`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.