ASEAN Free Trade Area and challenges for Indonesian tourism industry. Case study: Bali travel agencies
Nowadays, globalization is an inevitable phenomenon. Regional free trade agreements have been signed among neighboring countries. One of them is the ASEAN Free Trade Agreement (AFTA), established by the member states of The Association of Southeast Asian Nations (ASEAN). AFTA is the concept of eliminating tariff barriers among ASEAN countries with a view to integrating into one regional market. One of the sectors that is part of this agreement is tourism and its related services. For Indonesia, as a member of ASEAN, this agreement presents challenges for the country?s tourism industry. This thesis examines the impacts of AFTA to Bali travel agencies and how they should readjust their marketing strategies as a consequence of AFTA agreement. The author uses a deductive-evaluative approach. From the survey conducted, the majority of Bali travel agencies do not support AFTA because of its negative implications. The agreement, which aims to develop cooperation, paradoxically leads to competition for Bali tourism businesses.
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