Indonesia Tourism: Risk, Crisis & Post-Conflict Management-LEIM011

This presentation examines the impact of the 2018 tsunami in Indonesia on its tourism industry, evaluating current consumer attitudes and sentiments towards traveling to the country for leisure purposes. It critically assesses the extent to which the natural disaster has affected tourism, noting the drop in tourist arrivals and the destruction of infrastructure. The presentation highlights the importance of effective media strategies to manage tourist risk perceptions, suggesting the use of social media to communicate reconstruction efforts and address traveler concerns. It also emphasizes the need for updated risk management strategies and the allocation of funds for disaster response and rehabilitation, referencing government initiatives and budget allocations. The presentation concludes by advocating for targeted messaging that highlights improvements in tourism facilities and risk indicator technology to restore consumer confidence and promote Indonesia as a safe and valuable travel destination. Desklib offers a wealth of resources, including past papers and solved assignments, to aid students in their academic pursuits.

RISK, CRISIS AND POST-CONFLICT MANAGEMENT IN TOURISM

INDONESIA TOURISM
• The Southeast Asian nation, Indonesia
constitutes of a large number of volcanic
islands (Urtner 2016).
• It has a wide variety of ethnic groups
which diversify the culture of Indonesia.
• Indonesia is popular for its volcanoes,
jungles, Komodo dragons, orangutans,
beaches and tigers (Kharista,
Permanasari and Hidayah 2015).
• Tourism is a vital source of economic
growth and foreign exchange revenue in
Indonesia (Hampton and Jeyacheya
2015).
• It holds a ninth rank in its growth in
tourism industry (Dagustani et al. 2017).

On 23rd of Drcember’2018,
Indonesia became the prey of
the natural disaster caused by a
volcanic eruption leading to a
tsunami. It affected costal
towns the most (Djalante 2018).
Latest data depicted the death
of 430 people, number of
people injured were 1,485
(Pradjoko et al. 2018).
It also destroyed 60 shops and
about 69 hotels.
SCENARIO

CURRENT CONSUMER ATTITUDES
AND SENTIMENT
• The current consumer attitude towards travelling to Indonesia
can be considered by the consumption rate of the travelers.
• Government failed to achieve the target of 17 million
international travelers last year.
• Tourist arrivals in Indonesia dropped recently due to the
occurrence of a series of natural calamity (August and
December) in 2018.

CURRENT CONSUMER ATTITUDES
AND SENTIMENT
• In the month of November’18, the number of foreign
travelers was about 1.15 million with a decrease rate of
11.26% from October.
• The static growth of consumption rate indicates the fear in
the decision of the travelers for Indonesia (Park et al. 2018).
• “When a disaster hits, everyone will naturally be worried,
despite the government’s commitment to improve the state”
(Amanah et al. 2018).

CURRENT CONSUMER ATTITUDES
AND SENTIMENT
Graph represents the tourist consumption rate in 2018
(Source: Rahmawati, Trianasari and Martin 2019)

CURRENT CONSUMER ATTITUDES
AND SENTIMENT
Chart depicts the forecast for tourism arrival rate for the year 2019
(Source: Rahmawati, Trianasari and Martin 2019)

CURRENT CONSUMER ATTITUDES
AND SENTIMENT
• The graph represents the decline in tourist arrival rate form
the month of July to November-December in 2018, which
indicates the impact of terror on consumer perspective for
Indonesia.
• The forecast of tourist arrival rate reflects the slow start in
the beginning of 2019 due to the change in consumer
perspective for selecting Indonesia as a travel destination.

IMPACT OF NATURAL DISASTER
ON TOURISM
 The tsunami destroyed the beach town
in Bali.
 The disaster demolished the tourist
hotels and beach houses.
 It affected the plan of generating 4
billion US dollars (RM16.5bil) from
Tanjung Lesung.

