Jakarta. Tourism Minister Arief Yahya said the government will
consider assisting entrepreneurs and private businesses to achieve its target
of establishing 20,000 homestays across the country this year.
Speaking at this year's second national meeting on tourism at the
Bidakara Hotel in South Jakarta on Thursday (18/05), Arief said government
agencies will work alongside Real Estate Indonesia, academics, local
communities and media outlets to provide more budget-friendly accommodation in
priority tourism areas.
Arief added that positive digital disruption, or the emergence of
game-changing digital services, will propel the industry in the coming years to
allow the ministry to achieve its ultimate target of establishing 100,000
homestays across the archipelago by 2019.
"It is real; it is inevitable. Sooner or later, it will
happen, it is just a matter of time before all companies, institutions or
nations will be 'disrupted.' In the digital era, it will be swift," the
minister said.
"Even companies with impeccable reputations, stalwarts of the
'old way,' must adapt to the new digital landscape to survive these
changes," he added.
Arief cited online-based ride-hailing services such as Grab and
Go-Jek as examples of new companies that have changed the conventional business
landscape. He said traditional hotel agents have been usurped in recent years
by the convenient and user-friendly services offered by companies such as
Airbnb and Traveloka.
"These innovations are always seen as chaotic at first. They
were initially ignored, because many people did not believe they could work.
Well, they do," he said.
Realizing the massive impact of digital technology, Arief, a
former director of state-owned telecommunication company Telkom, has been
digitizing homestay management since last year.
"Now, 2,000 homestays have been registered on the digital
platform belonging to the Indonesia Tourism Exchange [ITX]," he said.
The platform assists homestay owners to manage their businesses on
par with world-class hotel chains.
"It is a must; it cannot be bargained anymore. Those who are
not joining will experience difficulties in their businesses," he said.
However, Arief said the effect will be positive. It will increase
the size of the market and value of tourism in Indonesia.
Demand will increase, as the market consists of multiple sources across the
globe.
"So, our cultural village homestays can be worldwide, not
only operating in Indonesia," he said.
Arief said it can often take up to five years to build a hotel,
which is considered high-cost tourism, while homestays, which constitute
low-cost tourism, only take six months to establish.
"Interest in home-sharing is expected to increase from 10
percent [in 2016] to 15 percent [in 2020] in most major cities around the
world. In Southeast Asia, the trend is also expected to increase from 2 percent
[in 2016] to 5 percent [in 2020]. Therefore, I believe Indonesia will become
the best and largest homestay manager in the world. It is a dream we can
achieve together," he said.
