Indonesia seen to spend $6 billion on tourism in 1997

Indonesia seen to spend $6 billion on tourism in 1997

JAKARTA (JP): The annual compounded growth of Indonesians'
personal travel and tourism spending will reach 7.7 percent over
the next decade, according to the Britain-based WTTC.

In its special reports on Indonesia, the World Travel and
Tourism Council (WTTC) said that in 1997, Indonesians' personal
spending was expected to reach Rp 15.06 trillion (around US$6
billion).

"By 2007, this total is expected to more than double in real
terms to Rp 31.67 trillion (1997 constant rupiah)," the report
said.

The report was based on research conducted in collaboration
with the WEFA Group, the Ministry of Tourism, Post and
Telecommunications, the Indonesian Hotel and Restaurant
Association, the Indonesian Travel Agent Association and PT
Rajawali Corp. of Indonesia.

WTTC defines personal travel and tourism spending as the
spending by Indonesian residents on travel and tourist products
and services. This includes spending before, during and after a
trip on travel and tourist services like flights, accommodation,
car rental and so on, as well as merchandise purchased during or
for the trip.

Travel and tourism is expected to account for 4.6 percent of
total personal spending this year, the council said.

"Over the next decade, as Indonesia's economy grows, travel
and tourism is expected to increase its share of personal
consumption to 5.2 percent by 2007."

The council added that Indonesia's relatively low level of
personal travel and tourism spending reflects Indonesians'
limited disposable incomes and thus the limited amount of
domestic and international travel undertaken by its residents.

Over the past 10 years, Indonesia's personal travel and
tourism spending has steadily grown, averaging 7.6 percent annual
compounded growth between 1988 and 1994.

"Between 1994 and 1997, annual compounded growth of Indonesian
travel and tourist personal consumption is expected to reach 7.2
percent and over the next decade (1997-2007) it is projected to
grow even faster at 7.7 percent annualized compound growth."

"This 1997-2007 rate of growth is almost twice as fast as
WTTC's estimates for the Asia-Pacific region and almost three
times as fast as estimates for global growth."

The council also reported that in 1997, the country's travel
and tourism capital investment is expected to total Rp 25.01
trillion. "Over the next decade (1997-2007), the amount is
expected to grow (in real terms) by 142 percent to Rp 60.64
trillion (1997 constant rupiah)."

Travel and tourism capital investment is spending by
individuals, companies and the public sector on travel and
tourism infrastructure and equipment in Indonesia, including
aircraft, rental cars, hotels, airport facilities, highways, and
beaches.

WTTC said that travel and tourism represents 12.8 percent of
total capital investment for 1997, and by 2007 the percentage is
expected to increase to 13.6 percent.

Based on the council's report, travel and tourism-generated
employment is expected to grow by 29.4 percent over the coming
decade, creating 1.9 million new jobs across the economy. (icn)