Analysis on Indonesian International Tourism Strategy

Penulis: Mahpud Sujai, Center for Climate Finance and Multilateral Policy, Fiscal Policy Agency (Tahun 2015)

Tourism is important to Indonesia’s economy. In recent years, the contribution of tourism sector to the national economy is increasing significantly. In 2012, tourism sector contributed almost 17 per cent of the total Indonesian exports of goods and services, rose from 10% in 2005. The direct contribution of tourism to GDP was just over 3.8 percent in 2012 or 9 percent of GDP if including the multiplier effect of GDP. Despite the strong growth of Indonesian tourism sector, when compared with other competitor countries in the ASEAN region, Indonesia is still far behind. The number of tourist arrivals to ASEAN reached 92.7 million in 2013. However, tourist who visited Indonesia was only about 8 million tourists or less than 10 percent of the total foreign tourist visiting ASEAN countries. During the period 2005-2012, the ASEAN tourism is able to grow on average 8.3% per year, well above the average global growth of only 3.6%. However, Indonesia's tourism grew only 5.8 percent per year far below the average growth of ASEAN although still above average global growth.Given the potential of Indonesia's tourism sector in the future, it would require variety of strategies to attract more tourists and develop Indonesia’s tourism. Therefore, the aim of this paper is to analyze various strategies undertaken by the government in attracting more tourists to Indonesia. The methodology used is descriptive analysis through benchmarking analysis with competitor countries in the ASEAN region and SWOT analysis to prepare a proper strategy for the development of the tourism sector in Indonesia. This paper is expected to contribute in formulating strategies by stakeholders especially government in developing the tourism sector in Indonesia.

Keywords: Tourism Development, Strategy, SWOT Analysis


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