Academic journal article Academy of Strategic Management Journal

Creative Economy Based on Opportunity and Unique Competency on Business Strategy of Tourism Business in West Java

Academic journal article Academy of Strategic Management Journal

Creative Economy Based on Opportunity and Unique Competency on Business Strategy of Tourism Business in West Java

Article excerpt

INTRODUCTION

Indonesia is a country that has many potential scattered throughout the archipelago. Creativity and innovation in national development are required to optimize these potentials, including natural resources, cultural diversity, and human resources. In line with the trend of the world today, the Indonesian government has initiated the concept of the creative economy to support local, national, and global economic development.

The terms of 'creative' and 'economy' are relatively not new. Howkins (2014) asserted that the newness is the nature of the relationship between them. In this sense, the creative economy is an evolving concept (Wijngaarde, 2015) from the cultural to creative industries (Garnham, 2005; Cunningham, 2002), based on creative assets potentially generating socioeconomic growth (Santos-Duisenberg, 2015). As emphasized by DeNatale & Wassall (2007), creative economy is represented by the 'cultural core' that includes occupations and industries that focus on the production and distribution of cultural goods, services and intellectual property.

Santos-Duisenberg (2015) highlighted that creative economy is a new source of economic growth that needed to promote. At the heart of the creative economy is the creative industry. The creative industries are among the most dynamic sectors in the global economy. They embrace economic, cultural and social aspects interacting with technology, information, and tourism sectors.

Tourism in Indonesia, along with creative economy and creative industries, is a potential renewable sector to be developed. In this regard, the tourism sector, from year to year, has increased significantly. The tourism sector in general can be a trigger for economic growth and social welfare. The tourism sector is able to provide a positive impact on the socioeconomic conditions of society.

In Indonesia, in recent years, the tourism industry ranks 4thor 5thas foremost income for the country. Meanwhile, other business sectors such as oil and gas, coal, rubber, and textiles, which rank lstto 4th, tend to decrease in accordance with their character as "non-renewable" products. It is believed that those sectors will be exceeded by the tourism sector in 2019, with a target of 275 million tourist arrivals (foreign and domestic).Therefore, the government sets tourism as one of the five leading sectors and provides significant budgets to the achievement of the main targets of tourism development (Ministry of Tourism of Indonesia, 2016).

The issuance of Presidential Decree no. 92/2011 formally initiate creative economic activity in Indonesia, because it has strategic value for Indonesia: providing significant economic contributions, creating a positive business climate, raising the image and identity of the nation, using renewable resources, encouraging the creation of innovation, and providing positive social impact. Aside from creating value-added, creative economy also employs many workers. Creative economy is also creating high foreign exchange. In relation to tourism, creative economy is able to improve the quality of tourism as an attraction in the tourism destinations as well as a media campaign for tourism.

National creative economic development cannot be separated from the role of the regional creative economy. Development of the creative economy in regional areas is characterized by several conditions. These conditions are the commitment of regional leaders to develop the creative economy in the region, where public areas are utilized by people to develop into a creative, sustainable infrastructure to support the creative process, the presence and activity of the creative community, events as media appreciation of the creative industries, support from local government, the existence of formal education institutions that support creative industries, and the creative industry development planning document. Public areas that can be developed are cultural park, square, youth centers, malls or plazas, sports arenas, museums, galleries, or other places that can be used as gathering places for the perpetrators creative in a city or county, or even at the district level. …

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