Monday, August 26, 2013

Tourism Minister: Tourism to Slow in 2014

Tourism Minister Cautions Conservatism in Setting Tourism Targets for 2014

The Indonesian Minister of Tourism and the Creative Economy, Mari Elka Pangestu has labeled as “optimistic” a target of 9.5 million foreign tourists in 2014.

Quoted in Kompas.com, Pangestu said: “The big possibility is that we can no longer adhere to a target of 10 million visitors, maybe we will achieve only 9.5 million. The Minister’s comments were made in Jakarta after attending press conference to discuss the 2014 State Budget.

Mari Elka Pangestu warned all parties of the need to be realistic in setting targets that match the actual circumstances in the field.

Next year in the 2014 State Budget the Tourism Budget will be cut, but will include Rp. 100 billion (US$10 million) for the optimization of the tourism infrastructure. “Those funds will be prioritized for development in 16 strategic tourism areas that we have selected,” said Pangestu. “But next year we will remain in an uncertain global situation and (experience) slow economic growth.”

In the 16 selected areas Pangestu’s Ministry will optimize construction of equipment and infrastructure, such a piers, in order to create more employment opportunities for the public.

The 2013 budget for the Ministry of Tourism and the Creative Economy totaled Rp. 2.5 trillion, representing a 14.2% annual rate of growth from 2008 when the budget was only Rp. 1.3 trillion. In 2012 a total of 8 million foreign tourists came to Indonesia generating US$9.12 billion in foreign exchange. In 2013 the government is targeting 8.5-9 million foreign visitors.

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