The Indonesian Tourism Industry Tourism Essay Example

The Indonesian Tourism Industry Tourism Essay The capital metropolis of Indonesia, Jakarta with a entire populations of 9.6 million ( BPS, 2012 ) with five countries viz. West, East, North, South and Central, has positive economic growing since period 2000 to 2011, which largely was sustained by the three chief sectors such as ( 1 ) fiscal, existent estate and concern services sector, ( 2 ) trade hotel and eating house sector and ( 3 ) fabrication sector. ( BPS, 2012 ) The increasing of economic growing gives impacts to the touristry industry in Indonesia. In January 2011, the Culture and Tourism Minister of Republic Indonesia announced the replacing of Visit Indonesia Year stigmatization with Fantastic Dutch east indies as portion of touristry run that expected to pull 7.7 million foreign tourers and bring forth $ 8.3 billion of gross. Whereas 50 % of this gross will be generated from meetings, convention and exhibitions that will take topographic point in assorted topographic point in Indonesia. ( The Jakarta Post, 31st December 2010 ) . Jakarta, where the cardinal authorities, trade, services and industry are located at, makes Jakarta a finish for concern travelers or as a authorities cardinal meeting. In add-on, with the completing installations at JIExpo Kemayoran in North Jakarta, Jakarta Convention Center in Central Jakarta, Balai Kartini in South Jakarta, Semanggi Expo in South Jakarta, Jakarta will go one of the touristry finish for MICE ( Meeting, Incentive, Convention, and Exhibition ) concern. ( Sarya, 2011, p.16 ) We will write a custom essay sample on The Indonesian Tourism Industry Tourism specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on The Indonesian Tourism Industry Tourism specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on The Indonesian Tourism Industry Tourism specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Table 1. : The statistic of figure of international tourer reaching through gate Airport Year 2008 2009 2010 2011 Soekarno Hatta, 1,464,717 1,390,440 1,823,636 1,933,022 Ngurah Rai, 2,081,786 2,384,819 2,546,023 2,788,706 Polonia, 130,211 148,193 162,410 192,650 Sam Ratulangi 21,795 29,715 20,220 20,074 Batam 1,061,390 951,384 1,007,446 1,161,581 Juanda, Surabaya 156,726 158,076 168,888 185,815 Adi Sumarmo 19,022 16,489 22,350 23,830 Minangkabau, 40,911 51,002 27,482 30,585 Others 1,257,939 1,193,612 1,224,489 1,311,468 Sum 6,234,497 6,323,730 7,002,944 7,647,731 Beginning: Biro Pusat Statistik, 2012 Table 1.1 shows that the international tourers who arrived through Jakarta s International Airport viz. Soekarno Hatta, have increased twelvemonth to twelvemonth which in 2011, it reached about 1.9 million. The entire international tourers who came to Indonesia in 2011 have about reached the mark of the Culture and Tourism Minister to pull 7.7 million foreign tourers. Hotel Industry For some large states like Jakarta, which has many concern activities, hotel becomes one of the most productive income-producing belongingss ( Internal information Colliers International Indonesia, 2012 ) . There are four benefits from hotel industry for a state ( Medlik A ; Ingram, 2000, p.4 ) , which are, In some countries, hotel as an attractive force of visitant who bring passing power and who tend to pass more money than they do when they are at place. This visitant disbursement power frequently gives large part to the economic system gross of a state. In Jakarta, hotel, trade and eating house sector is one of top three sectors which give a biggest part in GDP for largely old ages. From period 2009-2011, hotel, trade and eating house sector has contributed 20 % for DKI Jakarta s GDP ( Gross Domestic Product ) . ( BPS, 2009 2011 ) In countries which having foreign visitants, hotels play large functions as alien currency earners which can give large part to their state s balance of payments. For states which have little possibilities of export may take hotels as their alien currency earners. Hotels can supply many occupation chances that this function is of import for countries which have little figure of beginnings of employment, where they contribute to regional development. Hotel can move as a medium to promo the merchandises of other industries. Largely hotel are supplied with nutrient, drink and other consumables which purchased from local