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Tourism Helps Fuel Indonesia's Growth

August 07, 2012 / 12:24

This episode covers Indonesia's tourism growth, infrastructure development, and the promotion of new destinations beyond Bali. It features discussions on the contributions of tourism to the GDP, the importance of sustainable tourism, and the focus on creative industries.

The guest discusses the significant role of tourism in Indonesia, contributing 4% directly to GDP and 9% indirectly. The tourism sector creates about 7% of the labor force, equating to one in twelve jobs in the country.

Plans for developing 16 new tourist destinations by 2025 are highlighted, including Lombok and Jakarta. The guest emphasizes the need for improved infrastructure, such as airports and ports, to support tourism growth.

Special interest tourism, including golf and diving, is also a focus, with Indonesia being home to numerous diving spots and golf courses. The guest explains the balance between mass tourism and protecting the environment.

Finally, the episode touches on the promotion of Indonesia's creative economy, including film and music, and how these industries can enhance tourism, referencing the impact of the film "Eat Pray Love" filmed in Bali.

TL;DR

Indonesia's tourism sector is growing with new destinations, infrastructure development, and a focus on sustainability and creative industries.

Episode

12:24
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[Music]
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well I think uh obviously the uh
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capacity was there so we could grow
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without building new infrastructure I
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think that's that's probably why it was
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able to pick up quickly and then since
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we have been able to be successfully
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addressing the uh security issue uh we
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we have seen a lot of uh growth in new
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uh hotels uh new Investments uh in
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hotels like the aore group which is the
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biggest group here uh they have 50
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hotels and they're planning to build
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another 50 hotels in the next 3 years
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Marriot and so on and uh the growth is
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coming from the five star as well as the
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three and four
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star Well we'd like to think it's a very
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important industry it contributes 4% to
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our GDP directly and uh if you say
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indirectly taking into account the
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multiplier effect the estimated uh
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contribution is 9% uh to GDP it
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contributes about 7% uh 7 to 8% of the
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labor force and that's really one out of
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12 jobs uh in Indonesia is being created
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from travel uh and tourism uh and it's
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the number five foreign exchange earner
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so number one is oil and gas uh number
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two is coal number three is palm oil
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number four is Rubber products number
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five is tourism so it contributes uh
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$8.5 billion uh dollar of foreign
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exchange of as of last year
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yeah we have a national tourism strategy
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and uh we're going to try to develop new
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destinations Beyond Bali you know
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Indonesian is Bal is well known
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internationally but there are many other
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uh beautiful places uh in Indonesia so
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we have uh Target till 2025 to develop
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like 1880 new destinations in the next 5
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years we want to develop 16 uh new
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destinations including lombok which is
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the island next to Bali it has beautiful
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beaches uh J Jakarta where the Bor
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famous boru temple uh we have volcanoes
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we have diving spots uh uh and we have
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Urban urban city like Jakarta which
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which can offer also a good place for
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tourism and what we want to be doing is
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actually uh also developing what's
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called special interest tourism uh and a
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number of the uh ones that we think
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Indonesia can be competitive in is like
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golf tourism uh we
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have2 golf courses uh in Indonesia just
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around Jakarta alone we have 38 uh in
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Bali also we have golf courses as well
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as batam and Diving surfing we have 600
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diving spots in Indonesia uh some of
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them many of them in in still in marine
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conservation area surfing we are known
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uh to uh to do to have the one of the uh
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most famous spots for surfing there's
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one uh most recently discovered by the
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surfing world you can surf on the
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river uh it's the meeting of uh
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Confluence of two rivers and then on
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Full Moon one becomes higher than the
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other and then you get waves and you can
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serve for one
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hour so you know we have all these kind
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of very exotic very uh interesting
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places our challenge is really to
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develop the infrastructure uh and the
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connectivity to get to these
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places the growth of the budget Airlines
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has actually helped a lot to increase uh
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domestic connectivity uh if you're if
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you're talking about going by by Airline
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and the cost has gone down uh so we need
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to do a better job of selling the
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packages and having the you know you can
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come in through Jakarta or you can come
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in through any of the major cities and
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then how do you get to that uh exotic
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destination you know we are uh
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prioritizing in the 16 destinations uh
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whether it's the need to build an
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airport or if there's an existing
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airport but the runway is not long
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enough or not thick enough then uh we
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are working with the Ministry of
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Transportation to make sure that those
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can be addressed and besides um going by
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plane and you can go by boat because we
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are an island nation so cruise ship is
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another area where we are which we are
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developing like the orur utan reserve
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you mentioned uh there are already
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Cruise uh ships uh going there uh from
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Australia from many countries because
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it's actually very accessible uh going
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there so we're also looking at how to uh
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ensure that the ports uh can uh uh
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accommodate uh increase Port calls from
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the from the cruise
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ships
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on infrastructure it's it's mainly
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government if you're talking about
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airports or ports uh it's mainly
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government uh central government com
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combined with uh provincial government
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they're increasing their Investments
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because we have prioritized
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infrastructure uh as a priority uh
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because we think uh to be able to
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unleash New Growth you have to address
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the infrastructure bottlenecks in a lot
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of places whatever they do for the ports
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and the airports is going to help trade
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as well and investment right so it's
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it's a com combination but at least as a
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tourism Minister minister or Ministry in
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our planning we prioritize this 16 for
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the next 5 years so we coordinate with
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the transportation Ministry say okay can
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you please you know in your budget
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allocation address this airport that
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port and like for the for the crise ship
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we have a 5year plan to uh develop 10
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ports with which can uh accommodate uh
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from the small to the larger cruise
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ships the the first one that will be
