Richard Gere or 'pretty woman'?

By Grace Emilia

JAKARTA (JP): Should a tourism destination be a lady and the tourists prince charming, which one comes first?

The lady is already very beautiful and attractive so the prince falls for her, or the lady is just plain and ordinary, but since the handsome prince is very gallant like Richard Gere, he manages to induce a transformation in her character and appearance like that experienced by Julia Roberts in "Pretty Woman"?

The above illustration can raise unending debate. It's like deciding which one comes first, the chicken or the egg. This is also the case when we talk about accessibility in Indonesia.

Foreign tour operators say they can sell a tourism destination in Indonesia, but do not have enough seats to bring their tourists here. Airlines will then argue that airport infrastructure is a problem especially since the runaways are often too short.

"We are using Boeing 767 or Airbus A320 while your airport's runaway is just large enough to accommodate a Fokker 28 or at the most a Boeing 757," says an airline staffer.

The government responds by saying that in some places the airports have actually been made ready. The problem is caused more by the lack of tourist attractions and promotion of a destination.

"Such as in Biak in Papua, there is a ready airport there. We invite airlines to come there, but almost none are interested," Soenaryo, director general of air transportation, said once.

Like it or not, this business is very complex indeed. But it is a fact that in some provinces, the local governments do not have enough budget to develop their airports, whilst their regions actually do have tourism potential.

Only few airports like the Sam Ratulangi Airport in Manado are that lucky. It was recently revamped with the help of a US$20.6 million loan from the Asian Development Bank plus a national budget of Rp 114 billion. This move was a result of complaints from the Manado's tourism sector that inadequate airport facilities had been hampering their business.

Jeremy Barnes, chairman of PATA (Pacific Asia Travel Association) North Sulawesi chapter says that the new facility increased annual passenger movement capacity to 861,000 from the previous 285,000. The runaway has been extended from 2,500 to 2,650 meters plus two aero-bridges will be installed later this year. The number of aircraft handled by the airport has reportedly increased from seven to 10 per hour.

How about the others?

While Indonesia still has a huge debt to foreign creditors, foreign loans do not seem to be the answer. Also to wait for tourists to come does not seem to be very wise, especially when neighboring countries are very aggressive in their promotion campaigns (with huge promotional budgets compared to Indonesia).

Even Hong Kong SAR, whose number of inbound visitors is already second in the Asia Pacific region next to China (PRC), is still trying to make various schemes and incentives to attract people and airlines to come.

Last year for example, the Hong Kong Airport Authority sliced 15 percent off landing and parking charges. Previously, it cost HK$44,200 to land a B747-400 and park it for four hours. Now it costs about HK$39,200 only, placing it on a par with Singapore's Changi airport.

To achieve competitiveness, airport privatization may be one solution to improve the quality of Indonesian airports.

Take the case of Vancouver International Airport in British Columbia province, Canada.

The Canadian government privatized its airport in July 1992 in a 60-year ground lease from Transport Canada to the Vancouver International Airport Authority (YVRAA) which is an independent non-profit company consisting of members of the Canadian business community.

As a non-profit corporation, the airport authority has no shareholders. Should the airport authority ever dissolve, its assets would be transferred to the Federal Ministry of Transport on behalf of the people of Canada. The annual rent is paid to the Federal Government which includes both base rent and a percentage of gross revenue earned by the airport authority.

Since then, the airport has soared to become one of British Columbia's most powerful economic engines, accounting for more than 26,000 direct jobs and $5.2 billion in annual economic impact.

The passenger traffic has also increased 61% from 9.94 million passengers, whilst air cargo increased 74% from 144,000 tons of air cargo. "We pay an annual leasing fee of C$65 million to the Federal Government." says YVR manager for aviation marketing, Janice Antonson.

Larry Berg, the president and CEO of the YVR also noted that the airport authority itself only accounts for 284 employees. The rest of the 26,000 people whose work is generated by the airport include direct employment generated at the airport itself, indirect jobs from airport suppliers and other industries such as tourism, logging and international consulting which rely on airline services.

They have induced more employment as these employees spend their wages in the community. Berg noted that 53% of airport jobs were with airlines. Every one million new passengers also means 1,200 new jobs which annually generates $1 billion in wages.

In line with the airport's growth, leisure tourism is also growing, especially the cruise and ski market which according to Antonson, contributed extensively to the increase in airport passengers.

To improve cost competitiveness, the provincial government lowered significantly the aviation fuel taxes and the airport authority was committed to holding the line on landing and other fees.

New visa and transit regulations were also introduced, to support the role of YVR as a gateway from Asia to the Americas, and from Europe to the West Coast of North America and the central Pacific islands.

Small things matter

Should such forms of airport privatization be still too far ahead, probably it is time for airports in Indonesia to pay heed first to small but important matters.

Rudiana, sales & marketing director of Wita Tour, also a board member of ASITA (Association of the Indonesian Tours & Travel Agencies) say that "please pay attention on micro issues such as the availability of clean toilets in the airport, also clear signage and a tourist information counter and brochures which often are not available in our airports."

Meanwhile, a Bali-based inbound tour director complained that recently, the tourists who arrived at Ngurah Rai airport had to walk to the parking lot to reach their transportation.

"They say it is to make the situation in the airport more orderly. What would happen if it was raining?" she asked, obviously in a dilemma about how to increase competitiveness in providing quality service.

Also there should be a good management of the transportation system at international airports like Soekarno Hatta.

"I feel disturbed by the way taxi drivers at the airport push me to take their cabs. Since I'm a Jakarta resident, I know where to go and what to take.

But I pity those foreigners or tourists who land at the airport for the first time and do not know the situation here." says Natalia, a Jakarta-based executive.

Is there any practical and sensible solution to all these problems?