Indonesian tourist tax will 'discourage' Australians

Indonesian tourist tax will 'discourage' Australians

PERTH, Australia (AFP): Plans reportedly being made by
Indonesia to charge Australians an entry tax would discourage
them and cost Jakarta valuable tourist income, Australian Foreign
Minister Alexander Downer said here Friday.

Downer was responding to a report on the Indonesian on-line
news service Kompas that Indonesia was considering charging
Australian tourists an entry fee to raise foreign revenue for its
ailing economy.

Kompas quoted Indonesian Justice Minister Yusril Ihza Mahendra
as saying Indonesia could earn A$578 million (US$300 million) if
it charged A$96 per tourist.

Indonesia attracts thousands of Australian holidaymakers each
year, with the vast majority going to the island of Bali.

Downer said tourist numbers were only just starting to build
up to former levels in Indonesia after last year's East Timor
crisis, and that an entry tax would simply send people elsewhere.

"If Indonesia introduces a tax, they will be cutting off their
nose to spite their face," Downer said.

"The fact is, if they introduce a new tax, fewer Australians
will go to Bali. If they whack a tax on, people will go to Phuket
in Thailand or they'll go to Malaysia or they'll go ... to the
South Pacific and so on.

"So I would say: Not a wise idea on Indonesia's part if they
want to encourage Australian tourists to go there and spend
Australian dollars -- and Australian dollars are quite valuable
compared to the rupiah."

Downer said the Australian government would encourage
Indonesia not to implement any new entry tax.