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:
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 na´ve 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.

       

 
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
Showdown Ahead?
Groundswell of Opposition to Benoa Bay Reclamation Grows with Long March Through Downtown Denpasar on Sunday, May 22, 2016
(5/23/2016)
Something Fishy Going On
Two Celebrity Chefs Join Forces for a Lunchtime Seafood Fest in Ubud on Friday, May 27, 2016
(5/23/2016)
A Royal Obligation to Serve
Denpasar King Seized by Prosecutors to Begin Serving a 2.5 Year Prison Sentence for Fraud
(5/23/2016)
Pre-Dawn Fatal Crash
Melbourne Man Dies in Collision with Rubbish Truck
(5/23/2016)
And if Dreams Come True . . .
Join an Enchanted Day to Teach Children How to Make Fairy Houses on Sunday, May 29, 2016 at Trans Resort Bali
(5/23/2016)
Just a Month Away
Bali and Beyond Travel Fair in Final Count Down to Opening on June 22, 2016
(5/23/2016)
Stop Only Outside of the Box
Denpasar, Bali Police Introducing Yellow Box Junctions to Reduce Traffic Gridlock
(5/23/2016)
Ate Like Primate
Bali Zoo Offers Breakfast with the Orangutan
(5/23/2016)
The Indonesian Tourism Bucket List
TripAdvisor 2016 List of Most Popular Tourism Landmarks Dominated by Bali
(5/23/2016)
Avoiding Mayhem and Disaster
Bali Officials Study Disaster Mitigation In Darwin, Australia
(5/23/2016)
In Xanadu
Australian Property Developer Sent to Jail in Bali for Property Fraud
(5/23/2016)
Retaliation or Cost Saving
Lion Air Suspends 227 Flights Over One Month Period
(5/23/2016)
All [News]!