Risk & Crisis Management in Tourism Sector:

Recovery from Crisis

in the OIC Member Countries

4.1.2.

Crises Affecting Indonesian Tourism

The Indonesian Ministry of Tourism classifies crises and disasters into three categories:

Natural (e.g. Tsunami; Earthquakes Volcanic Eruptions)

Non-Natural (e.g. SARS, Avian Flu)

Social (e.g. Terrorism; Political)

According to informants from the Ministry of Tourism, crisis management is a priority for the

government, with concern about the impact of crises on tourism at three levels – destinations;

services to visitors; and the image of the country (Surana, 2017, pers. comm., 2 May). In addition

to external events such as the global economic crisis, tourism in Indonesia has been adversely

affected by a range of natural, health-related, and terrorism-related crises in the last two

decades, as shown below:



1997-98 – Fall of Suharto regime

: In the late 1990s the economic recession in Southeast

Asia gave rise to a monetary crisis in Indonesia, leading to the overthrow of the regime

headed by President Suharto, who had been in power since 1967. The Indonesian currency

suffered a drastic decline within a few months and there were significant levels of political

and social turmoil. As a result, the tourism industry failed to grow – even though in the

decade prior to this there had been significant and rapid expansion (Cochrane, 2003).



2000 - Poso Riots:

During a sectarian conflict in Central Sulawesi (eastern Indonesia),

militants attacked schools and murdered village residents. Three convicted murderers

were executed for these crimes in 2006.



2000 - Jakarta Stock Exchange Bombing:

In September 2000 a car bomb exploded in the

Jakarta Stock Exchange carpark, killing at least 15 people and injuring dozens more.



2002 - Bali Bombings (No 1):

In October 2002, two nightclubs in Bali were attacked by

terrorists, killing more than 200 people and injuring hundreds more, with major damage to

property (BBC News, 2012). The tourism sector was just recovering from the previous

three years of economic, political and social instability, but this attack slowed the recovery

and damaged the image of Indonesia as a tourism destination. The decline in international

visitors in the next two years was estimated at 11%. The foreign offices for many source

markets imposed travel advisory warnings for Indonesia.



2003 –

flash flood in Bukit Lawang, Sumatra:

In November 2003 a river flooded at an

inland tourism resort in North Sumatra and swept away guest-houses and other tourism

installations, resulting in the death of 239 people (including 5 tourists).



2003 - JW Marriott Bombing (No 1):

In August 2003 a car bomb exploded outside the

Marriott Hotel in Jakarta, killing 14 people, with others injured. This action added to the

shock of Bali night club attacks less than a year previously.



2004 - Australian Embassy Bombing:

In September 2004 a car bomb exploded outside

the Australian Embassy in Jakarta, killing nine people and injuring dozens more.