4. intl tourism marketing apkasi 150513

Francesca Nina SoemitroDirector of Tourism Market Development and Information

Ministry of Tourism and Creative Economy Republic of Indonesia

International Tourism Marketing

International Tourism

Source:UNWTO Press Release

International Tourism

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

* 400

600

800

1,000

1,200

530 563 589 605 627 678 678 698 689

760 805 851 911 929 894

952 996 1,035

INTERNATIONAL TOURIST ARRIVALS (mil-lion)

Source: UNWTO Barometer, January 2013

2012: one billion international arrivals in one year for the first time (+4%)

WHERE DID THEY GO?

International Tourist Arrivals Growth 2012

Source:UNWTO Press Release

International tourism maintains strength; by Region, Asia Pacific (+7%) was the best

performer

No. Region 2013*

1 World +3% up to +4%

2 Europe +2% up to +3%

3 Asia Pacific +5% up to +6%

4 Americas +3% up to +4%

5 Africa +4% up to +6%

6 Middle East +0% up to +5%

Source:UNWTO Barometer, January 2013

Forecast of International Tourist Arrivals 2013

Prospect for 2013 is still encouraging as global growth is projected to strengthengradually through the year between 3% to 4%. Further, growth in Asia Pacific is on track to grow to between 5% to 6% in 2013.

Global GDP Growth

Growth Percentage 2011-2013*2011 2012 2013*

World 4.0 3.2 3.3Advanced Economies 1.6 1.2 1.2Emerging & Developing Economies 6.4 5.1 5.3

ASEAN *) 4.5 6.1 5.9Indonesia 6.5 6.2 6.3Source: IMF, April 2013*) Indonesia, Malaysia, Philippines, Thailand and Vietnam

World Economic Growth 2013

Global economic conditions have improved during the past six months and growth is projected at 3.3% in 2013. Growth in emerging market and developing economies is expected to remain robust, strengthening from about 5.1% in 2012 to 5.3% in 2013

Markets

Tourists

Outbound Forecast 2013

Source:Euromonitor 2012

Indonesia Tourism

Tourism Performance 2012

KONTRIBUSI EKONOMI PARIWISATA INDONESIADevisa

No COMMODITIES 2008 2009 2010

1 Oil & Gas 29.126,30 19.018,30 28.039,60

2 Palm Oil 12.375,57 10.367,62 13.468,97

3 Processed Rubber 7.579,66 4.870,68 9.314,97

4 Tourism 7.377,00 6.298,02 7.603,45

5 Garment 6.092,06 5.735,60 6.598,11

6 Electricity 5.253,74 4.580,18 6.337,50

7 Textile 4.127,97 3.602,78 4.721,77

8 Pulb and Paper Product 3.796,91 3.405,01 4.241,79

9 Processed Foods 2.997,17 2.960,73 3.620,86

10 Processed Wood 2.821,34 2.275,32 2.870,49

11 Chemicals 2.754,30 2.155,41 3.381,85

4 3 4

Source: Indonesian Bureau of Statistics

Tourism Contribution To Foreign Exchange Earnings

No. Economy of IndonesiaTourism Sector

(IDR) (%) to National

1 GDP 321.57 trillion 3.90

2 Employment Opportunity* 9.28 million 8.37

3 Salary and Wage 104.51 trillion 4.03

4 Tax 11.57 trillion 3.77

5 Investment 120 trillion 1.47

Source: Quick Wins 2012*people

Tourism Contribution to Indonesia’s Economy 2012

o Global Rating Agency like Fitch Rating and Moody's Investors Service has increased Indonesia Position to the “Investment Grade”.

o Economic Analist predicts S&P will include Indonesia.

