Tourism
From The Report: Indonesia 2014
View in Online Reader

Boasting some of the world’s greatest biodiversity and dynamic landscapes, Indonesia has long been a popular destination amongst tourists. The development of an Islamic heritage niche has seen an increase in arrivals from Gulf countries. Arrivals from the UAE and Saudi Arabia increased 122.4% and 34.2%, respectively, in 2013. The number of air travellers to Indonesia rose 15% in 2012, reaching 72.6m. Projections for 2013 were high, with as many as 83.4m travellers forecast to fly through Indonesia’s airports. Once the ASEAN single market integration is complete in 2015, there will be a regional market to serve some 600m potential tourists. The government spent approximately $1.53m on international marketing efforts in 2013, focusing on events in new markets such as China, India and Turkey. Infrastructure hurdles and human resource recruitment remain the top challenges, but the government’s prioritisation of tourism as a key source of economic growth is a good sign. As the nation’s $43bn infrastructure investment budget continues to support projects, tourism is set to benefit from improved connectivity.

This chapter contains an interview with Anthony Akili, President and CEO, Smailing Tours.

Articles from this Chapter

Overview

A day in the sun: Changes to the tourism offering could see big gains in the medium term
OBG
plus

Boasting some of the world’s greatest biodiversity and dynamic landscapes, Indonesia has long been a popular destination amongst tourists. The appeal lies in experiencing life on one of the country’s 17,000 islands, sampling the famous South-east Asian gastronomy, or seeing the orangutan and Komodo dragon in their natural habitats. After oil and natural gas, palm oil, coal and rubber, tourism is the sixth-largest contributor to Indonesia’s national economy, and received a 27% increase to $6.7bn…

Analysis

Getting their hands dirty: Tourism villages and ecotourism expansion
OBG
plus

Throughout 2014, the Ministry of Tourism and Creative Economy will begin establishing 561 tourism villages in 19 regions across the archipelago, and aim to expand to 1400 in the coming years. An effort to engage the public more directly with tourism, localise sector earnings and maximise authenticity of the tourist’s experience, the ministry will invest RP75m-100m ($75, 000-100,000) in each of the designated villages, which are being scouted. The ministry plans to conduct skills development at…

Interview

Anthony Akili, President and CEO, Smailing Tours: Interview
OBG
plus

Interview:Anthony Akili What outbound tourism trends are you noticing with the rise of Indonesia’s middle class, and how can tour operators accommodate this? ANTHONY AKILI: Indonesians are becoming increasingly educated as the middle-income class continues to expand, and indeed those who used to be in the middle-income bracket have now risen to a higher income level. With higher incomes come different spending and travelling habits. Typically over the last 10 years, when Indonesians would…

Analysis

The main events: Building on strengths in a key high-value niche
OBG
plus

After hosting a number of international events, following the launch of a new national strategy to develop business tourism, Indonesia is becoming a choice destination for the meetings, incentives, conferences, and exhibitions (MICE) segment. Jakarta, Bali and emerging regional centres have expanded facilities to meet demand, with the Ministry of Tourism and Creative Economy (MTCE) designating 2013 the year of MICE tourism. As business tourism revenues rise, 2014 will see Indonesia bolster its MICE…

Analysis

Natural wonders: Komodo National Park set to drive tourism growth in the region
OBG
plus

After welcoming 8.8m visitors in 2013, Indonesia’s tourism industry is set for further expansion in 2014, bolstered by growing foreign investment in hotel construction. While Bali and Jakarta typically receive most international visitors, the pristine and unique province of East Nusa Tenggara (ENT) is also slated to see its visitor arrivals and regional infrastructure grow, bolstered by the increasing global popularity of its diverse attractions, including the world-famous Komodo Island. The government…

Analysis

In need of a boost: Supporting creative industries to improve sector growth
OBG
plus

As concerns grow that an over-reliance on resource-related exports could see Indonesia repeat the boom-bust cycle of its past, the country is being encouraged to accelerate moves to diversify its economy away from commodities and towards areas such as the creative industries. Two major fashion events, Jakarta Fashion Week and Indonesia Fashion Week, are helping showcase Indonesia’s creative capacity, although critics say the government is not doing enough to help the capital or the country as a…