PT Bayu Buana Tbk (IDX: BAYU) has formed a joint venture company (JVC) with inbound travel operators DMC Apple Holidays. The Sri Lanka-based company wants to tap the fast-growing Indian market to Indonesia - Photo by TTG Asia

JAKARTA (TheInsiderStories) – Indonesian travel services, PT Bayu Buana Tbk (IDX: BAYU) has formed a joint venture company (JVC) with inbound travel operators DMC Apple Holidays. The Sri Lanka-based company wants to tap the fast-growing Indian market to Indonesia, local media reported today (08/15).

At present inbound travel, especially from India in Bayu Buana, is only around 20 percent. Its reported, at the partnership Bayu Buana will own 51 percent stake in PT Bayu Apple Holidays, a new Bali-based JVC, which is trading as Apple Holidays Indonesia.

According to the company’ president director Agustinus Pake Seko new JVC will serve inbound travel for tourists in Bali, especially from India. Its hoped that this effort can boost the contribution of Indian tourists to BAYU businesses.

“India is a potential market for Indonesian tourism. Around 55 percent of Indian tourists visit Bali throughout 2019,” he said in Badung Regency, Bali, last week.
 
Based on Statistics Indonesia data, as of June 2019, the arrival of foreign tourists recorded 2.85 million people. Of the total, foreign tourists from India contributed significantly in moving the wheels of tourism in Bali.
 
During the first semester (1H) of 2019, Indian tourists was ranked the third largest after China and Australia, which is around 188,095 people, or 6.59 percent of the total tourist numbers. This figure is down 3.36 percent compared to the same period last year.

“We are optimistic that the collaboration between Bayu Buana and Apple Holidays could increase the number of foreign tourists, especially from India. This also to support the tourism ministry’ target to raisea 800,000 tourists from India in this year,” said Seko.
 
This year, the government targeting the number of foreign tourists as many as 18 million people with 10 priority tourism destination areas as the new Bali.
  
Quoting data from the tourism ministry, young people dominate the number of Indian tourists visiting Indonesia, with an average expenditure of $900 to $1,200 per visit and with an average stay of seven to 10 days.

Managing Director of Apple Holidays, Pradeep Kumar expect the opening of direct flights from India to Bali will increase the arrival of Indian tourists to the paradise island.

He added, the Indian tourist segment is also very complete ranging from the lower classes to premium. Kumar pedicted the arrival of Indian tourists to Bali could grow double from now, the same as what happened with Chinese tourists.

Meanwhile, Bayu Buana also aims to acquire around 50 percent shares of Apple Holidays, which is currently in the process of moving its headquarters to Singapore. No further details on the planned.

by Linda Silaen, Email: linda.silaen@theinsiderstories.com