Income target from tourism lowered<\/p>\n
JAKARTA (JP): The government has lowered the projection for
\nforeign exchange receipts from foreign tourists this year on
\nfears that the haze problem will cause a decline in tourist
\narrivals.<\/p>\n
According to data provided by the Ministry of Tourism, Post
\nand Telecommunications, revenue from foreign tourists will total
\nabout US$6.5 billion this year, much lower than the initial
\nprojection of between $6.64 billion and $7.14 billion.<\/p>\n
The number of foreign tourists will be about 5.19 million this
\nyear as compared to the previous projection of between 5.3
\nmillion and 5.7 million.<\/p>\n
The Indonesian Tourism Promotion Board has said that the haze
\ncaused by prolonged forest fires in Sumatra and Kalimantan and
\nthe currency crisis facing several Southeast Asian countries will
\ndiscourage foreign tourists from visiting Indonesia.<\/p>\n
Board chairperson Wuryastuti Sunaryo estimated that the number
\nof foreign tourists would only increase by 5 percent this year,
\nless than half of the 12 percent projected by the government.<\/p>\n
The ministry's data also shows that revenue from foreign
\ntourists and the number of international visitors in 1998 will
\nalso be lower than original targets.<\/p>\n
It is estimated that the government will only receive $7.14
\nbillion in foreign exchange from foreign tourist arrivals next
\nyear, lower than the original target of between $7.51 billion and
\n$8.14 billion.<\/p>\n
Foreign tourist arrivals are also projected to decline next
\nyear to 5.7 million from the original target of between 6 million
\nand 6.5 million.<\/p>\n
The lower figures have also been set because of poor aviation
\nservices.<\/p>\n
An Airbus A-300 B4 airplane of state-owned Garuda Indonesia
\ncrashed and killed all 234 passengers on board two weeks ago just
\nbefore it was to land at Polonia Airport in Medan, North Sumatra.<\/p>\n
The crash, the worst in Indonesian aviation history, happened
\nwhile North Sumatra was covered in a thick haze from smoke coming
\nfrom widespread forest fires. Poor visibility due to the haze had
\npresumably played a role in the crash.<\/p>\n
Hotels<\/p>\n
Three-star hotels in Jakarta have reported the impact of the
\nongoing currency turmoil.<\/p>\n
Putu Ayu Aristyadewi of the four-star Acacia hotel in Central
\nJakarta said that business-wise, hotels could benefit from the
\ncurrency crisis because room rates were generally in U.S.
\ndollars.<\/p>\n
"But we also suffer from an unexpected increase in expenses,
\nas our suppliers of meat, vegetables and other goods have raised
\nprices," she said.<\/p>\n
She said that hotels always changed their daily dollar rates
\naccording to rate fluctuations in the market. "Some of the guests
\nhave complained about this, but we can't just do nothing."<\/p>\n
However, dollar rates set by hotels differ between one to
\nanother. Some even offer rates much lower than market rates to
\nattract guests.<\/p>\n
She said her 210-room hotel, however, saw a stable occupancy
\nrate in the last three months, 82 percent in July, 85 percent in
\nAugust and 78 percent in September.<\/p>\n
Eka Naim of the 125-room Ibis Tamarind said that his hotel had
\nnot experienced a hike in prices from suppliers, which could
\naffect room rates.<\/p>\n
"There have already been some cancellations for conference and
\nmeeting rooms," he said, adding that the occupancy rate for the
\nlast three months was stable.<\/p>\n
Narulia Decia of Dusit Manggadua said that her hotel had seen
\na lower occupancy rate in the last two months.<\/p>\n
"This is unusual. Last month we only saw an occupancy rate of
\n50 percent," she said.<\/p>\n
She said that her 351-room hotel usually had an average 65
\npercent occupancy rate.<\/p>\n
The forest fires in Kalimantan and Sumatra have not only
\naffected the air quality in both areas, but also in neighboring
\nMalaysia, Singapore and the Philippines.<\/p>\n
Many travelers and tour groups from European and Asian nations
\nhave canceled trips to Indonesia due to the haze problem.<\/p>\n
The government predicts tourism will generate the highest
\nrevenue, replacing the oil and gas sector, by the end of the
\nseventh five-year development plan in 2004. In 2005, Indonesian
\ntourism is expected to attract 11 million foreign visitors and
\ngenerate about $15 billion in revenue.<\/p>\n
Official data shows that about 2.82 million foreign tourists
\nentered the country in the first eight months of this year, a 2.8
\npercent rise from the same period last year. During the period,
\nthe government earned about $3.44 billion from foreign tourists,
\nup 7.4 percent from $3.44 billion in the corresponding period in
\n1996. (icn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/income-target-from-tourism-lowered-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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