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)