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Tourism as the Motor of the Local Economy

Background – The living conditions of the 230 million inhabitants of Indonesia are as diverse as the 17,000 islands are that make up the country of Indonesia. The minority that enjoys success as business owners or employees are in stark contrast to the majority that live in poverty. It is a similar situation with tourism. Bali, an internationally renowned destination, attracts over two million tourists per year while hundreds of equally attractive islands remain unknown. Yet tourism in Indonesia still has enormous potential to provide more people with a sufficient income and thereby reduce poverty.

 

Project – One of the islands that lives in Bali’s shadow is Flores, one of the poorest parts of Indonesia. Located in the eastern part of the archipelago, Flores enchants visitors with breathtaking natural beauty on ground as well as underwater. OId-growth forests, volcanoes (some of which are still active) and beaches make this island an ideal destination for nature lovers and divers. An additional attraction is the nearby island Komodo where the biggest lizards in the world live: the Komodo Dragon. The cultural treasures of the island are equally impressive and include rice paddies laid out like spider webs, traditional wedding ceremonies, whip fight dances and other rituals that the inhabitants of Flores undertake to appease the gods. Swisscontact supports the local inhabitants and government in the development of Flores and the region as a tourism destination and to convince tourists to Bali to extend their trip to this lesser-known destination in the east. The Swiss Secretariat for Economic Affairs (Seco) finances the project that Swisscontact expands on a project completed with a grant from the Australian government. Project officers provide advisory services on how to develop ecologically and socially sustainable tourism offerings that meet the demands and standards of international visitors while preserving the nature and culture of this island that has been inhabited for thousands of years.

Alongside hotels, guesthouses, and restaurants, visitors to the islands can now also choose from excursions on foot, in canoe, on horseback, or on mountain bikes. In order to coordinate and market these offerings, the tourism providers and the local government are creating a tourism management organization. The first result from this initiative is the electronic newsletter “Flores, Komodo, Kelimutu and so much more” that features one highlight of the region each month. For the small business owner, ongoing job training is particularly important as it allows the owners and their employees to maintain a sufficient income in the long-term. One study completed by the University of St. Gallen has shown that new tourism that was directly related to Swisscontact efforts had significantly increased the income of hundreds of families not least because more than twice as many people had visited the idyllic island as in previous years. The way out of poverty in Flores can be accomplished through tourism.

Main Project Partner

State Secretariat for Economic Affairs Seco

 
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