husbandmans, fishermen and other providers. Using local merchandises in their services makes this hotel non merely can lend straight to their economic system gross to state as a alien currency earners but besides indirectly as an mercantile establishment to advance other local industries. Hotels may go societal activity Centres for local people and frequently their eating houses and other installations can pull local usage. The positive macroeconomic growing encourages the positive growing of hotel supply in Jakarta, as a respond from hotel groups for the positive growing of room demand. Some hotel groups expand their hotel concatenation by increasing their figure of hotel, such as Tauzia ( local concatenation ) which its hotel direction will develop 23 hotels until 2012, consist of 15 units Harris Hotel and 8 units of Pop Harris. Next, there is the Accor group ( international concatenation based on France and the largest operator of hotels in Asia Pacific ) program to spread out their web across Indonesia from 40 hotels in 2011 to 100 hotels by 2015. PT Surya Semesta Internusa Tbk ( SSIA ) , who own and manages the 5-star Gran Melia Hotel Jakarta and Melia Hotel Bali, plans to spread out its gross in the cordial reception market by developing a budget hotel web in 2012. The increasing figure of hotel for a budget hotel to a five stars hotel for period 2000 2011 are shown on the Figure 1.2, ( from the period 2012 2015 are projection figure ) , Beginning: Adopted from informations internal Colliers International Indonesia, 2012 Figure1. : The hotel supply in Jakarta by figure of hotel from period 2000-2015 Beginning: Adopted from informations internal Colliers International Indonesia, 2012 Figure1. : The hotel supply in Jakarta by figure of room from period 2000-2015 Based on the Figure 1.2, the supply of hotel since 2000-2011 are dominated by 5-star hotel and 4-star hotel, whereas until 2011 there were already 37 five-star hotel and 35 four-star hotel in Jakarta. These hotel groups which play in Jakarta hotel market consist of international and local trade names. Some of international trade names in Indonesia which the author would wish to advert are Holiday Inn, Sheraton, Four Seasons, Kempinksi, InterContinental, Hilton International, Ritz-Carlton and Mandarin Oriental. While the local trade names besides sharply work to construct their ain concatenation, from Santika, Mulia and Sultan to the Sahid Group and many others. The Emerging of Budget Hotel in Jakarta The construct of Budget Hotel in Jakarta began to emerge in 2006, initiated by the Accor Group, France with the Hotel Formule1, which plans to construct four other subdivision of this hotel in Bali, Semarang, Yogyakarta and Jakarta. Then followed by Santika Group with their Amaris Hotel that until 2012 holding 22 Amaris hotel and planning to spread out the concatenation by adding another 13 Amaris Hotel. Basically the key participants in budget hotel market are hotel groups who already have established their star hotel ironss, and because they can see the possible market and demand of budget hotel, they add one line in their concatenation for budget hotel. Some of the hotel groups are shown in Table 1. : Hotel groups and their trade name on star and budget hotel. Table 1. : Hotel groups and their trade name on star and budget hotel Hotel Group Star Hotel Brand Budget Hotel Brand Aston International Aston Hotel ( 3 Star ) Fave Hotel Accor Group Grand Mercure ( 4 star ) Novotel ( 4 star ) Pullman Hotel ( 5 star ) Ibis Budget Hotel ( antecedently Formule 1 ) Grahawita Santika Santika Premiere ( 4 Star ) Santika Hotel ( 3 Star ) Amaris Hotel Tauzia Hotel Management Harris Hotel ( 4 Star ) Pop Hotel PT Intiland Development Grand Whiz ( 3 Star ) Whiz Hotel Beginning: Adopted from informations internal Colliers International, 2012 Budget hotels are known for its low menu hotel ( Barrows A ; Powers, 2009, pp.273 ) , where invitees can see remaining at good quality hotel, with a low monetary value. The invitees pay merely for what they use. This will ensue in non merely cost efficiency for the costumier but besides for the investor. Based on Colliers International Indonesia information 2012, in twelvemonth 2011 there are merely 6 budget hotels in Jakarta, which are, Formule 1, Menteng by Accor Amaris Hotel, Panglima Polim by Santika Formule 1, Cikini by Accor Amaris Mangga Dua Square by Santika