Vying for a share of tourists during hard times in ASEAN

Vying for a share of tourists during hard times in ASEAN

Grace Emilia, Contributor, Yogyakarta

It seems pretty incongruent, the contrast between the glamor
of the tourist industry and the current dire situation in
Indonesia where about 30 percent of children were badly
malnourished in 2001.

This was the finding of a report on the condition of
Indonesian children that was jointly presented recently by the
United Nations Development Program (UNDP), the National
Development Planning Agency, and the Central Bureau of Statistics
(The Jakarta Post, 22/01/02).

So it is easy to be cynical when we see the government
spending a minimum of US$42.5 million on hosting a high-profile
event like the Royal ASEAN Tourism Forum (ATF) in Yogyakarta from
Jan. 21 to Jan. 28, 2002. So much money for just a few days.

Is this really a correct strategy given the present situation
in the country?

Imtiaz Muqbil, a senior tourism analyst, who is also the
executive editor of the Bangkok-based Travel Impact Newswire,
says that before 1997, Indonesia was a major competitor for
Thailand as it attracted many tourists. Also it had a lot of
diversity and was quite attractive to investment from Hong Kong
and Singapore.

But now Thailand has far surpassed Indonesia in terms of
tourist arrivals and capital gains.

"The main difference between Thailand and Indonesia is that
Thailand does not have any political, ethnic and religious
problems at the moment. So it is absolutely critical for
Indonesia to first sort out its internal problems so that it no
longer gets bad headlines and bad coverage on television.

"As long as the problems continue, Thailand will always get
more tourists than Indonesia. So no matter what strategy
Indonesia pursues, the results can never be as good as they
otherwise would have been," says Muqbil.

For the time being, Muqbil sees the word-of-mouth method as
being the best way to entice tourists back to Indonesia.

"Those people are the best ambassadors for Indonesia. When
they tell their families and friends (about Indonesia), they will
be trusted more than the journalists." Muqbil added.

However useful this method is, Muqbil also says that continual
marketing efforts to project a good image are still of the utmost
necessity.

"So, having this ATF is good for Indonesia as key tourism
people from all over the world are coming and can see for
themselves what is going on in the country." concludes Muqbil.

Discussions on how to promote the ASEAN countries as safe and
interesting destinations, and the action plan for the
implementation of its conclusions were also the top priorities
discussed during the NTO (National Tourist Organization) meeting
held from Jan. 21 to Jan. 23, prior to the ATF travel exchange.

"Together with the other ASEAN countries, Indonesia will
continue the "Visit ASEAN Year" (VAY) joint campaign" says
Thamrin Bachri, Deputy of Marketing and
International Relations from the State Ministry of Culture
and Tourism.

Each ASEAN country contributed US$20,000 towards the launching
of the campaign, which started last year during the ATF in
Brunei. Presently, the member countries are being asked for a
further $60,000 to maintain the VAY marketing profile.

Brunei's Director General of Tourism Sheik Jamaludin Sheik
Mohamed, told the ATF Daily that the countries with smaller
tourism budgets would benefit greatly from the campaign, as
countries such as Thailand, Malaysia and Singapore were also
promoting the other destinations. "What is important is the on-
going promotion of the VAY." says Sheik Jamaludin.

Meanwhile, from the ATF floor, the Indonesia tourist industry
has been voicing its concern about a lack of government awareness
and interest in paying attention to tourism.

"Tourism is a real and serious business generating money and
jobs. It's not just social work." asserted Yanti Sukamdani,
chairperson of the Indonesian Hotel and Restaurant Association
(PHRI).

In 2001 alone, with an income of over US$5.4 million, tourism
provided 6.6 million direct tourism jobs, excluding indirect ones
like those in the souvenir, transportation, packaging and food
industries.

"Rather than the current political bickering, which also eats
up lots of money and energy, better put the effort into tourism
promotion. We already find ourselves in a terrible predicament
now. The occupancy rate in Bali is only around 50 percent to 55
percent these days. Under normal circumstances, it should be
around 80 percent to 90 percent." says Sukamdani.

Rully Zulkarnain, chairman of Casa Grande (an association of 4
and 5-star-rated hotels) Yogyakarta, says that a coordinated
marketing and public relations effort undertaken jointly by the
government and the industry would be one way of bringing more
tourists to the archipelago.