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Indonesia Tourism Report Q3 2009Published by: Business Monitor International Published: Jul. 17, 2009 - 52 Pages Table of Contents
AbstractSteady Start To 2009Indonesia had a relatively strong start to 2009 according to tourist arrivals data. About 1.82mn touristsvisited the archipelago over the January-April period, representing annual growth of 1.35%, according tofigures from the Central Bureau of Statistics (Badan Pusat Statistik, BPS). At a time when its neighboursare struggling with falling visitor numbers, this is an impressive result. Looking forward, Indonesia should continue to benefit from its status as a ‘low-cost’ Asian holidaydestination. It has not been as affected by the ongoing credit crunch as some of its peers have. However, itis hard to see how the country will entirely escape from the ongoing economic crisis gripping developedworld markets. We still believe that a very slight fall in tourist arrival numbers is the best case scenariofor 2009, with 2010 proving essentially flat. Beyond this point however, we see scope for a rapid reboundin the industry as demand returns. Fundamentally, BMI remains upbeat on the long-term potential forIndonesian tourism. Difficult Operating Environment The current global economic slowdown is providing a challenging backdrop for companies operatingwithin the Indonesian tourism industry at present. A report in The Jakarta Post underlined the seriousnessof the current situation, quoting Harry Waluyo, director of the Ministry of Culture and Tourism’s Dataand Network Centre, as saying that the domestic tourism industry could lose 20% of its workforce,4.41mn people. BMI will continue to monitor the situation in Indonesia to see if any further changes to our tourismforecasts prove necessary. For now, the country’s attraction as a ‘low-cost’ destination is insulating itfrom some of the turmoil gripping other Asian tourism sectors. EU Team In Jakarta To Discuss Airline Safety Indonesian airlines are banned from entering either the EU’s or the US’ airspace. These bans wereimplemented by the relevant civil aviation authorities in 2007 following concern that Indonesian aviationstandards were not in compliance with the International Civil Aviation Organisation (ICAO). In June2009, a team of EU officials arrived in Jakarta to discuss the country’s aviation industry. According to a report in the Jakarta Globe, the ICAO previously identified 69 recommendations onsafety regulations that Indonesia needs to meet before the EU will consider lifting its ban. The newspaperquoted Minister of Transportation Jusman Syafii Djamal saying that so far 66 of the recommendationshad been fulfilled, with the three remaining recommendations being addressed at the time. However, there is no word yet on whether the EU or the US are considering lifting the bans on Indonesianaircraft entering their airspace. Although no Indonesian carriers were flying to the EU when the ban wasintroduced, it acts as a deterrent to European travellers wanting to travel around the country on domesticflights, as European travel agents are obliged to warn their clients about the risks of travelling by air. Get Full Details About This Report >> |
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