event’s economic aspect (Kim et al., 2015). Furthermore, a study done by (Kim et al., 2015), reported that mega-events can bring positive impacts, such as infrastructure and economic development for residents. According to the aforementioned studies, the social exchange theory (SET) in the context of hosting mega-events directly gives benefits to residents and improves their support for tourist development.
Social impact
Research done by Kim & Petrick (2005) contended that understanding the necessity for stability between economic and social goals is critical to building successful sports tourism events. However, different from the economic aspect, the social impacts of hosting large-scale sports tourism events is a bit challenging to measure (Kim et al., 2015) as residents’ perspectives can alter over time. Quantifying social effects is difficult due to this form of assessment’s perceived lack of credibility (Jönsson & Lewis, 2014). As a result, Kim et al. (2014) created a scale to assess the perceived social impacts of a large-scale sports tourism event that included a six-factor model with 23 items: financial gains, society/community pride, community development, financial costs, traffic issues, and security threats. The study’s findings demonstrated the multi-dimensional character of the perceived social consequences associated with sports tourism events.
Cultural impact
Hosting large events gives a chance for the local communities to meet new people and increase pride in the city, promote the city as a tourism destination, and help people to understand the local communities’ culture, values, and identity (Kim et al., 2006; Kim & Petrick, 2005; Lorde et al., 2011; Waitt, 2003). Some large events, such Sydney Olympics allows the people to show all of the elements of the city, such as the vibrant environment and economy of the locals (Waitt, 2003). Strengthening the community toward the value and culture of the local community is a positive social and cultural benefit of mega events in tourism development studies (Andriotis & Vaughan, 2003).
Some researchers believe that sociocultural aspects have a positive and negative impact on residents to support tourism development and events (Andereck & Vogt, 2000; Dyer et al., 2007; Gursoy & Kendall, 2006). Therefore, residents’ perception of society and culture has a relationship to support tourism development. However, research from (Vargas-Sánchez et al., 2011) revealed that the relation between variable social-cultural attitudes could be perceived from the tourism development and events in communities or the residents.
A study by (Chersulich Tomino et al., 2020) contended that events should have a dedicated cultural program. As an illustration, a comprehensive schedule of mini-events showcasing art and culture was developed for the Sydney Olympics. With the program, visitors may increase and residents would have access to a wider variety of leisure activities because visitors’ stays could be extended. Additionally, the chance to grow the firm was seized to market Sydney to the biggest corporations in the world. In this way, a specific occasion functioned as a catalyst for the expansion of options for access to new technology, the sharing of ideas, the establishment of significant business and professional contacts, as well as other activities (Mules & Dwyer, 2005). The residents must get involved and take part in the event. The creation of jobs for locals, which must be permanent rather than temporary, is maybe the most crucial factor (Chersulich Tomino et al., 2020).
Environmental impact
The environment is one of the significant issues in hosting a large-sport event. Some tourism literature has discussed the positive impact of hosting events from the perspective of the host city and non-host city using environmental issues (Johnston et al., 2023; Mohanty et al., 2020; Perić, 2018; Remoaldo et al., 2015; Yuan, 2013). Therefore, a large event can maintain
environmental objects and local legacy (Lorde et al., 2011). A hosting city and its surroundings are large event areas that catalyse environmental and landscape restoration. For example, hosting the large event FIFA World Cup 2002 in South Korea provided a reward or incentive to the host for conserving the environment and historical buildings (Kim et al., 2006) and the green goal program in FIFA world cup 2010 (Death, 2011). The residents can also enrich environmental consciousness and local sustainable development through large events (Kim et al., 2021).
However, hosting mega-events can negatively impact environmental issues such as pollution, traffic, physical environment, and land use to build infrastructure (Elahi et al., 2021; Kim et al., 2006; Lorde et al., 2011; Ritchie et al,, 2009). Rugby World Cup 1999 is one of the examples showing that hosting a mega event can make local society feel inconvenient (Jones, 2001). Hosting a mega event can also negatively impact the environment of tourism development in the host society (Kim et al., 2015; Yuan, 2013).
Some studies have shown that citizens’ perceptions of the environment affect the development of the tourism industry (Collins et al., 2012). The perception of environmental issues has been gained from studying mega-events and tourism (Cornelissen et al., 2011; Jin et al., 2011). On the other side, the relationship between environmental consequences and general opinions is discussed in a few pieces of evidence. The study conducted by (Perić, 2018) revealed the negative impacts on the environment. Therefore, the social exchange theory (SET) revealed that positive perception could impact a positive attitude. The rationality of SET indicates the effect of the values and beliefs of the residents’ opinions or perceptions. Based on this rule, the residents will disagree with the development of the tourists, which contradicts their beliefs and attitude.
