Dr. DienaM. Lemy, A. Par., M.M Dr. Diena is Chairperson and lecturer of Pelita HarapanSchool of Hospitality and Tourism. Dr. Dienais also General Secretary of HILDIKTIPARI (Association of Indonesian Tourism Tertiary Education Institution) and the Assessor for National Board of Accreditation for Higher Education. She Involved a lot in the development of Sustainable Tourism Destination Standard initiated by Indonesia Ministry of Tourism and she is very active in doing research in the area of tourism, hospitality and service management.
Challenges of Tourism Development and Quality of Services (Indonesia) Dr. Diena M. Lemy, A.Par., MM. (Chairperson of Pelita Harapan School of Hospitality & Tourism and General Secretary of HILDIKTIPARI)
CONTENT The Growth of Tourism in Indonesia The Increasing Demand for Tourism Products with High Service Quality The Strategies The Challenges Recommendations
The Growth of Tourism in Indonesia
Indonesia Foreign Exchange Earnings Based On The Commodity No Type of Commodity 2013 2014 2015 value (million US$) Type of Commodity value (million US$) Type of Commodity value (million US$) 1 Oil and natural gas 32,633.2 Oil and natural gas 30,318.8 Oil and natural gas 18,906.7 2 Coal 24,501.4 Coal 20,819.3 Coal 16,359.6 3 Palm oil 15,839.1 Palm oil 17,464.9 Palm oil 15,485.0 4 Tourism 10,054.1 Tourism 11,166.3 Tourism 11,629.9 5 Processed Rubbered 9,316.6 Garment 7,450.9 Garment 7,340.5 6 Garment 7,501.0 Processed Rubbered 7,021.7 Processed food 6,351.2 7 Electrical tools 6,418.6 Processed food 6,486.8 Processed Rubbered 5,997.4 8 Processed food 5,434.8 Electrical tools 6,259.1 Electrical tools 5,713.3 9 Textile 5,293.6 Textile 5,379.7 Textile 5,048.8 10 Paper 3,802.2 Processed wood 3,914.1 Paper 3,647.5 11 Processed wood 3,514.5 Chemical 3,853.7 Processed wood 3,448.9 12 Chemical 3,501.6 Paper 3,780.0 Chemical 2,871.7 Sumber: BPS dan Pusdatin Kemenpar, 2015 (estimasi)
INDONESIA FOREIGN EXCHANGE EARNINGS FOREIGN EXCHANGE EARNINGS PROJECTION FROM MAIN SECTOR IN INDONESIAN ECONOMY Year 2020, tourism sector will be main earnings for Indonesia foreign exchange 25000 20000 15000 10000 Gas Coal Tourism Palm Oil Ruber 5000 0 2015 2016 2017 2018 2019 Sumber: Pusdatin Kemenpar, 2014
Foreign Tourists Performance 2015 Indonesian growth 10,3 % ASEAN growth 5,1% Global growth 4,4 % Source: UNWTO World Tourism Barometer January 2016 7
TOURISM CURRENT CONDITION AND TARGET IN 2019 2013 2014 2015 2016 2017 2018 2019 MACRO Contributionto National GDP 9,2% or around Rp. 841,4 B 9,3% or around Rp. 946,9 B 10% 11% 13% 14% 15% Devisa(trillion Rp) 110,5 133,9 144 172,8 182 223 275 Numberof Workforce (million people) 9,6 9,8 11,3 11,7 12,4 12,7 13,0 MICRO Competitiveness Index (WEF) Foreign Tourist (million visit) Local Tourist (million visit) #70 n.a #50 n.a #40 n.a #30 8,8 9,4 10,4 12 15 17 20 250 251 255 260 265 270 275 Notes: For year 2013 and 2014, the data were real number, meanwhile for year 2015 2019 the data were taken from Strategic Plan (renstra) Ministry of Tourism 2015 2019. Tourism contribution to national GDP, for year 2013 and 2014 based in publication by Travel and Tourism Economic Impact 2015 Indonesia (WTTC) Tourism competitiveness index, the evaluation held once every 2 year by World Economic Forum (WEF) 8
