Sabtu, 17 November 2012

Liberalisation of Services on Tourism Sector


The  Perspective of Liberalization of Services  in the Law Number 10 Year 2009  Regarding Tourism

IGN Parikesit Widiatedja
Lecturer of Faculty of Law Udayana University
ngurahparikesit@gmail.com


ABSTRAKSI
Pemerintah Indonesia pada akhirnya menerbitkan Undang-Undang No. 10 Tahun 2009 tentang Kepariwisataan. Ditinjau dari pendekatan kedalam (inward looking), undang-undang ini berupaya mengembalikan ciri dan karakteristik pariwisata Indonesia yang sarat dengan kekayaan alam dan budaya. Sementara dari pendekatan keluar (outward looking), undang-undang ini berupaya meningkatkan kapasitas dan memobilisasi segenap sumber daya pariwisata kita dalam menghadapi   liberalisasi jasa sebagai realitas kontemporer yang perlu diwaspadai bersama. Tulisan ini akan mengidentifikasi perspektif undang-undang kepariwisataan dalam kaitannya dengan liberalisasi jasa melalui parameter: 1. pemberian warna penekanan pada pelestarian kekayaan alam, budaya,lingkungan hidup, 2. pengakuan kegiatan berwisata sebagai Hak Asasi Manusia (HAM), 3. pengakuan prinsip non diskriminasi, 4. peningkatan kualitas sumber daya manusia, 5. pemberdayaan usaha kecil menengah dan koperasi, 6. pelibatan pemangku kepentingan dan 7. pendirian Badan Promosi Pariwisata Indonesia (BPPI).

Kata Kunci: Perspektif Liberalisasi Jasa, Undang-Undang Kepariwisataan

I. INTRODUCTION
In the third milenium, a challenge ahead is obviously convoluted which is being discerned by liberalization in many fields. It had been epitomized through comprehensive negotiations of trade in Uruguay Round when 123 nations agreed to establish the World Trade Organization (WTO) in Marakesh, Marocco.  That crucial moment could be a stepping stone of proliferation in liberalization because of their substantial coverages encompassing  investment, intelectual property rights and services were an integral part of tradable activities.

Despite being debatable, all participants commited to establish a multilateral framework of principles and rules for trade in services that were well-approved as General Agreement on Trade in Services (GATS). They had hoped if GATS with entered into force in january 1995, could remove any restrictions and internal governmental regulations in the area of services  whose  impact eventually emerged trade harrasment. It was also closely related with the potential  contribution of services for the world economy which are going to be the largest and fastest growing sector. In 1999, the value of cross-border trade in services amounted to US$ 1350 billion, or about 20% of total trade. This understates the true size of international trade in services much of which takes place through establishment in the export market, and was not recorded in balance of payments statistics. Since the past two decades, trade in services has been growing faster than  merchandise trade[1].

Indonesia binded itself through promulgating law number 7 year 1994 regarding The Ratification of Agreement of Establishing the World Trade Organization (WTO) including GATS. The increasing performance of development was an essential consideration to ratify its agreement that was progressively allowed the operation of foreign services provider. Indonesia’s government though over that GATS would be a conduit of its goal to be just and properous of our community which is clearly mentioned in the preamble of the Constitution of the Republic Indonesia of 1945.

As a sector that has been legally binded in GATS, tourism  is moving to be one of the most dynamic sector of economic activity, generating a wide range of benefits including foreign exchange earning and a growing contribution to the GDP which in some cases reaches over 10%. Tourism has been a popular global leisure activity. In 2007, there were over 903 million international tourists arrival, with a growth of 6.6% as compared to 2006. International tourist receipts USD 856 billion in 2007[2].

Based on that figures, it is not coincidence if all countries attempt to lure many tourists as much as possible that were openly liberalized as  impact of GATS. Myriad special programs of tourism with followed by creative and innovative promotions have been undertaken. They believe if tourism that is viewed as the colaboration of amusement, entertainment, enjoyment and education, will be a robust sector and can be immune from the symptom of economic slowdown currently.

