`New visa policy will kill budget tourism'

`New visa policy will kill budget tourism'

Rita A. Widiadana and Fitri Wulandari, The Jakarta Post, Nusa Dua, Bali

Tourism players called on the government on Wednesday to
reconsider the decision to revoke the free visa-on-arrival policy
to help revive the country's tourism sector.

Ian Lancaster, chairman of public relations company Michael De
Kretser Consultants (MDK) Australia, said that the government's
decision would not only hurt tourism, but also a wide range of
economic activities.

"It is not just about people who work in a restaurant or for
an airline, but also people who work in a noodle factory or a
rental car company. So, you have to see it in a broader way,"
Lancaster remarks.

He suggested that the decision would be untimely given the
present condition of the country's tourism sector which has been
declining sharply since the Oct. 12, 2002 Bali terror bombs.

"The Indonesian government might get money from the new
policy. But they will lose a lot more from the spending that
tourists do in the country," Lancaster said.

He noted that for most wealthy tourists, they would not mind
the visa charge, but the government must ensure a speedy process
for issuing visas.

"They have to make sure that it is easy and fast for them to
obtain a visa (from an embassy prior to departure). Don't make it
more difficult for foreign tourists to come here," Bachrul Hakim
of Garuda said.

The government has recently revoked the free visa-on-arrival
facility to 38 mostly developed Western countries through a
presidential decree. Major sources of tourists such as Australia,
Japan, South Korea, Australia and the Netherlands are among the
affected countries.

The government will continue to issue on-arrival visas to
tourists from those 38 affected countries, but they have to pay
between US$40 and $50 per visa.

Indonesia will also maintain its free visas for citizens from
Thailand, Malaysia, Singapore, Brunei, the Philippines, Hong
Kong, Macao, Chile, Morocco, Turkey and Peru based on the
principle of reciprocity.

Before the Bali bombing, tourism generated US$5.4 billion in
revenue, of which some 30 percent came from Bali. In 2002, the
revenue from tourism dropped to $4.3 billion. Tourist arrivals to
Indonesia dropped from 5.15 million visitors in 2001 to 5.03
million in 2002.

Bachrul Hakim, commercial director of flag-carrier Garuda said
the decision could affect inflows of tourists, especially low-
income tourists.

He noted that 1.2 million out of 2 million foreign travelers
transported by Garuda from its three main international
destinations -- Japan, Australia and Europe -- were young budget
travelers.

"They are a very selective in choosing a market... Bali or
Indonesia in general is not the only choice," he remarked.

Kee Min, the leader of South Korean delegation, agreed and
said that the policy would not affect well-off travelers.

"I don't mind paying ... it is not much money. But you have to
think of not so well-off visitors like students. It may
discourage them from coming," Kee Min said.

Kee Min is also the policy advisor to South Korea's Jeju
Provincial Government which has been selected to host the next
PATA conference.

According to Kee Min, around 200,000 Koreans visit Indonesia
annually. For South Koreans, Indonesia has yet to be as popular
as other Southeast Asian destinations such as Thailand, Malaysia
or Singapore.

Kee Min added that rigorous promotion should go on as well as
attracting more business travelers who are likely to contribute
more to the economy than the low-budget tourists.

"Indonesia's image is of a hot and disorderly place because
it's always in the news because of the terrorism, conflicts and
demonstrations. It needs to project a more positive image," he
suggested.