Tourism body to tie up with S'pore company<\/p>\n
JAKARTA (JP): The Indonesian Tourism Promotion Board (ITPB)
\nwill establish a joint venture with a Singapore-based firm later
\nthis year to help boost tourism campaigns and revenues.<\/p>\n
Chairman of the board, Tanri Abeng, said yesterday that the
\nplanned joint venture will be 40 percent owned by PT Bangun
\nNusantara Indah, an affiliate of the board, and 60 percent by a
\nSingaporean firm.<\/p>\n
\"The planned company will handle international-scale
\nconferences and exhibitions in Indonesia and its profits will be
\npassed on to ITPB,\" he said at the House of Representatives.<\/p>\n
By organizing such events, the board will also be able to
\npromote the country's tourist industry and generate revenues at
\nthe same time, he said.<\/p>\n
In his hearing with the House Commission V for tourism,
\nhousing and transportation, Tanri reported that ITPB has incurred
\ndebts of Rp 21.98 billion (US$9.7 million) to advertising agents
\nand other parties used for their promotional activities.<\/p>\n
\"However, our revenues are very limited,\" he said.<\/p>\n
The board, under a presidential decree, is supposed to collect
\ntwo percentage points from the 10-percent local development tax
\nimposed on hotels and restaurants in the provinces of North and
\nWest Sumatra, Jakarta, West, Central and East Java, Yogyakarta,
\nBali, North and South Sulawesi. Local administrations in the
\nprovinces are required to extend the two-percentage point portion
\nto the Ministry of Tourism, Post and Telecommunications, which
\npasses the amount on to ITPB.<\/p>\n
Tanri said yesterday that in 1994-95, ITPB received only Rp
\n5.92 billion (US$2.6 million), far lower than the Rp 55.99
\nbillion targeted by the government, in revenues from the
\ndevelopment tax.<\/p>\n
\"In the current 1995-96 fiscal year, we have received just Rp
\n1.22 billion out of the targeted Rp 64.17 billion,\" he added.<\/p>\n
Minister of Tourism, Post and Telecommunications Joop Ave said
\nin April that by the end of March 1995, a number of local
\nadministrations had reported the results of their development tax
\ncollections from hotels and restaurants which reached Rp 26.47
\nbillion.<\/p>\n
No payment<\/p>\n
Tanri said yesterday that the Indonesian Hotel and
\nRestaurant Association recently reported that the association has
\nalready paid the funds to the local administrations.<\/p>\n
\"But we are wondering where the funds are actually now because
\nwe have not received any payment from the Ministry of Tourism,
\nPost and Telecommunications,\" said Tanri, who is also top
\nexecutive of the widely-diversified Bakrie Group.<\/p>\n
\"I heard that tourism minister Joop Ave has reported this
\nmatter in a cabinet meeting, while the Ministry of Home Affairs
\nhas also instructed local governments to deliver the payment to
\nITPB,\" he said.<\/p>\n
Minister of Information Harmoko told reporters after a cabinet
\nmeeting on the economy yesterday that President Soeharto had
\ninstructed the tourism minister and the minister of home affairs
\nto coordinate the channeling of the promotional funds from the
\nlocal administrations to ITPB.<\/p>\n
\"The funds are designed for the promotion of the tourism
\nindustry, not for the local administrations,\" Harmoko said.<\/p>\n
ITPB, which was set up in 1991 as an independent foundation,
\nspent $20 million last year on promotional activities through
\nadvertisements in the print media and on television. By
\ncomparison, Australia, Singapore and Thailand spent about $92
\nmillion, $40 million and $38 million respectively on tourism
\npromotion.<\/p>\n
In addition to the development tax and funds from Bangun
\nNusantara Indah, ITPB earns revenues from promotion programs,
\nwhich generated Rp 15 billion in revenues last year.<\/p>\n
By 1999, Indonesia hopes to attract 6.5 million visitors per
\nannum and $8.9 billion in revenues. This year, some 4.65 million
\nforeign tourists are expected to visit the country. (icn)<\/p>",
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"sponsor": "Okusi Associates",
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