The Increasing Demand for Tourism Products with High Service Quality
Sustainable Tourism Destination Entities: Sense Of Place 10 Spatial Entity Economics/ Business Entity Social Culture Entity Ecological and Environment Entity TOURISM DESTINATION ENTITY Production base of creating experiences, quality of resources and quality of life Uniqueness/Authenticy/ Originality, Locality, Point of Difference, Sense of Place
DEVELOPMENT CONCEPT: National Tourism Destination (DPN)/National Strategic Tourism Area (KSPN) Toward Sustainable Development 11 In Tourism 1) Center of Tourism Economic Growth 2) Center of Tourism Gravity (Hub & Distribution) Goals: Size / Magnitude Sustainability Growth Spread 3) Tourism Ecosystem Area (Tourism Value Chains, Linkage & Vertical/Horizontal/Diagonal Clusters) CRITICAL SUCCESS FACTOR FOR DEVELOPING DESTINATIONS Scale Capacity Complexity Synergy
Sustainable Tourism Ecosystem: Transformation To Quality of Tourism 17 Ecosystem (Ecology) Ecosystem (Business) Ecosystem (Tourism) Human Flora Natural resources SUPPLY DEMAND Culture Nature,Sun & Beach Fauna Land Environmental Sustainability Sport Tour -ism DNA Lodging& Food Infrastructure Ecology: 1. Value Chain 2. Network 3. Fittest for the 4. Nature balance Business: 1. Profit making 2. Living-win 3. Supply demand 4. Business balance Travel Servi-ce Tourism Investment Promotion MICE Characteristics: harmonious, convergence, linkage Values: Economics, Aesthetics, Ethics, Values balance Source: preparations of various references, Teguh, 2016
The Strategies
NATIONAL PROFESSIONAL CERTIFICATION SYSTEM Traine d/expe rience person il Profesional Association Industry Association BKSP MINISTR Y/CA ICT DEVELOPMENT FOR CERTIFICATION HARMONIZATIO N OF CERTIFICATION CERTIFICATION OF COMPETENCY PROFES SIONAL COMPET ENT AND RECOGNI ZED DEVELOPMENT OF CERTIFICATION BODIES LISENCING OF LSP (PCB) PCB Assessment Venue PCB Personel QUALITY CONTORL AND ASSURANVCE
TOURISM HR BASIC TRAINING TARGET FULFILLMENT (UNTIL 1 AUGUST 2016) MONTHS JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL Main Destination 200 800 1000 450 2.450 Priority Destination 0 800 400 200 400 200 2.000 Special and Regular 900 850 2050 1400 650 900 6750 Destination Total 1100 2.450 3.450 1.600 1050 1550 10.850 Target : 17.600 person Fulfillment : 10.850 person (61,64%)- until 1 August 2016 Notes : 1. 6.750 person target to finish the basic training on Oct 2016 2. 30 marine tourism including on the main destination, priority, and regular.
