Tourism to become third biggest foreign exchange earner by 2000<\/p>\n
JAKARTA (JP): A survey predicts that by the end of the
\ncentury, the tourism industry will become the third biggest non-
\noil foreign exchange earner after textile products and wood,
\nreaping US$8.9 billion a year from 6.5 million foreign visitors.<\/p>\n
Christianto Wibisono, the director of the Indonesian Business
\nData Center, in a release made available to The Jakarta Post last
\nweek said that in line with the increasing role of the industry,
\nrumors of a property crash will encourage owners of apartment
\nbuildings to shift their businesses to the hotel industry.<\/p>\n
Last year, the country gained $4.9 billion in revenues from
\ntourist arrivals. This indicated a 40 percent increase over 1993,
\nwhen the tourism industry ranked fourth among the major non-oil
\nforeign exchange earners.<\/p>\n
The survey reported that currently 61 business groups, both
\nfrom the private and government sectors, are in the hotel
\nindustry.<\/p>\n
Of these 61 groups, 35 (57.3 percent) also operate in the
\napartment business, 24 (39.3 percent) own travel bureaus, 22 (36
\npercent) have golf courses and three (4.9 percent) own airline
\ncompanies.<\/p>\n
Forty or 65.5 percent of these groups conduct general-scope
\nbusinesses, while the remaining 21 (34.5 percent) specialize in
\nspecific fields, 11 of which own their own national chains in the
\ntourism industry.<\/p>\n
According to the survey, which was conducted at hotels of
\nthree-star ratings and above, travel agencies, convention tourism
\nbusinesses, golf resorts and airlines, Indonesia ranked 22nd in
\n1993 of the most favored tourist destinations in the world, up
\nfrom 26th in 1985.<\/p>\n
The 1993 rating puts Indonesia above South Korea (23rd),
\nAustralia (24th), Japan (25th) and Taiwan (26th). Meanwhile,
\nSingapore's position dropped from the 17th to 19th and Thailand
\nfrom 18th to 20th. That year, France was the leading tourist
\ndestination, but the United States ranked first in generating
\nrevenue from the business.<\/p>\n
Improve<\/p>\n
In the Asia-Pacific region, Indonesia improved its position
\nfrom the 11th most favored in 1989 to seventh in 1993, pushing
\naside Hawaii which dropped from the topmost position (with 6.6
\nmillion visitors in 1989) to number nine (3.1 million people in
\n1993).<\/p>\n
According to the survey, in the next two or three years, 225
\nnew hotels of three and more stars -- the majority of which will
\nbe of three stars -- with a total capacity of 48,000 rooms, will
\nbe built to make a total of 462 hotels in the country, with a
\ntotal capacity of 88,000 rooms by 1997-1998.<\/p>\n
From the 462 hotels, 85 (18.4 percent) with 28,000 rooms will
\nbe located in Jakarta, 85 with 19,000 rooms in Bali and 60 with
\n9,000 rooms in West Java.<\/p>\n
The survey concluded that, based on the figures, 22 provinces
\nwill still not have five-star hotels by then.<\/p>\n
The survey shows that there are presently 36 international
\nhotel chains managing 70 hotels with 19,000 rooms in Indonesia.
\nThis figure accounts for 48.8 percent of the total 39,000 hotel
\nrooms in the country.<\/p>\n
By 1997-1998, 13 new chains will have entered the business to
\nmanage 70 more hotels with 16,000 rooms.<\/p>\n
Thus, international chains will be managing 140 hotels with
\n35,000 rooms, or about 40.6 percent of the total number of hotels
\nin the country.<\/p>\n
The survey said that future trends would lead international
\nchains to invest not only in four-star or five-star rated hotels
\nbut in three-star hotels as well.<\/p>\n
The new international chains established in 1997 will push
\ndown Hilton's popularity (presently ranking the fourth) and
\nInter-Continental (ranking the third) to the 10th and ninth
\nranks, respectively, and will place Sheraton (presently ranking
\nthe fifth) first rank, Hyatt (presently ranking the first) at
\nsecond, Shangri-La (ranking second) at third, Ibis (ranking
\nninth) at fourth and Century (ranking sixth) at fifth.<\/p>\n
Meanwhile, the share of 10 major international hoteliers in
\nthe country's hotel market will drop from the present 62.6
\npercent to 54.4 percent in 1997-1998.<\/p>\n
Indonesia currently has 12 national chains, managing 86 hotels
\nwith 13,000 rooms.<\/p>\n
According to the survey, no drastic change in local ownership
\nwill occur in the next three years and the five major hoteliers
\n-- namely Sahid, HII\/Natour, Aerowisata, Jayakarta and Horison --
\nwill continue to maintain their positions.<\/p>\n
On the conglomeration side, the survey predicts that of the
\nfive major groups in the business, only the Metropolitan group
\nwill be pushed aside to rank sixth from its present place of
\nfifth, by the Danayasa\/JIHD group (presently ranking eighth).<\/p>\n
The Sahid group (presently ranking third) will rank first,
\nreplacing HII\/Natour, which will drop to third in 1997.<\/p>\n
The Jan Darmadi group (presently ranking second) will rank
\nthird, the Salim group will maintain its position at rank four
\nand the Brasali group, a newcomer in the business, will surge to
\nrank seven.<\/p>\n
Travel<\/p>\n
According to the survey, the travel agency industry will not
\nattract direct foreign investment to the country.<\/p>\n
Since 1991, only seven foreign companies have invested in the
\nbusiness, including the Japan Travel Bureau and Thomas Cook (Amex
\nTRS Group).<\/p>\n
The survey concluded that because of up to 25 percent of the
\nintegrated tour packages were conducted in other countries,
\ndomestic travel agencies were unable to manage the total revenues
\nthey received, meaning that about 30 percent (US$1.3 million) of
\naccommodation costs spent by foreign tourists would return to
\ntheir respective countries.<\/p>\n
The survey reported that the convention tourism business would
\nbecome more attractive in the future. In 1993, it brought in
\n783,000 tourists, or 23 percent of the total number of foreign
\ntourists visiting the country, most of whom originated from
\nSingapore, Japan, Malaysia, Taiwan and the United States.<\/p>\n
To meet the target set for the year 2000, the survey
\nrecommended airlines increase their seat capacities and the
\ngovernment reviews the current open-sky policy.<\/p>\n
The construction of airports, the survey said, should also be
\ngiven high priority to be able to accommodate the increasing
\nnumber of passengers.<\/p>\n
Variations in tourist attractions and cultural programs should
\nalso be improved to meet the expectations of foreign travelers.<\/p>\n
The survey also recommended that airlines, hotels, travel
\nagents and other supporting agencies upgrade their services and
\nprofessionalism to meet globalization trends, especially since
\nthe increasing trend shows that more international hoteliers are
\nkeen on entering the three-star hotel business. (pwn)<\/p>",
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