Tourism Development in IndonesiaIndonesia is located on over 13,000 islands and has over 17 percent of the earth’s species. Roughly and conservatively, Indonesia houses about 11 percent of flowering plant species, 12 percent of the world’s mammals, 17 percent of all birds, and at least 37 percent the world’s fish.
Since its independence, the government of Indonesia has exploited the natural resources of country to fuel “development”. Minerals and oil are heavily extracted; forest have been cleared and cut down. The development—which emphasizes very much on economic growth—has neglected almost all aspects other than economic growth. Until the late 1980s, the focus of the development had been on import substitution, and after that on developing export oriented industries. Hence, development in Indonesia means nothing more than industrialization. Moreover, industrialization in Indonesia has been focused on manufacturing.
As stated in its long-term plan of development, Indonesia started its development by boosting the agriculture to be self-sufficient in food, and at the same time, establishing the foundations for industrialization. After completing the phase of developing its secondary (manufacturing) industry, the country moved forward to tertiary (service) industry. Relying on this concept on the early 1990s, Indonesia promoted the development of service industries. The most prominent sector in this industry is tourism.
Tourism has played an important role in some provinces in Indonesia. The province of Bali, for example, enjoyed revenues from tourism even before the Government of Indonesia gave its attention to this sector. In order to promote the tourism industry, the president established a Ministry of Tourism, Post and Telecommunication in 1988, and set a “Visit Indonesia Year 1990” program.
NATIONAL POLICY ON TOURISM
National policy on development of tourism is based on a long-term plan of development. During the last 32 years, a centralized development policy, including the tourism, was adopted. As a result, many provinces of Indonesia were not optimally and equally developed. The growth of tourism had been lower than that of neighboring countries in ASEAN, a surprising fact when taking into account the richness of Indonesia‘s “tourist attractions”.
Recent development shows increasing efforts by the central government to work together with the local government to identify, develop and promote potential tourist destinations other than Bali. Along with the increasing awareness of nature protections, which will attract special tourists to visit Indonesia, the government has also introduced regulations on environment which are related to the sector of tourism, such as:
1. The Decree of the Minister of the Environment, No. Kep-32A/MENLH/7/1995 regarding Proper Clean River Program (Prokasih);
2. The Decree of the Minister of the Environment, No: Kep-52/MENLH/10/1995 on Standard Quality of Liquid Wastes for Hotel Operations;
3. The Decree of the Head of Environment Control Institution (BAPEDAL), No: Kep-32/BAPEDAL/05/1997 regarding Clean River Program, to require hotels to install liquid waste management unit;
4. MOU between the Ministry of the Environment and Indonesian Association of Hotels and Restaurants, No: 02/MENLH/12/1995 concerning the Training and Monitoring of Environmental-friendly Hotels and Restaurants
5. Programs on Evaluating the Achievements of Business Entities in implementation of Clean River Program.
Implementations of those regulations include the effort to apply environmentally friendly standards for the operations of hotels in Indonesia. The government has planned to include hotels in point 5 above, which include the evaluation of environmental management with the use of rating through colored labels starting in 1998, as follows:
• Gold labels are given to hotels which have achieved the level of zero emission;
• Green labels are provided to hotels which have adopted clean technology or minimizing environmental impacts;
• Blue labels are produced for hotels which are abiding the current regulations on environmental control;
• Red label is for a hotel which has tried to adopt, but failed to meet the requirements of the regulations on environment;
• Black labels are for hotels that do not try to abide the regulations on environment, and even damaging the environment.
One effort of the government to prevent pollution is by providing incentives through the Program of Soft Loan for Environment from Overseas Economic Corporation Funds on Pollution Abatement Equipment. This program is designed to encourage the installation of pollution management units in some businesses of which the operations are potentially damaging the environment. The soft loan with a period of 3 to 20 years is expected to answer the problems of high cost of investments in waste processing units faced by domestic investors.
MORE ON TOURISM POLICIES and THEIR BENEFITS TO THE INDONESIAN ECONOMYAfter several years, private tourism sectors as well as the government, realized that the development of tourism in this country is not only beneficial but has also its negative impact, such as: environmental degradation, economic gap between those related to the tourism business and those who are not, cultural degradation, etc. Massive development of high rise hotels, roads and infrastructures, along with changing use of the land, etc. for the purpose of tourism, have resulted the serious degradation of the environment. Some of these impacts will be described in the case studies.
