Indonesia sees more foreign tourist arrivals
JAKARTA (JP): More than five million foreign tourists are expected to have visited the country this year, and they should have spent about US$6.18 billion.
The Minister of Tourism, Post and Telecommunications Joop Ave said yesterday the number of foreign tourists this year was 18.4 percent higher than last year's figure.
Their expenditure was about 16.9 percent higher than last year's, he said.
"The five-millionth foreign tourist is expected to arrive later today (Monday) in Manado, North Sulawesi," he told a year- end press conference.
The government had initially projected that the number of foreign tourists would be between 4.78 million and 5.05 million, while their expenditure was projected to be between $6.57 billion and $6.94 billion.
Joop said he was confident that, because more than five million foreign tourists had arrived this year, tourism was the country's third largest foreign exchange earner.
"The amount of foreign exchange earned from the tourist sector will rank third after oil and gas exports, and the textile and garment sector," the minister said.
He said that, based on data from the Ministry of Industry and Trade, textiles and textile-related products had earned $6.73 billion.
The government expects the tourist industry will become the country's biggest foreign exchange earner by the end of the Seventh Five Year Development Plan period in 2004.
Tourism was the country's sixth largest foreign exchange earner in 1985, earning around $525 million, behind oil and gas, timber, rubber, textiles and coffee.
Last year tourism, which earned $5.2 billion from foreigners, was ranked third after oil and gas exports ($10.46 billion) and textiles ($6.2 billion).
The chief of the ministry's research and development office, Koenmiarto, said that, based on official data for 1995, a foreign tourist was estimated to spend $1,209.8 on average each visit to Indonesia, or $118.42 a day.
"The figure usually increases annually depending on the inflation rate," he said.
He said the data showed that foreign tourists spent 10.33 days in Indonesia on average, down on the previous year's 10.66-day estimate.
"This year the figure will decrease because of improved transportation, especially air transportation," he said.
Prominent economist Dorodjatun Kuntjoro-Jakti, who also attended the press conference, said tourism would get more promising.
"With about 194,000 hotel rooms nationwide, 210 domestic and overseas jets serving the archipelago, $800 million investment commitments and about Rp 700 trillion in foreign currency to be invested in Indonesia, the tourist sector looks very promising.
"Investment portfolios for tourist-related industries is also attractive with Rp 2.7 trillion in capital (invested in tourism) at the Jakarta Stock Exchange," he said.
"Just imagine if we failed to develop the tourist sector in the 1960's, what would have happened to our current account deficit."
Dorodjatun said the $6.2 billion in foreign exchange earned from tourism this year would help secure the country's balance of payments.
The rapid growth in exports, imports and tourism had also helped develop the country's telecommunications industry.
"The building construction business in Indonesia has also increased significantly because of the tourist industry. Many resorts and hotels are being developed throughout the country," he said.
Joop said yesterday the state-owned hotel management firm PT Hotel Indonesia International & Natour made a Rp 33.01 billion profit this year, up 33.64 percent on 1995. The company, which plans to cooperate with several private companies, manages seven hotels under the Hotel Indonesia International brand and 12 hotels under the Natour brand. (icn)