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developed will be Bali uh that will be
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able to accommodate the really really
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large cruise ship and then tanong puting
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which is where the orur utan reservist
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will also be uh developing that and
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samarang which is in Central Java so
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that you can access to borrow budur more
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easily well it's hard to say how much
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we're spending because the spending is
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being done by mainly by the
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transportation Ministry for the harbors
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and the ports and for the roads it's the
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Public Works uh Ministry uh but you know
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uh I would say uh it's at least their
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whole infrastructure budget is about uh
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200 trillion rupia which is like 20
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billion rupia a year we need to address
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that uh to be able to uh grow in
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continue growth in a sustainable way and
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to spread growth because a lot of uh the
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the development infrastructure is
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outside of java you know in in the more
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uh less developed areas uh of
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Indonesia Indonesia is a very large
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country very diverse country we have a
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lot of Rich
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biodiversity uh so uh when you talk
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about sustainable tourism it's a balance
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that you have to strike between kind of
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the mass tourism and the more
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specialized tourism so in some places
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you don't want Mass tourism you don't
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want for commodo for instance uh the
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island where uh you have the Komodo
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dragons we limit the number of people
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that go there because you want to
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protect the habitat and then a lot of
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the diving spots also you don't want uh
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too many people to go so we have to
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guard uh the uh environment and the
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biodiversity in that way and then there
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will be areas where you can you can
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accommodate Mass tourism but when but
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with mass tourism comes all the downside
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uh of large numbers of people you know
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how do you manage it in terms of the of
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the waste management in terms of the uh
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hotels that need to be built but not
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built in a way that's going to be uh
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destroying the environment etc etc so
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planning uh becomes a big
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issue well I think uh it's it's
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difficult to to to give a general answer
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because like European tourists and
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Australian tourists for instance they
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look for nature and they look for
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culture so for those uh types of
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tourists uh the the beautiful nature of
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Indonesia as well as the rich cultural
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heritage like in in a couple of uh of
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that those 16 destinations you have very
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strong uh nature ecotourism and culture
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uh
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components uh and for the Asian tourists
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they actually like shopping and eating
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and uh they're more interested in that
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kind of thing so they probably more
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attracted to the more urban areas and
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and we are we we also want to be
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developing shopping and culinary uh
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tourism as well as Spa and Wellness type
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of Tourism uh so I think it's we are
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developing a few uh areas and
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destinations and then within each
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destination you have strengths whether
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it's the nature or whether it's the
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culture or sometimes both uh and and we
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we will be packaging and developing uh
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these 16 destinations in that way and I
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think what will happen is that different
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groups of tourists will be attracted to
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different
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destinations actually depending from The
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Source country they come from and and
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income level and age group and so on so
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uh this year uh if you just take uh
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tourism numbers as as an indicator
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that's not the only indicator you need
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to also look at length of stay spending
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and so on but if you take numbers as a
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as as a uh as a Target uh this year we
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are hoping to get 8 million in two years
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we hope to get 10 million so I would say
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in five years uh hopefully we can get uh
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double of of eight which is like 15
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million I would say around 15 to2
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billion do foreign exchange receipts and
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and the other thing that we also focus
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on is of course domestic tourism because
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Indonesia is a large Market uh for the
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current uh uh situation actually we get
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in terms of spending uh and numbers
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domestic tourism is much larger than uh
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foreign tourism so so we we we we do we
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have to do both
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yeah we in Indonesia we're trying to
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promote the creative economy uh which is
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really how to get value added from our
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Rich cultural heritage uh as well as the
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more media based and it- based uh type
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of new uh Industries uh which are also
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growing in Indonesia uh and uh we are
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going to be promoting uh the film uh and
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the music uh industry in Indonesia and
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the whole entertainment uh uh industry
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that is related to that uh and we are
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hoping that uh our film our film
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industry can grow because of the L both
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film and music because of the large
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domestic market and hopefully we can
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also uh be seen as a location for Film
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Production uh just like other countries
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have done uh because it it will benefit
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the uh creative industry as well as
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tourism uh we we see that uh film uh
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production whether it's a a Hollywood
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film that is being filmed in your
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country like Eat Pray Love which uh
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actually uh was filmed in Bali in a very
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specific place called ubut which is the
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Arches create Village uh you you
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actually have Eat Pray Love tours uh in
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ubot uh so something like that impact uh
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we would like to see the impact on
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tourism or whether it's an Indonesian
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film that uh you know becomes a a big
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hit uh eventually uh
00:12:03
[Music]
00:12:22
overseas

Episode Highlights

  • Tourism Growth in Indonesia
    Tourism contributes 4% to Indonesia's GDP and creates 1 in 12 jobs.
    “Tourism is the fifth foreign exchange earner, contributing $8.5 billion.”
    @ 01m 44s
    August 07, 2012
  • New Destinations Beyond Bali
    Indonesia aims to develop 1880 new tourism destinations by 2025, including Lombok.
    “We want to develop 16 new destinations including Lombok.”
    @ 02m 15s
    August 07, 2012
  • Creative Economy Promotion
    Indonesia is promoting its creative economy, focusing on film and music industries.
    “We see film production as beneficial for tourism and the creative industry.”
    @ 11m 25s
    August 07, 2012

Episode Quotes

  • We want to develop 16 new destinations including Lombok.
    Tourism Helps Fuel Indonesia's Growth
  • We need to address infrastructure bottlenecks to unleash new growth.
    Tourism Helps Fuel Indonesia's Growth
  • Indonesia has beautiful nature and rich cultural heritage.
    Tourism Helps Fuel Indonesia's Growth

Key Moments

  • Tourism Strategy01:51
  • Infrastructure Development05:26
  • Cultural Heritage10:46

Words per Minute Over Time

Vibes Breakdown

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