Global Tourism Competition and Bali

By Barrie | October 22nd, 2007 | No Comments

An economist said Bali will increasingly have to compete globally for tourists as countries promote their top destinations for a larger share of the lucrative industry. Economist Dorodjatun Kuntjoro-Jakti said tourism will increasingly play a bigger role in the global economy. “Tourism will be grown as a ‘clean industry,’” said Kuntjoro-Jakti, a former chief economics minister.

“Indonesian tourism, if managed properly, will have a good chance to replace the oil and gas industry as the country’s top foreign exchange earner,” he said. He said Bali was known as Indonesia’s top tourist destination, but in the future that would not be enough to ensure a steady stream of tourists as the article in the Jakarta Post further explains.

He said more countries were competing in the world tourism market, offering travelers more attractive and dynamic tourism packages. “We should not take it for granted that visitors will come to Bali and other destinations in Indonesia. Indonesia must make a comprehensive analysis and integrated efforts to attract world travelers to the country.” Compared to other Asian countries, Indonesia has a number of negative growth factors.

According to Euromonitor, a prestigious tourism think thank in Europe, there are several factors hampering tourism growth in Indonesia, including terrorism, lack of infrastructure, bird flu and the quality of service. “Indonesia must be active in promoting its tourism services, and provide an in-depth analysis of its future prospects to major tourism agencies and prospective investors,” Kuntjoro-Jakti said.

Ida Bagus Lolec, one of Bali’s most successful tourism entrepreneurs, said the island had a lot of work to do if it hoped to maintain its position as a world-class tourist destination.

“We must be very creative in creating attractive tourism packages to lure back tourists and businesspeople to the island,” he said.

Tourist arrivals fell drastically after the 2002 Bali bombings and the 2005 attacks. However, arrivals have begun to rebound.

The island annually hosts one to 1.5 million domestic and foreign tourists. Indonesia as a whole attracts about 6 million foreign tourists every year, as compared to Malaysia and Singapore which see at least 11 million foreign visitors annually. Lolec said Bali had the potential to be further developed as a business and leisure tourist destination.

“International meetings and conferences are one potential tourism market for Bali as we have adequate facilities and skilled human resources,” he said. Bali is already hosting some national and international conferences. Next December, the island will host a major UN conference on climate change.

Agung Prana, another tourist businessman, views Balitourism in a positive light.

“We still have a large portion of the global marketshare,” Prana said. Environmental and spiritual tourism packages could be developed in Bali, he said.

“These are the current global trends in the tourism industry. Bali has abundant natural and spiritual richness. It really depends on us to make it attractive to the international tourism industry,” Prana said.