Tourist arrivals to hit six-year low, minister says
Fitri Wulandari, The Jakarta Post, Jakarta
The government estimates that foreign tourist arrivals will dip by 16.5 percent to 4.3 million for the 12 months of 2002 compared to 5.15 million in 2001, due to the Bali bombing on Oct. 12. The figure will be the lowest number of foreign arrivals in six years.
Foreign exchange earnings from tourism is projected to take a nose-dive from US$5.4 billion last year to $4.53 billion, according to State Minister of Culture and Tourism I Gede Ardika.
The government initially targeted tourist arrivals at 5.4 million, while foreign exchange earnings from the industry were estimated at $5.68 billion.
"It is the lowest level we've had during the economic crisis," Ardika said on the sidelines of a hearing with the House of Representatives's Commission VI for tourism, culture and education.
In 1998, when social and political conflicts erupted in many places across the country following the downfall of President Soeharto and the peak of the economic crisis, foreign tourist arrivals fell to 4.6 million, from 5.18 million a year earlier.
Based on the projection, Ardika said, tourism industry could experience negative growth of 16.56 percent this year, much lower than the contraction of 11.16 percent in 1998.
The figure cast a bleak forecast to the country's already dwindling economy as tourism is still the second largest non-oil- and-gas foreign exchange earner after textile and garment industry.
The industry contributed $5.7 billion and $5.4 billion in the country's foreign exchange earnings in 2000 and 2001 respectively.
"Tourism is one of the main drivers of our economic growth...The government will do its utmost to prevent a spiraling negative effect," Ardika stressed.
Ardika added that in order to prevent further negative effects from the tragedy, the government had carried out a three-phase policy to revive the country's tourism industry.
The first phase is called the rescue period which runs from October-December 2002. It will be followed by the rehabilitation phase from January - June 2003 and the normalization period from July to November 2003.
Programs in the three phases will put stress on improving products, marketing and promotions, as well as assessing social impacts from the tragedy.
Among activities carried out in the aftermath of the bombing was the establishment of media centers in Bali and Jakarta to provide the public with information on the tragedy.
Another was the latest purification ceremony Pemarisudha Kariphubaya in Bali, where families of victims were invited to join at the government's expense.
"Activities which put compassion as a priority have proven to be helpful in promoting the image of Indonesia abroad," Ardika said.
Ardika added that the ministry had proposed additional funds of up to Rp 100 billion (about $11.1 million) to finance the program until the rehabilitation phase was complete.
Setyanto P. Santoso, from the Culture and Tourism Development Board (BP-BUDPAR) has proposed Rp 250 billion for the board's 2003 budget, a whopping increase from this year's Rp 80 billion.
He said that the funds were needed to finance BP-BUDPAR programs in reviving the battered tourism industry.
Meanwhile, tourism expert Diyak Mulahela suggested that the government step up efforts to lure domestic tourists to spend their holidays at home rather than abroad.
"The government must ensure them that tourist destinations at home are safe. Otherwise, they will go abroad," Diyak told The Jakarta Post.
For instance, Malaysia received around 12 million foreign visitors last year, including some 800,000 Indonesians, he said.
"This kind of potential can be diverted to the domestic market," he said.