As tourism developed, profit-seeking investors have come. Their fresh capital enabled them to own most of the resources, and eventually expel the local community from their own land. This left them with choices of either stay as farmers in less-fertile and smaller size of lands, or taking other jobs such as small merchants, providing services to the tourism activities, etc
As will be described in the case of Bali, the pressures of capital have affected not only Bali’s economy, but also its culture.
Under the pressure of Indonesian NGOs, informal leaders, religious leaders and other concerned people, the government of Indonesia has started to change its policies on tourism. The government has put its best efforts in promoting people-centered tourism and ecologically friendly tourism.
Unlike the previous ones, the new policies provide more opportunities for the local people to participate in the tourism development. Under the "tourism build prosperity and peace" theme, the Government of Indonesia empowers small and medium scale entrepreneurs and cooperatives in tourism sector, encourages private--especially the small and medium ones, deregulates licensing process for eliminating high-cost economy, and implements community based tourism.
Environmentally friendly tourism, or eco-tourism, has been adopted in in the last five years. It, as a mater of fact, has not been a mainstream in the tourism development. Only some areas--consist of national parks, rivers, and forests--are designated to be used for eco-tourism. In developing eco-tourism. It is understood that eco-tourism should make requirements of nature and environmental protection the basis for touristic activities. Thus, it ensures its ecological sustainability.
TOURISM IN BALI ISLAND
Compared to the total area of Indonesia, Bali represents only 0.29%. Based on 1997’s data, the total population of Bali is about 3.3 million, with a population density of almost 585 person/sq.km. However, Bali ranks as the first in terms of popularity among tourist-destination areas in Indonesia. Tourism in Bali had started since 1926 with the exploitation of the unique Balinese cultural and natural beauty by the Dutch colonial government. The government of Indonesia started in 1960 with the building of the Bali Beach Hotel in Sanur and the Ngurah Rai international airport.
Bali is internationally known for its dances, temples, and beaches, which have long been recognized as main tourist attractions. In 1996 BaIi attracted a total number of around 3 million tourists, or about 30% of the total number of foreign tourists coming to Indonesia. The trend shows an escalating number over several years. The increase is supported by the infrastructures and facilities.: more than 25,000 hotel rooms of various qualities, international airport which can accommodate large airplanes, ports and more than about 500 thousands Balinese involved in tourism activities.
Despite the deterioration of Indonesian politics and economy, Bali is still perceived as a very safe and nice place to visit. Bali enjoys the ever increasing number of visitors whom each stays the average of 9 days, with an average spending of about USD 80 per day. Bali is indeed the only tourist destination in Indonesia that is still recommended by the government of Japan, USA, Australia and other European countries. Other areas in Indonesia still suffer significant drop due to the recession and partly to travel bans set by foreign countries. On the contrary, Balinese merchants, brokers, etc. have gained profit from the condition. Tourism industry in Bali still enables Balinese to sustain their consumptive lifestyle.
The development of tourism industry has played an important role in Bali’s economy due to its limited natural resources. An important indicator of the growth in revenue is the income per capita which has been increasing since 1994 of Rp. 2,22 million, Rp. 2,56 million (1995), and Rp. 2,95 million (1996), with several tourist destination areas as the highest per capita income.
An indirect impact from the growth is the relatively high population growth rate in these areas compared to other areas. The urbanization as well as migrant workers from other provinces have caused high growth rate of population which affect natural environment, social, economic and cultural life of the Balinese.
The tourism development plan of Bali is based on two regulations i.e. (1) The Decree of the Governor of Bali No. 528 / 1993 regarding Tourism Area; (2) The Decree of the Local Government No. 4 / 1996 regarding Spatial Planning for the Province of Bali.
The objectives of the above regulations are: (1) To provide guidance for the optimum use of space at tourist destination areas, especially in less developed areas; (2) To reduce the negative impacts of tourism activities on the sustainability of the environment
The strategies on the above are based on the Balinese philosophy of Tri Hita Karana that includes:
• Strategy of managing sanctuaries;
• Development of agricultural areas and regional infrastructures;
• Development of urban and other priority areas.
