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Critical Assessment of Marketing Communication Strategy

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INTRODUCTION
Tourism is the second largest contributor to the Indonesian economy after oil and gas (Osman, 2009). Income from tourism totaled USD6.3 billion in 2009 with 6.5 million international arrivals and is expected to increase to USD15 billion in 2010, providing direct employment to nearly 2 million people and 6.8 million people overall (World Travel and Tourism Council, 2010). Realizing that tourism has larger impact on employment and promotes trade opportunities and development of the country, the Government of Indonesia has increased the annual budget for tourism, allocating USD229.3 million for 2011 (Citrinot, 2010) for both development and promotion of the industry. With a total promotion budget of USD50 million, the government has targeted to increase the number of arrivals to 7-7.5 million (Bali News & Views, 2010). Indonesia is promoted by The Indonesian Tourism Promotion Board (the “Board”) through the 12 Visit Indonesia Tourism Offices (“VITO) located in 11 countries (2 VITO in China, Beijing and Guanzhou), and the 33 provincial tourism boards of the 33 provinces in Indonesia. Indonesia’s 58 embassies and representative offices overseas also conduct tourism promotion via its economic office. The Board does not have control over the activities of the embassies or the provincial tourism boards. Objectives, Terms of Reference and Approach We were instructed to conduct an assessment and evaluation of the marketing communication strategy of the Board to promote Indonesia to international tourists. We were further instructed to focus our research specifically to promoting to the international markets. Based on the weaknesses identified, we are to provide our recommendations for improvements. The result of our work is contained in this report.

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PART A: CRITICAL ASSESSMENT OF MARKETING COMMUNICATION STRATEGY Introduction
The challenge in

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