Introduction contextual factors. One developed country and one


The United Nations World Tourism
Organisation (UNWTO) defines tourism as follows: “Tourism comprises the activities of persons travelling to and staying
in places outside their usual environment for not more than one consecutive
year for leisure, business and other purposes. ”  Just like every other system, the tourism
system consists of parts that are interconnected and interrelated. They are
very dynamic and changing all the time. Yet the development of tourism and the
operations of businesses within the tourism industry are constrained  and stimulated by numerous factors not
directly connected to the tourism industry itself.

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Throughout this essay political, economic
and legal systems within which tourism occurs are analyzed, as these are
considered to be the three most important contextual factors. One developed
country and one developing country from the World Economic Forum 2015 Tourism
Competitiveness Index have been chosen to compare and contrast their contextual

There are numerous ways to assess whether or
not a country can be considered as developed or developing. However no
agreement exist of an official definition; even more The World Bank has
recently made the decision to no longer distinguish between developed and
developing countries when presenting their data. Within this essay I have
chosen to focus on a developed country as a
country with a highly developed economy and technological and infrastructural
advancement. Most commonly factors that are being analyzed on are gross
domestic product (GDP), level of industrialization, life expectancy, standard
of living and literacy level.

I have chosen The Netherlands as developed
country. Since I am a Dutch student, born and raised in The Netherlands, it
might be very difficult to objectively analyze my country, yet very
challenging. It is ranked number 14th in the Competitive Index of 2015 at a
value of 4.67. The Netherlands
consistently ranks among the top places in the world to live and work. The
Netherlands may be a small country in size, but certainly not in impact. The
GDP of The Netherlands might not be ranked in the top 10 listed by Data World
Bank for the year 2015, the country shows a solid and constant performance
across pillars such as infrastructure, health and hygiene, business environment
and international openness.

I have chosen
Indonesia as developing country. Main reason why I have chosen Indonesia is
because of the shared history with The Netherlands. For over one and a half
century Indonesia had been under Dutch rule, declaring itself independent in
1945. Indonesia is actually ranked one place above The Netherlands aiming at
GDP, however to determine whether or not a country can be considered as
developed more pillars have to be examined. Although Indonesia scores high at
ranking for travel and tourism policy and enabling conditions, besides their
performance on natural and cultural resources, they are far behind relating to
enabling environment, especially health and hygiene, and infrastructure.

Indonesia and The
Netherlands are poles apart, yet extremely similar. On one side there is The
Netherlands, an established name in the top, and on other side Indonesia, an
quickly emerging country. A closer look has been taken within the following chapters
on their performance, environment, interdependence and mostly their challenges.


Tourism Competitiveness Index

The Travel & Tourism Competitiveness
Index (TTCI) measures “the set of factors
and policies that enable the sustainable development of the Travel &
Tourism sector, which in turn, contributes to the development and
competitiveness of a country”. While some of the main drivers of T&T
competitiveness remain unchanged, some other factors have become more relevant
while measurements and data availability improves over time. Following the
latest developments, the index’s methodology has evolved. The methodology of
this index has been organized into four sub indexes:

§  Enabling
Environment –  which captures the
general settings necessary for operating in a country

§  T
Policy and Enabling Conditions – which captures specific policies or strategic aspects that impact the
T industry more directly

§  Infrastructure – which captures
specific policies or strategic aspects that impact the T industry more

§  Natural
and Cultural Resources – which captures the principal “reasons to travel”

These four sub
indexes have different rankings based on a variety of variables, named pillars
in the report. In total 14 pillars have been brought to life to evaluate the
competitiveness of a country.

The Travel &
Tourism Competitiveness Index is one of many different ranking lists published
annually. Despite extensive global competitiveness reports and rankings, the
TTCI shows high relevance. The statistical data are derived from international
organizations all around the world accounting for two third of the report. Next
to that 15.000 surveys have been carried out among business leaders used to
measure concepts that are qualitative in nature and/or to capture the gap of
missing data from relatively unknown countries as far as statistics go. The survey represents a unique source of insight into critical
qualitative aspects of T competitiveness, which makes the relevance of
using the TTCI list huge.












The Netherlands
is located in the North West of Europe, the edge of the mainland, bordered by
Belgium in the South, Germany in the East and Luxemburg South East. With 17 million people and a population density of 488 people per
km2, The Netherlands is the most densely populated country of the European
Union and one of the most densely populated countries in the world. The total
size of The Netherlands is 41,500 km2. Amsterdam is the capital, but the
government resides in The Hague. More than 40% of the total population
live in the Randstad, the agglomeration of the cities of Amsterdam, Rotterdam, The Hague and Utrecht. The Euro
is the monetary unit of The Netherlands.

The Republic of Indonesia is the largest archipelago
in the world comprising 13,466 large and small tropical islands fringed with
white sandy beaches, many still uninhabited and a number even still unnamed.
Straddling the equator, situated between the continents of Asia and Australia
and between the Pacific and the Indian Oceans, it is as wide as the United States
from San Francisco to New York, equalling the distance between London and
Moscow.  Indonesia has a total population of more than 215 million people
from more than 200 ethnic groups. The national language is Bahasa Indonesia.
Among the most well known islands are Sumatra, Java, Bali, Kalimantan (formerly
Borneo), Sulawesi (formerly Celebes), the Maluku Islands (or better known as
Moluccas, the original Spice Islands) and Papua.

Comparing the index ranking of 2011 to the index
ranking of 2015 Indonesia has shown immense growth, crawling up from place 74
to 50th. The Netherlands, however, held on steadily to their 14th
place on the ranking. To research what the underlying factors were of these
changes, or in the case of The Netherlands no changes considering the ranking,
the contextual factors have to be analyzed.

Now that these countries have been briefly introduced,
a more in-depth review can be given of their contextual history and issues. As
said earlier in the introduction, I have chosen to focus on a developed country as a country with a highly developed economy and
technological and infrastructural advancement, also taking into account gross
domestic product (GDP), level of industrialization, life expectancy, standard
of living and literacy level.

In 2014 The Netherlands had a GDP of
$15,600 million and GDP per capita was $46,440. In terms of GDP per capita, the
Netherlands is in the top 10 countries worldwide, based on high levels of
labour productivity and strong labour participation rates. As a small country,
the Dutch economy is highly open, dependent on foreign trade and investment.  The Netherlands has a diversified and vibrant
industrial structure. With only a small surface, the Netherlands nevertheless
stands as an important agricultural producer, and exporter. As in the US, the
services sector in the Netherlands is of increasing importance, from high
quality commercial services, to financial services, media and logistics. This
strong services backbone enforces the attractiveness of the Netherlands for the
location of headquarters as well as after sales services and distribution. The
Netherlands has a strong and internationally well developed industrial economy.
From chemicals to life sciences, from food to nano technology, Dutch
multinational companies are well known all over the world for the quality of
their output.

For companies across the world – and
American firms in particular – the Netherlands serves as a Gateway to
Europe. Rotterdam, one of the world largest harbours, not only constitutes a
crucial hub for inward and outward transportation to Europe, but also has a
high density of transportation related industrial activity. The airport of Amsterdam
Schiphol is of the world’s highest standards, and strongly contributes to the
attractiveness of the Netherlands as a place to do business. With an
internationally favourable corporate tax level and a flexible and well educated
labour force with excellent language skills, the Netherlands is an open, and
hospitable country for investment.