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Tourism Fund Polemic: Rejected by Travel Agents, Awaited by Promoters
WINDONESIA May 2, 2024
Volunteers attend the Salam Metal Menang Total concert by Ganjar Pranowo-Mahfud MD at GBK, Jakarta, Saturday (3/2/2024). (Bloomberg Technoz/Andrean Kristianto)
The tourism fund issue continues to escalate after reports that it would allegedly be imposed on airlines. Rejection is voiced by airlines and travel agents. For example, AB Sadewa, Corporate Secretary & Investor Relations of Panorama Group travel agency, said that if the ticket fee for airlines to be allocated to the tourism fund exceeds Rp50,000, it might actually decrease tourism interest.
However, the policy is welcomed by concert promoters and event organizers (EO). Ismaya owner Armand Darmaji explained that the tourism fund could be useful in helping EOs because of the many regulatory "gates" they have to pass through various ministries in order to organize events.
The tourism fund is aimed at assisting EOs and concert promoters in Indonesia in bringing renowned musicians to perform in the country. These musicians' performancers are expected to generate revenue for the country similarly to what happens in Singapore.
Previously, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan stated that an additional fee of around US$2 to US$3 per tourist is normal and commonly applied in many places. Tthe tourism fund aims to finance events related to the tourism sector according to Luhut, such as international motorboat racing competitions like F1H20 which was held in North Sumatra, Indonesia.
On the other hand, Minister of Tourism and Creative Economy Sandiaga Uno promised transparency regarding the discourse on the tourism fund and assured that he would not burden the public with increased airfares.
According to a report from Statistics Indonesia (BPS), the number of foreign tourists visiting Indonesia from January to February 2024 increased by 26.87% compared to the same period in 2023. In February, there were 890,864 foreign tourist arrivals through the main gates, while 145,173 of foreign tourist arrivals came through border gates. The dominant countries of origin for tourists are Malaysia, Singapore, and China.
Source: www.bloombergtechnoz.com
