Indonesia sees more foreign tourist arrivals

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)