{
    "success": true,
    "data": {
        "id": 1027740,
        "msgid": "can-souvenirs-become-a-major-forex-earner-1447893297",
        "date": "1996-11-03 00:00:00",
        "title": "Can souvenirs become a major forex earner?",
        "author": null,
        "source": "JP",
        "tags": null,
        "topic": null,
        "summary": "Can souvenirs become a major forex earner? By Robert Sinuhaji JAKARTA (JP): In a bid to focus the development of the tourist industry, the Ministry of Tourism, Post and Telecommunications set minimum and maximum targets for the growth in the number of tourist arrivals during the Sixth Five-Year Development Program (Pelita VI from 1989-1994). These rates were 11 percent and 13 percent respectively. And average tourist expenses were projected at US$1.37 per person per day.",
        "content": "<p>Can souvenirs become a major forex earner?<\/p>\n<p>By Robert Sinuhaji<\/p>\n<p>JAKARTA (JP): In a bid to focus the development of the tourist<br>\nindustry, the Ministry of Tourism, Post and Telecommunications<br>\nset minimum and maximum targets for the growth in the number of<br>\ntourist arrivals during the Sixth Five-Year Development Program<br>\n(Pelita VI from 1989-1994). These rates were 11 percent and 13<br>\npercent respectively. And average tourist expenses were projected<br>\nat US$1.37 per person per day.<\/p>\n<p>The ministry also projected a maximum figure of 3.95 million<br>\nforeign tourist arrivals for the year 1994 and foreign exchange<br>\nearnings from the tourist industry of $5.4 billion. A minimum<br>\ntarget of 3.88 million tourist arrivals along with foreign<br>\nexchange earnings of $5.3 billion was projected for the same<br>\nyear.<\/p>\n<p>In 1995, the maximum goal for arrivals was 4.6 million people<br>\nspending $6.3 billion. The minimum target was 4.3 million foreign<br>\ntourists spending $5.9 billion.<\/p>\n<p>Data released by the ministry says 4 million tourists visited<br>\nIndonesia in 1994, a 17.72 percent increase compared with the<br>\nprevious year. The figure has proved that tourism development<br>\nprograms have, above all expectations, exceeded their targets.<\/p>\n<p>Results did not match projected foreign exchange earnings<br>\nhowever. These were only $4.7 billion. Even though this was a<br>\n20.03 percent increase on the previous year, it was still not<br>\nclose to the target.<\/p>\n<p>And what about the figures for 1995? In that year, 4,318,057<br>\nforeign tourist arrivals were recorded, a 7.78 percent increase<br>\non the number the year before. This figure surpassed the<br>\nprojected minimum target.<\/p>\n<p>The 1995 foreign exchange earnings, similar to those of 1994,<br>\ndid not meet the projected target. Foreign exchange earnings from<br>\ntourism in 1995 were only $5.2 billion. Though this was an<br>\nincrease of 9.35 percent it still fell short of the ministry&apos;s<br>\nexpectations.<\/p>\n<p>It cannot be denied, that reaching the projected tourist<br>\narrivals target is a spectacular achievement. Equally high hopes<br>\nhowever were pinned on reaping huge sums of foreign exchange<br>\nbesides attracting vast numbers of tourists. In 1994-1995 not<br>\nonly was the foreign exchange maximum target not achieved,<br>\nresults were also below the minimum earnings objective.<\/p>\n<p>Souvenirs<\/p>\n<p>One of the tourism products expected to bolster the country&apos;s<br>\nforeign exchange earnings is the souvenir sector. Tourist<br>\ndestinations throughout the country, have their own particular<br>\nspecialities. Bali, for instance, is known for its paintings and<br>\nwoodcarvings. Yogyakarta is renown for handmade batik, and Irian<br>\nJaya for the Asmat tribe&apos;s handicrafts.<\/p>\n<p>But, according to Prof. Dorodjatun Kuntjoro-Jakti, of the<br>\nUniversity of Indonesia&apos;s School of Economics, the country&apos;s<br>\nsouvenir industry could be expanded further. In his opinion,<br>\nThailand has developed a noticeable edge over Indonesia in its<br>\nsouvenir industry.<\/p>\n<p>Tourism honey pots are concentrated in Bali and Central Java.<br>\nHence, the widest variety of souvenirs is found in those regions.<\/p>\n<p>Viewed from the standpoint of international requirements, only<br>\nBali has succeeded in meeting tourists&apos; demands for an acceptable<br>\nstandard of products. Yogyakarta souvenirs are often considered<br>\nto fall short of ideal standards.<\/p>\n<p>The question is, can souvenirs be developed into a major<br>\nforeign exchange earner?<\/p>\n<p>In the tourist sector, souvenirs are the second largest<br>\nforeign exchange earner after hotel accommodation. Data from the<br>\nMinistry of Tourism, Post and Telecommunication reveals that over<br>\na period of five years (1990 to 1994), tourists&apos; expenditure on<br>\nsouvenirs increased steady.