BB +

BBBBaa3

Ba1

January 2012 Desember 2011

Present Indonesian Position

Investment RateSource: Indonesia Investment Coordinating Board, 2012

Investment Climate Indonesia Economic Performance

Source: Indonesia Investment Coordinating Board

YEAR FDI(US$ mil)

DDI (US$ mil)

TOTAL (US$ mil) % growth

2006 111.5 18.0 129.5 -2007 136.4 12.7 149.1 15.17%2008 156.9 23.8 180.7 21.18%2009 306.5 35.7 342.2 89.32%2010 346.4 39.0 351.1 2.60%2011 242.2 39.4 279.8 -20.31%2012 786.3 101.5 869.8 210.86%

• Indonesia is one of top countries in the world for hotel investment 2012 •Hotel and restaurant share 2.5% of total national investment

Statistic ofIndonesia Tourism Investment

Realization of Hotel Investment (USD Million)

Field of businesses

2011 Sept 2012

FDI DDI TOTAL FDI DDI TOTAL

Star Hotels 197.55 5.76 203.31 693.04 55.94 748.98

Non-Star Hotels 1.63 1.63 0.79 0.79

Other Short Term Accommodation 33.84 13.14 46.98 27.26 5.30 32.56

Other Accomodation 4.60 4.60 0.01 0.01

Source: Indonesia Investment Coordinating Board

Statistic of Indonesia Hotel Investment

1. 100 % of capital share can be owned by foreign investor for the following business: • Recreational and Entertainment

Business

Location only in Eastern Indonesia (Kalimantan, Sulawesi, East Nusa Tenggara), Bengkulu, Jambi

Tourism Investment Opportunity

Source: Presidential Regulation of The Republic of Indonesia Number 36 of 2010ON LIST OF BUSINESS FIELDS CLOSED TO INVESTMENT AND BUSINESS FIELDS OPEN, WITH CONDITIONS, TO INVESTMENT

2. Foreign Equity Participation (max. 51% share owned by foreign investor and it does not contradict Local Regulation) for the following business

a. 1 and 2 Star Hotelb. Guest Housec. Restaurant/Talamd. Cateringe. Convention, Exhibition, and

incentive Tour Servicef. Cultural Tourism Object

Business (Private Museum, Cultural Heritage managed privately)

g. Spa

h. Natural Tourism Object Business outside Conservation Areas

i. Motel and Lodging Service ( only in Eastern Indonesia)

j. Recreational and Entertainment Business (for region other than Eastern Indonesia, Bengkulu, Jambi)



3. Foreign Equity Participation (max. 49% share owned by foreign investor or max. 51% if partner with UMKMK) for the following business

a. Restaurant/Non Talamb. Outbound Tour Operatorc. Impresario Business

Service

4. Foreign Equity Participation (max. 67% share owned by foreign investor) for the following business


a. Dexterity b. Art Gallery

d. Bar/café/Karaokee. Motel and Lodging Service

(for region other than Eastern Indonesia)

f. Catering


Homestay, Tour Agent and Tour Guide Service Business, and Art Studio reserved for Micro, Small, Medium Enterprises, and Cooperatives (UMKMK)

List of Business Fields Closed to Investment in Culture and Tourism: Public Museum, Historical and Ancient Heritage, Residential/Traditional Environment, Monuments, Gambling/Casinos


Tourism Investment

20091. Policies and Regulations 123 88 93

2. Sustainable Tourism 130 127 125

3. Security and Safety 119 72 85

4. Health 110 115 112

5. Tourism & Travel Priority 10 15 19

6. Air Transportation Infrastructure 60 58 54

7. Land Transportation Infrastructure 89 82 87

8. Tourism Infrastructure 88 116 113

9. IT and Communication Infrastructure 102 96 87

10. Price Competitiveness 3 4 9

11. Human Resources 42 51 61

12. Affinity or National Perceptions on Tourism 78 121 114

13. Natural Resources 28 17 6

14. Cultural Resources 37 39 38

Overall Rank 81 74 70

2011 2013CRITERIA FOR TOURISM COMPETITIVENESS

Indonesia Tourism Competitiveness Ranking

Source:WEF 2013

Strategy and Program

1.Development of business, Industry, and Investment;

2.Tourism Standardization Development.