1. Social and Cultural
Aside from its benefits, the growth of tourism in Bali has some negative impacts, particularly in the social and the cultural dimensions. The Balinese culture has changed due to commercial influences, people alienation from their own land, market orientation of artworks. Among them are:
Tourism has created income opportunities. Unfortunately, young generations have failed to exercise religious and/or ethical values to generate income; Cases of young people involved in various types of prostitution are common in several popular tourist destination areas. There are street souvenir vendors who sell their merchandise in such ways that annoy the customers, while some others put very high price on the low quality merchandise. These will create the negative image of Bali as a safe and enjoyable tourist destination.
Expecting more money, some local people who do not have necessary skills take shortcuts to wealth which, in most cases, are not morally acceptable.
There are also cases where the local community has been alienated from their own village. The flow of investments on hotels along the beach has driven local community out of their lands and even beaches. Beaches are essential to the Balinese, for their religious believe to the Sang Hyang Widi Wasa. Land, sea, and mountain are perceived as one unity. As some beaches are converted into private areas, Balinese are alienated from their own values and can no longer perform their rituals.
Other main tourist attractions are dances, paintings and sculptures. These art forms have generated a lot of income from the rise of tourist visit to Bali. However, the products of these art forms have been adjusted according to the taste of the market. This resulted in popular market products rather than high quality of art itself. Sculptures, dances, and other art products are originally--for Balinese--for ritual and religious purposes. However, thanks to the market pressure, they are turned into commercial commodities.
2. Economic Perspective
The Tourism industry -- including transportation, hotel, hospitality, and travelling services -- is the biggest industry in Bali that provides quality employment opportunities for the Balinese, and is still one of the fastest growing sectors in the Island. Employment opportunities have been provided by small businesses especially in the home industry, supporting the tourism activities. Many of them are located in the urban areas. Considering the economic crises suffered by the country, it is projected that the growth of the industry in Bali will not exceed that of 1997/98.
Tourism industry is expected to contribute a major portion of GDP in foreign exchange, which is very much needed at this moment, and to provide 2.6 million, 2.8 million, and 3.4 million employment opportunities in 1996, 1997, and 1998 respectively. The figures above have shown the important role of tourism in Bali’s economy. Most of Balinese are economically depend on the tourism directly or indirectly.
During the political riots in several major cities of Indonesia, considered as the safest place to stay, hotels in Bali were fully booked. The government of Bali also benefited from this situation, specifically from income tax and local retributions.
Tourism industry has played an important factor to boost exports. Foreign tourists spend their foreign exchange directly by buying products of the visited country. About 14% of the total value of Indonesian export are generated from tourism. The transactions are directly between tourists and merchants.
Another important impact of the tourism in Bali is that it generates a multiplying effect. The growth of tourism will enable other sectors such as construction and manufacturing to grow as well. In 1997, there were 61 new investments in tourist destination developments in Bali alone.
3. Environment Perspective
The increasing activities in tourism have resulted in some negative impacts on the environment, e.g.:
• Ground water
The significant increase of water consumption for daily activities as well as for recreational purposes, such as swimming pools. Many hotels in Bali are forced to provide their own sources of clean water because the limited access to the local water companies (30% of the current needs). These hotels have turned into ground water extraction, amounting to about 46% of their needs, to supply their needs for clean water. The extensive use of ground water may decrease the ground water reserve in the long run, and induce the absorption of seawater (intrusion) even further.
• Liquid wastes
Based on review done by the government on some hotels in Bali, about 63 % have installed a liquid waste management unit, while the rest still use the absorption methods. A conventional system on liquid waste management (absorption) has grown businesses for providing the service of hauling human wastes. Their service seems to solve the problem of liquid waste of the hotels. However, the lack of regulation on waste management, has excused the private haulers to pour liquid wastes directly into the sea and rivers. Thus creating a higher potential damage to the environment. The regulations also failed to set parameters on some factors, such as content of oil/fat, NO3-N, Phosphors, Faecal Colii, etc. in the ambient water.
• Solid wastes
Most hotel operators in Bali are using private hauler in maintaining their solid wastes. These private haulers are responsible to collect, transport and dispose the wastes. Wastes from the hotel kitchen are often used to create compost and feed for pigs. Some hotels have also worked together with private sectors to recycle some wastes like papers, glass bottles, etc. There are also cases, however, of some irresponsible private haulers disposing the solid wastes in places other than the designed area, as seen in some parts of the coastal areas.
