Political doubts threaten tourism

JAKARTA (JP): Indonesia might have to reduce its 1998 tourist revenue target of US$5.75 billion if domestic political conflict continues, Director General of Tourism Andi Mappisameng said yesterday.

He said the government had targeted foreign tourist arrivals for the year at 4.6 million, or a 10 percent decline from the 1997 level.

"But it has already dropped more than 18 percent as of the end of May," he told reporters at a media conference.

He pointed to domestic political uncertainty as a significant factor discouraging foreign tourists from visiting the country.

"The country's political leaders need to restrain themselves. We have to think of the people's suffering," he said.

Andi explained that tourist arrivals had dropped since early this year prior to the meeting of the People's Consultative Assembly (MPR) in March, which created a jittery environment for the tourist industry.

"Vacationing tourists don't like shocks and uneasiness," he said.

The country's domestic political temperature continued to rise after the MPR held its presidential and vice presidential election. Increased tensions resulted in the deaths of student demonstrators, widespread bloody riots and the resignation of then president Soeharto on May 21.

The economic crisis has further deepened the political crisis, with ongoing demonstrations threatening to undermine President B.J. Habibie's leadership.

"The May 14 riots were really damaging," Andi said.

He said that in addition to politics, Indonesia's tourist industry had been badly hit by several misfortunes plaguing the country since 1997, including major forest fires and several airplane crashes.

The government earlier projected overseas tourist arrivals this year to total between 5.6 million and 6.5 million, but the country's calamities have forced the target to be revised to 4.6 million, or a 10 percent decline from 5.1 million in 1997, he explained.

Although the overall picture looks grim, several positive signs have started to appear, he said.

Jakarta's hotel occupancy rates rose to 30 percent in June compared to a less than 10 percent rate in May. Bali's hotel occupancy has likewise increased to 40 percent.

Andi expected tourist arrivals to significantly improve in the second half of the year if political tension subsided.

He explained that a tense political atmosphere would make it difficult for the country to attract tourists.

"We're now targeting backpackers," he said, pointing to young tourists with limited budgets.

He said backpackers directly benefited small businesses because they sought out low-cost facilities, including small hotels, restaurants and public transportation.

He added that backpackers were the best promotional tools to spread the news that Indonesia's political climate had improved.

"Foreigners will trust backpackers more than explanations from our military."

Andi explained that although the average backpacker budget was only US$25 per person per day, they often stayed for months in a country.

The average vacationing tourist only stays for three days and spends about $1,238, he added.

He also said Indonesia would try to lure potential tourists from China.

"Six million Chinese visit various countries each year. We want to tap into that market," he said.

He said Indonesia's Southeast Asian neighbors had enjoyed strong tourist arrivals from China, with Malaysia citing an average of 300,000 Chinese tourists per year, Singapore an average of 350,000 per year and Thailand about 400,000 per year.

"It would be quite an achievement if we could increase Chinese tourist arrivals 10 percent per year," he said, adding that only less than 12,000 tourists from China visited Indonesia last year.

He argued that China had a larger tourist potential than individual European countries.

Indonesia is suffering from its worst economic crisis in 30 years and has been trying to secure as much foreign exchange revenue as possible. (rei)