Tourist arrivals seen dropping 50%
JAKARTA (JP): The Indonesian Tourism Promotion Board (BPPI) predicts tourist arrivals may drop 50 percent from the 5.2 million visitors reported in 1997 if the current political and social situation persists.
The board's new chairman Pontjo Sutowo said yesterday that political instability remained the biggest worry for tourists considering a visit to the country.
"Many tours, including some for much later this year, have been canceled because people are still not confident about security here," Pontjo said in a written report for the House of Representatives.
Occupancy rates in Jakarta's four and five-star hotels has sunk to an average of around 10 percent, way below the point at which they break even, he said, adding that many conferences and conventions had also been canceled.
Even in Bali, the country's most popular tourist destination, occupancy rates did not currently exceed 30 percent, he said.
The board said Bali would lose about 10,000 tourists every month over the next several months.
The number of tourists dropped by 16.1 percent between Jan. and Apr. on figures for the same period last year, the board said without quoting a specific number.
Riots from May 14 to 17 caused a further drastic slump, the report said.
The directorate general of tourism in the Ministry of Tourism, Arts and Culture showed that the number of incoming tourists had fallen by 12.1 percent in January and February.
The Association of Indonesian Tours and Travel Agencies (Asita) reported yesterday that tour operators' incomes had fallen by between 50 percent and 80 percent, except for those in Bali and Yogyakarta, who had on average suffered a 30 percent decrease.
The Indonesian Hotel and Restaurant Association said yesterday that foreign exchange revenues from tourism had dropped by 40 percent this year.
Last year, revenues generated through tourism reached US$6.6 billion.
Pontjo said that it would be difficult for the tourism sector in the country to benefit from the 80 percent depreciation in the value of the rupiah against the dollar while industry operators continue to quote prices in U.S. dollars.
Operators in other countries such as Malaysia and Thailand offered comparatively cheaper prices because they were willing to charge in their own national currencies, he said.
Tourism in Indonesia had been further damaged by the political crisis which has received extremely adverse publicity around the world, he said.
"When a country officially warns their nationals not to visit Indonesia then insurance companies will not issue cover for any such trips," he said.
Tourism here has been rocked by blow after blow since last year, when severe forest fires caused a choking smog to spread across large areas of the country.
The Southeast Asian monetary crisis and its attendant woes then caused tourist numbers from neighboring countries, the largest single group of visitors to Indonesia, to drop sharply. (das)