• Noise and fuel emission
As there is a sharp increase of tourists coming to Bali, direct impacts including noise resulted from airplanes to and out of the province. Inland transportation within the province has resulted in pollution. There are also cases where some dwellings around hotel areas are affected by fuel gas emission that comes from incinerators and electric generators.
• Eradication of Landscape and ecosystem
Lands conversion for tourism are common in Bali. A rocky hill which is rich of natural flora and fauna was “developed” into golf field; some others are cut to build boulevards and bungalows. This conversion leads to the extinction of Bali’s natural flora and fauna, such as the famous indigenous bird called Jalak Bali.
For the last six years the production of wastes and garbage, as well as depletion of environment and its flora and fauna, from tourism related activities tend to increase up to 25% per annum. These, if not properly maintained, may pollute the environment especially in popular tourist areas and its surroundings. To handle such potential problems, Bali needs to improve its policies and control system regarding the environment management.
TOURISM DEVELOPMENT IN LOMBOK ISLAND
I. Existing Conditions of Tourism Sector
The Island of Lombok is located next to Bali. Lombok is currently considered as a very potential tourist destination area after Bali. It is part of the province of West Nusa Tenggara Barat. With a total population of 2.6 millions for the whole province, of which about 6 % is employed in tourism sectors, tourism activities has contributed an amount about US$ 106 millions, or about 25% of the local GDP. In 1997 a total number of about 200 thousands tourists originating from America, Europe, Asean, and Asia Pacific visited Lombok.
As also in Bali, tourism activities in Lombok Island have created opportunities to generate income. Aside from hotels and restaurants, there are several art or souvenir shops introducing specific art products from West Nusa Tenggara which is quite different from that of the Balinese: hand-woven Ikat, clay works, pandan weavings, primitive wood sculptures, etc. With its unspoiled land and diversity of religious and cultural values, West Nusa Tenggara offers a unique natural as well as cultural attraction.
2. Policy and Strategy of Local Government
As a tourism destination next to Bali, the local government has encouraged the involvement of private sector, community, and cooperative in developing tourism. This effort included the development of infrastructures to support the tourism, and, especially, the improvement of the quality and capability of the local work force.
With properly planned actions, the government of NTB expected the growth of tourism to increase 15% per annum. This means about 500,000 employment, and about USD 115 millions generated annually at the end of 1998, from about 309,000 tourist.
In an effort to develop tourism, the government of West Nusa Tenggara has established a joint venture company with the private sector called the Lombok Tourism Development Corporation (LTDC). The plan of this cooperation is to develop tourism facilities in a total area of 1,250 ha which consists of hotels, golf course, business center, and other tourism facilities.
However, learning from tourism in Bali, the government will prevent negative impact from tourism activities. They have anticipated that problems like wastes, over investment, land acquisition, illegal buildings, environmental degradation, privatization of beaches which created less access for fishermen and public, as well as social and cultural impacts that may appear as the tourism developed.
3. Social Perspective
Lombok has natural beauty that can be developed as tourism resort. As the island located near Bali-a major tourist destination, Lombok has the advantage to be the second tourist destination to catch the overflow of tourists from Bali. The provincial government of NTB understand very well the strategic position of Lombok and it includes tourism as a leading sector in the provincial development. Tourism in Lombok has provided 6.09% of total employment opportunity in that area. However, the number is much lower than the available graduates of tourism schools, as well as the expectations of the government to provide employment for local community around tourist destination areas. The development of tourism has also shifted employment opportunities from agricultural to tourism related activities.
Efforts, which have been done by the government, include facilitating training to improve the quality of local handicrafts in order to enable them to compete and to reach a much larger market share. The consideration of empowering the surrounding community is particularly important, because of the current gap between quality of local human resources compared to those from other parts of Indonesia. If left unanswered, this will lead to economic, and thus, social gap between the local community and migrants.
However, negative impact of the development of tourism is not hard to see. More and more people have moved, either voluntarily or not, for the reason of developing tourist resorts such as the case of Ms.Inaq Ameneh of Gili Trawangan[1].