The disaster destroyed Lombok in Indonesia, 500 people were
killed and the area had to undergo evacuation of the foreign
tourists.
Even though the volcano was far way from the parameters of
tourist places but it did affect the flight timings of the
international travelers (Hall et al. 2019).
IMPACT OF NATURAL
DISASTER ON TOURISM

IMPACT OF NATURAL DISASTER
ON TOURISM
The tsunami of 2018 in Indonesia destroyed 60 restaurants and nine
hotels in the coastal regions for which 222 people were reported
dead and more than 800 were found injured (Hall et al. 2019).
The incidents like earthquake in Lombok and Sulawesi island’s
earthquake-tsunami took thousands of life, caused the sink in
tourist inflow in 2019
In the year 2017 and 2018, volcanic eruption disrupted the arrivals
of foreign tourists in Mount Agung (near Bali) and Mount Merapi
(near Yogyakarta) (Hall et al. 2019).

IMPACT OF NATURAL DISASTER
ON TOURISM
Government suffered a great loss due to the disaster, which will
decrease the tourist inflow in Indonesia. Although, the impact of natural
disaster was not experienced by the tourist areas at a greater extent but
it affected the promotion of the tourism sector of Indonesia and traveler
restrained themselves form selecting Indonesia as their destination for
vacation (Hosie and Pforr 2016).

EFFECTIVE MEDIA STRATEGY TO MANAGE TOURIST
RISK PERCEPTIONS
• The tourism system needs the practice of risk management strategies for
addressing issues at the time of crisis.
• The image of a specific tourist destination can be impacted by the
occurrence of unmanageable disastrous event (Petriana 2017).
• The tourist destinations should be updated with their detailed risk
management strategies in order to address the loss in the industry
(Mahadevan, Amir and Nugroho 2017).
• The strategies will communicate the assurance of the safety of the
travelers.
• It will help in the continuation of the upward trend of growth in the
tourist arrival rate.

SOURCE STRATEGIES
• Media plays an important role in influencing the perception of the
consumers by depicting a safer picture at the time of crisis.
• Indonesia can choose social media as the medium for altering the
perspective of consumers post (Tsunam et al. 2017).
• They can start putting images and data for the process of
reconstruction of the affected area in their Facebook pages.
• They can have a two-way communication through social media
platform in which they can address the concerns.

TARGET AUDIENCE STRATEGY
• By using the platform of social media in risk management Indonesia can
target different groups of travelers based on demographics and
psychographics.
• Indonesia can avail the advertising service through different social media
platforms to reflect the rapidly improving conditions and the added value
in the tourism facility.
• Indonesia can attract the young generation, college students (generally the
risk takers) by interacting with them at the comment sections in the online
platforms.

MESSAGE STRATEGY
The message should reflect the added
values in the facilities of the tourism
industry along with the assurance of
improvement in the technology for risk
indicator.

AWARENESS OF THE CURRENT
SITUATION IN INDONESIA
As per the advise from Foreign and Commonwealth
Office (FCO) reflects the warning for travel to:
• within 4 kilometers, Mount Agung crater in east Bali
• within 7 kilometers, Mount Sinabung crater in Kalo
Regency, North Sumatra
Trip to Lombok or near the islands needs to be
planned with caution, specifically for the damaged
buildings.
FCO issued a warning for these destinations by not
restricting travel to other areas in Indonesia
(straitstimes.com 2019).

AWARENESS OF THE CURRENT
SITUATION IN INDONESIA
 The plan of doubling the budget of disaster response up
to 15 trillion rupiah (S$1.41 billion) for the year 2019 after
a disastrous year of 2018 (straitstimes.com 2019).
 Budgeting director general at the finance ministry,
Askolani stated "The funds have been prepared in
anticipation of 2019“ (straitstimes.com 2019).
An amount of 5 trillion rupiah is allotted for the
reconstruction and rehabilitation (straitstimes.com 2019)
For disaster response an amount of 10 trillion rupiah is
reserved as stated by Nufransa Wira Sakti, the spokesman
of finance ministry (straitstimes.com 2019).