Destination image
Due to it influences on both supply and demand perspectives of marketing, the destination image is typically regarded as a crucial component in thriving tourism development and destination marketing by hosting the large-sport event (Kenyon & Bodet, 2018). According to research by Knott et al. (2017), such large-scale events had distinctive qualities that significantly increased the chances of a host country to build its national destination image. Additionally, research from (Herstein & Berger, 2013; Kaplanidou et al., 2012) indicated that hosting a mega-event might improve the host city’s image as a desirable vacation destination, as well as boost the city’s competitiveness in the business and tourist sectors.
A study (Dongfeng, 2013) revealed that the destination image is predictive of the intention to revisit the destination after hosting a major sports event. Furthermore, South Korea’s hosting of the FIFA World Cup in 2002 had a beneficial effect on visitors’ perceptions of the nation, according to an empirical study by Lee et al., (2005). The study’s findings also showed that foreign tourists who were not in Korea for the World Cup noticed some changes in their perceptions of the country. Travelers who came to Korea for the World Cup had a more favourable perception of the country, were happier with their experiences in Korea, and appeared more probable to recommend it to others (Lee et al., 2005).
Large scale sport event toward support tourism development and destination image
The social exchange theory was applied in tourism research to examine and determine the economic impact on supporting tourism development (Boonsiritomachai & Phonthanukitithaworn, 2019). Social Exchange Theory (SET) was applied to examine this study from the host’s perception of the large sports event in Indonesia with several indicators such as the economic, social, environmental, and social impact on supporting tourism development. Previous studies found that communities have a perceived impact on the economic sector (such as income, tax revenue, and employment). While in the context of social impact (such as social interaction, culture exchange, and others), it failed to contribute to resident communities (Wang & Pfister, 2008). Using social exchange theory (SET) in the context of a significant sports event—the Sydney 2000 Olympics—a study administered by (Waitt, 2003) found that people frequently re-evaluate how they perceive the effects of exchange processes in dynamic social environments. Additionally, according to the research by (Gursoy & Kendall, 2006), several variables including inhabitants’ worries, feelings, and attitudes toward the environment, affected how they responded to big sports events.
Residents’ impressions of the effects of hosting large-scale sporting and tourist events have grown as important criteria for garnering support for the event from the entire community (Kim et al., 2015). Positive opinions from the locals would encourage the event’s continued hosting (Tichaawa et al., 2015; Yao & Schwarz, 2018). In addition, Kaplanidou, (2021) asserted that the characteristics of the host community may influence how the asset or needs-based community theory is applied to achieve community development objectives associated with hosting a certain scale of sports events.
Empirical evidence is provided by a study by Kim et al., (2020) that examined how locals could see the effects of the PyeongChang 2018 Winter Olympic Games in Korea. According to the study, locals’ perceptions of the advantages related to the economy, infrastructure, and tourism were highly predictive of how they would perceive the local community to receive an impact on sustainable development. Therefore, integrating locals’ impressions of any participants in the activities is a step toward sport tourism events’ success and future (Tichaawa et al., 2015).
According to the research by Pranić et al., (2012), positive local perceptions of the social impact and other effects of a sports tourism event are important factors in staging a successful sports tourism event and guaranteeing sustained development for the host town. However, opinions about the effects of the mega-event among the community’s members vary before, during, and after the event (Ma et al., 2013). Therefore, the current research contends that host perceptions need to be addressed. It may bring more perception related to the large-scale tourism events toward the destination image that earlier studies might suggest.
The study done by (Karadakis, 2012) found that hosting a large-scale event has a social and economic impact on residents’ support for hosting and also a negative impact on sports tourism. This study result contributed to adding the literature on sports events and tourism. In addition, the study on large sports tourism found that the residents perceived the economic impact of sports tourism in Keiyo County, while residents perceived a negative social impact (Imbaya & Irungu, 2013).
