The number of foreign tourist visits to Indonesia dropped significantly in seven consecutive months, after the vicious virus spread the country - Photo by Tourism and Creative Ministry Office

JAKARTA (TheInsiderStories) – The number of foreign tourist visits to Indonesia dropped significantly in seven consecutive months, after the vicious virus hit the country. The head of statistic bureau, Suhariyanto, reported, in August, number of arrivals again down by 89.22 percent compared to last year and dropped by 4.45 percent from July.

Cumulatively, January – August, the number of foreign tourist visits to Indonesia reached 3.41 million or decreased by 68.17 percent compared to the number of arrivals in the same period in 2019, which totaled 10.71 million visits.

To support the industry, tourism and creative economy minister, Wishnutama Kusubandio, said on Oct. 14, that the central government would disburse Rp3.3 trillion (US$224.49 million) grant for tourism businesses and regional administrations. The main goal is to help the industrial players that are facing financial issues due to the COVID-19.

The funds would be sourced from the National Economic Recovery program. The grant, he added, could be used to improve the implementation of the health protocol at tourist destinations in order to create a sense of security and convenience for tourists also help the industry to survive from the pandemic. 

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.

Indonesian government optimistic to attract foreign exchange (forex) revenues Rp13 trillion from foreign tourists in 2020. This figure is reciprocal stimulus issued by the government to boost the tourism sector. Based on Kusubandio calculations, with the incentives will be able to bring in around 736,000 tourists with average spending per arrival above $1,700 per visit.

He asserted, Indonesia will look another market amid the spread of COVID-19, include Australia and Europe. The government is targeting Indonesia become a leading Asian and World tourism destination by 2045 with a total of 73.6 million foreign tourist visits, from the 18 million people set for 2019.

Based on the official data, in this year, the government will focus on developing leading destinations with a target of 21.6 million foreign tourists, in 2025 increasing competitiveness with a target of 31.8 million people, in 2030 increasing diversity of tourism with a target of 42.8 million people, in 2035 increasing the integration of tourism with a target of 57.5 people.

Furthermore, in 2040 the strengthening as Asia’ flagship destination with a target of 65.1 million people, and finally in 2045 the strengthening as the world’ flagship destination with a total of 73.6 million people visiting.

In 2045, is predicted total population of the country increased to 320 million people, life expectancy will improve in 75 years, the majority of Indonesia’ population will also live in cities. Besides the manufacturing and agriculture sectors, the tourism sector also directly contributed to foreign exchange reserves so as to strengthen the economy externally.

Yesterday, the government has established an incentive scheme for the tourism and aviation sector to overcome the impact of the coronavirus. As far, the epidemic has lowering the foreign tourists coming to the country.

While, the director general at the transportation ministry, Novie Riyanto, the government decided to give ticket fare subsidies up to 50 percent. The stimulus for full service airlines are given a 45 percent of discount, medium service 48 percent, and low cost airlines 50 percent. Its expecting these incentives will affect airline tickets.

“Additional discounts also gives from PT Pertamina, PT Angkasa Pura I, and PT Angkasa Pura II, making ticket discounts to consumers could reaches 40 percent,” he said by adding these incentives are delivered to 10 domestic tourism destinations. such as Batam, Denpasar, Yogyakarta, Labuan Bajo, Lombok, Malang, Manado, Silangit, Tanjung Pandan, and Tanjung Pinang.

According to him, 30 percent of incentive came from the State Budget assistance. Then other incentives come from reducing aviation fuel costs and fees charged by airport managers such as Angkasa Pura (AP) I and II, as well as navigation services or PT Airnav.

Recently, chairman of the Indonesia Hotel and Restaurant Association, Hariyadi B. Sukamdani stated, that Indonesia’ tourism sector has suffered losses of at least US$1.5 billion amid growing fears of the pandemic. Total estimated losses $1.1 billion occurred as a result of cancelations made by Chinese tourists and the remaining $400 million from other countries.

US$1: Rp14,700

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