Dr. Diena M. Lemy, A. Par., M.M

Dr. Diena is Chairperson and lecturer of Pelita

Harapan School of Hospitality and Tourism.

Dr. Diena is 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

No

2013 2014 2015

Type of Commodityvalue

(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

Based On The Commodity

Sumber : Pusdatin Kemenpar, 2014

FOREIGN EXCHANGE EARNINGS PROJECTION FROM MAIN SECTOR IN INDONESIAN ECONOMY

“ Year 2020, tourism sector will be main earnings for Indonesia foreign exchange”

0

5000

10000

15000

20000

25000

2015 2016 2017 2018 2019

Gas

Coal

Tourism

Palm Oil

Ruber

INDONESIA FOREIGN EXCHANGE EARNINGS

7

Source: UNWTO World Tourism Barometer January 2016

Foreign Tourists Performance 2015

ASEAN growth 5,1 %

Global growth 4,4 %

Indonesian growth 10,3 %

TOURISM CURRENT CONDITION AND

TARGET IN 2019

2013 2014 2015 2016 2017 2018 2019

Contribution to 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

Number of Workforce

(million people)9,6 9,8 11,3 11,7 12,4 12,7 13,0

Competitiveness Index

(WEF)#70 n.a #50 n.a #40 n.a #30

Foreign Tourist (million

visit)8,8 9,4 10,4 12 15 17 20

Local Tourist (million

visit)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)

MA

CR

OM

ICR

O

8

The Increasing Demand for

Tourism Products with High

Service Quality

Spatial EntityEconomics/

Business

Entity

Social Culture

Entity

Ecological

and

Environment

Entity

TOURISM DESTINATION

ENTITYProduction base of creating

experiences, quality of resources and

quality of life

Uniqueness/Authenticy/

Originality, Locality,

Point of Difference,

Sense of Place

10

Sustainable Tourism Destination Entities:Sense Of Place

DEVELOPMENT CONCEPT:

National Tourism Destination (DPN)/National Strategic Tourism

Area (KSPN) Toward Sustainable Development

In Tourism

1) Center of Tourism Economic Growth

2) Center of Tourism Gravity

(Hub & Distribution)

3) Tourism Ecosystem Area

(Tourism Value Chains, Linkage &

Vertical/Horizontal/Diagonal Clusters)

11

•Goals:• Size / Magnitude

• Sustainability Growth

• Spread

CRITICAL SUCCESS FACTOR FOR DEVELOPING

DESTINATIONS

Scale Capacity Complexity Synergy

17

Sustainable Tourism Ecosystem:

Transformation To Quality of Tourism

SUPPLY DEMANDSUPPLY DEMANDFlora

Fauna

Human

Natural

resources

Land

Flora

Fauna

Human

Natural

resources

Land

Ecosystem (Ecology)

Ecosystem (Business)

Ecosystem (Tourism)

Sport

Travel

Servi-ce

Culture

Lodg-

ing &

Food

MICE

Nature

,Sun &

Beach

Tour

-ism

DNA

Tourism

Investment

Promotion

Infra

structu

re

En

vir

on

me

nta

l

Su

sta

ina

bil

ity

Sport

Travel

Servi-ce

Culture

Lodg-

ing &

Food

MICE

Nature

,Sun &

Beach

Tour

-ism

DNA

Tourism

Investment

Promotion

Infra

structu

re

En

vir

on

me

nta

l

Su

sta

ina

bil

ity

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

Values: Economics, Aesthetics, Ethics, Values balance

Characteristics: harmonious, convergence, linkage

Source: preparations of various references , Teguh, 2016

The Strategies

Trained/experience person

il

CERTIFICATION OF COMPETENCY

LISENCING OF

LSP (PCB)

DEVELOPMENT

OF

CERTIFICATION

BODIES

QUALITY CONTORL AND

ASSURANVCE

HARMONIZATIO

N OF

CERTIFICATION

ICT DEVELOPMENT FOR

CERTIFICATION

NATIONAL PROFESSIONAL CERTIFICATION

SYSTEM

PROFES

SIONAL

COMPET

ENT AND

RECOGNI

ZED

ProfesionalAssociationIndustry

Association

BKSP

MINISTR

Y/CA

PCBAssessment

Venue

PCB

Personel

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

Destination200 800 1000 450 2.450

Priority

Destination0 800 400 200 400 200 2.000

Special and

Regular

Destination

900 850 2050 1400 650 900 6750

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

The Main Source of Tourism Problems

Super and

infrastructure

Super and

infrastructure

Human

Resources

Communication

& Publication

Communication

& Publication

Regulation

and Policy

Regulation

and PolicyITIT SocietySociety

Accessibility

Unprepared

destination’s super and

infrastructure

Negative

destination

image

The discrepancy between

the policy and its

implementation

No conducive

atmosphere

for business

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

Degradation

of

Environment

Low number of

investment

Low Tourism service

quality

Connectivity

Appearing Problems

InvestmentInvestment

The Travel & Tourism

Competitiveness Index

2015

Rank

(out of 141)

Score

(1-7)

Travel & Tourism Competitiveness Index 50 4,04Enabling 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

For Human Resources :

Indonesia hold rank 53from 141

22

The Geographical Condition of Indonesia

– 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

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.

Recommendations

References

– Presentation by Prof. Dr. H.M. Ahman Sya: STRATEGI PENGEMBANGAN SDM DAN KELEMBAGAAN

KEPARIWISATAAN (Untuk mencapai 12 juta Wisman dan 260 juta Wisnus tahun 2016) 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. Wisnu Bawa Tarunajaya, 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. Frans Teguh: 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

Thank you