A study by (Kavetsos & Szymanski, 2010) examined the impact of hosting large sports events such as the Olympic games, the FIFA World cup, and the UEFA European championship. The result found a positive relationship and significance between hosting large sports events and social well-being. Furthermore, (Imbaya & Irungu, 2013) stated that hosting sports events have an urgent role in the social benefit of the community, economic gains of the local community, and perceived negative impact for supporting tourism development. In addition, social perception has been examined in hosting the event of Run Barbados event from locals’ perception and the result found that there is a positive perception of the local community in social interaction (Jönsson & Lewis, 2014).
Understanding the role of the host’s perception toward support tourism development is needed to explore in the context of large sports events. Several studies have investigated residents’ perceptions of both positive and negative impacts on tourist destinations in the context of tourism development (Látková & Vogt, 2012; Nicholas et al., 2009; Nunkoo & Ramkissoon, 2011). Furthermore, supporting tourism development in tourism destinations influences the local community, such as the destination’s sustainability (Nicholas et al., 2009; Nunkoo & Ramkissoon, 2011). Local communities or residents who believe tourism has a beneficial influence will support it, while those who believe tourism has a negative impact will oppose it (Nunkoo & Ramkissoon, 2011). In addition, this study tried to explore the role of large sports events toward tourism development support and tourist destination based on the host’s community perception using social exchange theory.
This study identifies that several indicators of social exchange theory support tourism development and destination images
in Indonesia when hosting the large sports event of MotoGP Indonesia. The hypotheses proposed in this study are as follows:
H1: The impact of perceived economic aspects in hosting large sports events positively and significantly influences
support of tourism development.
H2: The impact of the perceived environmental in hosting large sports events negatively and significantly influences
support of tourism development.
H3: The impact of perceived social aspects in hosting large sports events negatively and significantly influences
support of tourism development.
H4: The impact of perceived cultural aspects in hosting large sports events positively and significantly influences
support of tourism development.
H5: Support for tourism development has positively and significantly influenced destination images.
The proposed model (framework) in this study can be seen in figure 1.
Figure 1: Research Framework
In this study, an online survey was administered randomly to deliver the questions to respondents. The data were collected from the local Indonesian society or community of hosting the large event of MotoGP Mandalika, Indonesia. The questionnaire was developed toward the perception of hosting the mega-event of MotoGP that was conducted in early 2022. The study was conducted after the event of MotoGP 2022 Mandalika, Indonesia, to assess the perception of local society toward the mega- event of MotoGP 2022, Indonesia.
Furthermore, the convenience sampling method was chosen in this study. Convenience sampling is one kind of non-probability technique with the limitation of generalizing to the larger population (Malhotra, 1996). Conveniently accessing respondents at a low cost and with no effort is one of the benefits of adopting convenience sampling. Additionally, convenience sampling can be used in theory research and exploratory study when academics require a quick and inexpensive technique to decide whether more research is necessary. Thus, to investigate the host’s perspective of the effect of a large sports event on tourism, convenience sampling was used in this study.
Construct measurement and development
Several indicators have been modified in this questionnaire. The questions about local society’s perception of the social- economic impact of big-scale sports events were modified and adapted from a similar questionnaire as used in previous studies. The items of the question consist of both positive and negative questions. The survey questions regarding local society’s perceptions of the social effects of the large-scale sports events were modified from a similar survey used in other studies (Kim et al., 2015; Liu, 2016; Perić, 2018; Prayag et al., 2013; Yoon et al., 2001) with three indicators (disruption of residents and conflicts). The questions related to economic impact were modified and adapted from (Liu, 2016; Perić, 2018; Prayag et al., 2013; Yoon et al., 2001) with five indicators (local business, employment, investment, economy of community, and acceleration of economic development).
The questions related to the environment were modified and adapted based on previous studies (Abdel Azim Ahmed, 2017; Konstantaki & Wickens, 2010; Yoon et al., 2001) with three indicators (development of area circuit, pollution, and damage impact for community). The questions about the cultural aspect were modified and adapted (Abdel Azim Ahmed, 2017; Prayag et al., 2013; Yoon et al., 2001) with five indicators (cross-cultural understanding, local society, acculturation, and local culture). The questions related to supporting tourism development were modified and adapted (Abdel Azim Ahmed, 2017; Boonsiritomachai & Phonthanukitithaworn, 2019; Prayag et al., 2013; Yoon et al., 2001) with three indicators (support for international destination, support for sports tourism destination, and premium destinations). In addition to the last variable, the variable destination image was modified and adapted from (Andersson et al., 2021; Baloglu & McCleary, 1999; Kanwel et al., 2019) with five indicators (attractiveness, accessibility, facilities, resource, and scenery of the circuit). These items were specifically used in this study in Table 1.
