Travel industry warned of rates
JAKARTA (JP): A senior tourism executive has warned Indonesia's travel industry and related businesses to set realistic prices to survive global tourism competition.
Managing director of the Indonesian Tourism Promotion Board, Wuryastuti Sunario, told The Jakarta Post here yesterday that travel-related prices were down, making competition in the world tourism industry fiercer.
"This does not mean we have to cut prices like airfares or the prices of hotel rooms, package tours, souvenirs or food. But we have to reposition ourselves in the market, with the currency turmoil still hitting Asia." she said.
She said many airlines and tour operators from Asia and Australia had reduced their prices to attract more foreign tourists to their countries.
"Some Southeast Asian nations cut their fares after the end of the forest fire haze crisis. An airline in Japan, for example, has introduced an air fare from Japan to Paris which is as cheap as the rate between Japan and Bali," she said.
Many hotels, tour and travel businesses in Malaysia and Singapore have changed their prices according to the new exchange rates against the U.S. dollar, Tuti added.
The currency turmoil has caused a sharp drop in the value of the rupiah against the U.S. dollar since July.
The rupiah plunged to 6,000 against the U.S. dollar in yesterday's morning trading session before strengthening to 5,500 in the afternoon.
It was 2,400 against the U.S. dollar in July.
"We have to be very cautious about this because many hotels and other travel-related enterprises in Indonesia are enjoying good business as a result of the sharp depreciation of the rupiah against the U.S. dollar," Tuti said.
Several luxury hotels in Jakarta and Bali are offering big discounts and special packages to woo guests in the dwindling market.
Several four- and five-star rated hotels in the capital and in the tourist island of Bali are offering discounts of more than 50 percent on their rooms.
Some hotels set their room rates in rupiah. But most rates are set in U.S. dollars which is still a burden for most domestic tourists. (icn)