The Early Stage of Tourism in Indonesia

1. The history of tourism development in Indonesia is closely linked with the country’s economic and political fortunes. • In the 1920s and 30s, when the country was still under dutch rule, a trickle of Western artists and other intellectuals visited Bali and became aware of its unique culture, which they began to publicize through letters and writings. The Early Stage of Tourism in Indonesia

2. The Dutch vacationers visited the islands from other areas of the archipelago. • This nascent tourism development was halted by the Second World War, during which Indonesia was occupied by the Japanese from 1942 to 1945. The Rise of Tourism in Indonesia

3. After the war, The Indonesia republicans expelled the Dutch, who finally ceded sovereignty in December 1949. • A decade and a half of political and economic instability followed, while President Soekarno, who had led the country to independence, experimented briefly with democracy, then tried unsuccesfully to run the country while balancing the competing forces of Communism, Islam and the military. The Rise of Tourism in Indonesia

4. The mounting tensions culminated in a six-month period of serious civil unrest during which an estimated 300.000-400.000 people, principally Communists or suspected Communists, lost their lives (Schwartz 1994). • The situation was finally brought under control by the army, led by General Soeharto, who replaced Soekarno as President in 1967. The Rise of Tourism in Indonesia

5. After the upheaval of 1965-66 and under Suharto's leadership Indonesia rapidly withdrew from its communist-oriented phase and entered the Western sphere influence. • In an effort to consolidate Indonesia's new outlook, the industrialized countries proved willing to lend large sums of money to help restructuring the Indonesia’s economy. • American-educated Indonesians took charge of the economy and a program of five-year development plans was implemented, starting in 1969. • Efforts were made to diversify the economic base and reduce reliance on the agricultural and mining sectors through industrial expansion (Hobohm 1987). The Rise of Tourism in Indonesia

6. These factors contributed to the country's relative success in dealing with its economic problems, as did the oil price rises of the 1970s. • By 1985 almost 70% of foreign exchange earnings were accounted for by oil and gas, but the easy revenue to be earned from this sector had discouraged the development of efficient industries, which left the economy vulnerable to the sharp fall in oil prices in 1986. • While in the financial year 1985-86 Indonesian crude oil averaged $25 a barrel, a year later the average had fallen to S13. In 1986 there was also a decline in international markets for several other major exports, including rubber, coffee, and tin. The Rise of Tourism in Indonesia

7. Indonesian economists reacted to these problems with financial rigour, curtailing government spending and making moves to liberalize the economy. • This was very much in line with the prevailing philosophy of development economics given voice by organizations such as, the International Monetary Fund: that inward-oriented strategies such as import-substitution industrialization should be replaced by reduced state intervention in the economy, with deregulation to allow market-led growth (Brohman 1996). The Rise of Tourism in Indonesia

8. One example of the new, export-oriented, non-traditional growth industries was international tourism. The Rise of Tourism in Indonesia

9. Economic necessity was, therefore, one element in allowing the expansion of tourism. • Another factor was that by the early 1980s Suharto and his government felt that "there was enough internal social and political stabiliy that Indonesia could be more open in its contacts with foreigners" (Tahir 1984). The Rise of Tourism in Indonesia

10. In the 1970s "stabilization" had entailed silencing much political and artistic dissidence, and there was anxiety in some quarters about the effect that an influx of foreigners might have on the material and political aspirations of the nation's people. • Although a Directorate of Tourism had been established in 1969 as part of the Ministry of Communications, only lip service was paid to developing this sector for the first fifteen years of Suharto's rule. The Rise of Tourism in Indonesia

11. In the early 1980s came a turning point in attitudes to tourism. • In the fourth five-year plan (1984-1989) the government expressed its commitment to further developing the tourism industry, and the Lower House of Parliament (MPR) passed a resolution stating that "tourism development must be increased in order to expand employment and business opportunities in this field, to increase foreign exchange earnings, and introduce Indonesia's culture to a wider audience" (Spillane, 1987). The Rise of Tourism in Indonesia

12. A Ministry of Tourism, Post and Telecommunications was established in 1983, with he Directorate general of tourism having specific responsibility for the sector within the Ministry. • In the same year visa-free entry and right of stay for two months was introduced for tourists from 29 countries (increased to 46 by 1993). • Over the next five years a number of other measures were taken to relax constraints on the tourism industry. The Rise of Tourism in Indonesia

13. Some of the most important of these were: • A change in policy in 1995 by the state airline, Garuda, to allow foreign airlines to fly directly to Bali rather than being forced to make passengers transit in Jakarta. • Permission in 1987 for foreign tour operators to set up in Indonesia, as long as they did so as joint ventures with Indonesian companies. • Easing of procedures in 1987 for licensing hotels, restaurants, travel agencies and marine tourism operations. • The number of permits needed to establish a hotel was cut from thirty-three to two. The Rise of Tourism in Indonesia

14. In 1988 a package of deregulation measures designed to stimulate the economy generally was implemented, and during the 1990s the government has continued to encourage tourism. • In 1990 a Tourism Act was passed, allowing for legislation regulating the tourism industry and protecting its resources to be formulated. The Rise of Tourism in Indonesia

15. 1. Dutch Era 2. Japanese Era 3. The era after Indonesian Freedom The History of Tourism Development in Indonesia

16. 1. Dutch Era • The first tourism activity held in 1910-1912 after the first Nederland Tourist Bureau opened by General Governor: VereenegingToeristenVerkeer(VTV) The History of Tourism Development in Indonesia

17. Located on Veteran street, Jakarta (in Jos Van Archen building, used to as well as KLM flight company office). • Sold tourist promotion materials: Leaflets, booklets, tourist maps, and other brochures… • Got commisionsfrom hotels and tours. The History of Tourism Development in Indonesia

18. The first Travel Agent in Batavia (Jakarta) opened in 1926. • To support the tourism development in Indonesia and to give services to the tourists visiting the country. • The Main office was in Holland. Lissonne Lindeman (LISLIND) The History of Tourism Development in Indonesia

19. Location at JalanMajapahit no. 2 (NITOUR office, present day). • In 1928 LISLIND changed into NITOUR (NederlandscheIndischeTouristen Bureau which was managed by KLM and KPM). • The tourists were only foreigners (no local people). Lissonne Lindeman (LISLIND) The History of Tourism Development in Indonesia

20. Accomodations first built in 19th Century… • In Jakarta: Des Indes Hotel, Hotel der Nederlanden, Hotel Royal, and Hotel Rijswijk. • In Surabaya: Sarkies Hotel, Orange Hotel. • In Semarang: Du Pavillion Hotel. HOTELS facility… The History of Tourism Development in Indonesia

21. In Medan: Hotel de Boer, Hotel Astoria. • In Makasar: Hotel Grand and Stat Hotel. • In Surabaya: Sarkies Hotel, Orange Hotel. • In Semarang: Du Pavillion Hotel. • In Bali: Bali Hotel HOTELS facility… The History of Tourism Development in Indonesia