1.Tourist Attraction Development;

2.Community Development;

3.Tourism Community self-empowerment

1. Increased Intrnational and Domestic Tourism Promotion;

2.Development of Market Information;

3.Enhancement of Tourism Branding ;

4. Increeased MICE Activities

1.Human Resources Development;

2.Research and Development;

3.Tourism Advance/Higher Education Development

TOURISM INDUSTRY DEVELOPMENT

TOURISM DESTINATION DEVELOPMENT

TOURISM MARKETING AND PROMOTION

DEVELOPMENT

TOURISM RESOURCES AND INSTITUTIONAL

DEVELOPMENT

Development in Tourism Sector

Above The Line: B2C, Advertising, Direct Selling

Community to

community / C2C

Online: Website, social network

Vertical Marketing

Horizontal Marketing

Multiplying the Crowd

Connected

1. Tourism Branding2. Product Match Market3. Designation of 16 Target Markets, 16 Priority Destinations and 7 Primary Products4. PR-ing and Awareness Campaign5. Partnerships and International Networking6. Development of VITOs

Integrated Marketing Strategy

16 Target Markets

No. FOKUS PASARTARGET 2013

OPTIMIS MODERAT PESIMIS1 SINGAPURA 1.750.000 1.680.000 1.615.0002 MALAYSIA 1.400.000 1.340.000 1.290.0003 AUSTRALIA 1.220.000 1.170.000 1.125.0004 CINA 1.000.000 960.000 922.0005 JEPANG 505.000 485.000 466.0006 KORSEL 360.000 345.000 335.0007 FILIPINA 315.000 302.000 295.0008 TAIWAN 255.000 240.000 233.0009 AMERIKA SERIKAT 225.000 215.000 207.00010 INGGRIS 220.000 211.000 204.00011 PERANCIS 210.000 201.000 194.00012 INDIA 200.000 192.000 187.00013 BELANDA 185.000 175.000 170.00014 TIM-TENG 175.000 166.000 162.00015 JERMAN 165.000 156.000 152.00016 RUSIA 110.000 105.000 101.000

LAINNYA 705.000 657.000 642.000JUMLAH 9.000.000 8.600.000 8.300.000

16 Priority Destination Areas

Sunda Kelapa

Old Town–Sunda Kelapa

Borobudur nearbyToba Lake Bromo-Tengger-Semeru nearby

Kintamani-Batur Lake, nearby

Kuta-Sanur-Nusa Dua nearby

Thousand Islands nearby Menjangan, Pemuteran, nearby

Tanjung Puting nearby

Raja Ampat nearbyToraja nearby

Ende–Kelimutu nearby

Wakatobi nearby

Komodo nearbyRinjani nearby

Bunaken nearby

Recreational

Sports Cruise Culinary & Shopping

Culture & Heritage

Nature & Ecotouris

m

Health & Wellness

MICE

7

PRIMARY PRODUCTS

• Participation at Trade Shows• Sales Missions• Direct Selling at Malls• Festivals and Events• Familiarization Trips• MICE Bidding Supports• Co-marketing Programs• Destination Promotion Supports • VITO’s Operations• Market Analysis

Indonesia’s Tourism Marketing Programs

Official Country Partner ITB Berlin 2013, Germany March

Legu Gam Festival XIV, North Maluku April

ASEAN Jazz VI, Batam June

Tour de Singkarak V, West Sumatra June

Lombok Sumbawa Pearl Festival IV, NTB June

Lomba Sumpit International III, East Borneo July

Tourism Border Festival “Timoresia” III, NTT August

Baliem Valley Festival XXIV, Papua August

Miss World 2013 September

Borobudur Jazz III, Central Java September

APEC 2013, Indonesia October

Jakarta Marathon October

Raja Ampat Festival IV, West Papua October

Musi Triboatton II, Southern Sumatra Nov-Dec

Mega Events 2013

13 Visit Indonesia Tourism Officers (VITOs)

SINGAPORE

AUSTRALIA

JAPAN

MALAYSIAINDIA

CHINA: Guangzhou

CHINA: Beijing

MIDDLE EAST

GERMANY

NETHERLANDS

FRANCE

RUSSIA

REP. OF KOREA

Thank You