Infrastructure Woes Trip up Tourism

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“THE tourist industry is sleeping”. This comment by Mr Asnawi Bahar, chairman of the Association of the Indonesia Tour and Travel Agencies (Asita), says it all.

Last year, 7.7 million tourists visited Indonesia, a 9 per cent increase over the previous year. But while officials hailed the figure as demonstrating the success of government efforts, comparisons with neighbouring countries reveal the country’s tourism sector to be little more than a sleepy backwater.

Despite floods and plenty of negative publicity about the domestic political situation, Thailand greeted 23 million tourists last year. Neighbouring Malaysia welcomed 24 million.

A look at the results of a survey conducted by the tourism ministry reveals yet another worrying development. Last year, the average length of stay for tourists in Indonesia fell from 8.04 days to 7.84. Fortunately, an unexpected rise in the amount of money each tourist spent resulted in foreign exchange revenues remaining strong. But how long can such a situation last?

The problems facing the tourism industry are legion. Chief among them is an issue that bedevils business across the country – the lack of sufficient infrastructure.

One of the most unusual attractions in Indonesia, for example, are the coloured lakes near the summit of the Kelimutu volcano in Flores. To get there, tourists must make use of the nation’s widely maligned domestic airline system by taking a 31/2-hour flight to Maumere from Bali. The drive from Maumere to Moni, the town at the base of the volcano, takes another three hours. Available accommodation is limited to small, non-five star hotels.

Another area with significant tourism potential is the Raja Ampat Islands, located off the north-west tip of the Bird’s Head Peninsula in the province of West Papua. Although widely hailed for its scuba diving, surfing and massive coral colonies, there are no direct international flights. Instead, visitors must fly to Sorong from Jakarta, before taking a boat to the islands.

It is not only the more remote parts of the country where tourism suffers from inadequate infrastructure. There have not been any direct flights from Europe to Medan for more than 10 years. And repeated delays in the construction of Medan’s new airport at Kuala Namu have done little to encourage major airlines to return. Nearby Lake Toba, a magnificent volcanic lake with a mild climate set among stunning mountain scenery, is therefore bereft of visitors. As Mr Asnawi explains, convincing European or American tourists to take a connecting flight to Medan once they have reached other Asian destinations such as Kuala Lumpur or Singapore is very difficult.

Even Jakarta’s tourist spots have problems. According to Jakarta Tourism Agency head Arie Budhiman, only a handful of tourists are interested in spending their time visiting the virgin beaches on Pulau Seribu, the islands that dot Jakarta Bay. “Not all foreign tourists are comfortable enough to use the boats we have to go to the island. In addition, the destination has no star-rated hotels yet,” he told the Jakarta Post last month.

Apart from improving infrastructure and working on the safety practices of domestic airlines, policymakers need to find ways of increasing the number of foreign language speakers. Western practices, says Mr Asnawi, also have to be explained to local villagers. This is especially so in Muslim areas or parts of the outer islands where foreigners are rarely seen.

Other issues also have the potential to undermine government efforts. After years of recovering from terrorist attacks, tourist-dependent Bali is facing the threat of rising crime. Speaking at a meeting with the island’s police last month, Bali Governor Made Mangku Pastika noted that the island was no longer just a transit point for the trafficking of illegal drugs from mainland Asia to Australia. Instead, it had become a market of its own.

According to Bali police, 5,280 crimes were reported last year, 10 per cent less than in 2010. But cases involving violence have risen sharply. Criminals on the island are believed to be increasingly targeting tourists on the assumption that they will be carrying money.

One way forward for neglected tourist destinations may be to encourage the sort of creative alliances that appear to be building between representatives of the World Wildlife Fund (WWF) of Sweden and officials on Samosir Island at Lake Toba. Impressed with the Batak culture of the people and the pristine beauty of the lake, the WWF in January offered to help promote the area as a tourist destination in return for government action to preserve the local ecosystem.

But without the supporting infrastructure – especially provincial airports capable of handling direct international flights – waking the Indonesian tourism industry from its slumber will not be easy.

(C) Singapore Press Holdings Limited 

Key Political Risks

The inability of the government led by Prime Minister Yingluck Shinawatra to bridge the deep divisions between her populist government and its royalist opponents in the military and bureaucracy remains a major concern.

Prime Minister Yingluck has selected a competent economic team, but it is difficult for these technocrats to deliver on the new government's campaign promises without triggering inflation or hurting business. 

The government has also been unable to resolve the ongoing insurgency involving ethnic Malay Muslim rebels in the south.

 

WATCH OUT FOR:

  1. Attempts by the government to amend the constitution. The proposed rewrite is aimed removing legal measures initiated by the royalist generals who overthrew former Prime Minister Thaksin Shinawatra, the current prime minister's elder brother, in 2006.
  2. Ballooning government debt as officials seek to finance government programmes aimed at subsidising rice prices in order to retain the support of farmers.
  3. The relationship between Prime Minister Yingluck and senior generals. Coups have been a common means of regime change in Thai history, and any attempt by the government to purge royalist elements in the top brass could trigger yet another. Thailand

About Me

My name is Dr Bruce Gale and I am a senior writer with the Singapore Straits Times. I studied at  LaTrobe University (BA Hons) in Melbourne and later at the Centre for Southeast Asian Studies at Monash University (MA). My PhD thesis, which focussed on Malaysian political economy, was completed at the Malaysian National University (Universiti Kebangsaan Malaysia) in 1987.

From 1988 to 2003 I was Singapore Regional Manager for the Hong Kong based Political and Economic Risk Consultancy (PERC). 

I have written several books and articles on Southeast Asian affairs, including Political Risk and International Business: Case Studies in Southeast Asia (Pelanduk Publications, 2007). Books on language include Mastering Indonesian: a guide to reading Indonesian language newspapers (Pelanduk Publications, 2008)

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