Indonesia Priority Sector: Tourism

Transcription

1 Indonesia Priority Sector: Tourism Yogyakarta, 14 March 2018 Dr. Ir. Arief Yahya, M.Sc. Tourism Minister, Republic of Indonesia

2 2 Why you should invest in tourism sector? Indonesia is in top-20 fastest growing travel destinations in the world. (The Telegraph, 2017)

3 INDONESIA INTERNATIONAL VISITOR GROWTH VS REGIONAL AND GLOBAL MARKET Indonesia s Growth is 3 times higher than that of Regional and Global Growth Indonesia, Growth: 22% ASEAN, Growth : 7 % World, Growth : 6,4 % Source: Countries Own Statistics Indonesia 22 % (January December 2017) Vietnam 29% (January December 2017) Malaysia 4,0 % (January December 2017) Singapore 5,8 % (January December 2017) Thailand 8,7 % (January December 2017) 3

4 I declare tourism as the leading sector. Tourism as a leading sector is a good news, and all other Ministries must support tourism development. 4

5 5 Government Annual Work Plan 2018: PRIORITY SECTORS DEVELOPMENT

6 6 O U T L I N E A. Indonesia Tourism Performance B. Indonesia Competitiveness Index 1. Indonesia Global Competitiveness Index 2. Indonesia Tourism Competitiveness Index C. Policy Update D. Investment Opportunity

7 A. Indonesia Tourism Performance 7

8 8 Tourism is the easiest and cheapest contributor of GDP, foreign exchange and employment opportunities for Indonesia. Dr. Ir. Arief Yahya, M.Sc Tourism Minister, Republic of Indonesia

9 BREAKING NEWS started big time: Wonderful Indonesia received 23 awards in 4 countries

10 BREAKING NEWS Indonesia is the 7th in the world, 4th in Asia Pacific, and 1st in South East Asia in international openness according to the UNWTO s data March

11 11 BREAKING NEWS 8 March 2018 West Bali National Park announced 2 nd Best of Asia Pacific for Green Destination at ITB Berlin A BIG SUCCESS! Tourism Minister s Pilot Project on National Eco Tourism in West Bali National Park stipulated in 2016

12 12 BREAKING NEWS 8 March 2018 Wonderful Indonesia is Brand Of The Year Indonesia 2018

13 13 BREAKING NEWS WONDERFUL INDONESIA ACHIEVEMENTS 2018 ON CNN INDONESIA

14 B. Indonesia Competitiveness Index 14

15 B. 1. Indonesia Global Competitiveness Index 15

16 COMPETITIVENESS INDEX GROWTH BENCHMARK WITH SOUTHEAST ASIA COUNTRIES 16 Only 4 Southeast Asia countries make it to the Top 40 World Economy Competitiveness Index by WEF No. Countries Singapura Malaysia Thailand Indonesia 41 36

17 WEF Score for Indonesia s 3 Sub Index and 12 pillars No. Sub Index dan Pilar Rank 2017 : 41 Rank 2018 : 36 BASIC REQUIREMENTS Institutions Infrastructure Macroeconomic Environment Health and Primary Education EFFICIENCY ENHANCERS Higher Education and Training Goods Market Efficiency Labor Market Efficiency Financial Market Development Technological Readiness Market Size 10 9 INNOVATION AND SOPHISTICATION FACTORS Business Sophistication Innovation Top 33 Bottom 3

18 B. 2. Indonesia Tourism Competitiveness Index 18

19 RANK SCORE INDONESIA'S TTCI WEF PERFORMANCE GROW POSITIVELY Related to Competitiveness Index, Indonesia is improving significantly Rank Score Source : World Economic Forum (WEF),

