Close
Bali Discovery Tours: Homepage
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Home Bali Contact Bali Practicalities Bali News Bali Services Bali Transportation Bali Sports Bali Excursions Bali Villas Bali Hotels
Home · News · Editorial: It Just Doesn't Add Up!
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Bali Hotels
Bali Villas
Special Deals!
Packages
MICE Handling
Bali Excursions
Culinary - Dining
Guided Tour
Bali Spas
Bali Sports
Diving
Golf
Bali Transportation
Car Rental - Selft Drive
Private Jet Charter
Bali News
Bali Services
Bali Practicalities
Bali Contact
Bali Career
Home
 
Bali Update
Subscribe to our free weekly newsletter!
 
PATA header
PATA Gold Award 2007
Bali Update
PATA Gold Award Winner 2007
 
Bali Contact
Bali Discovery Tours
Komplek Pertokoan
Sanur Raya No. 27
Jl. By Pass Ngurah Rai,
Sanur, Bali, Indonesia

Tel:
++62 361 286 283

Fax:
++62 361 286 284

U.S.A. Fax:(toll free)
1-800-506-8633

U.K. Fax:
++44-20-7000-1235

Australian Fax:
++61-2-94750419

24h:
++62 812 3819724

Bali Discovery

SITE PATA ASITA
Bali News

Editorial: It Just Doesn't Add Up!

balidiscovery.com Takes a Hard Look at the Figures Behind The Proposed $50 Visa Fee.


Bali News: Editorial: It Just Doesn't Add Up!
Click Image to Enlarge

(5/13/2002)

Is the proposed introduction of a US$50 visa fee for foreign tourist arrivals to Indonesia a clever way to raise much needed state revenues or potential recipe for disaster?

A Potential Financial 'Wash Out'

Economic impact projections drawn by balidiscovery.com indicate that any possible upside in terms of state revenues achieved by collecting the proposed $50 fee are quickly rendered meaningless by the potential downside losses in foreign exchange should, as it is widely feared, the new visa fee results in even a very modest downturn in tourist arrivals.

Current government data showing 5.1 million foreign visitors a year spending an average $1,000 each with the Indonesian Department of Culture and Tourism estimating some $5.1 billion in foreign exchange revenues are generated from Indonesia's tourism industry annually.

So far so good. And, if every foreign visitor is successfully charged a visa fee of $50 each - an additional $255 million in much needed state revenues are produced by the proposed visa fee. That's all fine and well, as far as it goes.

It would, however, be both naďve and dangerous to think that tourism arrivals act independently of any influence from introducing a gateway fee, such as the proposed $50 visa fee. In fact, research carried out by the Pacific Asia Travel Association (PATA) Bali Chapter in 1998 via a survey of inbound travel wholesalers demonstrated that as much as a 30% downturn in foreign arrivals to Indonesia might result from the introduction of a $50 visa fee?

The Potential Risks Make the New Visa Fee an Unwise Move

So the question becomes - how big an negative influence will result from the proposed increase and at what point will the foreign exchange revenues lost from lower arrival figures render the proposed visa fee a zero-sum-game?

The picture painted by the figures we've compiled do not paint a pretty picture. Calculating in the additional state revenues generated by a $50 visa fee, our projections suggest that the new policy becomes a zero-sum-game if it causes even a very modest decrease in arrivals of only 4.8% - a figure far less than the 30% downturn suggested by the respondent to the PATA survey of 1998. Even more alarming, our projections show that should the threatened 30% decrease in arrivals take place, Indonesia stands to take a whopping loss of $1.35 billion - even after calculating in the new revenue generated by the proposed visa fee.

In real terms, that would represent a drop of 25% in foreign exchange earnings from a sector of the economy already suffering ill health.

Visa Fee Calculation by balidiscovery.com


© Bali Discovery Tours. Articles may be quoted and reproduced if attributed to http://www.balidiscovery.com.


 
UBUD WRITERS & READERS FESTIVAL
 
Bali News by Bali Update
Subscribe to the Bali Update
Receive the latest news from Bali by email!



Our [Privacy Statement] explains how we handle the data you are providing.

 
Bali News by Bali Update
Explore the Archive of the Bali Update
Find related articles in our news archive!




or try to use Google Search :

Home · Bali Hotels · Bali Villas · Bali Excursions · Bali Sports · Bali News · Site Map · RSS

Bali News: More News
Arresting Drug Development
Denpasar Police Conduct Raids on Suspected Narcotics Dealers
(8/17/2014)
A Day and Night at the Museum
Morning Coffee at The Museum and Charity Dinner – August 30, 2014
(8/17/2014)
Kura Kura: New Local Travel Option in Bali
Bali Introduces New Kura Kura Shuttle Bus System for Tourist Visitors
(8/17/2014)
Bali Prepares to Fight Ebola
Classed as a Worldwide Epidemic by the WHO, Bali Puts Measures in Place to Handle Suspected Ebola Patients
(8/17/2014)
New Road for Tanjung Benoa?
Talks Continue on Construction of a Tanjung Benoa Ring Road in Bali’s South
(8/17/2014)
Leave it to a Professional
Tourism Leaders Call for their Next Minister to be Drawn from Circle of Professional Tourism Practitioners
(8/17/2014)
Mind Your “Qs” and “Pees”
Bali Tourism Transport Drivers Undergo Surprise Urinalysis
(8/17/2014)
Bless our Beasts
Bali Safari & Marine Park Seeks God’s Blessing on ‘Tumpek Kandang’ – a Day Dedicated to Animals
(8/17/2014)
Those in Peril on the Sea
2 Passengers Missing from Sunken Tourist Vessel Near Komodo Island
(8/17/2014)
Konnichiwa and Selamat Datang
Japanese Announce Visa-Free Policy for Indonesian Nationals; Indonesia Taking Steps to Reciprocate
(8/17/2014)
Medical Law and Ethics
World Association on Medical Law to Meet in Nusa Dua , Bali August 22-24, 2014
(8/17/2014)
A Great Notion for a Great Nation
Balidiscovery.com Shares its Thought on 69 Years of Indonesian Nationhood.
(8/17/2014)
All [News]!
 
Tourism and Transport Tourism Agents