Banks told to help tourism

Banks told to help tourism

JAKARTA (JP): The government has asked commercial banks to
improve loans to tourism-related businesses, which are expected
to help generate more foreign exchange for the country.

Coordinating Minister for Trade and Industry Hartarto told an
annual conference of the Indonesian Hotel and Restaurant
Association (IHRA) yesterday that Governor of Bank Indonesia J.
Soedradjad Djiwandono is committed to encouraging banks to help
develop the tourism industry.

"I have told Minister of Tourism, Post and Telecommunications
Joop Ave to hold discussions with the governor of Bank Indonesia
to support the country's tourism industry," Hartarto said.

The chairman of IHRA's South Sulawesi chapter, M. Daeng
Patompo, complained that banks in several provinces in the
eastern part of Indonesia, including his province, are generally
reluctant to extend loans for tourism projects.

"Small-scale businessmen in particular find it very hard to
get loans from banks, which usually prefer to give loans to
conglomerates," he said.

Joop, however, suggested that tourism-related businesses
prepare adequate feasibility studies with more accurate data
before looking for credits.

"Some businessmen who want to develop hotel facilities in
Bali, for instance, claim that hotels on the island are now over-
booked but local data reveals an average occupancy rate of 62
percent," he said.

Joop added that data on hotels in the country remains
inadequate.

Meanwhile, at Asita's annual conference which was held at
Hotel Indonesia, Hasan M. Soedjono, the president of Sempati Air,
told association members that professionalism among hotel and
travel businessmen in Indonesia is still low. (icn)