Thu, 31 Dec 1998

Tourism could start turnaround in 1999

JAKARTA (JP): The Indonesian tourist industry is expected to see signs of recovery in 1999 after a major setback this year, a senior official at the Ministry of Tourism, Arts and Culture said on Wednesday.

Director General of Tourism I Gde Ardhika said that although the number of foreign tourist arrivals would be around the same level as this year, signs of recovery would be seen in most of the country's tourist-related sectors.

"Although it is very hard to predict due to the country's uncertain condition, we expect no further declines in the number of foreign tourist arrivals, and we may begin to see positive growth next year," Ardhika said at the ministry's year-end media briefing.

"If the situation continues to be favorable next year, and with effective promotion, we expect that we could see four million visitors."

Ardhika did not, however, reveal the foreign exchange earnings target from tourism next year.

He said that foreign tourist arrivals in Indonesia through 11 main ports of entry only totaled 2.9 million during the period of January to October, while foreign revenues from international visitors fell to US$2.9 billion during this period, drops of 18.6 percent and 19.5 percent respectively compared to the same period last year.

Based on these numbers, it is estimated that the number of foreign tourist arrivals will reach about 3.5 million by the end of December, a 30 percent drop compared to last year's figure of 5 million visitors.

The government earlier predicted that the number of foreign tourists visiting the country could reach 4.8 millions for the year.

The drop in arrivals was attributed to reports of widespread riots in the country, which peaked in May when hundreds of shopping centers, banks and other properties were burned. The deadly riots, which left hundreds of people dead, forced former president Soeharto to resign after 32 years in power.

Political tensions in the country's major cities following the May riots also discouraged foreign tourists from visiting Indonesia.

In 1997, the number of foreign tourist arrivals was 5.04 million, below the targeted 5.3 million. However, this figure matched 1996's foreign tourist arrivals.

Foreign exchange receipts from the tourist industry in 1997 were $6.62 billion, about $1 billion below the original target.

Ardhika said that the increase in the number of foreign visitors is expected to come from Indonesia's traditional tourist markets; Japan, the United Kingdom, Germany, the Netherlands, France, Australia and the United States.

"We will focus our promotion efforts on these seven traditional markets, and we hope that Japan is not experiencing a downturn in its economy," he said.

He said that in the past several years, 60 percent of foreign tourists visiting Indonesia came from Asian countries, while the remaining came from Europe, the United States, Canada, Australia and New Zealand.

"But these Asian markets do not have as much potential anymore because of the economic crisis in Asia," he said.

However, he said that the stirrings of economic recovery in several Asian countries would help Indonesia increase its number of foreign visitors.

Minister of Tourism, Arts and Culture Marzuki Usman said that his ministry would also try to expand the tourism market into China and Middle Eastern countries.

"I'm very optimistic about the growth of the tourism industry. In 1999, the economies of the U.S. and European countries will continue to grow, while Japan's economy will recover. Also, Chinese tourists have sharply increased this year, and Middle Eastern tourists are not afraid of the situation here because they have become accustomed to tense situations," he said.

Speaking at the media briefing, Marzuki said that his ministry would also invite tour operators and foreign travel writers to visit Indonesia in January.

"We will also use TV coverage to counter negative reports by the foreign media which have severely tarnished the country's image and prompted many tourists to cancel their trips here," he said.

He added that the ministry had cooperated with Indonesian embassies and overseas student organizations to help improve the image of Indonesia.

Meanwhile, Ardhika predicted that foreign tourist arrivals would return to the precrisis level of over five million visitors in 2003. (gis)