<\/p>\n<p>In 1991, foreign exchange earnings from souvenirs totaled<br>\n$442.36 million, an increase of 4.90 percent on the previous<br>\nyear. In 1992 it climbed by 19.02 percent. And a huge jump of<br>\nmore than 100 percent was recorded in 1993. The figure for that<br>\nyear was $1.05 billion, or 26.40 percent of the total amount<br>\ngenerated by the tourist industry. It should be noted that this<br>\nfigure nearly topped total foreign exchange earnings from<br>\naccommodation.<\/p>\n<p>In 1994 the growth in sales of tourism products was a scant 10<br>\npercent, well below its 1993 figure.<\/p>\n<p>From the above information it can be observed that foreign<br>\nexchange growth in the tourist industry is still precariously<br>\nunstable. It is high time that more attention was focussed on the<br>\nsubject.<\/p>\n<p>There are several fundamental problems. Funding is a case in<br>\npoint. Souvenir making is what economists call a cottage or home<br>\nindustry. Producers are usually not solvent enough to expand<br>\ntheir business regularly, either through the procurement of new<br>\nequipment or the recruitment of additional personnel.<\/p>\n<p>An example is the ulos and uis gara cloth weaving industries<br>\nin Sumatra&apos;s northern highlands (Tapanuli and Karo), a region<br>\nteeming with popular tourist locations. These industries would<br>\nprobably blossom if given sufficient funds and personnel.<\/p>\n<p>It is hoped that credit funding, when made available by banks<br>\n(less collateral or securities), would provide individual cottage<br>\nindustries with more leeway for expansion. And funding could also<br>\nbe extended by large business concerns. Owners of such companies<br>\ncould be made &quot;foster fathers&quot;, by becoming suppliers to these<br>\ncottage industries.<\/p>\n<p>Many Japanese businessmen have launched successful ventures<br>\nwith cottage industries. Such cooperation has made the Japanese<br>\nindustrial sector the economic giant it is today.<\/p>\n<p>A second problem is the quality of standards.<\/p>\n<p>Prof. Ronald Clapham, from Siegen University in Germany, has<br>\ncommented that poor skills in Indonesian cottage industries are<br>\nstill very evident, resulting in many souvenirs being of inferior<br>\nquality. An example is the low quality batik on sale in<br>\nYogyakarta. Much of it fades quickly and tears easily.<\/p>\n<p>Sellers, however, proclaim that their merchandise is of the<br>\nhighest quality. Buyers, on the other hand, are mostly ignorant<br>\nof how to assess the quality of any product they plan to buy. Low<br>\nquality products leave a bad impression of the country on<br>\nvisiting tourists.<\/p>\n<p>But how do we discern good quality souvenirs?<\/p>\n<p>A souvenir could be described as being of good quality if it<br>\nmeets several common standards, including its initial<br>\nattractiveness, how typical it is of the region, its artistic<br>\ndesign and its durability. A batik piece made of choice material<br>\nand bearing a distinctively local design would be a good example.<\/p>\n<p>It might be of help if the Ministry of Tourism, Post and<br>\nTelecommunications, or any related institution, introduced a<br>\nscheme to brand better quality souvenirs, to be a quality<br>\nguarantee to help erase doubts from tourists&apos; minds about an<br>\nobject&apos;s durability.<\/p>\n<p>The third, and equally important, factor concerns guidance.<br>\nGuidance is necessary to instill a high sense of responsibility<br>\nin souvenir makers, and so prevent them from continuing to sell<br>\nlow quality keepsakes. Furthermore basic information should be<br>\nmade available to souvenir makers to stimulate them into<br>\ndesigning new creations. The range of souvenirs would then<br>\nfinally be released from the monotony that often plagues it.<br>\nThere would hopefully be more creations and designs.<\/p>\n<p>I am of the opinion that Singapore has made enormous<br>\nachievements in this respect. An example is their lion symbol,<br>\nwhich has inspired numerous souvenir makers in the island state.<br>\nThe symbol can be found in many accessories, ranging from key<br>\nchains to pins and ashtrays.<\/p>\n<p>With an appropriate application of effort, encompassing all<br>\naspects of the souvenir industry simultaneously, we should<br>\nultimately be able to raise foreign exchange earnings from<br>\ntourism.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/can-souvenirs-become-a-major-forex-earner-1447893297",
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    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
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