Tourism and creative economy ministry targets to attract foreign exchange revenues Rp13 trillion (US$928.57 million) from foreign tourists in 2020, said the government official on Tuesday (02/25) - Photo: Special

JAKARTA (TheInsiderStories) – Tourism and creative economy ministry targets to attract foreign exchange (forex) revenues Rp13 trillion (US$928.57 million) from foreign tourists in 2020, said the government official on Tuesday (02/25). This figure is reciprocal stimulus issued by the government to boost the tourism sector.

According to the minister, Wishnutama Kusubandio, the government give a stimulus Rp298 billion to become a stimulus for foreign tourists. Based on his 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.

According to 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 adds.

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.

Riyanto explained, this discount applies to 25 percent of seats, calculated from the total overall capacity per aircraft on each flight. The discounts will take place  from March to May 2020.

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.

In total, the incentives amounted to Rp910 billion (US$65.0 million), with details from the State Budget of Rp550 billion, from Pertamina through the reduction of aviation fuel costs of Rp260 billion and AP I, AP II and Airnav Rp100 billion, he concluded.

Indonesia rolled out a Rp10.3 trillion stimulus package in an effort to cushion the blow of the coronavirus outbreak on its economy. The stimulus is channeled to a number of economic sectors affected by the virus and ensures that people’ purchasing power is maintained.

According to finance minister, Sri Mulyani Indrawati, the outbreak, an Indonesia’ top trade partner and a major source of investment and tourists, could further weaken Indonesia’ growth to 4.7 percent in 2020 from 5.02 percent in 2019.

While, deputy minister, Suahasil Nazara, added, this fiscal stimulus aims to ensure Indonesia’ economic growth does not come under pressure amid the prospects of a global economic slowdown. The stimulus in the tourism sector, for example, is expected to balance the potential for decline due to the significant reduction in the number of foreign tourists in this year.

The stimulus is in the form of discounted airline ticket prices for 10 major tourist destinations, incentives for airlines and travel agents that bring tourists, to the policy of hotel and restaurant tax-free schemes for a certain period in these 10 tourist destinations.

“So we hope that economic activity does not go down, the economy continues to spin like hotels can still operate, airlines can also continue to operate and so that we hope it can replace the potential for economic decline that impacted Indonesia,” he stated.

US$1: Rp14,000

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