Revival in tourism looms after election outcome

Revival in tourism looms after election outcome

JAKARTA (JP): The election of President Abdurrahman Wahid and
Vice President Megawati Soekarnoputri has brought new hope for a
revival of the country's ailing tourism, executives of tourism
related businesses said on Monday.

Yanti Sukamdani Hardjoprakoso, the chairman of the Jakarta
chapter of the Indonesian Hotel and Restaurant Association
(PHRI), said hoteliers were pleased to find the election of the
two leaders helped calm the previously tense and chaotic
situation.

"Stability and security are the fundamental assets for good
tourism. Now that the situation has become calm, we can move on
with our business planning the future," she told The Jakarta
Post.

Mirna Basalamah, the public relations manager of Mercure Rekso
Hotel, located in the Chinatown district of Glodok, reaffirmed
Yanti's hope for the new duo, saying her hotel saw a positive
impact from the smooth election in its occupancy rate.

"Our occupancy rate rose by 15 percent since the duo were
elected (on Oct. 20 and Oct. 21), resulting in an increase in
revenue by an equivalent level. They have definitely brought a
new hope of security, especially to us who do business in
Chinatown," she said.

Yanti further said hoteliers were depending on the capability
of the new government to provide security, a conducive business
environment and to deliver a better image to the foreign public
and investors.

She said business at hotels in Jakarta dropped to their lowest
level with the average occupancy rate falling to about 25 percent
this month, compared to the average 40 percent maintained
throughout 1998 and between 45 percent and 50 percent in 1997.

"Average pretax earnings of hotels in Jakarta are about 20
percent of total revenue, worse than the 25 percent in 1998,"
Yanti said.

"Some hotels are even suffering a financial deficit," said
Yanti, whose family owns the chain of Sahid hotels.

She said hotels in Jakarta had a better average occupancy rate
of between 45 percent and 50 percent in 1997 because political
turmoil had not yet erupted.

A study jointly conducted before the election period by PHRI
and Jakarta-based consultant Horwath International predicted the
average occupancy rate of hotels in Jakarta would increase by 10
to 12 percent in 2000, given the availability of a stable
government and explicit security.

Chairman of Indonesian Inbound Tour Operators Club (ITOC),
Arievaldy Kumarga, said tourism-related businesses were counting
on President Abdurrahman and Vice President Megawati to form a
good and reliable government.

"We hope the new government will pay more attention to
tourism. Concerned ministries must collaborate better with each
other to promote tourism. The first thing they must do is to
rehabilitate Indonesia's image overseas," he said.

He said local travel agents should inform overseas colleagues
about the current positive development in the country's safety
and political conditions to help improve Indonesia's security
image.

He said travel agents expected more foreign tourists to visit
Indonesia following the current good signs of political
stability.

"We expect some increase during the end of the year due to
holidays and the celebration of the turn of the century. But we
may only see the real increase in inbound arrivals next year or
in 2001 because some people may need more time to assure
themselves that the good changes here are for real," he added.

The government predicts inbound arrivals will be about 354,150
foreigners in October, 354,500 in November and 404,530 in
December.

The government is upbeat that it will receive up to five
million foreign visitors this year, higher than the 3.5 million
it received last year. (cst)