Amaris Soekarno Hatta, Cengkareng by Santika Amaris Senen by Santika In the Figure 1.3 shows the entire figure of budget hotel in Jakarta since emerged in 2006 to 2012. Beginning: Adopted from informations internal Colliers International Indonesia, 2012 Figure1. : The figure of budget hotel in Jakarta from period 2006-2012 The Segment of Budget Hotel The chief section of budget hotel in Jakarta is concern traveler. The high demand of concern activities in Jakarta, which require low monetary value adjustment with limited service, has encouraged budget hotel as a chief penchant for company in taking their concern adjustment. In add-on, there is a displacement work system among corporation when they will make enlargement into a new country. In the epoch of the 1990s, to supervise or guarantee the possible for concern in country which freshly initiated, the company normally sends a direct top direction ( Hari et al. , June 2011, p.44 ) . Since 2000 s, with the bettering economic system and quality of human resources, the corporation began to depute the undertaking at in-between direction degree ( Hari et al. , June 2011, p.44 ) . In add-on, by deputing undertakings to the degree of direction, the costs will be cheaper than directing the top direction. Those alterations of form, so impact the travel concern in Indonesia, from the outgrowth of low cost bearer ( LCC ) to the mushrooming budget hotel ( limited service hotels ) which merely provide the basic demands of the invitees: the comfy suites for remainder. Basically the potency of concern traveller market in Jakarta is rather big, because of few grounds, which are: The betterment in all sectors and positive economic growing has large impact in the increasing of concern activity in Jakarta. In their concern activity, the concerns frequently do concern trip to out of town, even abroad. And as a cardinal authorities, trade, services and industry, Jakarta becomes one of the most finishs for concern travelers in Indonesia. Based on informations from Asia Pacific Business Traveller Research 2011 by Accor Group, the cost which spent for hotel adjustment for Indonesian concern traveler is $ 92/night ( 2011, p.11 ) , while the norm long stay is 2.08 twenty-four hours. ( BPS, 2011 ) As the entire concern traveler in Indonesia in 2011 is about 90 % of the entire domestic tourer in Indonesia ( Siahaan, 2012 ) , hence concern travelers will be around 6.84 million in a twelvemonth. Therefore from this sum of concern travelers, there is about $ 1.3trillion of the entire cost of the trip that flows into the hotel industry in 2011. Global fiscal crisis in 2008 had besides triggered the corporation to cut their concern travel budget. There are some schemes that they have done during 3 old ages after the crisis ( 2009-2011 ) . Based on Ascend Corporate Travel Survey 2012 , from 340 respondent of concern travelers who based 43 % Europe, 30 % North America and 17 % Asia Pacific, there is an increasing figure of company which planning to alter their pick of hotels to salvage money in 2011. Whereas this status was encouraged budget hotel as a penchant adjustment for company for concern trip The Industry of Budget Hotel in Jakarta What becomes interesting from budget hotel market in Jakarta is how the supply and demand of budget hotel is significantly increasing in the short period of clip. Many hotel groups or air hose groups expand their concern to put in budget hotel, by seeing the possible demand of this hotel. For case, AirAsia Group, an air hose company based on Malaysia, who became a innovator of supplying a budget air hose ( Low Cost Carrier, LLC ) , has besides interested to make budget hotel with trade name Tune Hotel. After first established in Malaysia in 2007, Tune Hotel has spread in 6 states, such as Malaysia, Indonesia, England, Thailand, Filipina and Australia. In 2009, they launched two Tune Hotel in Bali which is in Kuta and Seminyak and in 2013, they are be aftering to spread out 13 Tune Hotels in Indonesia which will be in Jakarta, Bekasi, Surabaya, Pekanbaru, Makassar, Sola, Palembang, Tangerang and Bali ( Kompas, 5th September 2012, p.19 ) In the Figure1. : The growing in footings of figure of suites from period 2000-2012 below shows that budget hotel s growing compared with 3, 4 and 5 star hotels in footings of figure of suites is lifting important since emerged in 2006. Beginning: Adopted