RI's tourism development, challenges in 2005
RI's tourism development, challenges in 2005
Meity Robot
Tourism plays an important role in the development of a
nation. It is not only a major contribution to a country's
economy, but it also is a means to develop peace and
understanding among people.
World Tourism Organization (WTO) data shows the sector is one
of the top five export categories for 83 percent of countries in
the world and is the main source of foreign exchange earnings for
at least 38 percent of the countries.
In global interaction, tourism has become a window of a
nation's culture. Tourism is an effective means to enrich
cultural treasures through people-to-people interactions, which
in turn will foster creativity, productivity, peace and welfare.
More countries in the world today place tourism as a top
priority. Take Malaysia and Thailand for example. The governments
of both countries give their full attention to the development of
tourism.
In fact, tourism has become a strategy for development and the
door to the development of other sectors, such as trade, industry
and investment.
Like other countries, Indonesia needs tourism for the future
development of the nation. We all know tourism has a wide
multiplier effect on several aspects of people's lives. It
creates job opportunities, business, and welfare for the people.
It also provides ways of increasing regional income and foreign
exchange earnings.
Indonesia is potentially one of the world's richest and most
complete tourism destinations, spreading from Sabang in the west
to Merauke in the east. The infrastructure and supra-structure is
also available, which means no short-term, big scale investment
is required. Only with product development, packaging and
promotion with a balanced budget, Indonesia's tourism industry
can move fast and help revive the country's economy, both the
small scale and macro economy.
However, it needs a strong commitment and an increased role of
the stakeholders in tourism to make it work. It needs the synergy
of the three pillars -- the government, private sector and the
people -- to increase or step up their role. Together they can
encourage the maximum participation of all people to utilize the
potential available.
It goes without saying that the commitment and political will
of the President and Vice President as the country's leaders are
very important to position tourism as a priority sector for
development in the next five years.
This is especially true due to the fact that tourism is
strongly interrelated with other sectors like politics, the
economy, science and technology, the environment and social,
cultural, religious and security issues.
Tourism is the answer to economic recovery and reducing the
burden of unemployment on the country.
Data from the Central Statistics Agency shows that in the last
15 years the number of foreign visitor arrivals to Indonesia was
quite significant. From 1989 to 1997 we have seen a steep
increase, with the highest number in 1997, which was 5,185,243.
The highest foreign exchange earnings from tourism was achieved
in 1996 with US$6.307 billion, positioning tourism as the number
two foreign exchange earner after oil and gas.
However, various internal and external factors affecting
economic, social, political stability as well as security and
safety issues from 1998 onwards have resulted in the fluctuation
of both arrivals and earnings from tourism.
Arrivals fell to the lowest level in eight years to 4,457,021
in 2003. As a result, the forex earned was only US$4.037 billion,
the lowest in the last 10 years.
Let's compare this with Thailand, which suffered the same
economic crisis as Indonesia in 1997. Both Thailand and Indonesia
managed to earn US$6 billion in 1996. Thailand's earnings from
tourism leaped to US$10 billion in 2003 while Indonesia's was
down to US$4 billion.
It is fair to say that Indonesia has gone through various
external and internal security problems, but it also has the
problem of not being able to react quickly to these factors,
while other countries -- like in the case of SARS in Singapore --
were able to respond and react quickly and appropriately. As a
result, in a relatively short period, they managed to get on
their feet again.
It is about time that Indonesia caught up with its neighbors.
The Office of the State Minister of Culture and Tourism has
set a high target of 5 million tourist arrivals this year, an
increase of 11.8 percent over 2003. It has even increased its
target for 2005, from 5.5 million to 6 million next year. A
fantastic target, quite possible, however, quite challenging and
a target that would require hard work on the part of all
stakeholders to reach.
The Central Statistics Agency is increasingly confident that
the official target for 2004 will be achieved. January-October
arrivals through Indonesia's 13 main gateways increased by 25.69
percent to 3.8 million compared to last year.
Other gateways contribute some 20 percent of foreign arrivals.
With this, the office projected forex earning will reach US$4.5
billion (Source: Bali Update).
Indonesia has managed to send positive signals to the world
with the successful and peaceful general and presidential
elections.
