Tourist numbers to dip amid scary media reports: Govt

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)