Indonesia tries to transform Bali-reliant tourism sector

By TIN Media | Asean News Published 1 year ago on 5 April 2023
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INDONESIA:

Indonesia has designated five scenic places as "super priority tourist destinations" in a drive to end the reliance on the world-famous resort island of Bali. The government will invest in infrastructure in the five destinations and step up promotional campaigns for them.

It aims to give tourists more options and raise the country's tourism revenues, which have been heavily dependent on Bali, to spur economic growth.

"The government will take advantage of the upcoming summit of the Association of Southeast Asian Nations as a promotional event for Labuan Bajo, one of the super-priority tourist destinations," President Joko "Jokowi" Widodo tweeted on March 14 when he visited the scenic spot in East Nusa Tenggara province on Flores Island, east of Bali.

The port town of Labuan Bajo is known for its beautiful mountains and beaches. It also serves as the gateway to Komodo Island, where endangered Komodo dragons live. But its airport, roads and hotels are of far poorer quality than those on Bali.

Indonesia is the rotating chair of ASEAN this year, and Widodo plans to host a summit in Labuan Bajo in May. When the country held the Group of 20 presidency last year, the government wanted to host a summit there but had to give up because of security and infrastructure reasons.

Since taking office in 2014, the president has been working to make tourism a pillar of the economy. In the following year, he chose 10 priority destinations that are considered to have the potential to become international tourist draws as popular as Bali. Among them, five have been named "super priority" destinations that are eligible for preferential treatment. They are Labuan Bajo, Lake Toba, Yogyakarta, Mandalika, and Likupang. The government plans to earmark 18.9 trillion rupiah ($1.26 billion) between 2020 and 2024 for infrastructure projects, promotional activities and personnel training in the five destinations. With the COVID-19 pandemic subsiding, tourism is expected to recover. The government will consider whether to increase the budget.The five destinations are scattered across the country, reflecting the president's policy of addressing the concentration of wealth on Java, the island where the capital city of Jakarta is located, to achieve more balanced development throughout the nation.
 

Lake Toba in northern Sumatra Island is the westernmost destination among the five. It is the world's largest caldera lake, created by ancient massive volcanic eruptions. To raise its profile, the government has held meetings with foreign dignitaries there and invited an international powerboat race.

Michiyo Kasai, who works at a Japanese company in Indonesia, visited the lake on vacation in February. "It's quieter than beach resorts, and the rustic nature has a soothing effect," she said, adding that visitors can soak themselves in hot springs there.

Indonesia has failed to make full use of its vast and diverse landscapes, depending on Bali for tourism revenues. Of the 16.1 million foreign arrivals in 2019, nearly 40% were visitors to Bali. The Bali provincial government says the island accounts for 30% to 40% of the country's foreign reserves obtained through tourism.

A survey by the World Travel & Tourism Council shows that the tourism sector's contribution to Indonesia's gross domestic product was 5.6% in 2019. The figure is smaller than 20.3% for Thailand and 7% for Vietnam.

The number of foreign visitors to Indonesia in 2021 dropped by more than 90% from the peak in 2019. Some analysts argue that tourism is unlikely to return to pre-pandemic levels across the world. Indonesia's efforts to reduce its dependence on Bali may show whether this is true.


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