from informations internal Colliers International Indonesia, 2012 Figure1. : The growing in footings of figure of suites from period 2000-2012 The important supply of budget hotel is a respond for important demand from the market. It can be seen from the tenancy rate of budget hotel which is rather good better than 3 5 star hotels. The Figure1. : The tenancy rate from 5-star hotel to budget hotel shows that merely two old ages after budget hotel has emerged to the market, its tenancy rate is extremely better than 3 5 star hotels, even 5-star hotel has the lowest tenancy rate from 2000-2011. Beginning: Adopted from informations internal Colliers International Indonesia, 2012 Figure1. : The tenancy rate from 5-star hotel to budget hotel The higher demand of budget hotel than 3, 4, 5 star hotels gives an thought that budget hotel likely has satisfied their client and could make their trueness clients who wants to make repetition purchases of their services. However, before making high client satisfaction degree and holding trueness clients, there are values that budget hotel should give to their client. How client value creative activity that budget hotel has done to their client and how this value creative activity impacts their client satisfaction and trueness that finally will increase their demand degree and how this client value creative activity impacts to the hotel profitableness that impact the supply degree will be a intent for this research. Problem Designation Due to the demand of budget hotel is higher than 3, 4, 5 star hotels, therefore there is a mark that likely budget hotel has satisfied their client that finally could make client trueness who wants to make repetition purchases of their services hotel. However, in order to fulfill their client and make client trueness, they should give values to their client. Therefore, the issue in this thesis is to analyze The Impact of Customer Value Creation on Budget Hotel towards Customer Satisfaction, Customer Loyalty and Hotel Profitability . There are four countries of research job, What value creative activity that budget hotel has done towards its clients? What is the client satisfaction degree of budget hotel as an impact of client value creative activity? What are the ruling values in act uponing client satisfaction which will take to make client trueness? How is the profitableness degree of budget hotel compared to 4 and 5 star hotel as an impact from client satisfaction and client trueness? Research Objective The chief intents of this research paper are: To place and explicate the client s value of budget hotel To place and explicate of client satisfaction of budget hotel as impacts of the client value creative activity To place and explicate the ruling value in act uponing client satisfaction degree of budget hotel, which will take to make client trueness To place and explicate the correlativity between client satisfaction and client trueness of budget hotel To analyse the profitableness degree of budget hotel compared with 4 and 5 star hotel as an impact from client satisfaction degree and client trueness Significant Research The survey is important because it provides information which will be helpful for the readers: The survey is important in understanding the client behaviour and needs better. The survey will turn to the issue of client value creative activity to better the client satisfaction to make client trueness. The survey may be utile for many interested parties, particularly: Budget hotel groups. They may utilize this research to back up sweetening of client satisfaction and relationship Students and internal parties of Swiss German University. This research can be used as a mention for lectors and other pupils to carry on farther research. The research worker. The consequence of this research can be used to enrich my cognition. Academicians. The consequence of this research can be used to make farther research in the same industry. Scope and Limitation of Thesis In order that the survey on this topic more focal point, and to acquire the benefit from the survey, therefore the survey limited to: The value creative activity by budget hotel in Jakarta towards its client The impact of client value creative activity on client satisfaction and trueness The impact of client satisfaction and trueness on profitableness degree of budget hotel compared with hotel industry.