Haze, currency woes affect tourist growth

JAKARTA (JP): Haze caused by prolonged forest fires in the country and the currency crises facing several Southeast Asian countries may hamper the growth of visitors to Indonesia, says a senior tourism executive.

Chairman of the Indonesian tourism promotion board, Wuryastuti Sunaryo, said yesterday she did not expect the number of foreign tourists this year would meet the target.

She estimated that the number of foreign tourists would only increase by 5 percent this year, much lower than 12 percent targeted by the government.

"It will be hard to reach the targeted 5.7 million visitors this year," Wuryastuti said at the Indonesian Tourism Mart and Expo which began yesterday.

She said the sluggish growth started earlier this year during the campaigning month before the general elections. Coverage of riots in the country on international television stations such as CNN triggered the decline, she said.

The board's data shows about 2.42 million foreign tourists entered the country in the first six months this year, only a 2.6 percent rise from the same period last year.

In July, the number of visitors started to increase again, she said.

But it slowed again in August when speculative currency attacks hit several countries in the region, including Malaysia, Thailand, Singapore and the Philippines and sharply decreased the value of their currencies, she said.

"Potential visitors from these countries could not spend the money on tourism because the value of their currencies had significantly plunged against the U.S. dollar," she said.

Severe forest fires in Kalimantan and Sumatra have not only affected the air quality on both islands, but also in neighboring Malaysia, Singapore and the Philippines, she said.

People were told to stay indoors because the thick haze was harmful to their health, she said.

To cope with the ongoing problems, the board would focus the tourism sector on Bali, which is unaffected by the smoke, for the rest of the year, she said.

It would also promote Indonesian tourism in countries unaffected by the currency upheaval such as Australia, Japan and Taiwan, she said.

Meanwhile, director of Pacific Asia Travel Association, Alwin Zecha, said yesterday health and safety were two issues often taken for granted in the tourism sector.

Alwin said Indonesia must be able to guarantee high standards, as there was a growing interest in ecotourism and adventure tourism.

"Forest fires can happen anywhere, even in developed countries like the United States, but if it goes on too long and worsens the quality of air it will badly affect tourism," he said.

The government predicts tourism will generate the highest revenue, replacing the oil and gas sector, by the end of the seventh five year development plan in 2004.

In 2005, Indonesian tourism is expected to attract 11 million foreign visitors and generate about US$15 billion in revenue.

But Alwin said tourism in the country must not be aimed at achieving the targets only.

"The most important thing is to have an evenly balanced optimum growth in the industry," he said.

This involves development in the private sector and infrastructure, marketing and promotion, human resources and public relations, he said.

Wuryastuti said the board's greatest task was how to promote Indonesia in the international market as compared with the more commonly known island of Bali.

"Some foreigners still ask if Indonesia is in Bali," she said.

She said the board focused its promotion in seven main markets: the United Kingdom, Germany, the United States, Japan, Australia, Taiwan, and Southeast Asian countries including Singapore and Malaysia. (das)