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Tour Rates Predicted to Increase

Higher Fuel and Utility Prices Likely to Result in Higher Local Tour Prices.

(1/13/2003) Increases in utility, fuel prices, and telephone charges introduced nation-wide on January 01, 2003 are likely to eventually result in higher tour prices charged by local ground operators.

A recent meetings held by the Jakarta-branch of the Association of Indonesian Travel Agents (ASITA) discussed the possibility of increases ranging between 20-30% for outbound tour packages and perhaps 20% for inbound tour programs in order to compensate for higher transportation and operating costs.

Many are waiting to see if airlines and transportation companies use the recent fuel price increases as a pretext for increasing their rates.

It should be noted that no firm decision regarding tour package price increases have yet to be made with any final decision to be determined by competitive market forces and the final inflationary effects of recent utility and fuel price increases.