Tue, 06 May 2003

Govt not to revise tourism target this year

Febiola Desy Unidjaja, The Jakarta Post, Jakarta

State Minister of Culture and Tourism I Gede Ardika said on Monday that the government would not reduce its revenue target from tourism this year, despite uncertainties plaguing the industry due to SARS, the recent Iraq war and fears of terrorism.

Ardika said that maintaining the target would motivate both the government and industry players to work harder.

"It (the target) will motivate us to do more to meet it."

Last year the country received US$5.1 billion from tourism, down from the target of $5.4 billion, due to the terrorist attack in Bali that killed more than 200 people, mostly foreign tourists.

The number of foreign visitors dropped to 5.03 million from 5.15 million in 2001.

The government has set modest targets of $4.5 billion to $4.8 billion in revenue and 3.9 million to 4.8 million foreign visitors for this year.

Figures from the Central Bureau of Statistics (BPS) show the number of foreign visitors at 13 entry points dropped 0.46 percent or 288,417 people in March compared to 289,764 people the previous month.

While the war in Iraq has had little impact on the country's tourism, Severe Acute Respiratory Syndrome (SARS) has had a serious impact and has slowed the sector's recovery.

Ardika said hotel occupancy had dropped 15 percent to 20 percent since the outbreak.

BPS statistics show that in February, average hotel occupancy rates in the 10 main tourist destinations were hovering at 36 percent, compared to 40.22 percent in January.

"It (the decline) occurred because the SARS infected countries are the origin of tourists and the transit point for those wishing to come to Indonesia," Ardika said.

Severe Acute Respiratory Syndrome has killed 436 people so far, with most of them in mainland China and in Hong Kong. About 6,500 have been infected and cases are soaring everyday, causing many to avoid travel.

The minister said tourism in Bali had shown positive signs of recovery.

"In January and February, there was positive growth. The target of 2,000 visitors per day was surpassed with 2,400 foreign visitor per day," the minister said.

The minister said that during the peak season in June and December, the island could attract 3,000 and 5,000 foreign visitors per day respectively.

Before the Bali bombing, the island contributed 35 percent of the country's tourism revenue, receiving 5,000 foreign visitors a day.