Ministry of Culture and Tourism Republic Indonesia “Indonesia Tourism 2011” SYAMSUL LUSSA Director for Marketing Development Jakarta,

Ministry of Culture and Tourism Republic Indonesiawww.indonesia.travel

“Indonesia Tourism 2011”

SYAMSUL LUSSADirector for Marketing Development

Jakarta, 3 September 2010

TOPICS

• GLOBAL TOURISM TRENDS AND BUSINESS OPPORTUNITIES1

• TOURISM KEY PLAYERS• ROLES OF PUBLIC SECTOR2• CHALLENGES• TOURISM INCORPORATED3

GLOBAL ECONOMY vsTRAVEL INDUSTRY

THE GLOBAL ECONOMIC RECOVERY IS UNDERWAY, LEADING TO THE SLOW RETURN OF TRAVEL DEMAND.

FOLLOWING THE 2009 DECLINES, GLOBAL ARRIVALS WILL TAKE 3 YEARS TO RECOVER TO PRE-CRISIS 2008 LEVELS.

INCOMING TOURIST RECEIPTS WILL LAG BEHIND, TAKING 4 YEARS TO RECOVER IN FULL.

Tourism Overview

Source: Euromonitor International / IMF

2008 2009 2010 2011 2012 2013 2014-10

-8

-6

-4

-2

0

2

4

6

8

10

real GDP growth arrivals average US$ spend

% g

row

thGLOBAL ECONOMIC AND TOURISM PERFORMANCE

% GROWTH 2008 -2014

REGIONAL PERFORMANCE FOR ARRIVALSTourism Overview

•Western Europe and North America were hit hard by the crisis. Arrivals will take 5 or more years to recover, as consumers will focus on other priorities over travel.

•Eastern Europe was by far the worst hit by falling visitors, due to increased competition from Western European city break destinations, as well as suffering from the collapse of SkyEurope, taking capacity out of the market.

•Middle East and Africa showed growth in arrivals of almost 3% over 2009 - the only region to do so. This was largely due to significant discounting by hotels, increased low cost travel options such as LCCs and budget/mid hotels, coupled with the expansion of its schedule airlines globally.

•Asia-Pacific suffered in 2009, but is predicted to show good growth in arrivals for 2010 compared to other regions. Solid business development and an increasing reliance on intra-regional visitors helped fuel this progress.

Source: Euromonitor International / IMF

2010 2011 2012 2013 2014-2

0

2

4

6

8

10

REGIONAL ARRIVALS FORECAST 2010-2014 (% VOLUME GROWTH)

Asia Pacific Australasia Eastern Europe

Latin America Middle East and Africa North America

Western Europe

% v

olu

me

gro

wth

Source: Euromonitor International / IMF

GLOBAL ARRIVALS FORECAST 2009-2014 (% VOLUME GROWTH)

2009

2010

2011

2012

2013

2014

-6 -4 -2 0 2 4 6

% volume growth

Source: Euromonitor International / IMF

• Improving transport links and an increasingly wealthy middle class enabled a growing number to travel, both for business and leisure in BRIC countries.

• Favourable exchange rates in Brazil boosted trips to Europe and the US. Middle East are actively targeting Latin America, such as Emirates increasing its frequency to Sao Paulo and Qatar Airways newly operates route from Doha to Sao Paulo/Buenos Aires, highlighting the appeal of this market.

MARKET SHIFTS

Source: Euromonitor International / IMF

• Chinese travellers tend to stay within Asia, as visa restrictions still make travelling further afield difficult for many. China outbound still offers great opportunity for destinations. Chinese consumers enjoy spending on luxury consumer goods in-destination, whilst choosing mid-priced accommodation and transportation.

MARKET SHIFTS

• Indian travellers tend to go to countries with which they have long-established connections, such as Singapore, Malaysia, UAE, UK and the US. A raft of new LCC, both domestic and foreign including the local leader SpiceJet and new entrants such as flydubai, facilitated travel to these destinations, with the exception of the US.

MARKET SHIFTS

• Whilst outbound travel from Russia declined in 2009, it remains an important source market. The countries of the CIS are traditionally popular destinations for Russians, whilst the wealthy elite opt for the UAE and Western Europe.

MARKET SHIFTS

• In a world ever more focused on security and safety for travellers, some countries actively seek visitors that have close links to their own, usually in terms of religion or culture.

• North African countries, such as Morocco and Tunisia, and Asian countries, such as Indonesia and Malaysia, are focusing on attracting GCC residents, with whom they share a common religious background.

• Diaspora tourism is also highly resilient to the external shocks of the global economy.