Indonesian Qualification Framework
The Challenges
Problems in Indonesia s Tourism Appearing Problems Low Tourism service quality Low number of investment Unprepared destination s super and infrastructure Degradation of Environment Safety, hygiene and sanitation in the destination The society are not well prepared to received tourists Weak coordination Lack of contribution and participation of the local business The discrepancy between the policy and its implementation Negative destination image Accessibility No conducive atmosphere for business Connectivity The Main Source of Tourism Problems Super and infrastructure Human Resources Communication & Publication Regulation and Policy IT Society Investment
ForHuman Resources : Indonesia hold rank 53 from 141 The Travel & Tourism Competitiveness Index Rank (out of 141) 2015 Score (1-7) Travel & Tourism Competitiveness Index 50 4,04 Enabling Environment 80 4,46 Business Environment 63 4,48 Safety and Security 83 5,16 Health and Hygiene 109 4,24 Human Resources and Labour Market 53 4,7 ICT Readiness 85 3,73 T&T Policy and Enabling Conditions 9 4,59 Prioritization of Travel & Tourism 15 5,61 International Openness 55 3,55 Price Competitiveness 3 6,11 Environmental Sustainability 134 3,11 Infrastructure 75 3,38 Air Transport Infrastructure 39 3,81 Ground and Port Infrastructure 77 3,27 Tourist Service Infrastructure 101 3,07 Natural and Cultural Resources 17 3,74 Natural Resources 19 4,36 Cultural Resources and Business Travel 25 3,12
The Geographical Condition of Indonesia 22 The gap of level of competence amongst tourism human resources in the big cities and the more remote destinations. This gap is affecting the tourism service quality.
Problems and Challenges (SKKNI Indonesian National Work Competency Standard Acceleration between the curriculum design with the SKKNI, ACCSTP, CATC. Place for practice that represent the workplace (simulated / real workplace). Developing the standard, curriculum, and certification scheme, qualification and occupation for variety tourism sector like spa, MICE, etc. Helping the tourism business to fulfilled and obey the tourism business standard. Quality Assurance: ASEAN Guiding Principles for Quality Assurance and Recognition of Competency Certification Systems. Language Barrier - English
Problems and Challenges (KKNI / IQF Indonesian Qualification Framework Infrastructure and facilities support constraint in tourism education institution. Budget constraint for developing tourism education institutions. There are no coordination between government institutions, local government and the tourism stakeholder. There are no mapping regarding the conditions of the human resources demand in tourism industry.
Recommendations
Recommendations STRONG COMMITMENTS BETWEEN THE GOVERNMENTS AND THE RELATED STAKHOLDERS IN: Accelerating the certification process of tourism professionals Facilitating the opening of First Party Certification Body (LSP 1) in Tourism Higher Education. Preparing the mapping of tourism industry demand and supply in order to identify the tourism industry needs (quantity and quality) from the vocational education institution.
Recommendations Enforcing the IQF implementation so that the subject teach at the education institution will be comply with the needs of tourism industry. Providing infrastructure and facilities in tourism education institution throughout Indonesia. Providing the opportunity of capacity building for tourism educators.
References Presentation by Prof. Dr. H.M. AhmanSya: STRATEGI PENGEMBANGAN SDM DAN KELEMBAGAAN KEPARIWISATAAN (Untukmencapai12 jutawismandan260 jutawisnustahun2016) in National Coordination Meeting of Indonesian Tourism Higher Education, Bali 2016. Presentation by Ferdiansyah, SE,MM: PELUANG DAN TANTANGAN PARIWISATA INDONESIA in National Coordination Meeting of Indonesian Tourism Higher Education, Bali 2016. Presentation by Dr. WisnuBawaTarunajaya, SE. MM: SERTIFIKASI KOMPETENSI MANDIRI MELALUI KERJASAMA ANTARA LSP, ASOSIASI PROFESI, PERGURUAN TINGGI DAN KEMENTERIAN PARIWISATA in National Coordination Meeting of Indonesian Tourism Higher Education, Bali 2016. Presentation by Dr. FransTeguh: PENGEMBANGAN DESTINASI DAN INDUSTRI PARIWISATA in National Coordination Meeting of Indonesian Tourism Higher Education, Bali 2016. Presentation by Ir. Surono, Mphil: PERAN AKTIF PERGURUAN TINGGI PARIWISATA DALAM PENCAPAIAN TARGET 20 JUTA KUNJUNGAN WISMAN 2019 in National Coordination Meeting of Indonesian Tourism Higher Education, Bali 2016. Presentation by Dr. Megawati Santoso: ASEAN QUALIFICATIONS REFERENCING FRAMEWORK, 2013
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