SUGGESTIONS FOR DEVELOPING TOURISM IN THE WAKATOBI ISLANDS 

By Dr Tim Coles, Project Director, Operation Wallacea 

September 2004

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The Wakatobi Islands have just been granted their own government.  The whole of the Wakatobi though are currently within a National Park and the opportunities for the islands' economy to develop is limited to tourism and fisheries.  This puts enormous pressure on the islands to develop tourism to enable the economy to grow.  This document was prepared to brief the new Wakatobi government on the opportunities to develop tourism without destroying the existing paradise environment.

2. Requirements of 4 main types of tourism activity for the Wakatobi 

Research tourism 

This is already the largest tourist sector in the Wakatobi with approximately 14,000 bed nights in the 2004 season spread between the Operation Wallacea centres on Hoga Island, and in Ambuea and Sampela.  Approximately Rp1700 million is spent mostly in the local economy from this activity.  In addition the volunteers (as they are called in this market sector) spend additional money in local shops and crafts.  This market requires remote locations; indeed the inaccessibility of the Wakatobi is an advantage for this market sector.  SE Sulawesi is unique in Indonesia in being the least surveyed area of Indonesia and consequently the best place to discover species new to science.  Moreover the reefs are in the centre of the triangle of reefs in eastern Indonesia, which have the highest coral diversity in the World.  This market is sensitive to one main type of disturbance: loss of remoteness.  The building of a hotel on Hoga for example would make it difficult to sell the experience of remoteness and would undoubtedly reduce the numbers considerably.  However, it is possible to combine this type of tourism, which is one of the fastest growing tourism sectors in the World with the other types of tourism suggested as long as appropriate zoning is adopted. 

Dive-based tourism 

This is the only other significant international tourism activity in the Wakatobi with approximately 5000 bed nights per year (this figure is an estimate only based on 60% occupancy year round) for the Wakatobi Divers operation on Tomea.  This market requires good access since the majority of tourists in this sector have only limited time available and need to arrive on site as soon as possible after their international flight.  The Wakatobi Divers operation is aimed at the top end of the market and requires unspoiled reefs and direct flight connections from Bali.  Other than dive boats visiting the National Park from Bali it is difficult to see how this market could be developed elsewhere in the Wakatobi without significant infrastructure improvements in access.  Diving, however, is part of the experience of the other three markets suggested although not the main reason that the tourists in these markets come to the Wakatobi.  As such this type of diving has not been included in this section. 

Back-pack tourism 

At present there is virtually no back-pack tourism in the Wakatobi.  Although there are facilities on Hoga and Kaledupa suitable for this market, the change in visa regulations, which make it very difficult for international visitors to get visas for longer than 4 weeks, has virtually wiped out this market.  Backpackers tend not to plan their itineraries in advance but follow recommendations in specialised travel books for this market (Rough Guides, Lonely Planet) once they arrive on site.  In general this market start their visit to Indonesia in Bali and then move off to more distant sites after a few weeks.  Their inability to get 8 week visas under the new regulations mean that they do not have time any longer to reach the more remote parts of Indonesia such as the Wakatobi.  However, should this problem be overcome, then the Wakatobi would be ideal for back-pack travellers who need unspoiled environments, some activities such as diving, contact with local communities and are generally unconcerned about the difficulties of travelling. There is very little information in any of the travel books though at the moment nor in the travel hostels where this group of tourists tend to stay in the major centres such as Bali, Jakarta, Makassar, Manado.  This market is very sensitive to the level of information in the right places about travelling opportunities and this would need t be improved. 

High level ecotourism 

This market is aimed at high earners who want a holiday different from anything their friends have done and retired people who have the time and money to travel for fairly lengthy periods.  This market needs an unspoiled environment and good facilities on site (comparable to the best locally owned houses on Hoga with the facilities provided by Operation Wallacea) and is especially attracted by activities such as marine research and diving. Special arrangements would have to be made to ensure that the travel to site of this group of tourists was made as easy as possible (eg superjet from Pasawajo).  This market is sensitive to over-exploitation (exclusivity is one of the attractions to this group) of the facilities but other than that the main obstacle to developing this market is the current lack of publicity material in the European and US markets. 