The new government has taken a positive step in positioning
tourism as a strategic sector in the country, its status upgraded
from a state ministry to a ministry.
After two years of debate on whether the Ministry of Foreign
Affairs or the Ministry of Justice and Human Rights which the
immigration office is under should issue visas at the Indonesian
Consulate in Guangzhou, a meeting between the two ministers and
the minister of culture and tourism has managed to settle this.
The consulate will soon be able to issue visas, which hopefully
will see a dramatic increase in arrivals from China.
Internally, Indonesia still has two issues to tackle.
Terrorism must be stopped so that no more travel advisories will
be issued by tourist generating countries on Indonesia. Also, the
full support of all sectors for the tourist industry is very much
needed.
Externally, we need to look at what our neighbors are doing
because we are competing in grabbing a portion of the same big
pie.
The first to note is to reevaluate the visa-on-arrival policy.
Secondly, our competitors like Singapore, Malaysia, Thailand and
even the young and upcoming Vietnam, have tourism offices in main
tourism generating countries.
In fact, Singapore recently opened six marketing offices in
strategic areas. In the meantime, Indonesia does not have one in
the markets.
Thirdly, all our competitors are doing strategic and focused
marketing and promotion supported by ample promotional funds.
They are also focusing on potential and emerging markets/
countries, like China, Russia, India and the Middle East, and are
still watching the stability of their main markets. Last but not
least, they have effectively been utilizing the accessibility of
the markets, which are becoming more flexible and open.
With such conditions, there are three factors required to achieve
what the government has targeted for 2005.
First of all, the government needs to show firm political will
by issuing a presidential decree stating that tourism is a prime
sector of development.
The government also needs to reevaluate its foreign tourist
arrival policy, develop further the safe and secure image of the
country, revitalize Bali as a world destination and develop and
extend deregulations and cooperation in the strategic sectors of
trade, tourism and investment.
We must not forget the development of domestic travel. In
fact, it was this market that helped the industry survive
especially last year, when Indonesia was still suffering from the
effects of the Bali bombing and then the Iraq War, the outbreak
of SARS and bird flu, which almost paralyzed tourism in the
region.
Secondly, the government needs to accelerate specific and
general programs.
Thirdly, routine programs should continue, like participation
in trade shows and travel marts.
Marketing wise, the world travel pattern has changed to short-
haul since the 9/11 tragedy. Indonesia's major market today
includes ASEAN (Singapore, Malaysia and Thailand), Asia (Japan,
Korea, Taiwan, China and India), and Australia and New Zealand.
Besides, there are also emerging markets like the Middle East and
South Africa.
While these countries are the main focus of marketing efforts,
we must not forget the traditional markets such as the
Netherlands, the UK, France, Italy, the U.S. and Canada.
If all programs are implemented in the next five years, I am
confident Indonesia's tourism will flourish again.
It is also hoped that the private sector will be involved
actively in all planning and policy programs.
Masyarakat Pariwisata Indonesia -- the Indonesian Tourism
Society -- is continuously looking for solutions for the people
of Indonesia, one of which is through the White Paper on
Indonesia's Tourism. This paper has been submitted to the
Minister of Culture and Tourism with a copy to the House of
Representatives Commission 10. It is hoped that this paper can be
used as a base for the development of tourism in Indonesia.
Note: Foreign direct arrivals via Bali's Ngurah Rai International
Airport for October 2004 were only 1.18 percent behind October
2000's performance -- the highest in Bali's history for foreign
tourist arrivals. In all, 128,399 foreign visitors passed through
Bali's airport in October 2004, an improvement of 31.8 percent
over the same month last year.
Overall arrivals in the first 10 months of the year totaled
1,222,113 -- setting a new record in foreign direct arrivals and
besting by 1.8 percent the 1,200,404 visitors recorded for
January-October 2000.
Bali's numerical success in arrivals, however, has been
purchased at a cost in quality of visitors. A dramatic shift from
high-spending, long-staying European and American visitors to
less lucrative regional tourists has taken place over the past
three years. As a result, many hotels and tourist attractions
dependent on total guest nights spent by tourists in Bali
continue to suffer.
Source: Bali Discovery Tours. http://www.balidiscovery.com
The writer is the vice chairwoman of the Indonesian Tourism
Society (MPI)