In this study, the questionnaire was arranged in Indonesian languages because the respondents are local Indonesian societies hosting a large sports event of MotoGP in the region of West Nusa Tenggara, Indonesia, conducted in early of the year 2022.
Data analysis
The data were analysed using the Structural Equation Model-Partial Least Square (SmartPLS-3) and the Statistical Package for Social Science (SPSS). Furthermore, the data in this study were analysed using a structural equation model and partial least squares method. According to (Hair et al., 2014) the latent variable or patterns and the relationships between the variables are examined using PLS-SEM. The following three criteria should be taken into consideration when evaluating the constructs in SEM-PLS: (1) Composite reliability (CR), the threshold value of CR more than or should be at least at 0.7 (Nunnally & Bernstein, 1994), 2) average variance extracted (AVE, the threshold value of AVE at least 0.5 (Fornell & Larcker, 1981) and
(3) and the threshold value of factor loading of confirmatory factor analysis (CFA) is 0.6 (Nunnally & Bernstein, 1994). In addition, the descriptive statistics of the respondents—including their gender, education, background, age, etc were investigated using the SPSS program. This study’s sample size was sufficient to analyse the data using multivariate data analysis (Structural Equation Model) based on the final data of this study.
In this part, respondents’ descriptive information is generally explained by profile respondents. Based on the characteristic of respondents, the respondents in this study were 59.8% male and 40.2 % female. The age of respondents was dominated by age between 18-24 years. A bachelor dominated the educational background of the respondents with 47.9%. Students with 51.3% generally explained the occupation of the respondents. The respondents’ income is generally dominated by less than IDR 1.000.0000 (USD 65.20 per month).
Validity and reliability analysis
The result found that the value of factor loadings ranges from .709 to.936; It means all variables in this research supported convergent validity. The constructs value of composite reliability was higher than .70. The AVE value is more significant than 0.70. The researchers suggest that AVE’s standard value should be more than .70 (Venkatesh et al., 2012). To measure the latent variable validity, we looked at each constructs-related to the loading factors of indicators and the average value extracted (AVE) score. The loading factors were calculated using confirmatory factor analysis. The result revealed that the AVE value was in the range of .750 to .906, which is substantially over the threshold value of.50. The result showed that two indicators of culture perception were removed because they could not reach the value of the loading factor. Furthermore, three indicators of environment perception were removed because they could not reach the value of the loading factor. The last, one item of support tourism development was deleted because it could not reach the threshold of loading factor value. The measurement model used in this investigation is generally explained in Table 1 below.
Table 1: The measurements of Validity and Reliability (Factor loading, AVE, CR and Cronbach alpha)
As shown in Table 2 for measurement AVE, in this study, each construct is against the inter-construct correlation. All diagonal elements exceed the inter-construct correlation of each variable and satisfy the discriminant value. In addition, the structural testing model has been examined in Table 3.
Table 2: Discriminant validity (Fornell & Larcker Criterion)
Note: DI = Destination image, STD = Support tourism development
Table 3: Structure testing model
Hypothesis analysis
Structural Equation Model Partial Least Square (SEM-PLS) was employed to test the hypothesis in this study. There are two kinds of testing for the inner model in structural equation modelling. The explanatory model using R is standardized and determined by the path coefficient (Fornell & Larcker, 1981; Hair et al., 2014), and statistical significance was described by the path coefficient between variables, and the goodness of the structural model was assessed by the R-value.
The result of hypothesis testing found that the variable of culture positively and significantly impacted support tourism destinations (H1: β=.371, t = 4.646). Furthermore, variable economy positively and significantly impacted the tourism destination (H2: β =.388, t = 5.429). Thus, this hypothesis was accepted. The variable environment through tourism destination had not significantly and positively impacted the tourism destination support (H3: β = 0.008, t = 0.019), or the hypothesis was rejected. The variable social perception negatively and significantly impacted tourism destination support (H4: β = -0172, t = 2.846) or the hypothesis was accepted. The last hypothesis in this study tourism destination support had a positive and significant impact on destination images (H5: β = .742, t = 20.344), or the hypothesis was accepted. Table 4 shows the result of the hypotheses testing of the study.