3. Ways in which the Wakatobi government can assist the growth of tourism numbers 

Lobbying national government for a change in the visa regulations 

This is the main obstacle to back-pack tourism and a significant problem for the research tourism market.  Both the dive-based and high level ecotourism markets are aimed at people staying less than 4 weeks so this group can buy visas on entry.  However, at the moment in order to get an 8-week visa in countries such as the UK, the applicant has to visit the Indonesian Embassy in London.  This is because the Embassy will not accept cheques (only cash which cannot be posted), so people living in Scotland for example have to fly down to London, submit their application, wait overnight (at great cost) and then pick up the visa the next day assuming there is no fault in the paperwork.  Moreover, the application needs a letter from the employer or university of the applicant stating that they will return to the UK after their stay.  Because of the advice given by most European governments not to travel to Indonesia due to the dangers of terrorism, most universities will not issue such a letter. They argue that by doing so they are endorsing the student visiting a country the government has told them not to go to and if there were an incident, the university would then be sued!!  The final problem is the need to have a bank statement showing the student has more than £1000 in the bank - there is not one students in the UK who has that sum of money in their bank!  The costs of the visa are not a problem, but the bureaucracy associated with getting an 8-week visa is a major obstacle to tourists who can go to many other countries without such problems.  At the very east the embassies need to be instructed to accept cheques with applications and preferably the whole system should be replaced with a payment and issue of a visa on entry. 

Lobbying national government to instruct Indonesian Embassies to push hard for the lifting of adverse travel advisories by various countries 

The principal role of Indonesian embassies should be to represent the interests of the country.  However, after the Bali bomb the UK maintained the same level of warning about travel to Indonesia as for Iraq for 2 years and the Indonesian Embassy seemed unconcerned!  The advice was lifted a month before the recent bombing of the Australian Embassy in Jakarta and has now gone back to the same level of warning as previously.  The Wakatobi and most parts of Indonesia are very safe  - indeed much safer than many parts of Europe and certainly safer than many countries, which the UK advise are safe for travel.  There is a clear injustice to Indonesia because travel advisories against travel were not issued after the New York, Madrid, Russia, Finland or London bomb incidents. During the SARS Incident when the World Health Organisation advised that Toronto in Canada should not be visited, the Mayor of Toronto was on every international news channel complaining loudly that the advice was ruining the economy of the city and should be reversed.  He made such a fuss that after only two weeks the advice was changed.   The adverse travel advice has a major impact on the dive-based and high value ecotourism markets and is a significant obstacle to the research and back-pack tourism markets.  Indeed the Operation Wallacea projects are growing by 100% each year in the other countries in which they operate, whilst growth in Indonesia is currently only 20% per annum.  The difference in growth rates is solely due to the travel advice making a number of students change from Indonesia to Honduras.

Issuing a letter guaranteeing the safety of visitors to the Wakatobi 

A letter signed by the Bupati stating that the Wakatobi are totally peaceful and in 10 years of tourist visits, each visitor has been welcomed warmly and there have been no adverse incidents, would help allay fears of some of those wanting to come to the Wakatobi.  However, for others without a change in government travel advice they will not visit Indonesia.  A suggested wording for a letter to be issued by the Bupati is outlined in Appendix 1.  

Ensuring the Wakatobi Islands are zoned for different types of tourism 

Zoning of Hoga for research tourism only, would help develop the research tourism market, since it would identify Hoga as a research centre.  This zoning would also act as a major attractant for the high value ecotourism sector.  Kaledupa is ideal for back-pack tourism especially if a dive centre was developed on one of the northern beaches.  

Providing a legal basis for the No Fishing Area adjacent to Hoga 

One of the key requirements of many research projects is the opportunity to compare with an unexploited area.  The No Fishing Area on Hoga was established with local community support in 2000.  Fish stocks built up in the protected area and as a result the agreement broke down when a number of fishers attempted to exploit the unfished stock.  Having a small No Fishing Area to demonstrate the effectiveness of such schemes in helping to re-stock over exploited areas is also a great advantage as the COREMAP project starts. 

Ensuring Hoga does not become over-developed 

Unrestricted growth of new-build local houses will damage the prospects of developing Hoga for the high value ecotourism market.  The Camat in Kaledupa needs to have planning control over the island to ensure houses are not built too close together, devaluing the potential income for those on either side of it.  The supply of houses currently massively exceeds demand creating a downward pressure on prices.  No additional paths should be constructed until the demand from tourism fills the current numbers of houses on Hoga since construction of new paths encourages even more houses to be built that cannot be filled. 

