Understanding The "THE" Industry

For years I had been an observer of THE Industry without knowing that I was also a little entity of the largest part of it. Then I was captivated, dreamed of being in, and now I really dragged myself into the business. I’m not even a practitioner yet, just about to enter the industry; and it was almost zero of my understanding about the industry; limited only to how big it is, how promising it is, and how my future can grow within.

But now after I formally studying it in higher degree, I definitely have a broader image of it. Realizing it is a wide, complex, but truly common and unarguably close to every human living, I am willing to write about it, in meaning not to educate readers, but only to share and sharpen my idea-writing skill.

So, what is THE Industry?

It’s simply an acronym of Tourism, Hospitality, and Event Industry. THE Industry is a business that covers all area of tourism, hospitality, and event. As we know, tourism links tightly with the hospitality industry like two loops in an infinity symbol. In Indonesia tourism is strongly associated with cultures and heritages as well, while event as one of the form of product and also marketing way of culture is valued as the tourism booster. Bigger countries like Australia have worked on “event” segment seriously, that serious that people can learn It as a major in master degree. That’s how UQ Business School, my place of study, group this Tourism, Hospitality, and Event segments together as a program, and I really think the short is beyond cool. It makes this industry sounds like The Industry, the way like Sherlock Holmes call Irene Adler as The Woman with capital T and W; the most important above all, and for me it’s no other than true.

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According to the Oxford Dictionary, tourism is pleasure or business, also theory or practice of touring, the business of attracting, accommodating, and entertaining tourists.

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“Tour” itself in the other hand, as a verb, has meaning: a visit to a place or area, especially one during which you look around the place or area and learn about it (Cambridge Dictionary). And when defining “tourist”, UNWTO has a strict definition of people who travel for any reason to a new place and spent more than 24 hours but less than one year.

But trying to elaborate my own words, the most thing that comes in my mind when talking about tourism, is travel. In my early meeting to this sector, or perhaps in my first role as a tourist, I interpreted travel as an activity of escaping from the daily environment. And it was long after that I finally understand, tourism is the whole business, bigger area that supply all things that travel and traveler demands.

THE Industry, as its name, incorporates all tourism, hospitality, and event stakeholder and shareholders. The tourism industry cannot stand alone without other elements aside from hospitality (hotel, any kind and level of hotel, F&B chain, etc) and event. It also needs transportation, technology, infrastructure, communication; and in higher understanding, it also requires good management, good governance, good training and education, and good strategy. That’s why it’s interesting, in order to able to attract, accommodate, and entertain tourists, THE Industry should link with so many things. As a result, the industry offers multiplier effect that can be beneficial for so many lives.

Why THE Industry Matters

We talk about a business that can’t be avoided by most of earth’s population to take. In fact, everyone will find themselves as a tourism, hospitality, and event’s end product or service user.

World of Tourism Organization (UNWTO) report stated that tourism industry is one of the fastest growing sector in the world. The industry contributes for 10% of world’s GDP. And 1/10 job opportunities in the world is THE job. It is not difficult to say that tourism has become main income sources for many developing countries.

Maldives is the most country that rely on tourism right now. 39.6% of its economy is made up from the tourism sector. In other words, the country will collapse if something happen to the land and travel warning is issued by other countries. This paradise on earth drew 1.3 million tourists per year in 2017, coming to this 298 kilometer square area. (World Tourism and Travel Council, 2018).

That tourists number looks tiny compared to Indonesia with 14 million international tourists in 2017. But in fact, Indonesia is named one of the under tourism country. Given the popularity of Bali, it’s surprising that Indonesia makes to the list. But comparing to the wide scattered islands consist total area of 1.9 million kilometer square, and 261 million of population; we better agree that we should’ve driven more tourists to come and spend money here right…

Last year, The World Bank released a World Tourism Day report: 20 reasons to integrate tourism in your development agenda. The highlights are the triple bottom line of sustainability, where tourism is seen as a good industry to help the sustainable of the earth and the humanity. In term of maintaining the economic sustainability, tourism stimulates GDP growth, increase international trade, and boost international investment.

