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Tourism Economic Development & Planning Essay

3713 words - 15 pages

Tourism Economic Development & planningAt the end of the 20th century, global tourism activity has been estimated to be worth US$ 3.5 trillion (Sharpley et al, 2002). As the figure shows tourism has had a major impact on the world economy, consequently, it has been adopted by many third world countries striving for development. This idea that tourism is good for the economy has increased the interest in developing, planning, government regulations and policies on tourism.For this essay I will look at tourism planning and development in Indonesia and in greater context the Island of Bali. I will try to use theories to discuss the way tourism is planned, and to see who is actually benefiting from tourism in developing countries. In studying the wide ramifications tourism planning has on the areas and people concerned, it is feasible to analyse its developments to see to what extent tourism has affected the local population.I believe it is important to define the notion of development; I will use the definition from The World Development Report (1991), which defines development as:"Sustainable increase in living standards that encompass material consumption, education, health and environmental protection............more equality of opportunity, political freedom and civil liberties. The overall goal of development is therefore to increase the economic, political and civil rights of all people across gender, ethnic groups, religions, races, regions and countries." (World Development Report 1991:31).In short, it could be said definitions of development today includes a wider range of social and environmental criteria, as well as economic.Tourism in IndonesiaTourism has become one of the leading sectors in Indonesia; the sector has contributed to the local economy in many regions through the expenditure of its national domestic and international tourists. International arrivals in 2001 totalled 5,153,620 which were near 2% increase from the previous year. The total expenditure during that year from international tourist was US$5.7 billion. ( From the figures you could see tourism generates a lot of money for the economy.The national tourism policies as stated in the Ministry Strategic Plan among others are maintaining Indonesia as both international and domestic tourist destinations for multi visitations. The government see tourism as a vehicle for national and regional development as well as improvement of the well being of the locals. Developers of tourism fall into three categories, namely the government, non-governmental organisations (NGO's) and private businesses (includes trans-national companies, local entrepreneurs etc).As a developing country the Indonesian government took a very neo-liberalist approach of demand and supply to tourism development and planning... The 1972 master plan was very much a neo-liberalist approach to development. The Indonesian government actively encourages foreign direct investment...

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