Govt seeks to limit expats' role in hotels<\/p>\n
JAKARTA (JP): The government will ask tourist-industry
\nassociations to help it draft rules to restrict foreigners
\nmanaging four-star or lower-rated hotels, an official said
\nyesterday.<\/p>\n
The secretary to the tourism director general, I Gede Ardika,
\nsaid their input would enrich the rules being drafted by his
\noffice.<\/p>\n
\"Our office is asking for input from associations in the
\ntourist industry to make the rule,\" he told a one-day seminar on
\nhotel operations and tourism in 1997.<\/p>\n
The seminar was cosponsored by Neraca daily, Sabang Hotel and
\nthe Institution for Tourism Development Information.<\/p>\n
Minister of Tourism, Post and Telecommunications Joop Ave
\nissued a decree last month requiring all foreign hotel chains to
\nset up local subsidiaries and reduce foreign staff at their five-
\nstar hotels to three by 2000.<\/p>\n
\"The decree only regulates the restriction of foreign managers
\nat five-star hotels to provide a guideline. The Tourism
\nDirectorate General and tourist-industry associations will make
\nrules for lower-rated hotels,\" he said.<\/p>\n
Tourism Director General Andi Mappi Sammeng said earlier the
\nrequirements for overseas hotel chains operating four-star and
\nlower-rated hotels were likely to be stiffer.<\/p>\n
Ardika said the minister issued the decree because foreign
\nhotel chains could rarely solve their local industrial disputes
\nbecause of their representatives status. Their overseas
\nheadquarters had minimum decision-making rights.<\/p>\n
Many of the chains broke contractual obligations when they
\nfailed to train locals for management, he said.<\/p>\n
There are 47 foreign hotel chains operating or about to
\noperate in Indonesia, up from three in 1973. There are only eight
\nlocal hotel chains.<\/p>\n
Foreign hotel chains operating domestically include the United
\nStates' Holiday Inn, Westin, Inter-Continental, Hyatt and
\nSheraton; Britain's Le Meridian and Hilton International;
\nCanada's Regent & Four Seasons; Spain's Melia-Sol; Hong Kong's
\nCentury International, Oriental, Aman Resorts and Shangri-La; and
\nJapan's Imperial and Nikko.<\/p>\n
Some foreign hotel chains, including Century, Shangri-La and
\nHilton, have set up local subsidiaries.<\/p>\n
When asked if the decree conflicted with WTO anti-
\nprotectionism principles, Ardika said the organization had a
\nclause letting countries protect infant industries. Indonesia
\ncould call hotel management an infant industry, he said. (jsk)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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