2. Economic Perspective
The natural resources of Lombok island has attracted a lot of investors--domestic as well as foreign ones--in establishing tourism related industries: hotels, resorts, travel agents, restaurants, etc. Based on data collected, there are domestic investments amounting to Rp. 362 billion and foreign investments amounting to USD 2.57 million in hotels, restaurants, etc. It is also expected that these investments could lead to other activities beneficial to the local community surrounding them. The multiplying effect of the growing tourism sector has been expected to happen in Lombok.
3. Environment Perspective
The local government of West Nusa Tenggara has taken some preventive measures based on the negative experience of Bali, such as the degradation of quality and quantity of natural resources, as well as the impacts on the local community.
However, with a current economic condition of the area (i.e. population of almost 4 million, income per capita of Rp. 1.8 million--less than 55% of its neighboring Bali--and limited amount of local revenue of the government), it seems that the government of West Nusa Tenggara is facing a difficult choice between maintaining the quality of the land and a fast way to increase economic conditions of the region. Stringent regulations on investments will create the impression of West Nusa Tenggara as an unattractive investment area, especially in a worsening condition of Indonesia in foreign investor’s view.
One example is the opening of a gold mine in Sumbawa. A foreign joint venture called Newmont has recently established its open mining area there. With an increase of expatriates in the project, it is expected to boost local economic activities (including tourism) as well as employment opportunities for the local community. The available jobs for local community is mostly for the unskilled ones, although in quite a big number. The open mining system, however, is considered as degrading the quality of land.
PROPOSED SOLUTIONS FOR SUSTAINABLE TOURISM
In Indonesia, ecotourism has not been a mainstream. Although, some efforts in promoting it are flourishing. The efforts, considering the current Indonesian situation is harder now. The country suffers bad publication due to the prevalences of riots, loots and ethnic conflicts.
According to Hermawan Kertajaya, the President of Asia Pacific Marketing Federation, Cohort 1- Indonesia: as a product in tourism business, Indonesia needs repositioning to promote its positive brand equity and good image. The positioning of Indonesia has to be directed to the objectives to achieve ‘New Era’ of Indonesia which is the process of transformation from corruption, collusion, and nepotism to the era of clean, transparent, and professionalism. This issue should be born in tourism actor’s mind and activities. This is a priority beside the needs to develop of many tourism facilities and infrastructures. In parallel with the effort to reposition Indonesia’s image, it also needs to pay more attention to all potential risks which may arise, and will cause negative impacts on the important elements such as social, economy, and environment. The development of tourism should also be directed to achieve sustainable tourism.
In social perspectives, the need is to minimize the negative influences of tourism activities in social life of local people who live near or at the tourism area in order to preserve culture and tradition for the future. In economy, more attention should be paid to the need, ability, skills and characters of local people, so that they can be actively involved and can get the benefit from the tourism. The development should increase their quality of life, and not otherwise.
Tourism in Indonesia is the activity of selling the beauty of nature and the unique culture of Indonesia. To achieve the sustainable tourism, Indonesia needs to protect the environment from tourism activities. This must be in our behavior – both of Indonesians and tourists.
As Indonesia currently faces an urgent need of foreign exchange, while local products have not reached competitive advantage, tourism is playing an important role. Tourism is very much depend on infrastructures as well as safety of the destination. Unstable economic and political condition that Indonesia is experiencing is not a favourable condition for Indonesia to compete over tourists visiting the region. Unless a lot of money are allocated to promote Indonesia, it is very difficult for Indonesia to regain its popularity. Ambitious plans and projections would be very unrealistic with a very limited amount of funds available.
At time of very low foreign tourists such as this, it is important for Indonesia – the government and private sectors in tourism – to evaluate all negative damages of tourism in the past and develop measures and activities to increase the quality of all aspects of things to offer to support tourism. These include the services as well as the products to be sold of which natural beauty plays a very important role.
________________________________________
[1] In the early 1970s Ms Ameneh developed a simple resort for tourism consisted 21 cottages and 2 souvenier shops. This business was run by Ms. Ameneh and her local fellow of Lombok. As the areas grow fast, a big business stepped in and throw Ms. Ameneh and her simple cottages out of the region. The government, unluckily, stood behinds the big business and declared that Ms. Ameneh constructed cottages at illegal lands. The simple cottages eventually was demolished by government buldozers.