The development of local restaurants on Hoga though would help cope with the growth in demand for such services from Operation Wallacea.  The growth of bars selling alcohol though should be stopped.  Operation Wallacea operates a bar for the students on the project (no spirits, beer only).  Western students have a tendency to drink heavily and Operation Wallacea has been restricting the number of beers allowed any night to students to prevent drunkenness.  However, additional bars with fridges have opened on Hoga now the electricity has been provided so cold beers can be supplied from a number of places.  It is no longer possible to control the alcohol available to students and excessive drinking is much more likely now.  Such behaviour is likely to encourage local people to also drink alcohol and is creating a dangerous atmosphere.  It is suggested that the number of bars on Hoga is capped at current levels and no new bars are allowed.  The operators of bars should also be made responsible for ensuring that alcohol is not sold to people already drunk. 

Inviting the authors of Lonely Planet and Rough Guides to visit the Wakatobi 

Inclusion of various facilities in the Wakatobi in these guides would be the most efficient way to attract the back-pack market.  The authors of the Indonesian versions of these guides should be invited by the Tourism department and shown the opportunities for back-packers throughout the Wakatobi.  This should be supplemented by printing and distributing poster adverts for the Wakatobi to back-pack hostels throughout Bali, Java and other parts of mainland Sulawesi. 

Encouraging the development of additional back-pack facilities on Kaledupa

Although Operation Wallacea has developed research tourism operations in Ambuea and Sampela these operations are based on cultural and fisheries issues.  There would be a demand amongst back packers for diving based on Kaledupa and tour operators interested in developing dive based facilities should be encouraged to investigate some of the opportunities for such a project in the northern part of Kaledupa.  Developing Hoga for back-pack tourism would prevent its development for the high value ecotourism market, since the back-packers pay only a fraction of the money paid by the high value market.

Reducing the administrative load on visitors 

In Bali there are no special administrative requirements on visitors. If tourists want to travel around the island they just have to hire transport and go.  In the Wakatobi though there are still requirements for police permits, Surat Jalan and other documentation.  Granting special exemptions to tourists to travel freely around the islands would be a major step forward for tourism. 

Printing and distributing a high quality brochure for the Wakatobi 

A high quality brochure in English describing the Wakatobi and the opportunities for remote holidays with a difference on beautiful islands and pristine reefs in a National Park, would make a huge difference in raising awareness of the opportunities offered by the Wakatobi.  However, the brochure would need to be distributed widely and it is suggested that all members of the Association of Tour Operators in the UK  )and the Australian and US equivalents) is sent a copy and asked if they would like to develop high value tourism packages. 

Supporting tour operators visits to the Wakatobi or Tourism department staff visits to Europe and the US  

The distribution of a high quality brochure would result in a number of tour operators showing interest in the Wakatobi as a potential destination.  However, these deals would need to be finalised with either invitations to tour operators to visit the Wakatobi or Tourism staff visiting Europe, Australia or America to finalise the deals.  Both Operation Wallacea and Wakatobi Divers have the photographs and the expertise to design a high quality brochure and it would be worthwhile obtaining quotes from both organisations and other outside organsiations.  Tourism publications in Buton in recent years have suffered from poor English and whoever is awarded the contract should ensure the wording is written by someone with English as their first language.  Note this brochure will have to compete with the best tourism brochures in the World to attract the attention of tour operators and has to be a high quality publication. 

Tourism department acting as a tour operator to get tourism started 

One of the barriers to the larger tour operators starting to bring visitors to a new destination is that they have no infrastructure on the ground to support the tours.  They are therefore reliant on either existing operators in the Wakatobi to provide the services (which could be done) or to invest heavily in their own set ups.  However, until the tour operators start selling places to a particular destination they are usually loathe make substantial investments. Since these new tour operators are selling places to the same markets as the existing operators in the Wakatobi, the current operators might be reluctant to assist the new operators as it might have an effect on their own markets.  In the early years of development of the tourism industry in the Wakatobi it would be very therefore if the Tourism department could have a more active role.  If the Tourism department could take bookings and ensure that arrangements were in position to deliver the tours not only would this actively encourage tour operators to start selling places for the Wakatobi but it would provide an additional source of income for the Tourism department.  In general though governments should facilitate rather than direct operate and these actions would be a temporary measure to entice tour operators to the Wakatobi.  Once places were being sold and the tour operators could see the demand they would undoubtedly start investing in the Wakatobi and could start direct operating. 

Requiring all tourism operators to quantify annually their spend in the Wakatobi 

At the moment the exact benefit to the Wakatobi economy of tourism is unknown.  Operation Wallacea keeps records of all spend from the operation in SE Sulawesi each year and could provide these data annually.  If all tour operators were required to do the same then the Tourism department could monitor the growth in value of tourism to the Wakatobi economy as a result of their investment.

