Indonesian Political, Business & Finance News

Govt not to revise tourism target this year

| Source: JP

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.

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