Tourism promotion budget far below target

Tourism promotion budget far below target

JAKARTA (JP): The Ministry of Tourism, Post and
Telecommunications has targeted collecting Rp 207.45 billion
(US$84.67 million) in development tax this fiscal year to finance
tourism promotion.

But minister Joop Ave told the House of Representatives
yesterday that his office had failed to meet its development tax
target for the last three years.

"We received Rp 5.92 billion from development tax in the
1994/1995 fiscal year, much less than the targeted Rp 45
billion."

"In 1995/1996, only Rp 21.61 billion was collected, still far
below the target of Rp 71.42 billion. In 1996/1997 only Rp 20.79
billion was collected, also way below the target of Rp 80.35
billion," he said.

Based on Presidential Decree No. 6/1993, the 10 most visited
provinces -- North and West Sumatra, Jakarta, West, Central and
East Java, Yogyakarta, Bali, North and South Sulawesi -- are
required to collect 10 percent tax on hotels and restaurants.

Twenty percent of the funds collected from this tax should be
passed on to the Ministry of Tourism, Post and Telecommunications
to be given to the Indonesian Tourism Promotion Board to promote
tourism.

He said development tax might reach Rp 1.08 trillion in
1997/1998.

"It's very human of the local authorities to refuse to extend
the money, though there's a regulation," Joop said.

He said he would meet with the ministers of finance and home
affairs to discuss how to collect the unpaid funds.

He turned down a suggestion from House members to abandon the
fund collection system.

The country expects between $7.2 billion and $7.8 billion from
5.3 million to 5.7 million foreign tourists this year. The
government expects tourism will be the biggest foreign exchange
earner by the end of the Seventh Five-Year Development Plan
period in 2004. (icn)