Matakuliah : G1174/Tourism Management and Planning
Tahun
: 2007
Institutional Element and Policy in
Destination Management
Pertemuan 15-16
Topics
• Procedure and license
• Institutional element
• Regulation and policy
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Objectives
• To describe the legal aspect on destination management
• To make a institution scheme in tourism management
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Stakeholder in Tourism
Who
involve?
Principles
 Government
 Interest/pressure
group
 Industry
 Public
 Mass Media
 International
organisation
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Examples
 Parliament
 Ministry
 National Tourism Oficces
 National Government
Offices
 Hotel and restaurant
 Tour operator and travel
agent
 Transportation
 Tourist attraction
 Local community
 Print
 Electronic
 World Tourism Organisation
 United Nation Development
Project
 World Bank
 Asian Development Bank
Government and Tourism
• Tourism sets to be one of the main international drivers and there is
a critical difference between tourism and many other economic
sector is that of inseparability, meaning tourism product requiring
some commodification and sharing tradition, value system and
culture.
• Thus, governments are involved in supporting positive benefit of
tourism activities in a destination
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Government Involvement in Tourism
Why
involve?
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Principles
 Political reasons
Examples
 International understanding
 Country image
 Trade relation
 Stability
 Security
 Regulation
 Conservation
 Environment
issues
 Economics reason  Foreign exchange earning
 Economic development
 Employment
 Economic diversification
 Taxes
 Socio-culture
 Preservation
issues
 Basic infrastructure and services
 Cultural exchange
 Financial aids
 Incentive
How the involvement of Government in Tourism?
Principles
How involve?
What results?
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 Co-ordination
 Planning
 Rule and Regulation
 Research
 Controlling
 Operation
 Marketing
 Education and training
 Sustainable development
 Environment and community protection
Administration of Tourism
Government
Ministry of Tourism
National Tourist Office
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Regional Tourism
Regional Tourism
Local Authority
Local Authority
Destination
Destination
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Procedure and license permitting
Ijin Sementara
Usaha Pariwisata
(3 years)
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Ijin Tetap
Usaha Pariwisata
(permanence)
Public sector and Impact
The impact of tourism on public may be classified in two ways:
• Demand and revenue management
• Supply and cost management
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Demand and revenue management
Policy instruments to management demand:
1. Marketing and promotion
2. Information provision and network development
3. Pricing
4. Controlling access
5. Safety and security
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Supply and cost management
The activity on supply side is concerned with influencing the provider
of tourist facilities and services through
1. Land use planning and environmental control
2. Building regulation
3. Market regulation
4. Market research and planning
5. Taxation
6. Ownership
7. Education and training
8. Investment incentives
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Tourism Policy
• Tourism public policy can help the cause and consequences of policy
decisions.
• Policy influence tourism in many ways:
–
–
–
–
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The political nature of the policy-making process
The degree of public participation in tourism policy
The source of power
The perception of stakeholders as the effectiveness of tourism policies
The policy-making process in tourism
Policymakers
Problems/
Issue identify
Consultation
Problem/issue
Redefined/
superseded
Monitoring
& evaluation
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Policy
formulation
Policy
implementation
Stakeholders
In tourism
Tourism-related legislation
•
•
•
•
•
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Tourism & transportation
Tourism & human resource
Tourism & trade-industry
Tourism & environment
Etc.
Intervention Policy
• Many parties involve in tourism policy, conflict of interest between
parties may occurs.
• It is important to continuously understand that the policies are
made for the sake of stakeholders (residents, tourist business
interests and pressure groups, etc.)
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Governmental tourism strategies
• To guide the multitude of public sector agencies and stakeholders
involved in tourism, government will embody many of the policy
objectives in a strategy document, called Renstra (Rencana
Strategy Pariwisata Nasional.
• This document will identify what wishes to achieve in broad terms in
tourism and identifies objectives and action points for stakeholders.
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Conclusion
• Government intervene in tourism to assist and regulate the
stakeholder particularly private sectors
• The complex nature of tourism make it is unlikely other parties in
tourism will satisfy all the tourism policy, thus it is important to
coordinate and integrate all aspects involvement in tourism.
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