Sat, 14 Nov 1998

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)