Entrepreneur Suggests Indonesia Could See Surge in Foreign Tourists Due to Weakening Rupiah

The weakening of the rupiah exchange rate against several foreign currencies is seen as a potential advantage for Indonesia’s tourism sector. This condition makes the cost of travelling in Indonesia relatively cheaper for international tourists.

The Secretary General of the Indonesian Hotel and Restaurant Association (PHRI), Maulana Yusran, stated that the impact of the strengthening of foreign currencies against the rupiah should be viewed from various perspectives. One of these is the opportunity to increase tourist visits from neighbouring countries.

“We must analyse this issue. From the perspective of international tourists, the pressured condition of the rupiah certainly makes their purchasing power stronger when they are in Indonesia,” Maulana told CNBC Indonesia on Tuesday.

Tourists from countries with stronger currencies tend to gain more benefit when making expenditures during their holidays in Indonesia. This has the potential to drive an increase in tourism activities.

In addition to exchange rate factors, international travel trends are also influenced by the rising costs of long-distance travel. This condition leads tourists to prefer destinations located closer to their home countries.

“Those who might benefit are tourists from nearby countries such as Singapore, Malaysia, and other ASEAN nations. They can choose Indonesia as a travel destination because it is closer,” he said.

Indonesia is considered to have the opportunity to attract regional tourists who previously considered travelling to more distant destinations. With more competitive costs, the domestic tourism sector has the potential to gain additional market share.

“In terms of spending, it is certainly beneficial. They hold stronger currencies, so their expenditure in Indonesia becomes larger than before,” said Maulana.

However, he cautioned that these advantages may not immediately be reflected in increased hotel occupancy rates. There are several other factors that influence the distribution of tourists on the ground.

One such factor is the existence of unofficial accommodation, which has long been a concern for tourism industry players. Arriving tourists do not necessarily all stay in formal hotels.

“There could be an impact on hotel occupancy if tourist numbers increase. However, we must also look at the issue of illegal accommodation, which remains a problem in various tourist destinations,” Maulana noted.