Domestic routes open to foreign airlines

JAKARTA (JP): President B.J. Habibie said on Thursday the government would allow international carriers to enter all parts of the country in a bid to boost the ailing tourist industry.

"I, as president, have decided to allow every foreign airline to fly visitors from their home bases to any destination in Indonesia," Habibie said at the opening of the Indonesian Travel Mart here.

The President said the move was important to help the battered tourist industry. He did not elaborate further but managed to draw applause from the audience comprising members of the domestic and international tourist industries.

Currently only 23 out of Indonesia's dozens of airports are open to certain international carriers.

Foreign airlines only use some of the 23 airports, including ones in Jakarta, Denpasar (Bali), Surabaya (East Java), Batam (Riau), Medan (North Sumatra), Palembang (South Sumatra), Padang (West Sumatra), Ujungpandang (South Sulawesi), Manado (North Sulawesi), Balikpapan (East Kalimantan) and Pontianak (West Kalimantan).

Even these airports are limited to certain airlines in a bid to protect the national flag carrier, Garuda Indonesia.

Many foreign airlines have been complaining about not being able to fly directly to Bali, the country's number one tourist destination.

Local tourism-related businesses have claimed that opening more domestic routes to international carriers would help boost visitor arrivals which have dropped significantly.

Habibie also said during his 20-minute off-the-cuff speech that the government would exempt tourist promotions from taxes.

The Indonesian Hotel and Restaurant Association has called on the government to cut levies and taxes imposed on tourism promotion, research and development activities.

Habibie said Indonesia was currently suffering a negative image because of unfavorable exposure in foreign media since the massive riots in May. This had resulting in a drastic drop in income for tourist-related businesses.

"There are perceptions in the international community that the situation in Indonesia is not very safe. As a result many potential visitors have changed their minds (about coming)," he said.

Habibie called on the visitors to the mart, who include foreign buyers and journalists, to spread the "accurate" picture of Indonesia abroad.

"Indonesians are friendly and peace-loving people. Our situation is very different from that portrayed by foreign media which describe us as an uncivilized nation without humanitarian values," he said.

The fifth annual Indonesian Travel Mart, which ends on Saturday, is being held in the midst of economic and political turmoil in the country and in the aftermath of the damaging May riots which led to the resignation of president Soeharto.

Although the violence has subsided, protests by students and other groups often disrupts traffic and has sparked fears of further unrest. Food shortages have also sparked riots in several isolated places outside the capital.

The chairwoman of the travel mart committee, Wuryastuti Sunario, admitted that preparations for this year's event had been more difficult than all the previous years.

"Consumers and tour operators all over the world had been concerned for their safety when touring Indonesia... many operators do not dare to take any risks with their clients' safety," she said.

The travel mart has attracted 137 buyers from 28 countries, and 25 foreign journalists. One hundred and thirty companies from 19 provinces in Indonesia are occupying 127 booths at the five- day event.

Wuryastuti said the committee received sponsorship worth Rp 5.4 billion from the industry members in the form of cash, airline tickets, hotel rooms, social functions and other freebies.

The tourist industry is conducting the travel mart as the third phase of its "Let's Go Indonesia" campaign, which consists of public-relations and marketing gimmicks.

The current offer of cheap tour and hotel accommodation packages dubbed "The Magic Month", ends this month. (das)