Tourism Competitiveness

Mar 4th, 2007, in Business & Economy, by

Indonesia is ranked 60th in the tourism beauty stakes.

Put out by the World Economic Forum the 2007 Travel and Tourism Competitiveness Index weforum, the first ever report of such a kind, ranks 124 countries in the world on their ability to provide a conducive environment for the tourism and travel industries.

In 2006 five million tourists visited Indonesia providing earnings of $4.5 billion to the country. About 2.5 million people were directly reliant on the tourism sector for employment, with another 5 million being indirectly connected to it. In the Index Indonesia ranked 60th of 124 and scored 4.2 out of 7.

The top ten and some Asean countries:

  • 1 – Switzerland, 5.66 out of 7
  • 2 – Austria, 5.54
  • 3 – Germany, 5.48
  • 4 – Iceland, 5.45
  • 5 – United States, 5.43
  • 6 – Hong Kong, 5.33
  • 7 – Canada, 5.31
  • 8 – Singapore, 5.31
  • 9 – Luxembourg, 5.31
  • 10 – United Kingdom, 5.28
  • 31 – Malaysia, 4.80
  • 43 – Thailand, 4.58
  • 60 – Indonesia, 4.20
  • 86 – Philippines, 3.79
  • 88 – Vietnam, 3.78

Indonesia’s overall rank and score broken down by three categories:

  • Tourism and Travel regulatory framework – ranked 54th scored 4.4
  • Tourism and Travel business environment and infrastructure – ranked 68th scored 3.3
  • Tourism and Travel human, cultural, and natural resources – ranked 56th scored 4.8

Unfortunately there is no breakdown of tourism competitiveness in the country by region – Indonesia being such a vast country there is considerable difference between even geographically close areas, say, between East Java, and Bali, see BPI Bali Real Estate for an idea of this.

20 Comments on “Tourism Competitiveness”

  1. Bugiman says:

    Not to worry about inbound tourism numbers, the Vice President is going to increase these by 27% this year. In Feb’ 2006 Australia launched a 2 year, 140 million dollar campagn to try increase numbers by 4%. To attempt a 27% rise, cost would be nearly 1 billion dollars. Just out of interest, actual numbers into Australia in 2006 were down 1%, although these marketing activities do take time to bear fruit. For Indonesia it’s all about perception, and the fear factor. I ignored my governments travel warnings and visited Jakarta and West Java for a month recently, and will now be a regular visitor to Indonesia, what a great time I had. Their were many highlights, and this may sound strange, but Sunda Kalapa and the KLM/Phinisi harbour I went back to 3 times, smelly, noisy, poluted and crazy, but I loved it. Indonesia has so much to offer the visitor, I hope whatever Tourism Indonesia does to attract more, works, and not just Bali.

    See you soon


  2. Enda says:

    That’s odd, how malaysia can be higher than thailand?

  3. Sputjam says:

    Are they joking? Indonesia may well be below Malaysia and Singapore, but both countries cannot match Indonesia for absolute beauty. Where else can you climb volcanoes, slumber on beautiful beaches, nice and peaceful countryside. Trouble with Indonesians is that they themselves do not appreciate what they have got.

    Now if only Jakarta bureaucrats can build an airport that can take malaysian and Singaporeans directly to Lake Toba instead of having to drive for a few hours from Medan, and another airport on Pulau Nias for sun and surf, those will be an instant hit.


  4. Ihaknt says:

    Sputjam, can’t agree with you more!

  5. Dimp says:

    Hi Sputjam,

    Unfortunately all you can hear about Indonesia in the foreign media have been for all the wrong reasons. And as long as the government keep tolerating these actions by some fundamentalists, then the tourists will not be bothered to look for Indonesia as one of their destinations.

  6. Mohammed Khafi says:

    Hey Guy’s, and Gal!

    This survey is not about popularity, beauty or potential, it is about:

    their ability to provide a conducive environment for the tourism and travel industries.

    We still fall a long way short in many aspects, transportation, hotel standards and language skills are three that spring to mind instantly.


    Glad you enjoyed your stay, just remember to tell all of your friends, that we are not all islamic fundamentalists, thieves, racists or psycopaths! ‘Word of Mouth’ will do more than any Indonesian government promotional campaign.


