Destination Strategies in Tourist Development in Indonesia, 1945–2014: Problems of Bali Centredness Rimsky K. Judisseno Submitted in fulfilment of the requirements for the degree of Doctor of Philosophy College of Arts Victoria University March 2015 Abstract This thesis examines how Indonesian government approached tourism development from 1945 to 2014. It shows that their focus remained on the development of international tourism in Bali, despite the many tourism opportunities existing throughout Indonesia. It describes how successive governments’ policies were based on a Bali First Policy (BFP) instead of developing multiple international tourism destinations as proclaimed in decrees, regulations, master plans and tourism promotion and awareness programs. As argued in this thesis, this reflected Bali’s longstanding success as an international tourism destination. With 80% of all holidaying tourists, Bali continues to be central to Indonesia’s tourist growth and foreign exchange, while the tourist sector outside Bali remains significantly under- developed. The thesis explains the imbalance through describing and analysing the measures taken by Sukarno, Suharto, the transition Governments of Habibie, Wahid and Sukarnoputri, and Yudhoyono. Drawing from Easton’s Systems Theory (1965), Butler’s Tourism Area Life Cycle (1980), and the factors affecting tourism development identified by Ritchie and Crouch (2013), the thesis outlines a Public Policy-based Stages of Tourism Development (PP- STD) model that provides a better understanding of tourism policymaking and implementation in Indonesia 1945-2014. This understanding will benefit both industry practitioners and, particularly, policy makers through: • identifying determinant factors inhibiting the development of multiple international tourism destinations; • demonstrating the importance of minimising those factors by reducing the gap between rhetorical commitment and practical outcomes; • highlighting specific areas of concern and opportunities in developing destinations other than Bali; and • recognising strengths and weaknesses of concentrating tourism development in only one region. i The PP-STD model will enable governments to map the general condition of tourism in Indonesia and the specific condition of particular regions, and to develop alternative tourism strategies. It will also be of value to international tourism scholars interested in testing its applicability to other contexts. ii Declaration “I, Rimsky K Judisseno, declare that the PhD thesis entitled “Destination Strategies in Indonesia Tourist Development, 1945–2014: The Problems of Bali Centeredness”, is no more than 100,000 words in length including quotes and exclusive of tables, figures, appendices, bibliography, references and footnotes. This thesis contains no material that has been submitted previously, in whole or in part, for the award of any other academic degree or diploma. Except where otherwise indicated, this thesis is my own work”. Signature: Date: March 2015 iii Acknowledgements Firstly, I praise and thank God for all the blessings that have given me the spiritual strength during the five years taken to complete this thesis. "Your word is a lamp to my feet and a light to my path" (Psalm 109: 105). My deep gratitude goes to my supervisors, Professor Richard Chauvel, Dr Max Lane and Professor Ron Adams, for their invaluable support and advice during the preparation of this thesis, without which this thesis would not have been completed. I am also grateful to the officials in the Ministry of Tourism and Creative Economy who provided valuable data and insights through a series of Focus Group Discussion (FGD) sessions held in Jakarta, Medan, Yogyakarta, Manado, Batam and Bali. In particular, I would like to express my sincere gratitude to Mrs Nia Niscaya, former Director of MICE, and the Ministry of Tourism and Creative Economy, who believed in me and allowed me to conduct FGDs. I would like to thank also Mrs Diah Paham, Deputy Director of MICE, Ministry of Tourism and Creative Economy. I give my heartfelt thanks to all the FGD participants and tourism departments in the regions mentioned above who gave invaluable input on the present condition of tourism development in Indonesia. I express my gratitude to the Directorate of Human Resources on behalf of the Directorate General of Higher Education and State Polytechnic of Jakarta (PNJ), for awarding me a scholarship to undertake my PhD study at Victoria University, Melbourne, Australia, and to Professor Helen Borland who kindly helped me to receive a fee waiver from Victoria University’s College of Arts, which enabled me to continue and finish my study. I am also thankful to Angela Rojter and Pauline O’Maley, who helped me improve my writing skills, and Grace Schirripa who supported me in completing administrative requirements during my time in the College of Arts. I acknowledge Diane Brown for copyediting the thesis according to the iv Australian Standards for Editing Practice (2013) and the IPED/DDOGS national guidelines for editing research theses. A big thanks to my PhD colleagues at Victoria University, in particular, Ali Hapsah, Ahyar, Saefur, Surahman, Wawan, Nanang, Serli, and Budi, who were always faithful in sharing, listening and discussing with care and patience. Thank you all: our friendship will not be forgotten. I have reserved my deepest gratitude for my family: my parents, Roeslan Judisseno and C. Anggani Sael, my brother and sisters, and my beloved wife, Diana and children, Andrea and Baskara who prayed incessantly and gave me moral support in so many ways to travel on this research journey and finish my thesis. v Table of Contents Abstract ............................................................................................................. i Declaration ...................................................................................................... iii Acknowledgements ......................................................................................... iv Table of Contents ............................................................................................ vi List of Figures .................................................................................................. ix List of Tables .................................................................................................... x Glossary and Abbreviations ............................................................................ xi CHAPTER 1 INTRODUCTION ......................................................................... 1 Background ...................................................................................................... 1 Research aims ................................................................................................. 7 Research questions ......................................................................................... 8 Research approach .......................................................................................... 9 Contribution to knowledge and statement of significance .............................. 13 Thesis outline ................................................................................................. 13 CHAPTER 2 LITERATURE REVIEW ............................................................. 16 Introduction .................................................................................................... 16 Part 1: Role of government in the development of tourism ............................ 17 Part 2: Positioning of Indonesian tourism development in context of the international tourism market ........................................................................... 21 Part 3: Factors affecting tourism development ............................................... 23 Tourism development theory: tourism destination competitive elements ... 23 Existing studies on factors affecting tourism development in Indonesia .... 26 Part 4: Stages of tourism development and the role of government in policymaking .................................................................................................. 33 Butler’s six stages of tourism development ................................................ 33 Plog’s Psychocentric-Allocentric model ...................................................... 36 TALC model and Systems Theory approach to tourism development ....... 39 Part 5: Public Policy-based Stages of Tourism Development (PP-STD) ....... 44 CHAPTER 3 RESEARCH METHODS ............................................................ 50 How and why interviewees were selected ..................................................... 52 In-depth interviews ......................................................................................... 54 Data quality .................................................................................................... 55 Content analysis ......................................................................................... 55 Reliability, validity and triangulation ........................................................... 57 CHAPTER 4 DEVELOPMENT OF TOURISM IN THE SUKARNO ERA: 1945–1967………. ............................................................................................. 59 Introduction .................................................................................................... 59 Background and situational analysis .............................................................. 59 Geographical spread of tourism destination