Does Indonesia needs investors in tourism industry?

We will bring you between 40% to 50% of Gross Operating Profit. The closing statement from an international hotel management group who is looking for a partner to develop their brands and market in Indonesia made me thinking whether Indonesia really need investors in tourism industry?  With a population of 250 million +, of course Indonesia by numbers itself is a very lucrative market for any products and investors.

President Joko "Jokowi" Widodo's administration has set a target of reaching 20 million foreign tourists and 275 million domestic tourists by 2019, when Jokowi's tenure ends.

The target is expected to contribute 8 percent to national gross domestic product, accounting for Rp 240 trillion and 13 million people working in the sector by 2019. The government is eyeing 30th position among 141 tourist countries.  (http://www.thejakartapost.com/news/2015/11/19/ri-tourism-dreaming-big.html)

My experiences in the hospitality industry have taught me that tourism is a people centric industry.  The 13 million people who are targeted to work in the industry should have been very happy with this prospective opportunity. It will improve their welfare, their skills and their livelihood.

However, not all hotel management, operators and owner are into people. When they are purely investors they do not bother with the people aspects of the industry.  As the result, the people do not learn anything. Their skills are not developed, therefore, incapable to compete to have a higher level of jobs and earn only the minimum wage until the end of their career in the hospitality industry.

What is happening now in hospitality industry in Indonesia in terms of people and welfare development?

Sources: writer, 2016 - The data is concluded from my recruitment activities between 2015 and 2016.

Hotels with sustainable development values that have been in the industry in an average of more than 20 years, are now the sources of good and talented people in the hospitality industry in Indonesia.  Even though these employees have good benefits, they are pouched by the pure investment hotel by given a higher position and salary.  As the hotel is operated only for profit, these employees did not receive any structured training thus the quality of their leadership and professionalism will not be as good as those who work for hotel with sustainable development value. In the long run they will only be considered from one small hotel to other small hotel unless they stay in the same hotel with the same position until the end of their career.

Indonesia will always need investors. But, government needs to be stricter in the sustainable development responsibility of the investors if they target increment of people welfare. (ade noerwenda)