Indonesian visitor arrivals down 21 percent last year

Indonesian visitor arrivals down 21 percent last year

SINGAPORE (Agencies): Visitor arrivals to impoverished
Indonesia fell 21 percent last year in the midst of economic and
political crisis, and the government is trying to rescue a
tourism industry that used to provide one out of every 12.6 jobs,
the country's tourism director said Friday.

"According to our projections, it will be 2003 when we hope to
see any expansion from the level we had reached in 1997," I Gede
Ardika told journalists at the Association of Southeast Asian
Nations Tourism Forum.

He said government's recovery program includes welfare for
people who earned money making handicrafts and making their homes
available for paying guests. These are among the worst hit by the
economic downturn and decline in tourism that is Indonesia's
third biggest foreign currency earner, after oil and gas.

Earnings from tourism fell from $6.2 billion in 1996 to $5.4
billion in 1997 and $4.7 billion in 1998, he said.

The market also changed. In 1997, the Asia Pacific supplied 70
percent of Indonesia's visitors, but in 1998, that was
drastically reduced because many countries in the region have
also been hit by financial crisis.

He did not have complete figures for 1998. But as an example,
Ardika said that hotel occupancies in Bali, the country's top
tourist destination and a region free of violence, fell to 53.7
percent of capacity for the period January through October 1998.

International flight frequencies to Indonesia dropped by 29.41
percent, from 711 per week in 1997 to 540 per week last year.
Seat capacity declined 40.44 percent to 162,762 for 1998.

Before the crisis, Indonesia had been enjoying double digit
growth in visitor arrivals and other tourism measurements, he
said.

SIA assistance

In a related development, Singapore Airlines Ltd. (SIA) said
Friday it will help boost tourism in Indonesia by sponsoring air
tickets for key overseas tour operators, travel writers and
members of Indonesia's tourism sector.

"Competition from other tourist destinations has been
increasing dramatically, especially during the present economic
crisis. Indonesia, together with Singapore, will benefit from
this cooperation," said SIA executive vice-president Michael Tan.

SIA's support to Indonesian tourism is valued at one million
Singapore dollars (US$593,471), the airline said in a statement.
SIA's regional unit, SilkAir, is also involved.

"We want plan to play our part and intensify our efforts to
promote Indonesia tourism especially during the present economic
crisis. Indonesia, together with Singapore, will benefit from
this cooperation," Tan said, adding that the support is timely,
given the current economic downturn in East Asia.

SIA is currently helping to promote Indonesia tourism at the
ASEAN Tourism Fair (ATF), which is being held in Singapore from
Jan. 25 to 31.

SIA is providing Indonesian tour operators and hoteliers with
specially discounted tickets and extra baggage allowance for
publicity materials to strengthen the presence of Indonesian
tourism at the event.

In connection with ATF, SIA has also offered special fares to
Indonesia to 30 major buyers from Europe, the United States, the
Middle East and Japan.

SIA, over the next 12 months, will also provide similar
support at other key travel and tourism fairs and conventions,
such as Pacific-Asia Travel Association (PATA) Travel Mart, to be
held in Singapore on April 22 to 25, and the renowned
Internationale Tourism Bourse, to be held on March 6 to 10 in
Berlin.

SIA will fly an Indonesian cultural troupe to perform at
Berlin Fair.

In addition SIA will sponsor the air travel of more than 100
key tour operators and travel writers to visit Indonesia for
tourism and familiarity visits. These visits is expected to
reasserts Indonesia's attractiveness as a tourism and to counter
negative reports which have tarnished Indonesia's image.

SIA's plans come immediately after the recent launch of SIA's
"Bali Spectacular" holiday package in several new markets in
Europe, the United States and Asia.

SIA invested another S$1 million in the holiday package, in
the form of advertising and promotions, as well as media and
travel agents educational trips to Bali. (gis)