Tour and travel agents fix U.S. dollar rate at Rp 4,000

YOGYAKARTA (JP): The local branch of the Association of the Indonesian Tour and Travel Agents (Asita) has decided to apply a maximum rupiah rate of 4,000 against the U.S. dollar beginning in January.

Branch chairman Noegroho Soeprapto told local journalists that the rate -- which was far below the local market's rate of over Rp 5,000 per dollar -- was valid for the city's accommodation and tour-related prices.

The decision was made in response to the ongoing monetary crisis. The policy would apply only for Indonesian citizens and foreigners who held either a temporary or permanent staying permit.

Tourists who wish to receive the special price for Yogyakarta's accommodation and tour services are recommended to contact the local Asita office.

"For travel programs in particular, members of Asita's Yogyakarta branch are willing to even give a rate of Rp 3,600 per U.S. dollar for their services," he said.

Noegroho said Asita based the rate on monetary experts' calculations which concluded that the reasonable exchange rate against dollar was between Rp 3,200 and Rp 3,400.

Asita's Yogyakarta branch, therefore, recommended an exchange rate of Rp 3,600 per dollar -- 50 percent higher than last July's rate which was Rp 2,400.

"In this way, we'd like to create an image of a low, stable exchange rate in Yogyakarta," he said.

He added that the rates were aimed to boost the local tourist industry as well as restore public confidence in the rupiah.

Local hotels had agreed to support the program in a bid to attract more tourists, especially domestic ones, to Yogyakarta to increase occupancy rates.

Hotel occupancy rates have dropped significantly over the last few months in Yogyakarta. As of last September, the average rate was about 50 percent. By December, the rate had decreased to only 30 percent as the tourism industry felt the crunch of the monetary crisis aggravated by Indonesia's poor image brought about by the drought-related haze.

"The tourist industry is very vulnerable to rumors. Any negative report, no matter how untrue, could easily rock the industry," Noegroho said.

Thousands of foreign tourists canceled their reservations at local hotels following media reports about forest fires and the resulting haze covering a great part of Indonesia.

Some hotels coped by offering their rates in rupiah rather than in U.S. dollars. The three-star rated Phoenix Heritage and Puri Artha hotels, for example, have set a price of Rp 145,000 and Rp 150,000 per night respectively, including tax and breakfast. This price will be valid until March 31, 1998. (swa)