For Timor-Leste’s economy, economic diversification is crucial to avoid fallout from a depleting Petroleum Fund. As one of the nation’s closest neighbours, Australia has a unique opportunity and responsibility to help promote and develop Timor’s tourism economy.

With an economy almost entirely dependent on oil, it is widely recognised that Timor-Leste is in dire need of economic diversification. Current Timorese government policy indicates that the development of the tourism industry is a high priority. As one of Timor’s closest neighbours, with strong bilateral and historical ties, it would be in Australia’s interests to help.

The economic success of Timor-Leste is well within Australian strategic interests; most notably in terms of maintaining the stability of its immediate region. The Timorese tourism industry is largely untapped and will require assistance from Australia to develop and maintain while simultaneously preserving environmental, historical, and cultural elements.

As one of the youngest countries in the world, Timor-Leste has frequently been referred to as an “untouched” natural paradise, boasting a diverse landscape ranging from coral reefs to mountain ranges. Despite strong appeal, the tourism sector remains largely underdeveloped. In 2018, the total number of tourists that visited the country was under 11,000. The potential importance of the tourism economy for Timor-Leste is not a secret, but why are tourists still so uncommon?

Current challenges to tourism

The most significant barrier preventing tourism is access; both international and domestic. In early 2022, Qantas launched direct flights from Darwin to Dili. Earning the title of Australia’s shortest international flight, the trip takes only 80 minutes. This service however only runs ten times per week. Airnorth Australia recently expressed a desire to expand operations out of Perth International Airport during the wet season to make up for flights that would otherwise operate out of Darwin, potentially meaning more flights to Dili from Australia. Increased frequency and expanded routes could enhance connectivity and promote tourism growth.

Another significant barrier is the lack of infrastructure within Timor. The island has strong potential for marine tourism due to it hosting some of the most biodiverse waters in the world. The Island of Atauro is a particularly attractive destination due to its eco resorts, snorkelling, hiking, and diving spots. Whale watching is another potential area for tourism development. In early July this year newly captured footage of pygmy blue whales off the coast of Dili revealed invaluable information to scientists and highlighted the possibility for whale watching. Despite this, local ferries from Dili to Atauro are intermittent, and there is a regular Mission Aviation Fellowship flight that operates only a few days a week.

Infrastructure outside of the capital is virtually non-existent and hotels outside of Dili are hard to come by. Despite the potential for adventure tourism and mountain expeditions, tourists often stay in rural guest houses run by community members. A further barrier is the lack of banking infrastructure, and there is not much information online about what cards are accepted in Timor.

The requirements for an entry visa are another challenge dissuading the arrival of tourists. Currently, visitors can only receive a tourist visa on arrival if they enter the country through Nicolau Lobato International Airport or Dili Seaport. If travellers arrive at another entry point, they must apply for a visa in advance. Failure to do so is likely to result in refusal of entry.

Another barrier is pricing. The Timor-Leste National Tourism Policy acknowledges that “Timor-Leste is relatively expensive compared to countries in its competitive set and lacks the value for money proposition of many of its neighbours.” The policy linked this to the developing state of infrastructure, as well as the fact the economy operates with the US dollars.

What is Australia doing?

The Department of Foreign Affairs and Trade (DFAT) country brief revealed that in 2022 two-way merchandise trade between Australia and Timor-Leste was worth AUD$95.5 million. Remittances from Timorese workers overseas, including those in Australia under the Pacific Australia Labour Mobility scheme, are the largest contributor to the economy aside from petroleum. In addition, through the Australia Awards, Australia provides scholarships for Timorese students, researchers, and professionals to study in Australia. The Government is also working to connect Timor-Leste to the internet via submarine cable.

An Australia-Timor-Leste Tourism Market Analysis funded by Australian Aid reveals that up to 1.61 million Australians would like to visit Timor-Leste. Interviews indicated that travel agents were keen to know more and promote Timor-Leste, stating that a lack of knowledge was the major reason they do not sell the country as a travel destination. Concerns about unrest were also a prominent issue for a small but sizeable portion of potential visitors. The analysis also noted that the people with intentions to travel to Timor-Leste were also heavy internet users.

Some efforts have been made to counter negative perceptions of Timor. The official Timor tourist website was set up by the Australian government funded Market Development Facility and it does a good job showing what the country has to offer. Meanwhile, the Australian Agency for International Development is notably active in supporting coffee exporters and promoting solar energy initiatives.

Focus areas for Australia

It is in Australia’s interests to help the Timorese economy. A prosperous Timor-Leste reduces the likelihood of economic migrants seeking refuge in Australia, enhances regional security, and creates new economic opportunities for Australian businesses. Increased tourism would create more jobs for Timorese and help mitigate labour migration.

Australia can and should be doing more to promote Timorese tourism and infrastructure. One way is through marketing and promotion, making more efforts to increase the interest in Timor-Leste as a travel destination as well as an avenue for private sector investment. Initiatives like the Australia Awards and the DFAT New Colombo Plan are important for building and maintaining interest in countries within Australia’s immediate region. Developing and maintaining cultural diaspora are key. Social media and marketing strategies should be working to create exciting, educating, and engaging content for internet users that could be interested in going but are not exposed to key information.

Assisting with the development and maintenance of basic infrastructure—water, roads, electricity—remains the most significant barrier to overcome in order to develop the tourism industry. Community led tourism is another avenue that has emerged due to the lack of infrastructure and limited availability of government funding. It is evident that investing in the creation and maintenance of local and community led tourism, such as eco resorts and guesthouses, is key to developing a sustainable tourism industry in Timor-Leste.

Jade Kingston is the Australian Outlook Book Reviews Coordinator. She is a fourth-year student of International Security Studies at the Australian National University in Canberra, minoring in Bahasa Indonesia.

This article is published under a Creative Commons License and may be republished with attribution.