MARKET SHIFTS

0

1

2

3

4

5

6

7

8

9

10

-

10.000

20.000

30.000

40.000

50.000

60.000

China India Indonesia Malaysia Poland Russia Brazil

% vo

lum

e gro

wth

‘000

depa

rture

s

2009 2014 2009-10 2009-14 CAGR %

Source: Euromonitor International / IMF

EMERGING SOURCE MARKETS PERFORMANCE

FORECAST OUTBOUND 2010-2014

Source: Euromonitor, Sep 2009

NO. COUNTRY 2010 2011 2012 2013 2014 1. Singapore 14.984.600 15.582.300 16.398.000 17.652.700 N.A  2. Malaysia 5.107.800 5.509.700 N.A  N.A  N.A  3. Japan 14.724.100 14.830.300 15.115.500 15.574.700 N.A  4. Germany 82.315.300 83.550.000 84.970.300 86.669.800 82.103.400 5. Netherlan 18.565.300 18.720.600 18.894.400 19.058.200 18.086.600 6. UK 69.683.200 71.111.500 73.790.000 76.239.600 N.A  7. France 27.129.200 27.707.000 28.365.300 29.200.900 23.622.600 8. Russia 42.117.700 46.032.900 51.179.700 N.A  N.A  9. Korea 10.781.400 11.131.100 11.607.300 12.217.800 N.A 

 10. Australia 6.711.000 7.161.800 7.643.200 N.A  N.A  11. China 33.149.700 35.177.300 38.603.300 43.380.600 N.A  12. India 8.994.400 9.434.300 10.054.500 10.936.200 N.A  13. S. Arabia 2.355.500 2.305.000 2.332.500 2.373.500 N.A  14. UAE 3.757.300 3.998.600 4.290.700 4.631.900 N.A  15. Egypt 5.383.900 5.535.600 5.700.700 5.818.500 N.A  16. USA 60.642.500 61.094.500 62.082.200 63.013.000 N.A  17. Viet Nam 2.231.900 2.690.000 3.215.400 N.A  N.A  18. Philippine 1.805.700 1.994.900 2.218.500 N.A  N.A 

FORECAST INBOUNDS TO INDONESIA

YEAR LOW MID HIGH

Target 2010NO. Market Focus TARGET

1 SINGAPORE 1.500.000

2 MALAYSIA 1.300.000

3 JAPAN 525.000

4 GERMANY 150.000

5 UNITED KINGDOM 175.000

6 NETHERLANDS 200.000

7 FRANCE 200.000

8 RUSSIA 87.000

9 SOUTH KOREA 300.000

10 AUSTRALIA 620.000

11 CHINA 630.000

12 INDIA 140.000

13 TAIWAN 225.000

14 USA 180.000

15 MIDDLE EAST (KSA + UAE) 95.000

SUBTOTAL 6.327.000 OTHERS 673.000

TOTAL 7.000.000

KEY PLAYERS

PUBLIK•DESTINASI•PEMASARANBUDPAR

•UDARA•LAUTPERHUB

•IMIGRASIHUK & HAM

•ANGKASA PURA •GARUDA INDONESIABUMN

SWASTA•PUSAT•DAERAHASITA•PUSAT•DAERAHPHRI•PUSAT•DAERAHINCCA

•ASOSIASI PAR DAERAH•BARINDOLAIN2

RELATED PLAYERS

PUBLIK

PEMUDA/ OLAHRAGA

INDAG

BKPM

• • POLRI

SWASTA

•TRANSPORTASI•BANK/KEUANGAN•MALL

JASA

•OTOMOTIF•PERTAMBANGAN•FURNITURE

BARANG

•MNCLAINNYA

POTENSI INKORPORASI PROGRAM PEMASARAN PARIWISATA 2011

NO PROGRAM POTENSI PROGRAM

1

2

3

4

5

6

7

8

9

10

No Country/City Intl Domestic Capacity1 Netherlands 155.792 na  155.792 2 Germany 147.420  na 147.420 3 Russia 51.792  na 51.792 4 China 135.200 185.926 321.126 5 Macau 63.700  na 63.700 6 Hong Kong 511.680 163.436 675.116 7 Taiwan 735.800  na 735.800 8 Japan 329.420 198.068 527.488 9 South Korea 217.308 106.652 323.960 10 Turkey 77.740  na 77.740 11 Malaysia 1.933.880 1.452.828 3.386.708 12 Brunei DS 138.996  na 138.996 13 Singapore 2.782.052 1.559.740 4.341.792 14 Thailand 287.560 93.912 381.472 15 Philippines 115.076  na 115.076 16 Australia 422.760 540.904 963.664 17 Saudi Arabia 198.432 252.720 451.152 18 UAE 459.368 Na 459.368 19 Kuwait 42.432  na 42.432 20 Qatar 243.880  na 243.880 21 Yemen 43.212  na 43.212 22 Viet Nam  na 97.552 97.552   TOTAL 9.093.500 4.651.738 13.745.238