Table 4: Hypotheses Testing
Note, STD = Support Tourism Development. DI = Destination image, SE = Standard error. ***p < .0.5, *p < .0.1
Capability index
The R square value was used in this study to examine the capability index. The R-value refers to the percentage of the variance of the outer variables that can explain the inner variable. The causal relationship among the variable of the study, the explanatory power of the R square determination model, and the coefficient of the standardized statistical significance (Fornell & Larcker, 1981; Hair et al., 2014). The fit index summary of the research model is presented in Table 5.
The structural model is to be measured by goodness of fit (GoF). Table 5 shows the measurement model for the fit index. Based on the table, it can be deduced that the model’s explanation for the R square variable of the support tourism destination is 493 or 49.3% of the model explains the model, and variable destination image explains the model by .551 or 55.1% explains the model of this study.
Table 5: Fit Index Summary
Note: Standardised Root Mean Square (SRMS), Norm Fit Index (NFI),
DISCUSSION
Hosting mega-sport tourism events has the effect of hosting communities both in economic and social culture. Therefore, Social Exchange Theory was applied in this study based on the communities’ perception of economic, social, cultural, and environmental indicators, tourism development support, and destination image analysis in Indonesia. This study addresses a gap in the literature on tourism by extending the conceptual framework of a large-scale sports event, such as hosting the MotoGP in Indonesia, based on the perspective of the local community to support tourist development and destination images in Indonesia’s destination. The research findings showed a strong agreement with the Social Exchange Theory’s conceptual framework (SET). They disclosed that hosting a large sports event (MotoGP) can support Indonesia as a travel destination and encourage tourism growth.
The result found that culture had a significant impact on supporting tourism destinations in the context of a mega-sport event host perception, especially the MotoGP event in 2022 Mandalika, Indonesia. Therefore, locals or communities can support the development of tourism if they have favorable perceptions or insights into the culture. To showcase their culture to foreign tourists, locals take pleasure in their culture and consider it a part of their legacy. They feel happy to be a member of the local community and that they have helped their place become renowned to people from across the world by hosting a mega-sports event. The result is similar to a study conducted by (Yoon et al., 2001), which showed that culture is a part of cultural identity and activity exchange between the local community and tourists as well as part of tourism development. The research by (Duan et al., 2021) also showed that social and cultural factors have a big impact on event support in the case of mega-events.
The host’s perception of society had a significant impact on tourism destination support in hosting the large sports event of MotoGP, Indonesia. This finding demonstrates how a local community’s social impression of the potential benefits of hosting a large event for society. The social benefit of holding the MotoGP mega-sports event in Mandalika, Indonesia is a catalyst for interpersonal interaction between the event and the locals/communities. The findings of this study are consistent with the study done by (Knott et al., 2015), which found that a sports event’s social and cultural context had the greatest influence on the local community. Additionally, according to a study (Taks, 2013) the mega-sports event may present a potential for greater beneficial impacts on the host communities. However, the current finding implied that hosting a large-sports event in Mandalika, Indonesia, negatively affects societies or local communities, such as social conflicts. Several social conflicts happened in the region of the arena circuit Mandalika, such as the land conflict between the government and society in the area of the circuit. This result was supported by (Fredline, 2005) who revealed that hosting sport event can bring the negative impact on social if it is poorly handled.
The impact of economic perception can affect tourism destination support. Based on some research, the economic aspect, such as perceived benefit and cost, is the primary way to support sustainable tourism destinations (Gursoy et al., 2009). The result of the study is similar to the study from (Prayag et al., 2013; Yoon et al., 2001), which found that the communities can perceive an opportunity to benefit economically. For example, it increases trade for local businesses, employment opportunities, and investment development. It also increases economic society and can accelerate the community’s economy. The host community’s economic aspects are always valued to benefit tourism development (Jurowski & Gursoy, 2004). The finding in this research showed that the economic aspects had an impact on supporting tourism development, similar to the previous view that hosting the event in tourism support can improve the economy of local society (Getz & Page, 2016; Prayag et al., 2013).
One of Indonesia’s projects in the Special Economic Zone (SEZ) is Mandalika, which aims to become a top tourist attraction and one of the locations for the MotoGP, the world’s biggest motorsports event. From an economic aspect, the event will create plenty of job opportunities, reduce poverty, and enhance the livelihood of the surrounding society by developing infrastructure and leading the construction of the event/circuit, including the tourism sector, to create various small and medium enterprises. Furthermore, the investment in the Mandalika’s project around forth tens of trillions of Indonesian Rupiah (IDR/currency of
Indonesia) will give an impact on the local community or society. In addition, the project also can decrease the poverty in eastern Indonesia, especially in Lombok, West Nusa Tenggara, Indonesia. This is similar to the study by (Duan et al., 2021), which stated that sport-event employs the host city’s society or residents.