20 INDONESIA TOURISM COMPETITIVENESS INDEX VS ASEAN Travel and Tourism Competitiveness Report 2017 by World Economic Forum (WEF) records Indonesia comes 4 th after Singapore, Malaysia and Thailand INDEX - SUBINDEX Pillars INDONESIA SINGAPORE MALAYSIA THAILAND VIETNAM PHILIPPINES LAO PDR CAMBODIA Rank Rank Rank Rank Rank Rank Rank Rank TRAVEL & TOURISM COMPETITIVENESS INDEX ENABLING ENVIRONMENT Business Environment Safety & Security Health & Hygiene Human Resources & Labour Market ICT Readiness T&T POLICY AND ENABLING CONDITION Prioritization of Travel & Tourism International Openness Price Competitiveness Environmental Sustainability INFRASTRUCTURE Airport Infrastructure Ground & Port Infrastructure Tourist Service Infrastructure NATURAL & CULTURAL RESOURCES Natural Resources Cultural Resources Source : World Economic Forum (WEF), : Top 3 (Rank) : Bottom 3 (Rank) 20

21 WONDERFUL INDONESIA COUNTRY BRAND PERFORMANCE AMONG ASIAN COUNTRIES World Economic Forum / WEF (2017) Country Brand Nation Strategy rating (max=100) Rank Point Jepang India Singapore Indonesia Hongkong Korea Thailand Malaysia Indonesia is at 47 th rank, Followed by Thailand (68) and Malaysia (85) Wonderful Indonesia Branding Strategy for online penetration is still better compared to Thailand and Malaysia, but still below Singapore. This Sub-pillar is evaluated with the following considerations: 1. NTO indicators focused on Digital Demand (D2) 2. Positioning Strategy and tourism promotion with regards to brandtags 3. Total online searches from international tourists Sumber: WEF (2017). 21

22 Top 3 Priority Programs Others Priority Programs Priority Program 2018 Digital Tourism (E-Tourism) 63% of all travels, searched, booked, purchased and sold are online 50% from all online travel sales involves more than 1 devices More than 200 reviews per minute posted on TripAdvisor Homestay Ministry of Tourism contributes to the development of 100 thousand homestay as part of the 1 Million Home Program President Jokowi plans to develop a rural tourism concept Air Accesibility Air Connectivity is the Success Factor to push international visitor growth because 75% - 80% international tourists arrive with air transportation Branding / PR-ing Top 10 Originasi Top 3 Main Destinations (15 Destination Branding) Development of 10 Priority Tourism Destinations Human Resource Competence Certification & Tourism Awareness Movement Tourism Investment Enhancement Crisis Center Management 22

23 C. Policy Update 23

24 24 DEREGULATION IN INDONESIA In order to attract tourists and investors, Indonesia Deregulations efforts focused on two things : 1. Ease of Entering Indonesia. 2. Ease of Doing Business (FDI).

25 1. EASE OF ENTERING INDONESIA There are 3 deregulations regarding the ease of entering Indonesia : 1. Visa Free Presidential Regulation No 21/2016 regarding Visa Free from 15 countries in 2013 to 169 countries in Simplifying Yacht Arrivals Waiving Clearance Approval for Indonesia Territory (CAIT) Policy entry permit from 3 weeks to 3 hours. 3. Abolition of Cruise Cabotage Principle To allow passengers of foreign cruise ships embark and disembark in 5 Indonesia s main ports. 25

26 26 2. EASE OF DOING BUSINESS (FDI) As a result of deregulations on Ease of Doing Business, more than 90% of tourism businesses are open for FDI (52 out of 57). 36 Tourism business are open 100% for FDI (Foreign Direct Investment) 16 Tourism business are open under specific conditions (49%-67%) 4 Tourism business are purposed for micro, small, and medium enterprises : Homestay Tourism Travel Agents Tour Guides Art Studios 1 Business closed for any investment on gambling business : casino

27 D. Investment Opportunity 27

28 USD Million TOURISM INVESTMENT REALIZATION % 28.96% % 13.64% FDI DDI Total , USD Million Tourism Investment Realization Jan-Dec % Growth from 2016 to % Reached from total target in 2017 Source: Indonesia Investment Coordinating Board (BKPM),

