Indonesian Political, Business & Finance News

Tourist sector sees signs of recovery

| Source: JP

Tourist sector sees signs of recovery

JAKARTA (JP): The new government is expected to rejuvenate the
country's tourist industry after a number of years of downturn.

Abdurrahman Wahid and Megawati Soekarnoputri were elected last
month as Indonesia's president and vice president, respectively,
in the country's first democratic electoral process in decades.

The 59 year old Abdurrahman, popularly known as Gus Dur, is an
internationally acclaimed moderate Muslim leader. The 52-year-old
Megawati, who is also the daughter of Indonesia's first
president, Sukarno, had been widely expected to secure the
presidency following her PDI Perjuangan's victory in the general
election.

This duet, widely expected to bring new life to the nation,
has also conveyed new hopes for a revival of the country's
deflated tourist industry.

The Indonesian tourist industry is expected to see signs of
recovery this year following a major setback in recent years,
with signs of recovery to be seen in most of the country's
tourist-related sectors.

Yet, safety remains the main key in tourism. If the situation
continues to be favorable, and with effective promotion, the
government expects to see up to four million international
visitors.

An executive of Banten West Java Tourism Development
Corporation, Chris J. Gorrill, agreed that safety was a must in
the tourist industry.

"Safety is urgent. This includes political and social
stability," he said, adding that stability and security were the
essential assets for good tourism.

"Now that the situation has become calm, with confidence and
optimism, we're relaunching our product and service in a good
time," he said.

Tourist-related businesspeople were depending on the
capability of the new government to provide security, a conducive
business environment and to deliver a better image.

Gorrill said that in addition to safety, anyone developing
tourist services must also have a good concept and access.

"No one will come to a destination with poor concepts and
access," he said.

Banten West Java Tourism Development Corporation is a private
company holding a license to develop a 1,500-hectare Tanjung
Lesung tourist resort. Tanjung Lesung is a natural peninsula
bordering Sunda Strait. The area surrounding Tanjung Lesung is
notable for such outstanding attractions as the legendary
Krakatau volcano and Ujung Kulon National Park in Pandeglang.

Banten, approximately 85 km west of Jakarta, is predicted to
become a thriving tourism region, just like the country's popular
island of Bali, currently Indonesia's major tourist sphere. Only
three hours by car from Jakarta, the Banten region offers idyllic
beaches ideal for swimming, snorkeling, fishing, water-skiing and
sailing.

"Tanjung Lesung is rather special. It is located on a tip, and
it's the only one in the Banten area. So it's difficult to copy,"
Gorrill said.

The company is developing the Tanjung Lesung Resort Hotel and
Kalicaa Private Estate. The four-star Tanjung Lesung Resort
Hotel, which is operated by Accor, is also equipped with a Spa
run by Martha Tilaar.

Gorill said that his company was about to launch ocean-view
villas, available for private ownership.

"Our target market is the people looking for investment and
lifestyle. Potential buyers are 95 percent local, particularly
Jakartans looking for second homes after retirement or
semiretirement."

He said that expatriates living in Indonesia were also
encouraged to purchase.

The new government could set new regulations on land title to
encourage more property purchasing by expatriates, particularly
for the sake of the tourist industry, he said.

Foreign tourist arrivals in Indonesia totaled 3.5 million last
year, a 30 percent drop compared to 5 million in 1997.

The drop in arrivals was attributed to reports of widespread
riots in the country, which peaked in May 1998, when hundreds of
shopping centers, banks and other properties were burned in mass
riots. The riots, which left hundreds of people dead, forced
former president Soeharto to resign after 32 years in power.

Political tensions in the country's major cities following the
May riots also discouraged foreign tourists from visiting
Indonesia.

In 1997, the number of foreign tourist arrivals was 5.04
million, below the targeted 5.3 million. At that time, Indonesia
saw the lowest growth in foreign tourist arrivals in a decade.

The currency turmoil, which has hit several Asian countries,
is also believed to be one of the influential factor behind the
fall in foreign tourist arrivals.

Many overseas tourists have also been turned off by haze
blanketing most parts of Sumatra and Kalimantan. A significant
drop in arrivals also happened in 1995, when unfounded reports
about cholera in Bali spread to Japan and other countries.

The government has predicted that foreign tourist arrivals
would return to the precrisis level of over five million visitors
by 2003. (icn)

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