Introduction

After a long period of negotiations, Indonesia’s House of Representatives is finally in the process of passing a new tourism law that enables tourism stakeholders at a destination to exert a greater power on tourism destination management. Once officially enacted, the law will allow non-governmental organizations, such as Association for Indonesian Tours & Travel Agencies (ASITA) and other stakeholders, such as hotel associations, to influence tourism-related decisions made by the government. Moreover, the bill will enhance the voice of stakeholders at the various destinations and will allow them to act more independently.

Original article by Andra Wisnu. Published in The Jakarta Post on 22 September 2008

Essay by Sabrina Kamann
Master in Tourism Destination Management student 2008/2009

As one conducts further research on the national tourism policy of Indonesia, it becomes obvious that Indonesia’s most recent tourism law, enacted about 20 years ago, entails a highly centralized approach to tourism destination management. As already alluded to in the article “Tourism bill to give players unprecedented access, power” by Andra Wisnu (The Jakarta Post, 22nd September 2008), until now, stakeholders did not seem to have much to say within their own industry.

However, Indonesia’s new approach to tourism destination management follows a trend that has also been referred to by Tazim Jamal and Ute Jamrozy in the article ‘Collaborative networks and partnerships for integrated destination management’ (Tourism Management Dynamics, 2006); Within the context of sustainable tourism development, Jamal and Jamrozy allude to the need for a “close interaction between the public sector (…), the destination’ s tourism marketing organization, the private sector and the local residents…” and a more integrated approach to tourism management in general.

Given the complexity and variety of interests of different stakeholders at a destination, Jamal and Jamrozy suggest the ‘Integrated Destination Management (IDM) framework’ as the optimum solution to decentralized destination management: This framework considers different stakeholders, their interests and interdependence, fragmented control, different values, tourism growth,  development and the interrelation of impacts in an international and national context as key elements. It is based on the principles of sustainable tourism development and community involvement, as well as cultural and economic elements of tourism at a destination.

To what extend the new tourism bill in Indonesia will comply with this framework will only be evident once it has been passed. However, a more collaborative approach to tourism provides a win-win situation for both the private and public sector: Private sector representatives, NGOs or hotel and restaurant associations, finally have a voice when it comes to decision-making and are more likely to be able to accomplish their interests, also independently. Moreover, the more integral view of the private sector and their greater consideration for quality provides a rather secure framework for the private association (WTO, 2007). On the other hand, the public sector benefits from the private sector representatives in terms of flexibility, dynamics and a closer relation with the customers and tourists.

The new tourism bill seems to be a relevant and timely manner to enhance and stimulate the tourism industry in Indonesia. However, as stated in the article, ‘critics have said the bill risks overlapping authority between associations and the government’. Communicating and selling a consistent image of the destination is essential for a destination brand to succeed in the long term. Therefore, pursuing a consistent strategy and policy, as well as communication and transparency among the different players involved are essential conditions for the liberalized tourism system to work efficiently.

If it holds true that the better the collaboration of the stakeholders at a destination, the more successful the destination management process, the more successful the destination, the new tourism bill will clear the way for efficient and sustainable tourism development in Indonesia.