According to its potential tourism resources, Indonesia is widely recognized as the world’s largest archipelago. It has more than 17,000 islands, 300 different ethnic groups and 250 distinct languages. For tourism, it brings competitive value that can provide the diversity of its products. Moreover, as an indispensable part of growing Indonesia’s economy which is being reconstructed after massively crisis in 1998, tourism has been becoming a solution of our twin towers problems  in reducing unemployment and alleviating poverty. In 2008, tourism sector contributed about 70 trillion rupiah and received 6.45 million foreign visitors with each spending up to 1,178 dollars per day.

Desiring to build capacity and mobilize all resources of tourism all at once compete globally, Indonesia has promulgated the law number 10 year 2009 regarding tourism. As reffered to its consideration, the development of tourism shall be aimed to encourage equally opportunity of doing business, gains substantial benefit and faces again challenge of immense change  both locally and nationally as well as globally. The content of this law encompassing the right and obligation of tourism practitioners, the development of tourism in comprehensively and sustainably, the coordination of across sector, the establishment of strategic area, the empowerment of small-medium enterprises, the establishment of tourism promotional board, the establisment of asociation of tourism, the standarization and competency of tourism employee and the empowerment of human resources.

This discourse  attempts to identify meticulously which content of its law can be clustered as government’s perspective in responsing liberalization of services. Author think over that it is worthwhile to analyze and asses  the readiness of tourism stakeholders to compete either directly or indirectly with foreign services provider, that have been rampant in Indonesia after the enactment of GATS. Desiring to engender a positive outlook of our future, Author expects to convey clearly information for socializing and disseminating the newest  law of tourism in a view with liberalization of services.

II. SOME HIGHLIGHTS IN RELATED WITH LIBERALIZATION Of SERVICES

1. The stressing point of preservation of nature, culture and human environment

Refering to the consideration of the law of tourism, our natural wealth which are granted and entrusted by God as well as cultural heritages, have becomed huge capital and resources  for the development of tourism to be just and prosperous of Indonesia’s community.  Hence, as an integral part of our national development, tourism is designed sistemically, well-planned, integrately, sustainably and responsibly as a means of protecting our religious value, cultural heritages  and the conservation of human environtment.

All those concepts have been elaborated in several articles in law of tourism. Article 4 point e and f, have decided if tourism has a main goal to preserve our natural wealth, human environment and  cultural heritages. As reffered to article 5 point d, The implementation of tourism principle must not  neglect with the preservation of nature and human environment. In article 6, The Development of tourism must be undertaken based on article 2 through realizing the action plan of the development of tourism concerning natural and cultural diversity, uniqueness and characteristic as well as and the fulfillment of human need in tourism activity

As a concrete measure, government which is clearly mentioned in article 12(1), has finally decided a strategic area of tourism which becomes particular area with the high level of potential development and has significantly influenced of tourism activity that underlied by several  aspects comprising tourism and natural resources, potential market, strategic position, protection of certain location which has a role for maintaining tourism function and its carrying capacity, strategic area which has a role for protecting cultural assets, the support and readiness of people and the relevant characteristic of its location.

The stressing point of preservation of natural wealth, cultural heritages as well as human environment can also be reflected from article 23 (1) which is strictly obliged all governments both central and regional levels  to  maintain, improve and preserve our national assets that becomes national attraction of tourism which have not been explored yet. In financial aspect as reffered to article 57 untill 59 that  becomes collective responsibility of tourism stakeholders, government is also obliged to alocate at least half of their income from tourism activities for the preservation of natural and cultural needs.

No one can deny if our natural wealth, cultural heritages and human environment are three inseparable capital that can be regarded as our comparative advantage for competing in liberalization era. The sucessfully implemented of tourism managerial will depend on our harmonious and balance principle while gaining benefit from their components. Due to its priceless and irreversible value, they must be exploited, preserved and passed on with three main pilars comprising economically viable, lawfully creditable and environmentally sustainable.

