Thu, 05 Jun 2003

Boomerang effect of visa fees

Permanent unrest, the looting of shops and schools, setting churches on fire or blasting them, and finally, the Bali bomb tragedy, became the sad trademarks of a young democracy.

The tourism industry has been suffering for years, which also had a very strong negative impact on education, health care and infrastructure development.

Scrapping the 60-day, visa-fee policy will harshly affect Indonesia's revenues that come from the tourism sector. Introducing such a ridiculous fee of US$45 for tourists who want to spend their money in hotels and restaurants, on shopping and air travel shows a short-sighted, lack of understanding of basic economic laws, e.g. supply and demand. Thailand, Malaysia, Sri Lanka, Vietnam etc., will welcome the huge number of tourists, who decide to spend the $45 on shopping rather than on dubious visa fees, with open arms.

MICHAEL BEER, Karangasem, Bali