Fitch Ratings has affirmed Indonesia' Long-Term Foreign-Currency Issuer Default Rating at 'BBB' with a stable outlook. The agency also forecasted the GDP growth to recover gradually to 5.3 percent in 2021 and 6.0 percent in 2022 - Photo by Finance Ministry Office

JAKARTA (TheInsiderStories) – The number of foreign tourist visits to Indonesia experienced a drastic decline by 88.95 percent compared to the number of visits in September 2019, statistic bureau reported today. The same condition also occurred when compared to the previous month, August 2020, with a decrease of 5.94 percent.

Cumulatively, the number of visitors to Indonesia reached 3.56 million visits or decreased by 70.57 percent when compared to the number of foreign tourists visiting in the same period in 2019 which totaled 12.10 million visits. The average length of stay of foreign and Indonesian guests in star-classified hotels during September 2020 was recorded at 1.73 days, a decrease of 0.11 points when compared to September 2019.

To support the tourism sectors, Indonesian government prepared a grant for the tourism sector amounting to Rp3.3 trillion (US$224.49 million). The grant also aimed to help the local governments to prepare a clean and healthy tourist environment and comply to the COVID-19 protocol, especially for the hotel and restaurant sectors.

The stimulus regulated through Finance Minister Regulation Number 46 of 2020, concerning Management of Grants from the Central Government to Regional Governments in the Context of Handling the 2019 COVID-19 Pandemic and the Impact of the 2019 Corona Virus Disease Pandemic. Its also ruled via Finance Minister Ruling Number 23/KM .7/2020 concerning Stages of Distribution of Tourism Grants in the Framework of National Economic Recovery in 2020.

The grant is also part of the National Economic Recovery program. The criteria for receiving tourism grants are 10 priority tourism destinations and five super priority destinations. Then, the provincial capital, branding destination, the area generates a minimum Hotel Tax and Restaurant Tax of 15 percent of regional original revenues for the 2019 fiscal year, and 100 Calendar of Events areas.

In addition, the criteria for hotels and restaurants that receive tourism grants are hotels and restaurants that are in accordance with the taxpayer database. Hotels and restaurants are still standing and operating until July 2020 and have business licenses. In details, 70 percent of the grant distributes for hotel and restaurant and 30 percent for regional cash injection if at least 50 percent of the funds for phase I have been passed on by the regional government to the tourism industry.

In addition, said tourism and creative economy minister, Wishnutama Kusubandio, said on Oct. 14, additionally, the ministry allocated a budget of Rp119 billion to provide free cleanliness, health, safety, and environmental sustainability certification for the tourism industry players across 34 provinces in Indonesia, which aimed at regaining the public trust.

US$1: Rp14,700

Written by Editorial Staff, Email: theinsiderstories@gmail.com