Tourism is also proven to be the most powerful cultural values, diversity, and heritage protector. Heritage is one of the pillars of the tourism industry, and it has been the mankind's inherent desire to see and learn about the cultural identity of different parts of the world. While cultural heritage attractions are by nature unique and fragile; tourism along with other multidimensional studies have committed to reveal, preserve, and show these values to provide the trace of existence of this world.

The Growth and The Decline of THE Industry

The growth of THE industry in different countries will be different as well, depends on many aspect: Political, Economic, Social, Technological, Environmental and Legal (PESTEL) for sure. In general, the growth of tourism is inline with the growth of human population (hell yeah!), and other than that… err, so far my research is stuck here. Means we cannot equalize the growth of tourism without looking to other aspects to compare with.

I am glad that I live in a country which tourism is GROWING or should I say BOOMING. A research published on Jakarta Post last year indicated that the boom is a sweet result from President Joko Widodo (the reigning president and the candidate for the next presidential election) government. Tourism and maritime industry is a priority in his era, and I pick the right time to enter THE market. Yay!

In 2017, the country welcomed over 14 million overseas visitors, an increase of more than 2 million from the previous year. This rapid increase in visitors, and the billions of dollars in foreign currency flowing with them, seems likely to continue. The 5-year strategic plan included the target of 20 million international tourists in 2020, the establishment of 10 new priority destination, and IDR 3.5 trillion for marketing budget in 2018; have proven how serious we are in doing the tourism. One of the most visible result is the rise of popularity in Labuan Bajo to alter the over-tourism Bali Island, and Asian Games 2018 where Jakarta-Palembang got the privilege to host the mega sport event and received great publication.

I myself has been following his rule especially the development under The Coordinating Ministry for Maritime Affairs, in which the ministry of tourism and creative economy, ministry of transportation, and ministry of fisheries are performing. It was clear that President Jokowi’s vision was to make Indonesia as a strong, powerful maritime country. For the record, throughout this 5 year period, the tourism minister Bp. Arief Yahya was never replaced, while there are ministries that have gone through multiple cabinet reshuffles. I am just hoping, whoever the new president in 2019, whoever the minister of tourism, THE Industry is still a priority in Indonesia.

As the decline, well… I haven’t been to every part of this world, so I will reflect this once again to my beloved country. Indonesia tourism has survived many wars, natural disaster, national terrorism, monetary crisis, and presidential election through ups and downs, developments and degradations, love and hate, and much more. I can say, anything can impact tourism.

It’s still fresh in my mind how we’ve experienced the tourism decline in Bali and Jakarta. Bali especially, is truly a blessed land where gods stay. Bali had faced terrorist bombs, twice; and eruption of one of the most active volcano Mount Agung, multiple times. Earlier of this year Mount Agung contributed to the downturn of Bali tourism. But this decline is not a dead end. Not until 3 months later, the tourism in Bali was getting back to normal, comes alive again, feel blessed and magical as ever again. Never in my mind imagining the death of Bali as tourism destination, at least until a hundred years to come. It will always rejuvenate, rebrand, survived, repeat… just like what’ve done in the past.

Even Pompeii City, the destroyed Pompeii is now a world’s heritage and a must visit archaeological site. See, havoc never kill tourism.

There won’t be article long enough to sum up my excitement of THE Industry, and how I wish to share more often. We’ll discuss about smaller things next time, so I’ll be catching up regularly. Oh, maybe you notice that I used word “THE” but talked ONLY on tourism and hospitality or travel and hotel. So sorry but yes, because that’s my interest and area of learning, as I touch only a little of event part. I simply like the power and tense of how it sounds, and I will keep using it. But for now, I’ve made myself share the basic idea about THE Industry.

So next time you book your hotel, or feel the warm sands between your toes, or share your lovely holiday photos on instagram; know that you’ve just helped the world to run as a better place.

And if you have case or issue to discuss with me related to tourism, hospitality, and event industry; please please do discuss with me, and maybe I can pitch that up in my class discussion with my competent peers and come up with more comprehensive answer.

As always, AF