29 TOURISM INVESTMENT REALIZATION IN 2017 Tourism Investment Realization in 2017 USD 1, Million Foreign Direct Investment (FDI) USD 1, Million Originating Country Business Type Investment Destination Singapore USD Million Tiongkok USD Million South Korea USD Million Star Hotel USD Million Other Short Accomodation USD Million Restaurant USD Million Bali USD Million DKI Jakarta USD Million Kepulauan Riau USD Million Domestic Direct Investment (DDI) USD Million Business Type Investment Destination Growth 32% From 2016 Star Hotel USD Million Theme Park USD Million Manmade Attraction USD Million West Java USD Million Central Java USD Million East Java USD Million USD 1 = Rp13.,400 Source: Indonesia Investment Coordinating Board (BKPM),

30 CREATING 10 NEW BALI Currently we are developing Top-10 tourism priority destinations called 10 New Bali. Lake Toba, North Sumatera Tanjung Kelayang, Belitung Tanjung Lesung, Banten Kepulauan Seribu, Jakarta Borobudur, Central Java Bromo Tengger Semeru, East Java Mandalika, West Nusa Tenggara Labuan Bajo, East Nusa Tenggara Wakatobi, South East Sulawesi Morotai, North Maluku 30

31 These are Top-10 Tourism Priority Destinations on the map 31 Lake Toba Area : 1,849 Ha Investment : USD 1.6 Billion Tanjung Kelayang Area : Ha Investment : USD 1.4 Billion Borobudur Area : 309 Ha Investment : USD 1.5 Billion Wakatobi Area : 532 Ha Investment : USD 1.5 Billion Morotai Area : 1, Ha Investment : USD 2.9 Billion Tanjung Lesung Area : 1,500 Ha Investment : USD 4 Billion Kep. Seribu (Thousand Island) & Kota Tua (Old City) Area : 1,009 Ha Investment : USD 1.5 Billion Bromo Tengger Semeru Area : 325 Ha Investment : USD 1.4 Billion Mandalika Area : 1,175 Ha Investment : USD 3 Billion Labuan Bajo Area : 400 Ha Investment : USD 1.2 Billion Tourism Authority Tourism Special Economic Zone National Strategic Tourism Zone

32 INVESTMENT PROFILE OF TOP 10 PRIORITY TOURISM DESTINATIONS Total Investment needed is USD 20 Billion (USD 10 Billion Public Infrastructures Investment and USD 10 Billion Private Investment) PROJECTION 2019 NO DESTINATION INVESTMENT (USD MILLION) INTERNAT L TOURIST ARRIVAL (PEOPLE) FOREIGN EXCHANGE (USD MILLION) 1 Lake Toba 1,600 1,000,000 1,000 2 Tanjung Kelayang 1, , Tanjung Lesung 4,000 1,000,000 1,000 4 Kepulauan Seribu & Kota Tua Jakarta 1,500 1,000,000 1,000 5 Borobudur 1,500 2,000,000 2,000 6 Bromo-Tengger-Semeru 1,400 1,000,000 1,000 7 Mandalika 3,000 2,000,000 2,000 8 Labuan Bajo 1, , Wakatobi 1, , Morotai 2, , TOTAL USD 20, Million USD 10 Billion 32

33 33 3 REASONS TO INVEST IN INDONESIA S TOURISM SECTOR A B C A B C A HIGH PURCHASING POWER World s 4 th Largest Population and demographic bonus (more than 65% of population at productive age until 2050). Economic Growth Potential (above 5%), driven by strong consumer confidence and spending (above 50% of GDP). Endless explorable possibilities in investment opportunities in Indonesia. Open for tourism investment HIGH INVESTMENT INCENTIVE Supportive political will through Special Economic Zone (SEZ) policy. Various tourism investment incentives for large-scale tourism projects HIGH INVESTMENT GRADE Good Support for business (rank Baa3 on Moody s; BBB+ on Fitch and BBB- on S&P) B Medium class global tourism competitiveness (rank 42 out of 137 on WEF TTCI 2017) C Best countries to invest rank #2 (US News Report)

34 THANK YOU 34