Cautious investors hold off on tourist projects
Cautious investors hold off on tourist projects
JAKARTA (JP): None of this year's government-approved foreign
and domestic investment plans in tourism have been realized, a
senior official has confirmed.
I Gede Ardika, the director general of tourism at the Ministry
of Tourism, Art and Culture, said over the weekend that most of
the investors chose to adopt a "wait-and-see" attitude because
the situation remained too delicate for them to open up new
business.
Although he did not provide details on total foreign
investment in tourism approved between January and May, his
office's data showed 23 foreign investment approvals, with total
value of US$25.31 million, for January and February alone.
"Many investors still fear there will be fresh riots during
and after the general election in the riot-torn country," Ardika
said.
Analysts' fears of riots during the 16-day campaign, which
ended on June 4, were unfounded as no major incidents were
reported.
According to the ministry's data, 16 of the 23 foreign
investment projects are for the construction of hotels.
Seven of the hotels worth $21.66 million will be built in
Bali, two in Riau, and one respectively in North Sumatra,
Jakarta, Central Sulawesi, North Sulawesi, Central Java, East
Java and West Nusa Tenggara.
The North Sulawesi hotel is the largest among the approved
projects, with total investment of about $10 million.
Remaining foreign investment approvals include three
restaurants in Bali and Central Java worth $345,000, three marine
tourism centers in North Sulawesi ($810,500) and a recreation
site in Bali ($2.49 million).
The government also issued five domestic investment approvals
worth Rp 127 million in the hotel industry in January and
February.
They also involve construction of hotels, two of which are for
the construction of two hotels in Jakarta, requiring total
investment of Rp 39.98 million. The three other hotels will be
built in North Sumatra, with total investment of Rp 22.90
million, in East Java (Rp 39.98 million) and West Nusa Tenggara
(Rp 63.73 million). (cst)