ABSTRACT
The tourism sector is very important for Indonesian economy because of its significant role as a source of foreign exchange revenue. A member of ASEAN, Indonesia works together with other members to achieve the ASEAN Community by 2015. After the implementation of ASEAN Economic Community (AEC), tourism industry has become one of the twelve priority sectors that will help to hasten the integration of the ASEAN countries. However, many factors influence the industry competitiveness. The aim of this paper is to study the competitiveness factors of Indonesian tourism industry in facing AEC. This study is based on previous research articles and other resources. It identifies the issues and analyzes their importance. The result of the study indicates that the government policies in facing AEC shall cover infrastructure, principal factors, economic situations, crimes, disaster, education, culture, environmental issues, technology, and media. The factors require attentions. Further researches to support and explore preventive actions for reducing negative impacts and extending the positive impact are also needed.
