(TAN): The Indonesian government will slash airline fees and support tourism and hotel businesses to contain the damage done by the coronavirus outbreak, reports said.
According to reports, the measures will comprise cutting landing charges and airport fees for airlines, and giving incentives to businesses associated with tourism in regions commonly visited by Chinese vacationers. Bali, Riau Islands, and Manado in North Sulawesi province are reportedly popular destinations among Chinese tourists, where the incentives will primarily be provided. The government will reportedly urge hotels to offer the best prices to guests.
Indonesia’s Transport Minister Budi Karya Sumadi reportedly said the measures were aimed at reviving the tourism sector and encouraging people to go on holidays.
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“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,” Sumadi was quoted by Bloomberg as saying.
The virus scare, which already resulted in a drop in tourist arrivals, could cost Indonesia up to USD 2.8 billion in foreign exchange from potential Chinese travellers, reports said.
Tourism, which contributed to 6% of Indonesia’s Gross Domestic Product in 2018 as per data from the World Travel & Tourism Council, is a key source of revenues for the country. China, accounting for 13% of total tourist arrivals, formed the third biggest supplier of foreign visitors after Singapore and Malaysia in 2018. In 2019, 12% of all 16.1 million foreign visitors that arrived in Indonesia were Chinese nationals, as per reports.
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Tourism and Creative Economy Minister Wishnutama Kusubandio reportedly said they were preparing the incentives after discussions with stakeholders.
“We have listened to the inputs from the airline industry and we have spoken to the hotel and restaurant association, as well as other players in the tourism sector. The incentives that we are preparing must be comprehensive so we can survive this battle, not only the airline and hotel industries but also other related sectors as a whole,” he was quoted by The Jakarta Post as saying.
“This is our effort to face the impacts from the coronavirus. It’s not easy, but we should do the best we can together,” Wishnutama added.
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