  7. Madesh says:

    Thank God,

    With the Boiling Lapindo Mud in Sidoarjo we have an exclusive tourist attraction as they will never find it in other countries.

    The tourist can take whatever transportation they want to get there and it will become another tourist challenge, the FEAR Factors.

    Well we just need a good marketing guy to sell our product.

  8. Oigal says:

    volcanoes, slumber on beautiful beaches, nice and peaceful countryside

    So true but I cannot understand why they need to be covered with Plastic Bags, those rotten little “water” cups and all that other rubbish. The most telling comment I heard recently was from a couple of European tourists sitting in front of me on a plane. It’s so beautiful here but everything is covered in filth.

    Perhaps someone can help me understand why a people with such fierce national pride then turn around and use it like a toilet. Have Indonesians no respect with the soil that sustains them?

  9. Madesh says:

    It is not about the soil but about the politicians and the government that make everything messy.

  10. Parvita says:

    There are a lot of things that needs to be improved in this sector: Indonesia is mostly covered by ocean, but how come this is not being exposed? There are lots of beauty out there, especially when you go diving. Being a diver (and a diving instructor), Indonesia has TONS of places to dive from Sabang down to Raja Ampat in Irian. And the variety of species is wonderful. This place is much, much, thousand times better than the Bahamas, Hawaii or Maldives when it comes to diving!

    The problem is, the access. For example: if it is easier to reach the Komodo Islands and if there is a decent accommodation there, if there is an easy access to Natuna Islands with the white beaches and wonderful corals, if there is an easy access to drive down to Pelabuhan Ratu.

  11. Bugiman says:

    A little more research of 2006.

    Thailand 13.5 million visitors, Malaysia 17.5 million and Indonesia 5 million (maybe). Considering how many visitors to Indonesia extend their visa by going out and back into the country, the actual figure is probably a lot less. I am not sure the political will is there to attract more tourists. The budget for Tourism Indonesia is quite low, and an organisation like this needs imaginative, clever, creative, active and at times brave, team minded people, people hired, based on merit and ability.
    Tourism is so important to many countries, senior positions are advertised worldwide to get the best people, and if they don’t deliver, they are out.

    Many excuses can be found for such low numbers into Indonesia, but they may also be a reflection on the quality of staff within the ministy of tourism and culture.

    Senior staff have to be accountable, you only get back, what you put in and if the competion is working a lot harder or smarter, they get the results.

    Their are so many different ways to promote Indonesia in a cost effective way, let’s hope the ministry finds one of them!

    Cheers to all


  12. Dimp says:

    Hi Bugiman,

    The lack of tourism in Indonesia can probably be summed up in one word “incompetence”. Indonesian officials have no real knowledge on how to actually promote the vast tourist attractions Indonesia possess. Just the other day I walk my dog around the suburb where I live and actually found that there is a KADIN of West Java located nearby, I have never seen or heard when they actually opened this office, and haven’t seen what they have done to warrant such office. If I am not aware that they exist how can they promote their business to others?

  13. Yunir says:

    I was first shocked to see Singapore ranked 8th. But then, Muhd Khafi reinforced that the ranking is about:

    ability to provide a conducive environment for the tourism and travel industries.

    And judging by that, and also the fact it came from the World Economic Forum, the focus is obviously not on tourism for the everyday backpackers and the laymen, but for business transactions/dealings by businessmen/women.

    True tourists don’t let pesky officials get in the way of their travel destinations!

  14. Sputjam says:

    Thailand 13.5 million visitors, Malaysia 17.5 million and Indonesia 5 million (maybe).

    Malaysia tourist also consist of Singapore day trippers for business or leisure to JB (johore baru) or KL by flight.

    Thailand incurs many border tourist especially across its southern border with malaysia who go shopping for cheaper goods and food in Hatyai/Golok. But due to escalating violence in south thailand, I believe this number has decrease dramatically. I have read several hotels in hatyai have been bought over by Singaporeans due to low occupancy.

  15. Dimp says:

    What the government need to do to begin with is to fix the mess in the Transport Industry. All the domestic airlines (including Garuda) have yet been passed as category 1 (safe), they have all fallen to category 2 (Garuda, Mandala) and most have fallen to the worst (category 3). When international tourists consider that they have no options of travelling domestically then they may as well stay clear of Indonesia.

