Regional Integration and Its Impact on Tourism Industry: with special reference to Indonesia

Abstract

Regional integration has been identified as one of the main strategies which are often used to solve common political, economic, scientific and sociocultural issues faced by countries in a particular geographical area. Regional economic cooperation occurs in various forms and degrees and is in general aimed at increasing cross border linkages and deepening interpenetration of economic activity for the mutual benefit of economies within a geographic region. Looking at the world tourism industry, according to the World Tourism Organization, 2016 was a momentous year for tourism where international tourist arrivals continued their upward trajectory in their seventh straight year of above-average growth. Against this backdrop, the main objective of the study would be to understand the relationship and impact of regional integration on the tourism industry of a given state with special reference to Indonesia. Here the study has focused on the progress and status of intra-regional tourism in ASEAN and its impact on Indonesia. This study is an exploratory case study of Indonesia’s tourism sector. The data is collected through secondary sources including annual reports, magazines, journal articles etc. The study has found, over the last 5-10 years the tourism industry in Indonesia has shown an upward trend and that continued success was mainly due to tourist arrivals from the ASEAN region. Intra-regional tourism has made a significant contribution to the tourism sector of Indonesia. Strengthened regional ties have given Indonesia the advantage of diversifying its tourism industry as well. The study finds an interdependent relationship between regionalism and tourism sector.