AIR SEAT CAPACITY vs TARGET MARKET

Source: Ditjen Perhud (compiled), 2010

INTERNASIONAL AIRPORT

DPS

SUB

CGK

14

19

7

174

22

21

2

AMI

AMQ

BIK

MKQ

BALIKPAPAN

MDC

MKS

BTH

KOE

BANDARA INTERNASIONAL :1. BANDA ACEH 7. PALEMBANG 13. PONTIANAK 19. KUPANG 25. YOGYAKARTA2. MEDAN 8. JAKARTA 14. BALAKPAPAN 20. AMBON 26. HALIM PK3. PEKANBARU 9. BANDUNG 15. TARAKAN 21. BIAK 27. SEMARANG4. BATAM 10. SOLO 16. MAKASSAR 22. JAYAPURA5. TANJUNG PINANG 11. SURABAYA 17. MANADO 23. MERAUKE6. PADANG 12. DENPASAR 18. MATARAM 24. SABANG

9

1620

15

6

313

10

8

1112

18

1

5TNJ

23

24

25

2627

TRK

PTK

BTH

ACH

MDN

PKB

PDG

PLB

NATIONAL AIRLINES

TOTAL DOMESTIC AIR SEAT CAPACITY

73.483.243

Sumber: Ditjen Perhubungan Udara, 2009

Domestic Performance 2008 - 20092008 2009* +/-

Domestic Travelers (million) 117,21 119,14 1,65%

Average Travel Frequency 1,92 1,93 0,01

Domestic Travels (million) 225,04 229,95 2,18%

Average Expenditure(Rp) 547.330 570.000 4,14%

Total Expenditure (Rp billion) 123,17 131,07 6,41%

Marketing Strategy

Efforts

ELECTRONIC-

BASED MARKETING

SOCIETY- BASED

MARKETING

CO- MARKETING

HORIZONTAL MARKETING

ON-LINE & OFF-LINE ACTIVITIESCOMMUNITY ACTUATIONREPRESENTATIVE OFFICERSPR-INGDIRECT PROMOTION FACILITATIONFAMILIARIZATION TRIPTHEMATIC PROMOTIONTRAVEL FACILITATIONS

Program 2011 and Beyond

JAN-MAR (10 vs 09) SEATS PEAKS ’09

92.332 ↑ 52,36% 963.664 Jul, Aug, Dec

1 PRODUCT PREFERENCES(2008)

Shopping 50% Sightseeing 41% Beach 34% Adventure 27% Cultural Evt 21%

2 MARKET PROFILE(2008)

Leisure 78%. Mostly FIT of singles and couples aged 25 – 34. Sources of info mostly from google earth and wego travel search.

3 EXPENDITURE PER VISIT(2009)

US$ 1447,35

4 Main Destination(2010)

Bali, Jakarta

PROGRAM (Rp 17,04 b)1. Holiday & Travel Expo, Perth, Februari 2010.2. Festival Indonesia, Adelaide, Maret 2010.3. Holiday & Travel Expo, Sydney, Maret 2010.4. Holiday & Travel Expo, Melbourne, April 2010.5. Festival Jazz Etcetera, Melbourne, April 2010.6. Sales Mission Australia & New Zealand, Mei ’10.7. Bulletin Travel Show, Gold Coast, Mei 2010.8. Gala Dinner, Melbourne & Auckland, Juni’10.9. Indonesian Young Designer Fashion Show, Melbourne, Aug.

201010. Wayang Orang Show, Sydney, Aug’10.11. Cultural Mission, Perth, Melbourne, Canberra, September

2010.12. Promo at Schools, Melbourne, Sept ‘10.13. Festival Indonesia, Melbourne, Oktober 2010.14. Indonesia Food Festival, Melbourne, Okt’10.15. Indonesia Food Festival, Perth, Nov’10.16. Travel & Leisure Ads.17. Yahoo and National Geographic Channel.18. Billboard Campaign.19. Fam Trip for media and trade (20 person).20. AIME, Melbourne, Maret 2010.21. Asia Pacific Conference on Orthodonty, Sydney, February 2010.

AUSTRALIATarget: 620.000

Earning: US$ 897.36 m

www.indonesia.travel

Thank You

TOURISM SYSTEM

SOURCE: MILL & MORRISON

MARKET

PRODUCT

MARKETINGTRANSFER