Tourist numbers to dip amid scary media reports: Govt

JAKARTA (JP): The government projected yesterday the country's foreign tourist arrivals may fall 5 percent this year over 1997's number due to the battery of negative foreign media reports.

Minister of Tourism, Arts and Culture Marzuki Usman said the decline -- from 5.2 million to 4.9 million -- would result in an 8 percent drop in foreign exchange revenues from the tourism sector this year to US$4.97 billion from $6.6 billion in 1997.

He said negative overseas reports on Indonesia's political and social situation were to blame.

"People are afraid to come to Indonesia now, and many airlines have reduced their flight frequency to here due to the negative reports on Indonesia," Marzuki said in a hearing with the House of Representatives Commission IV for public works, transportation, communications and public housing.

To many tourist analysts, Marzuki's estimate may appear overly optimistic, considering that foreign tourists are still apprehensive about visiting Indonesia because of perceived political instability. Their major worry appears to be that the antigovernment protests held almost daily in the country's major cities could descend into violence.

The chairman of the Indonesian Tourism Promotion Board (BPPI), Pontjo Sutowo, said earlier political instability remained the biggest worry for tourists considering a visit to the country.

The board predicted tourist arrivals might drop by 50 percent over last year's figure if the current political and social situation persists.

Marzuki said the country needed to patch up its tarnished image before it could promote tourism again.

"Our top priority is to restore our image as one of the most beautiful places to visit and this effort will need a lot of promotion," he said.

Meanwhile, DPA news agency reported that Indonesia's weakening currency appears to have greatly increased its drawing power as one of the most popular tourist destinations in Southeast Asia last year.

The report said tourist arrivals from Singapore -- a popular jumping-off point to the Indonesian archipelago -- quadrupled last year over 1996.

Some five million air and sea trips were made from Singapore to Indonesia in 1997, compared with 1.3 million a year earlier.

The figures include Singaporeans, along with expatriates and tourists traveling through the region. With the huge increase, Indonesia has nudged Malaysia out of its longtime position in first place for visitor arrivals from Singapore.

After Indonesia, Malaysia was the second most popular destination, with 3.5 million visits. Thailand came in third, with 492,000 visits.

Marzuki also stated yesterday that the government would not abolish the government-sponsored BPPI because it was still needed to promote Indonesian tourism.

The board, designated to handle tourist promotional activities, is burdened with about $21.5 million in debts. Tourist associations and several provinces have urged the government to dissolve the board, claiming it has been ineffective in raising their profile.

Marzuki said that his ministry was auditing BPPI's unpaid debts and planned to pay them if the funds were determined to have been used for Indonesia tourist promotion activities.

Also at the hearing, Director General of Tourism Andi Mappisammeng said the ministry was trying to cut levies on the hotel industry.

"We will eliminate some levies and charges, which have been responsible for high costs in the industry. The move will also help the ailing hotel industry," he told reporters after the hearing.

Hotels are burdened with high costs for facilities and levies such as property taxes, plus several levies imposed by the local administrations. They have contributed to make them less competitive than hotels in other countries. (gis)