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Penny Pinching on Promotion

Indonesian Government Curbs Spending Plans for Tourism Ministry and Tourism Promotion


Bali News: Penny Pinching on Promotion
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(6/22/2014)

Bali Post reports that the government has chopped the 2014 promotional budget for tourism from a proposed Rp. 435 billion (US$37.8 million) to only Rp. 373 billion (US$32.4 million).

Similarly, a total budget for the Ministry of Tourism and the Creative Economy that was given a ceiling of Rp. 1.7 trillion (US$148 million) was, in fact, allocated Rp. 1.5 trillion (US$130 million).

In revealing the reduced figures, Esthy Reko Astuty, the director general of marketing for the Ministry said the reduced level of expenditure would present special challenges in the Ministry’s efforts to establish the needed momentum in the promotion of Indonesia’s tourism.

In practical terms the reduced level of spending means that Indonesia will now participate in 51 promotional events instead of 59; reduce purchases of promotional material; and less travel by Ministry officials in the promotion of Indonesia travel.

Nonetheless, Esthy remains optimistic that Indonesia will still manage to attract 9.5 million foreign visitors during the calendar year 2014.


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