Indonesian Political, Business & Finance News

Govt to fund tourism board

| Source: JP

Govt to fund tourism board

JAKARTA (JP): Minister of Tourism, Art and Culture Marzuki
Usman said yesterday that the government would increase its
budget for tourism promotion next fiscal year, by giving
additional funds to finance the Indonesia Tourism Promotion
Board's (BPPI) activities.

"I urge BPPI to send its proposal and working plan to be
discussed further by the ministry of finance and the Bappenas
(National Development Planning Board) as soon as possible,"
Marzuki said.

He declined to reveal the amount but said that it would not be
taken from the Rp 9 billion (US$1.2 million) fund for the
country's tourism recovery plan allocated for the current fiscal
year.

BPPI, designated to handle tourist promotional activities, is
burdened with debts of about $21.5 million. Tourist associations
and several provinces have urged the government to dissolve the
board, claiming it has been ineffective in raising their profile.

Previously, the funds used to finance BPPI activities were
raised through 20 percent tax imposed on the country's hotels and
restaurants.

But Marzuki said it would be very hard to raise the funds
because the country's tourism industry was suffering from a
decline in the number of tourist arrivals. (gis)

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