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.