    So please SBY, sack Hatta Rajasa and replace him with a more competent person. While you’re at it, maybe there should be a requirement for the Minister of Tourism to be at least speak fluent English.

  16. Mohammed Khafi says:

    Sputjam said:

    Malaysia tourist also consist of Singapore day trippers for business or leisure to JB (johore baru) or KL by flight.

    Our figures also include daytrippers from Singapore to Batam and Bintan, expats on tourist visa working here illegally, and the foreign husbands of Indonesian women who can only come here on tourist visa’s, makes our figures look even worse.

    I am totally against letting foreigners work here on tourist visa’s, the system should accommodate such workers with a proper visa so they can pay taxes etc, but I have never been able to understand our governments reluctance to grant residence visa’s to those people who want to come here and put money into our economy with out working here?


  17. Dragonwall says:

    In the mid 80’s and early 90’s Singapore saw one of the biggest hotel boom of all century rocketing the hotel industry to somewhere around 90 % occupancy rate.

    Indonesia could even hold any convention whatsoever and never be able to come up with a boom like this.

    There is one principles that Singapore apply and given the impression of the country’s outlook, security, everything many have the great image t reminisce and came back for more despite the pricey room rates.

    What Indonesia could do to the Tourism industry is the basic groundwork with a total revamp and the good impression for outsiders country wide and service wide basis.

    Des/Country Indonesia Singapore Malaysia Hongkong Remarks

    Visa VOA None None None Change needed
    Security Below Av Good Above Av Above Av Change needed
    Traffic Poor Good Above Av Good Change needed
    Moneychanger Average Good Above Av Good Change needed
    Food Service Average Good Above Av Good Change needed
    Hotel Average Good Average Above Av Change needed
    Entertainment Below Av Above Av Average Above Av Change needed
    Prostitution* Good Below Av Good Good Change needed
    Drugs+ Florish Restrict Flourish Flourish Change needed
    Medical Facility Below Av Good Average Good Change needed
    Public Below Av Good Average Good Change needed
    Public Facilities Bad Good Average Above Av Change needed

    The list could just be as long.

    I am comparing only on the average visitor’s viewpoint. And as for (+) Drugs are easily available and for addicts it is good to them. Whereas you can’t easily find those thing in view of death penalty.
    As for (*) You don’t find much prostitution available in entertainment areas whereas there are also those came into Singapore for short visit and ply the harbor or nearby red light areas. Other than that you are unable to pick up one on the road.

    Changes that are needed should be focusing on in general with those that are deemed important to country’s image. Taxis are the one that has most problems except some like Blue Bird and one or two others. The rest are junks..not roadworthy at all.

    If Indonesian government is able to do it as a total overhaul then whatever steps taken could be easily fall into place and with a little bit of enthusiasm probable Indonesia could have a good start.

    Like discounted hotel rates. Priorities security at resort areas. raise the level of security in hotels, entertainment and food outlets, shopping centres for a start.

    Yes it will eat into cost, but this is small change if you are going big way.

  18. Orang Baik says:

    Its visit indonesia 2008 year and when I went to apply for a tourist visa there the consulate staff made it difficult for me although I had all documents required as stipulated on the application form. I left to get the extra forms etc they wanted and came back again and they even told me i dont need all the documents this time??????????????

    Well Malaysia here i come, 90 days stamp on arrival FREE and then transit to Thailand 30 days stamp on arrival FREE and of course less hate towards the “bule” if I go by comments on these pages. Thats 4 months stay without visa hassle’s, bribes for visa extensions and about US$1000 per week of my currency into Malay and Thai peoples hands!!!!!

    Why is Indonesia so difficult and a hassle??

  19. monyetmerah says:

    Hi Orang Baik,

    So sorry about the incompetency of the Indonesian bureaucracy. Hopefully this will not hinder you to try and visit our country. Indonesia has a lot to offer, not only Bali with the beauty and tranquility, but we have a lot for the adventure-minded, shopping-minded.

    When you are done with Malaysia and Thailand, please re-consider visiting our country.

  20. anaborange says:

    Hi everyone
    We are living in texas, and thinking anout moving to bali, can anybody tell me how expensive to live there,from school,housing,and monthly expenses

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