Prospects for tourism dimmed by politics
JAKARTA (JP): Foreign tourist arrivals have risen slightly since the May riots but growing uncertainty over political stability is once again overshadowing this promising trend.
The Chairman of the Inbound Tour Operators Club (ITOC), Arievaldy Kumarga, said on Thursday that prospects for businesses catering to tourists were being curtailed by lingering uncertainty over the country's political agenda.
"We want to know for certain when the general election will take place, for example. Will it be held in May? And will the government allow political parties to hold street campaigns?" Arievaldy told ^The Jakarta Post.
"These are the questions that the foreign community wants answers to, and we cannot provide them," he said.
Arievaldy said that confidence in Indonesia would not return without these issues being satisfactorily settled.
In past general elections, the three official contestants organized massive campaigns and set motorcades out on to the streets to promote their cause. Many of these highly partisan displays ended in violent confrontations with rival supporters.
Indonesia entered a period of political reform when the 32- year-long rule of former president Soeharto came to an end on May 21. His resignation came following massive demonstrations and three days of rioting across the country. Soeharto was replaced by his vice president, B.J. Habibie.
The People's Consultative Assembly (MPR) is scheduled to hold a four-day special session here starting on Nov. 10. A date for next year's general election will be set during the session.
Arievaldy said he expected the special session to precipitate a drop in the number of foreign visitors to the country, especially in the capital.
"Many people are aware of the special session and have said they do not intend to travel to Jakarta at that time," he said.
If the session passes off peacefully, visitors should return almost immediately after it is over, especially to Bali, the country's number one tourist destination, he said.
Arievaldy said inbound tour operators had suffered an average of a 30 percent to 40 percent drop in business in the January to August period of this year when compared to the same period last year.
During the August peak season, business picked up slightly, but was still considerably below levels witnessed in the same month last year.
There has been a slight increase since May, but the level of recovery has varied according to location.
Business has risen by about 30 percent in Bali, while outside the island, tourist-related business has only risen by about 10 percent since May, he said.
Tourist arrivals
Meanwhile, data from the Ministry of Tourism, Arts and Culture shows that tourist arrivals slumped year-on-year by 21.51 percent in the January to August period, falling to 2.24 million visitors.
In August 352,492 visitors entered the country through 11 points of entry, a figure which is 13.60 percent down on the same month last year.
However, the number represents a 13.55 percent increase on the number of visitors in July.
Of all points of entry into the country, the ministry said the number of tourists arriving at Jakarta's Soekarno-Hatta airport dropped by the largest amount in the first eight months of this year.
The number of arrivals at Soekarno-Hatta airport dropped by 47.12 percent in May, by 54.87 percent in June and by 47.26 percent in July on the corresponding months last year.
Foreign earnings from international visitors fell by 22.4 percent to US$2.27 billion compared to the same period of last year.
The average hotel occupancy rate between January and June was 38.08 percent, the ministry said. (das)