Earnings from the tourism sector are forecast to shrink 10% to $6.75 billion this year from $7.5 billion last year despite an expected increase in the number of visitors, an official from the Tourism and Culture Ministry said, Asia Pulse reported.
Last year, 6.4 million foreign tourists visited Indonesia and this year the number is predicted to increase to 6.5 million but with less spending, marketing development director Syamsul Lussa said.
Holidaymakers, who normally stay at five-star hotels, will likely choose to stay in three-star hotels as a result of the global financial crisis, Lussa said.
Marketing Director General Sapta Nirwandar said the opportunity is still open to attract more tourists although he agreed they might shun posh hotels and upmarket restaurants and save their money for sightseeing.
Growing airlines' direct flights to Bali are expected to contribute to increasing numbers of visitors, Nirwandar added, Bisnis Indonesia reported.