HARMONIZATION OF UNCITRAL MODEL LAW ON INTERNATIONAL COMMERCIAL ARBITRATION AS A LEGAL PROTECTION TOWARDS TOURISM INDUSTRY
Herliana., SH., M.CommLaw., PhD

Faculty of Law Gadjah Mada University

Abstract

Tourism industry is one of the world^s leading industries, yet it lags behind other industries in term of the use of alternative dispute resolution (ADR) especially arbitration. Dispute in tourism industry often involves parties from different jutisdictions .Travel agents, airline, hotels, rental vehicles company and travel insurers can come from different countries. The use of litigation is needless, not only because it is costly and destroy productive relationships, but also the court decision in one jurisdiction cannot be enforced in another jurisdiction. While tourism or travel arbitration has been recognized in China, Thailand, Singapore and many other countries, this type of arbitration is not well known in Indonesia.
Tourism industry in Indonesia has become one of the main sources of currency earnings which contribute around 5% of Indonesia^s total GDP. At the same time, tourism provides around 13 million jobs, representing aorun 11% of total employment. This due to the increasing number of foreign tourist arrivals. It is therefore important to provide legal protection toward tourism industry by providing arbitration law that meeting the standard set up by the UNCITRAL Model Law. The objective of this article is to analyze how harmonization of Indonesian arbitration law towards UNCITRAL Model Law will promote the cooperative resolution of disputes in tourism industry.This topic is important to address since it is part of the effort that the Indonesian government must do as part of tourism development efforts. The Indonesian government shall bring its arbitration law up to the international standard to be able to compete with countries in Asia in the tourims sector.

Keywords: : tourism arbitration, harmonization of arbitration law, UNCITRAL Model Law on Commercial Arbitration

Topic: Law on Resolution of Tourism Investment and Business Disputes