Govt launches tourism plan after Oct. 12 terror attack

Govt launches tourism plan after Oct. 12 terror attack

Rendi A. Witular, The Jakarta Post, Jakarta

The government has launched a wide-ranging recovery program to
help the nation and Bali's economy cope with a likely slump in
the overall economy following the deadliest terrorist attack this
country has ever seen.

In yet another sign of how devastating the attack was, Hadi
Purnomo estimated the potential loss of tax revenue could amount
to Rp 10.8 trillion (about US$1.17 billion) in the final two plus
months this year alone.

To address the immediate impact on the tourism sector, the
program called on businesses and all local governments to
encourage domestic tourists to go to Bali or remain in Indonesia.

"I call for my countrymen to spend their holidays here in the
country to help our tourism industry recover. Please don't spend
your holiday abroad," said Coordinating Minister for the Economy
Dorodjatun Kuntjoro-Jakti during a press conference on Friday.

Senior economic ministers met on Friday for an emergency
coordination meeting to draw up a recovery plan after the Bali
terrorist strike.

More than 180 people are feared to have died after a powerful
bomb flattened a nightclub in Bali favored by foreign tourists.

The tragedy has not only devastated the bastion of Indonesia's
tourism sector, it also sapped business confidence at a time when
Indonesia is struggling to lure more investment.

Bali's annual contribution accounts for about one third of the
foreign tourism sector revenue, averaging some $5 billion a year.

Executive chairman of the Indonesian Culture and Tourism Board
Setyanto P. Santoso said foreign tourists came mainly because of
Bali. "We must revive Bali, it's the gateway to other tourist
destinations," Setyanto said in a separate press briefing. He
said around 12.6 million people had jobs -- and income -- related
to tourism.

According to him, luring more domestic tourists to Bali would,
over time, attract foreign tourists back to Indonesia.

To this end, minister Dorodjatun said the government planned
to tell state enterprises like national airline Garuda Indonesia
provide promotional packages that were both cheap and attractive.

"After we're done with the clean up efforts we'll offer a
special holiday package with discounts from travel agents, hotels
and airlines," explained Secretary General of the Ministry of
Culture and Tourism Sapta Nirwandar.

Dorodjatun also instructed state institutions not to cancel
their meetings, seminars or other activities they had planned for
Bali.

The World Tourism Organization (WTO) -- fearing a heightened
travel fear as a result of the weekend's carnage would lead to a
backlash against other tourist spots around the world -- plan to
establish a Recovery Committee during its meeting in London next
month.

A statement by Dorodjatun's office said that Indonesia would
use the meeting to urge WTO member countries to persuade their
respective governments not to issue travel advisories against
Indonesia.

Several countries have issued serious travel warnings for all
of Indonesia -- most of which, in the past, made Bali the
exception -- and are unlikely to drop them amid fresh reports of
more attacks to come.

Setyanto said the government must arrest those responsible for
the Bali bomb blasts and beef up security in and around tourist
destinations to regain tourists' confidence.

In the meantime, the ministry of tourism is expected to come
out with a more aggressive global marketing approach.

The statement said the government planned "door-to-door
roadshows" to international tourism communities foremost in Asia
and Southeast Asia where travelers make up the bulk of foreign
tourists arrivals.

To lay out the details of the recovery plan, the government is
set to meet the Indonesian tourism community on Tuesday and
Wednesday next week.

Ministers also agreed to form a team among experts from the
National Development Planning Agency (Bappenas) to assess the
impact of the Bali bombing. That assessment is expected to be
made public next week.

The government is working with foreign lenders such as the
World Bank and the International Monetary Fund (IMF) to review
the country's economic prospects post-Bali.

Finance Minister Boediono said the government planned to ask
Japan to assist in providing aid to, among others, help rebuild
Bali's damaged infrastructure after the explosion. Japan is
Indonesia's biggest bilateral creditor.