In order to support tourism amid coronavirus outbreak, Indonesia to cut airline fees

By TIN Media | Asean News Published 4 years ago on 15 February 2020
Read News

JAKARTA:

In order to support the country’s aviation and tourism industries to mitigate the damage that the coronavirus outbreak has inflicted on airlines, the Indonesian government has taken few steps.

Transport Minister Budi Karya Sumadi said in a statement that the measures will include cutting landing charges and airport fees for carriers, as well as providing incentives to hotels and tourism businesses in areas popular among Chinese holidaymakers, such as Bali, Manado and the Riau Islands.

The ministry is projecting a 30% drop in passenger volume for airlines because of the outbreak. The government has halted all flights to mainland China since the beginning of this month to limit the spread of the virus.

Sumadi said “The government will work together with airport operators, airlines and hotels to come up with the incentives,” .“We want to boost the tourism industry and encourage people to take holidays.”

Chinese visitors are the second-biggest group of overseas travelers to Indonesia after Malaysians. Tourism is a crucial component of the government’s effort to bring in more foreign exchange revenue and address its current account deficit.

The outbreak also comes at a critical juncture for Indonesia’s largest low-cost carrier, PT Lion Mentari Airlines, which has been planning an initial public offering.

Flag carrier PT Garuda Indonesia was expected by analysts to post record earnings for 2019 and continue to boost profit in 2020 before the virus broke out.


    TAGS / KEYWORDS:

Email TIN

TIN Media

TIN.media - Travel Industry Network is Malaysia's home grown B2B Travel Industry Media with the most influential B2B online resources including news, research, events, and marketing services and more.