The political will of government through its law of tourism  to stress our natural wealth, cultural heritages and human environment all at once in financial obligation to manage them has been commendable. It must become a starting point to optimally enhance our comparative advantage. As a reality of contemporer and need to be promptly responded, liberalization of services requires the high level of management with fully covered by broader paradigm and concept, transparency administration, financial accountability, and effective supervision in tourism as well as  supported by actively participated of all tourism stakeholders including people and tourism practitioners. Because of its law, government has formed the main priority of our tourism concept and it should be easier and well accepted for other relevant stakeholders to uphold it because they know what should be developed and placed as a primarly priority of doing activities in tourism.

Nonetheless, we must be aware and alert with the detrimental effects which easily arise from unbridled and uncontrolled of developing tourism. The exploitation of those components will be occurred if it is treated without any respect and responsibility and  only become commercial comodities to pursue short-term progress. It can not only be assumed that the more tourists here, the bigger income will be. That is the main challenge to all stakeholders how to see clearly if all those components must be administered to maximize the benefit while minimizing the negative one as well as consider with our future generation needs.

2. The Recognition of Tourism activity as a human right.
Refering the consideration of law of tourism, the freedom to undertake travel and leisure activity is strictly recognized as a human right. Article 5 point b has expressly stated that the management of tourism based on a human right recognition, cultural diversity and local wisdom with followed by article 19 (1) point a that mentioned if every people has a right to fullfil their  needs  in tourism activity.

This effort must be applauded as it denotes the government  commitment to recognize and ensure social and economic rights as well as civil and political rights.[3] Afterwards, it will reinvigorate tourism sectors which has ever got ordeal such as catastrophic disaster, horrible terorism and terrible disease. Eventually, Indonesia’s tourism can be exist even thrive in facing fierce competition as impact of liberalization of services without neglecting with its goal to reduce unemployment, alleviate poverty and rectify imbalances in our national development.

However, this concept does leave ample room for interpretation whose its  term and meaning has not really been comprehended well by tourism practitioners. Notwithstanding of its article, how do we uphold it concept while the awareness, perception and recognition in other sectors which have been promoted since the last decade, have been relatively low. Furthermore, government who ought be a role model, has been unable to enforce human rights abuses which was committed in the past.

3. The actualization of non-dicrimination Principle
Desiring to facilitate the increasing participation of all stakeholders, they have an equal right  of doing tourism activities. Government is also formally obliged to provide condusive climate for business activities such as equal oppurtunities and law certainty. It can be found in article 23 point b. Meanwhile article 26 point c also oblige that every business practitioners of tourism  must provide services in line with non-dicrimination principle.

Non-discrimination principle must be accorded immediately and unconditionally that should become a paramount prerequisite in every movement of liberalization in all countries entire the world. The enforcement of its principle will eliminate differencial treatments in order to protect certain products both production and distribution as well as consumption levels from person or legal entities who have intimate relationship with the decision maker which tend to be deceptive and fraud. Unfair trade and monopoly as impact of their activities are the major argument why all those thing is very taboo to be undertaken currently.

4. The increasing quality of human resources.
Pursuant to Article 11, government in together with concerned institution must conduct sustainably research and improvement  for tourism in order to support the development of tourism. Afterwards, article 26 point h emphazis that every business practitioners of tourism are obliged to strengthen the quality of their employee through education and training skills. Meanwhile, government as reffered to article 28 point g, has authority to the improvement of human resources through its policy in tourism. Meanwhile, the sertification and standarization of employee in tourism can also be categorized as a government measure to increase our quality of human resources. As referred to article 53, all employees who involve in business activities of tourism must have the standart of competency through sertification of competency which has been conducted by the institution of profesional sertification.

