Tourism up while spending down this year, says minister

Andra Wisnu, THE JAKARTA POST, GIANYAR | Mon, 02/02/2009 9:53 AM  

Tourism and Culture Minister Jero Wacik expressed optimism that the country’s tourism industry will remain strong this year, though tourists would spend less due to the global financial crisis. 

During a visit to the XII summit of the Bali chapter of the Indonesian Hotel and Restaurant Association (PHRI) in the Royal Pitamaha hotel in Ubud, Gianyar, on Saturday, Jero said tourism will remain strong despite concerns that the global financial crisis would deter people from holidaying. 

“The global financial crisis will not prevent people from holidaying. It will just deter them from traveling far. So expect Germans to just travel to Spain instead of Indonesia,”he said. 

“But at the same time, tourists in Asian countries would be doing the same thing, and we can expect more travelers from Japan or Taiwan.” 

The concerns stemmed from the fact that Indonesia missed its original target of 7 million foreign tourists by the end of 2008, recording 6.4 million arrivals instead. 

The 6.4 million is in line with the ministry’s revised target however, with Jero quickly adding that the number was still higher than 2007, which saw slightly more than 5.5 million arrivals.

The revision to the target was made in October. 

He added that the tourism industry last year generated an income of US$7.5 billion, significantly higher than the expected $ 6 billion in the ministry’s revised target.

Jero predicted that Indonesia would see 6.5 million tourists by the end of 2009. 

“It’s a moderate target, but still higher than our record in 2007,” he said. 

He said the global financial crisis would hit tourists “pockets” though, further predicting that average tourist spending per visit would decrease from $1,170 in 2008 to $1,000 this year. 

He reminded participants that this was still an increase on the record figure in 2007 when tourists spent an average of Rp $970 per visit. 

He told tourist sector businessmen not to worry about the decreased spending, saying that domestic travelers has been spending more and more within the past years. 

Meanwhile, according to data from the Central Statistics Agency, domestic travelers’ expenditure rose to an average of Rp 406,350 (US$34.37) per trip in 2007 from Rp 324,000 in 2001.  

Indonesians have also been traveling more, as the same data recorded an increase to about 116 million travelers in 2007 from 103 million in 2001. 

Jero said he had began several programs to boost domestic travel such as working out a plan with the Bali General Election Commission to turn this year’s campaign season into an arts and culture festival. 

“This year, domestic travelers will be our secret weapon,” Jero said.

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