Ministry of Culture and Tourism Republic Indonesia www.indonesia.travel

1. “Indonesia Tourism 2011” SYAMSUL LUSSA Directorfor Marketing Development Jakarta, 3 September 2010 Ministry of Culture and Tourism Republic Indonesia www.indonesia.travel

2. TOPICS

3. GLOBAL ECONOMY vsTRAVEL INDUSTRY • THE GLOBAL ECONOMIC RECOVERY IS UNDERWAY, LEADING TO THE SLOW RETURN OF TRAVEL DEMAND. • FOLLOWING THE 2009 DECLINES, GLOBAL ARRIVALS WILL TAKE 3 YEARS TO RECOVER TO PRE-CRISIS 2008 LEVELS. • INCOMING TOURIST RECEIPTS WILL LAG BEHIND, TAKING 4 YEARS TO RECOVER IN FULL.

4. Tourism Overview GLOBAL ECONOMIC AND TOURISM PERFORMANCE % GROWTH 2008 -2014 Source: Euromonitor International / IMF

5. Tourism Overview REGIONAL PERFORMANCE FOR ARRIVALS • Western Europe and North America were hit hard by the crisis. Arrivals will take 5 or more years to recover, as consumers will focus on other priorities over travel. • Eastern Europe was by far the worst hit by falling visitors, due to increased competition from Western European city break destinations, as well as suffering from the collapse of SkyEurope, taking capacity out of the market. • Middle East and Africa showed growth in arrivals of almost 3% over 2009 - the only region to do so. This was largely due to significant discounting by hotels, increased low cost travel options such as LCCs and budget/mid hotels, coupled with the expansion of its schedule airlines globally. • Asia-Pacific suffered in 2009, but is predicted to show good growth in arrivals for 2010 compared to other regions. Solid business development and an increasing reliance on intra-regional visitors helped fuel this progress. Source: Euromonitor International / IMF

6. Source: Euromonitor International / IMF

7. GLOBAL ARRIVALS FORECAST 2009-2014 (% VOLUME GROWTH) Source: Euromonitor International / IMF

8. MARKET SHIFTS • Improving transport links and an increasingly wealthy middle class enabled a growing number to travel, both for business and leisure in BRIC countries. • Favourable exchange rates in Brazil boosted trips to Europe and the US. Middle East are actively targeting Latin America, such as Emirates increasing its frequency to Sao Paulo and Qatar Airways newly operates route from Doha to Sao Paulo/Buenos Aires, highlighting the appeal of this market. Source: Euromonitor International / IMF

9. MARKET SHIFTS • Chinese travellers tend to stay within Asia, as visa restrictions still make travelling further afield difficult for many. China outbound still offers great opportunity for destinations. Chinese consumers enjoy spending on luxury consumer goods in-destination, whilst choosing mid-priced accommodation and transportation.

10. MARKET SHIFTS • Indian travellers tend to go to countries with which they have long-established connections, such as Singapore, Malaysia, UAE, UK and the US. A raft of new LCC, both domestic and foreign including the local leader SpiceJet and new entrants such as flydubai, facilitated travel to these destinations, with the exception of the US.

11. MARKET SHIFTS • Whilst outbound travel from Russia declined in 2009, it remains an important source market. The countries of the CIS are traditionally popular destinations for Russians, whilst the wealthy elite opt for the UAE and Western Europe.

12. MARKET SHIFTS • In a world ever more focused on security and safety for travellers, some countries actively seek visitors that have close links to their own, usually in terms of religion or culture. • North African countries, such as Morocco and Tunisia, and Asian countries, such as Indonesia and Malaysia, are focusing on attracting GCC residents, with whom they share a common religious background. • Diaspora tourism is also highly resilient to the external shocks of the global economy.

13. EMERGING SOURCE MARKETS PERFORMANCE Source: Euromonitor International / IMF

14. FORECAST OUTBOUND 2010-2014 Source: Euromonitor, Sep 2009

15. FORECAST INBOUNDS TO INDONESIA

16. Target 2010

17. KEY PLAYERS PUBLIK SWASTA

18. RELATED PLAYERS PUBLIK SWASTA

19. POTENSI INKORPORASI PROGRAM PEMASARAN PARIWISATA 2011

20. AIR SEAT CAPACITY vs TARGET MARKET Source: Ditjen Perhud (compiled), 2010

21. INTERNASIONAL AIRPORT BTH 24 ACH 1 MDN 2 BTH MDC TRK 17 4 TNJ 15 PKB 3 5 13 BIK PTK 14 6 21 PDG BALIKPAPAN 22 7 20 AMQ PLB 16 MKS CGK 8 26 SUB 27 11 DPS 9 25 AMI 23 10 12 18 MKQ 19 KOE BANDARA INTERNASIONAL : 1. BANDA ACEH 7. PALEMBANG 13. PONTIANAK 19. KUPANG 25. YOGYAKARTA 2. MEDAN 8. JAKARTA 14. BALAKPAPAN 20. AMBON 26. HALIM PK 3. PEKANBARU 9. BANDUNG 15. TARAKAN 21. BIAK 27. SEMARANG 4. BATAM 10. SOLO 16. MAKASSAR 22. JAYAPURA 5. TANJUNG PINANG 11. SURABAYA 17. MANADO 23. MERAUKE 6. PADANG 12. DENPASAR 18. MATARAM 24. SABANG

22. NATIONAL AIRLINES TOTAL DOMESTIC AIR SEAT CAPACITY 73.483.243 Sumber: Ditjen Perhubungan Udara, 2009

23. Domestic Performance 2008 - 2009

25. Marketing Strategy CO-MARKETING SOCIETY-BASED MARKETING HORIZONTAL MARKETING Efforts • ON-LINE & OFF-LINE ACTIVITIES • COMMUNITY ACTUATION • REPRESENTATIVE OFFICERS • PR-ING • DIRECT PROMOTION FACILITATION • FAMILIARIZATION TRIP • THEMATIC PROMOTION • TRAVEL FACILITATIONS ELECTRONIC- BASED MARKETING

26. Program 2011 and Beyond

27. AUSTRALIA Target: 620.000 Earning: US$ 897.36 m

28. Thank You www.indonesia.travel

29. TOURISM SYSTEM MARKET MARKETING TRANSFER PRODUCT SOURCE: MILL & MORRISON