Government admitted that one of the main obstacle was the low quality of human resources. As reffered to the law number 17 year 2007 regarding The National Plan of Long-Term Development (RPJP), our human development index still 0,697 and placed in 110 out of 177 countries  with the purchasing power parity only reach US$3.361. It triggered a low performance of development as human resources even created the inundation of unemployment here which fully covered by low-level of skills, poor-concept of management and pragmatism of mindset.

Desiring to embattle all those challenges, the implementation of government measures for increasing human resources of tourism shall ensure to produce well-qualified both knowledge and skills and mold their character as a part of human empowerment  who are able to partake and compete mainly with foreign services provider. All those strategies can be conducted either through formal and informal education. The excellent curricula which becomes a general guidance in a view with the management of human resources, ought to be a starting point to attain our goal as a means of  building our domestic services capacity and its competitiveness as well as eficiency in the liberalization of services era.

5. The empowerment of small-medium enterprises
Article 17 clearly mentioned that government in any levels are obliged to  improve and protect small medium enterprises in tourism through a policy in order to reserve  business activity of tourism  for small-medium enterprises and cooperation. Beside that, they are also obliged to facilitate joint partnership beetwen small medium enterprises and  cooperation with the giant of tourism business on a mutually advantageous basis.

The number of small medium enterprises is high in all sectors.  Recent data from Indonesia’s statistics bureau showed  that in 2006 they accounted for 99,98 % of all enterprises and absorbed over 61 milion job or slightly over 60% of total empoyment of Indonesia.(Indonesia’s Statistics Bureau,2009) That’s why they have cardinal role in the development of the local economy especially in reducing poverty by creating job opportunities. Sketchily, empowering them means empowering the public economy, potentially propelling sustainable growth.

In the perspective of the liberalization of services, its reality will invite foreign service provider in Indonesia which can be categorized as high-scale of business with their sophisticated technology and infrastructures, unlimited fund, well-prepared skills and well-organized teamwork.  It will not be fair if they can compete unconditionally with small medium enterprises and cooperation as the biggest portion of our economic posture. In terms of welfare state, It is reasonable and undeniable if Government must protect them to keep their existency growing. The development of small-medium sector eventually will be a pathway to progress of a sustainable economy and also a sense of national pride.

Hence, government measures shall be aimed at assisting and facilitating small-medium enterprises and cooperation in overcoming their  major constraints to  grow up emanated from  the low level of technology, shoddy skills of management, traditional concept of marketing, cumbersome licensing, limited  funding, difficulty of acessing credit  and high pollution of environmental performance.

6. The involvement of all stakeholders
Article 9 (4) has clearly mentioned that government must involve and facilitate actively participated of all stakeholders while formulating an action plan of tourism. Likewise in the financial aspects as reffered to article 57 which is also mentioned as collective responsible.

Based on its law, Government is cognizant  that the development of tourism must involve  broader participation of all stakeholders in which their policies are being executed. As a part of good governance principle, this measures also crystallise their aspirations to be strong and cohesive movement of managing tourism. It will be  a positive and constructive balancing power to see more independently and clearly how to navigate tourism activities based on sustainable development principle. A lot of information can be absorbed from them like what are the benefits? what are the obstacles? what are they going to do? And what do they expect in the future? In the other word, the involvement of all stakeholders will engender aptly policy all at once create a huge opportunity to boost the carrying capacity of tourism.

