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Indonesia Tourism Report Q1 2010
Business Monitor International, Jan 2010, Pages: 46
Indonesia Tourism Report provides industry professionals and strategists, corporate analysts, tourism associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Indonesia's tourism industry.
2009 - A Steady Year
Indonesia has weathered the adverse economic conditions of 2009 better than some of its regional peers, largely due to its reputation as a low-cost destination. The most recent data from the Indonesian statistics agency, Badan Pusat Statistik (BPS), show that 5.17mn tourists visited the country over the first 10 months of 2009, an increase of 1.3% year-on-year (y-o-y).
The data appear to show that tourists have not been affected by the bombing of two hotels in Jakarta in July 2009 – incidents that we thought would put downward pressure on visitor numbers over the year. As this has not occurred, we now forecast that Indonesian tourist arrivals for the whole year increase slightly, which is an impressive result given the adverse economic environment and the regional outbreak of swine flu earlier in 2009.
Given the relatively robust state of the Indonesian tourist industry when confronted with such challenges, it would appear that 2010 should be another positive year for Indonesian tourism. BMI has long held a positive view about the long-term potential for the industry.
Tune Hotels Set For Expansion In December 2009, Malaysian hotel chain Tune Hotels announced plans to build 24 new budget hotels in Indonesia by 2015. Reported sites for the new hotels include Jakarta, Medan and Bandung. Tune already owns two hotels in Bali: a 170-room property in Legian on the west coast and a 139-room hotel in Kuta in the south.
EU Lifts Ban On Four Indonesian Airlines In July 2009, the EU lifted its ban on some Indonesian airlines that had been in place since 2007. Garuda Indonesia and Mandala Airlines, and the charter airlines Airfast and Premair, are allowed back into European airspace, with the EU satisfied that ‘significant improvements’ had been made to safety within the industry. Then foreign minister Hassan Wirajuda told local media that Indonesia had met 62 of the 69 safety requirements laid down by the EU. The lifting of the ban for these airlines clears the way for the resumption of direct flights between Jakarta and the EU, with Garuda set to launch a service to
Amsterdam in June 2010. The lifting of the EU ban is obviously a positive development for the Indonesian aviation industry. Although no Indonesian carriers were flying to the EU when the ban was introduced, it acted as a deterrent to European travellers considering travelling around the country on domestic flights. International and domestic services within Indonesia should benefit from the EU’s decision.
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