Sports must be viewed as revenue potential, says minister

Youth and Sports Minister Erick Thohir has stated that sports development in the country needs to be viewed with a new paradigm, namely as a potential source of revenue for the state. “We have natural resources and industrialisation, but many overlook sport tourism as a potential source of revenue,” Erick Thohir said in an official statement in Jakarta on Thursday. He explained that sports have long been perceived as a cost or a burden. In reality, sports should now be seen as an opportunity for profit, revenue potential, and national image building. The minister cited sport tourism as a component of the tourism sector. Globally, sport tourism contributes revenue of up to Rp9,800 trillion with an annual growth rate of around eight per cent. He noted that Indonesia is currently striving to boost its national economic growth to eight per cent, meaning the sport tourism component must become part of overall economic growth. For this reason, his ministry continues to encourage the organisation of national and international-scale sporting events, as they can spur growth in other sectors, particularly the economy. He pointed to marathon events in Indonesia, where 104 events have attracted a total of up to 10.4 million runners. The staging of running events, he said, is a concrete example of how sport tourism can impact other sectors, especially as these events are often held on weekends. Cities that were not previously tourist destinations have recorded increased visitor numbers, with hotels becoming fully booked. He cited a running event in Bandung with up to 20,000 registered participants, and another in Mandalika, West Nusa Tenggara, with up to 10,000 registrants. “The runners must find places to stay and meet their food and beverage needs, which will have an impact on economic turnover at the event location,” he said. Beyond marathon running, other sports such as surfing can also be promoted as sport tourism with the potential to become a source of revenue. “So this is the paradigm that we at the Ministry of Youth and Sports are now trying to align with the mindset of all stakeholders,” he said.