Travel industry warned of rates

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)