The environmental is one issue in tourism sectors related to tourism sustainability (Pahrudin et al, 2022). Sustainability is concern critical in tourism destinations of hosting large-sports tourism events. The study from (Deccio & Baloglu, 2002) revealed that hosting tourism events brings more concern about environmental issues. The finding of this study found that the environmental variable is insignificant in supporting tourism destinations. The mega-sports MotoGP Mandalika Indonesia was held in 2022 based on the event’s calendar. The local communities are worried about the environmental issue because some infrastructures need to be built. In addition, they assume that hosting an event such as MotoGP will increase the pollution of the environment. Therefore, the local communities believe that the mega-event of MotoGP will cause environmental damage to local communities. In addition, the large sports event, in the case of the Olympics, has impacted long-term environmental issues more than smaller events that are more sensitive to environmental issues (Boonsiritomachai & Phonthanukitithaworn, 2019). Consequently, more researchers have discussed the environmental issue as a critical issue for local event organizers (Konstantaki & Wickens, 2010).
The local community’s perceptions of the environment for MotoGP, Indonesia, is that developing an arena or circuit for the event must consider the environmental aspect. The Mandalika region is being developed using an environmentally friendly development strategy. The worth and quality of the environment in society are protected things. The developer of the arena under the Indonesia tourism development corporation (ITDC) of the MotoGP event in Mandalika Indonesia may require the community’s infrastructure related to environmental issues such as clean water, sanitation, and maintaining the public facility. The study administered by (Liu & Wilson, 2014) found that tourists’ potential to receive a negative impact on hosting the Olympics 2012 related to a destination such as inflation, travel inconvenience, risk of criminals, environmental issue, and perceived risk of disease.
This study found that hosting large-sports events of MotoGP 2022 Mandalika can support tourism development and destination images. Supporting tourism development is one factor that enhances the trust of tourists to come to upcoming events, such as supporting facilities and infrastructure. The MotoGP event, held as an international event and an attractive world-class event can enhance the trust and interest of visitors to visit the destination images in Mandalika, Indonesia. Some studies revealed that the mega-sports tourism event could enhance the less popular destination to be more popular (Arnegger & Herz, 2016).
CONCLUSION
The hosting of the Moto-GP Mandalika event was examined by the perceptions of the local community toward economic perspective, culture, society, and environmental, supporting tourism development and destination images in Indonesia. The result showed that the local community’s perceptions of hosting large-sport events had a significant impact on tourism development support and destination images in Indonesia. However, in this study, the perception of the environment did not significantly support tourism development in Indonesia.
The local society believed that hosting MotoGP Mandalika gives an impact on the economy, society, culture, and environment aspect. However, hosting the event also has negative impacts, such as social conflict, pollution, and environmental damage to the local community. The event’s hosting impacted local society and created an excellent destination image for different visitors worldwide. Hosting the event also gives local society more opportunities to meet with people from different countries because MotoGP is one of the largest events in the world.
Furthermore, the results should gain the attention of the event’s stakeholders to enhance the event’s positive perceptions to support tourism development. In addition, the stakeholders also need to pay attention to the insignificant result of the study. For example, in environmental perceptions, the stakeholders can reduce the negative impact of the environment. Sports marketers of a large sports event of MotoGP can support tourism development and destination images based on economic, social, and cultural perceptions. Hosting the event can give an impact on local society and support tourism destinations in Mandalika, Indonesia. From this result, the government may focus on the event because it can enhance the destination images and impact local society economically. Local society believes that hosting the sports event in the future can give benefit and support tourism development. Therefore, the government should have strategic advice on the managerial and marketing strategies that involve the local society in hosting the event. The research in this area can be applied to event planners.
Additionally, this study has several limitations. First, from the methodology perspective, this study used quantitative methods to investigate how large sports events affected on tourism sector from the perception of the local community. Future researchers may use mixed methods to understand the host’s local society on a large sports event and tourist destinations. There is also the study’s sample size in this study. Due to the limited sample size used in this study, the result cannot be generalized. Third, this study focuses on the large sports event of the MotoGP in Indonesia from the perspective of the host community toward the travel and tourism industry. Future study topics may find other forms of event tourism such as cultural events, music events, religious tourist events, and others to examine the large sports event in the tourism sector.