7. The establishment of tourism promotional board
As reffered to article 36, it is clearly mentioned that government is obliged to facilitate the establishment of tourism promotional board  which is located on the capital of Indonesia. This board is private institution which has independent position. Afterwards, article 41 has elaborated the task of tourism promotional board encompassing
a.   to increase Indonesia’s tourism image,
b.  to   increase   the    number   of foreign  tourist arrival and foreign exchange income,
c.  to   incrase    the  number   of    domestic  tourist  arrival  and  its educational process,
d.   to collect fund apart from national and regional budgeting in lawfully,
e.   to conduct research to the improvement of the business of tourism.
Meanwhile, its function encompassing
a.   as the coordination board in the tourism promotional that have been undertaken by tourism practitioners
b.      as a working partner of government both central and regional levels.
In the liberalization of services, promotion of tourism is one the most valuable and meaningful strategy for moving forward. At least, it has major functions encompassing:
1.  building  and   restoring our image. For tourism, image is more important than tangible resources, all because perceptions rather than reality are what motivate consumers to act or not act (Gallarza in Pitana,2005:65).
2.  focusing to   campaign  our nature wealth,   cultural heritages and human environmen which have been generally assumed as our competitive advantage and introducing special policies and programs which have been made by government and business practitioners.
3.  notifying all measures both preventive and represive of government to reassure international community that they have been serious in managing detrimental effects of tourism both economy, social and culture.
III. CONCLUSION
 The perspective of liberalization of services in the law number 10 year 2009 can be divided into three kinds of perspective comprising short-term perspective, mid-term perspective and long-term perspective. There are four measures whose it results can be assesed effective or not, no longer than five years including the increasing quality of human resources, the empowerment of small-medium enterprises, the involvement of stakeholders and the establishment of tourism promotional board. All those measures must be implemented promptly and consistently to build our tourism capacity and mobilize its resources as a means of growing our competitiveness and eficiency.

The recognition of tourism activities as a human right and the actualization of non-discrimination principle are the next measures which can be categorized as mid term perspective. These measures will become a golden bridge to build, promote and maintain our competitive advantage in tourism which is well-endowed by natural wealth, cultural heritages and human environment. Hence, the stressing point of preservation of their capitals can be categorized as long-term perspective in a view with liberalization of services.

Nevertheless, all measures have not finished yet because a great concept need a great implementation.  Tourism must be viewed holistically and integrally and government both central and regional levels must further formulate technical details to elaborate all of their  measures. Other stakeholders including tourism business practitioners and people must take an equal responsibility. They must be aware and care if their viable participation can assist government in navigating our tourism sector amid the liberalization of services era.

REFERENCES
-     Clift R,2003. Background Paper on the General Agreement on Trade in Services,http://www.cufa.bc.ca/brief/gats.html. Retrieved on 2009-06-02
- Pascal Lamy.2009. Globalization   and Trade Opening Can Promote Human Rights, http://www.wto.org/english/news_e/sppl_e/sppl128_ehtm. Retrieved on 2009-06-04
-      Pitana, I Gde dan Gayatri, Putu G,2005.   Sosiologi Pariwisata,   Yogyakarta: Penerbit Andi
-     Small-Scale          and         Micro      Establishment     Statistics,2009. http://www.bps.go.id/sector/comser/index.html. Retrieved on 2009-06-06
-   Tourism      and      Travel-Related  Services, 2004,  http://www.wto.org/english/tratop_e/serv_e/tourism_e.htm. Retrieved on 2009-06- 04
-   World     Tourism    Organization,     2007.   http://unwto.org/facts/eng/pdf/barometer/unwto_barom07_2_en.pdf. Retrieved on 2009-05-29
-      World  Trade  Organization, 2004.  Why  Is The   Liberalization of Services Important?, GATS: Fact or Fiction (online), http://www.wto.org/english/traptop_e/gats_factfiction.htm Retrieved on 2009-05-29.
-      Law Number 10 Year 2009 Regarding Tourism
-      Law Number 17 Year 2007 Regarding The National Plan of Long Term Development (RPJP)


[1]     World  Trade  Organization, 2004.  Why  Is The   Liberalization of Services Important?, GATS: Fact or Fiction (online), http://www.wto.org/english/traptop_e/gats_factfiction.htm Retrieved on 2009-05-29.
[2] - World     Tourism    Organization,     2007.   http://unwto.org/facts/eng/pdf/barometer/unwto_barom07_2_en.pdf. Retrieved on 2009-05-29

[3] Pascal Lamy.2009. Globalization and Trade Opening Can Promote Human Rights, http://www.wto.org/english/news_e/sppl_e/sppl128_ehtm. Retrieved on 2009-06-04

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