Indonesia Tourism Report Q1 2013Published by: Business Monitor International Published: Dec. 19, 2012 - 68 Pages Table of Contents
AbstractThe Indonesia Tourism Report examines the strong long-term potential being offered by the local tourismindustry, bolstered by rising demand for regional travel from China in particular, but cautions that thethreat of renewed terrorist activity aimed at foreign tourists and a possible resurgence in the number ofcases of bird flu in the archipelago (with nine reported cases over 2012 year-to-date) remain key risks toBMI's future forecasts on this key economic sector.We also analyse the growth and risk management strategies being employed by some of the leadingplayers in the local tourism sector (ie: airlines and hotel chains) as they seek to maximise the tremendousgrowth opportunities being offered by the Indonesian market. Tourist arrivals to Indonesia over January-September 2012 increased by 5% year-on-year (y-o-y) to reach5,895,288 people, according to information from the Ministry of Tourism and Creative Economy. Thisleaves the country well on course to meet BMI's full-year target of 7.91mn tourist arrivals. This is lowerthan the target of 8mn set for the full year by the Ministry of Tourism and Creative Economy. Ngurah RaiAirport in Bali remains the most popular arrival airport for foreign tourists, with 2.14mn travellers havingpassed through the airport over 9M12, up by 3.45% y-o-y. Soekarno-Hatta Airport in Jakarta remained insecond place, on 1.5mn passengers, up by 5.8% y-o-y. Beyond 2012, our forecast is for tourist arrivals to increase by an average annual rate of 4.2% per annumover the next five years, leading to a total of over 9.72mn tourist arrivals by end-2017. If the globaleconomy picks up momentum going into 2013, then there will be clear upside risks to our forecasts. Over the last quarter, BMI has revised the following forecasts and views: BMI believes that the ongoing expansion plans by French hotel chain Accor across Indonesiawill only further strengthen its market dominance in the sector. Recent openings include the 201-room Mercure Bali Nusa Dua, the 606-room Ibis Bandung Trans Studio and the All Seasons BaliBenoa. The company has also recently launched an Indonesian language version of itsaccorhotels.com online reservation website, with a view to targeting 40% of global bookingsfrom Indonesia by 2015, up from around 20% currently. BMI believes that the recently-announced codeshare agreement between Garuda Indonesia andAbu Dhabi's flag carrier Etihad Airways could prove very beneficial for both airlines. It willgive Garuda access to Etihad's extensive network of European and North American destinations,while Etihad now has scope to expand its network towards east Asia. Get full details about this report >> |
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