REFERENCES:
• Amanah, D., Hurriyati, R., Gaffar, V., Agustini, F. and Harahap, D., 2018.
Foreign tourist’s attitude to the elements of the developing of tourism in
Medan, Indonesia. Management Science Letters, 8(5), pp.371-380.
• Dagustani, D., Kartini, D., Oesman, Y.M. and Kaltum, U., 2017. Memorable
Tourism Experience. Antecedents and Destination Image Outcome in
Indonesia. Journal of Environmental Management & Tourism, 8(8 (24)),
pp.1482-1493.
• Djalante, R., 2018. A systematic literature review of research trends and
authorships on natural hazards, disasters, risk reduction and climate
change in Indonesia. Natural Hazards and Earth System Sciences, 18(6),
pp.1785-1810.

REFERENCES:
• Hall, S., Emmett, C., Cope, A., Harris, R., Setiadi, G.D., Meservy, W. and Berrett, B.,
2019. Tsunami knowledge, information sources, and evacuation intentions among
tourists in Bali, Indonesia. Journal of Coastal Conservation, pp.1-15.
• Hampton, M.P. and Jeyacheya, J., 2015. Power, ownership and tourism in small
islands: Evidence from Indonesia. World Development, 70, pp.481-495.
• Hosie, P. and Pforr, C., 2016. Vulnerability Analysis and Sustainability in Tourism:
Lessons from Phuket. In Crisis Management in the Tourism Industry (pp. 111-124).
Routledge.
• Kharista, A., Permanasari, A.E. and Hidayah, I., 2015, May. The performance of GM
(1, 1) and ARIMA for forecasting of foreign tourists visit to Indonesia. In 2015
International Seminar on Intelligent Technology and Its Applications (ISITIA) (pp.
33-38). IEEE.

REFERENCES:
• Mahadevan, R., Amir, H. and Nugroho, A., 2017. Regional impacts of tourism-led
growth on poverty and income inequality: A dynamic general equilibrium analysis
for Indonesia. Tourism Economics, 23(3), pp.614-631.
• Park, E., Kang, J., Choi, D. and Han, J., 2018. Understanding customers' hotel
revisiting behaviour: a sentiment analysis of online feedback reviews. Current
Issues in Tourism, pp.1-7.
• Petriana, B., 2017. The perceived destination image of Indonesia: An assessment
on travel blogs written by the industry’s top markets.
• Pradjoko, E., Wardani, L., Wardani, H., Sulistiyono, H. and Sulistiyono, S., 2018. The
prediction of tsunami travel time to Mataram City Indonesia based on North
Lombok earthquake as the initial condition. In MATEC Web of Conferences (Vol.
229, p. 04007). EDP Sciences.

REFERENCES:
• Rahmawati, P.I., Trianasari, N. and Martin, A.N.Y., 2019, January. The Economic Impact of
Mount Agung Eruption on Bali Tourism. In International Conference on Tourism,
Economics, Accounting, Management, and Social Science (TEAMS 2018). Atlantis Press.
• straitstimes.com 2019. The Straits Times. Indonesia to double disaster relief budget in
2019 after year of tragedies. [online] Available at: https://www.straitstimes.com/asia/se-
asia/indonesia-to-double-disaster-relief-budget-in-2019-after-year-of-tragedies [Accessed
26 Feb. 2019].
• Urtner, Y., 2016. Returning to paradise: Investigating issues of tourism crisis and disaster
recovery on the island of Bali. Journal of Hospitality and Tourism Management, 28, pp.11-
19.
• Yahya, N.A., Samsudin, R. and Shabri, A., 2017. Tourism forecasting using hybrid modified
empirical mode decomposition and neural network. Int. J. Advance Soft Compu. Appl,
9(1).