4.  Ways in which the Wakatobi government could ensure increasing benefits to the Wakatobi economy from tourism 

There is currently a lack of the skills needed to service the tourism sector within the Wakatobi.  Operation Wallacea and Wakatobi Divers rely heavily on non-Indonesian staff as Dive Masters, Dive Instructors and front of house staff.  Amongst the Indonesian staff though a number of the more senior staff members are from outside the Wakatobi.  Wages to non-Wakatobi based staff therefore leak out of the Wakatobi economy.

The skills required are:  

1. Good knowledge of English, which is the international language of tourism;
2. Good international cooking skills, since the high value ecotourism market requires a high level of cuisine with mixed Indonesian and international dishes;
3. Good people management skills.  Tour guides have to be pro-active when dealing with groups of tourists and ensure they are getting the best possible experience;
4. Diving skills.  It should be possible to insist within a few years that only Wakatobi Dive Masters are employed in the Wakatobi tourism industry, but at the moment insistence on such a policy would only succeed in closing the existing tour operations!  In addition there should be a high percentage of local Dive Instructors.
5. Good knowledge of the fauna and flora of the Wakatobi since the main attractant to tourists of the Wakatobi is the wildlife.

It would be best to concentrate on training 30 local people on an 8-month course to become Wakatobi Tour Guides.  Such a course could be run at the Operation Wallacea facilities on Hoga Island from March to October 2005.  The course would consist of the following elements: 

1. Intensive English training with 2-hour daily sessions.  At the end of the 8-month course all the attendees should have the English skills to lead groups of tourists and converse fluently in English with the guests.
2. Weekly cooking lessons on how to prepare and serve international dishes.
3. Practical sessions in leading groups of tourists.  Part of the course would be run during the Operation Wallacea tourist season and the course attendees would be required to lead groups of tourists on different activities.
4. Dive training.  The objective would be to achieve Dive Master level for all course attendees and Dive Instructor level for those who had previously had completed some dive training prior to the start of the course.  During the Operation Wallacea tourist season the dive trainees would gain experience of working with groups of divers.
5. Training in First Aid.  This would be undertaken by the Operation Wallacea on-site doctor and would ensure the attendees were qualified First Aiders - a requirement for many western tour operators.
6. Training in the identification of corals and reef fish so that the course attendees could confidently identify the majority of genera or species seen on dives.
7. Training in the identification of the animals and birds on the Wakatobi and the best places at which to see these species.

5.  Economic targets for tourism revenue to the Wakatobi 

Without  detailed information on the current spend by the existing tourism operators in the Wakatobi it is difficult to determine the baseline spend at the start of the Tourism department’s campaign to improve income levels from tourism.  However, as a first estimate the spend in 2004 in the Wakatobi as a direct result of international tourism is likely to be in the order of $300,000. 

Operation Wallacea given the above assistance could continue to grow by 20% per annum over the next 5-year period and similar growth could probably be expected from Wakatobi Divers. If the visa issues can be addressed nationally back-pack tourism would be the first to get moving and an increase in the numbers visiting the Wakatobi would show an increase very soon after the poster campaign was implemented.  Given an average daily spend of $10 and an average stay of 20 days then just 100 back-packers in the 2005 season would add $20,000 to the economy.  A sustained campaign could increase this number by 50% per annum over the following 5 years. The high value ecotourism market is likely to be worth more to the Wakatobi economy though than the back-pack market. However, this will take time to develop and the efforts in 2005 should be in gaining agreements with a number of tour operators.  A realistic target with a number of tour operators signed up to develop the market in a number of countries would be 300 visitors in 2006 rising by 50% per annum.  Given an average spend of $500 per visitor this would generate $150,000 in 2006 rising to $500,000 within 4 years.  

Extracting greater value from each visitor by ensuring that the services and supplies were provided locally could make the research, dive and high value ecotourism markets contribute and extra 10% to the local economy each year. 

 Within 5 years the Tourism department could establish tourism as contributing at least $1.3 million to the Wakatobi economy.  These figures however, are conservative and should be exceeded.  In addition once a tourism destination takes off it tends to grow rapidly and within a further few years the tourism industry should be contributing in excess of $10 million each year to the Wakatobi economy.  With targeted spending and appropriate legislation as suggested above tourism could become a major contributor to the Wakatobi economy.