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Reinvigorating Tourism Investment

Government Looking to 'Kick-Start' Investor Sentiment.

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Speaking to the press and as quoted in the Indonesian-language Bisnis Indonesia, Myra P. Gunawan, the Deputy in charge of Product and Business Development at the Ministry of Culture and Tourism, recently said, "tourism development is currently very stagnant due to limited resources available to invest." She went on to explain that investor sentiment towards the tourism sector is fundamentally different from the early 1990s when investment in national tourism reached record heights. This situation changed dramatically with the downturn in tourism in 1998 and 1999.

Although Indonesia's tourism industry is showing signs of recovery, investment in new tourism projects remains sluggish.

According to Ms. Gunawan, tourism is suffering from a disconnect caused by a lack of coordination between the Center and the now-autonomous regional governments and the difficulties of implementing viable tax incentives to lure investors.

A Conference on Tourism

The Government has scheduled a Conference of Tourism set for August 3, 2004, that will attempt to identify fundamental problems holding back investment in Indonesian tourism.

Planning to involve major players and stakeholder, the conference is expected to result in a white paper containing concrete recommendations on tourism to be presented the next national cabinet.

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