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Tourism Promotion Funds Focused on Region

Scarce Promotional Funding Means Short and Medium Haul Markets to See Most Promotional Spending.

(2/2/2004) The Government has earmarked Rp. 63 billion (approximately US$ 7.4 million) for tourism promotional and marketing activities in the region.

This amount represents the lion's share, or nearly 70%, of all monies to be spent on the promotion of tourism and reflects a swing by the Ministry of Culture and Tourism to strategic regionally-based promotion necessitated by the small total allocation in the final state budget.

Quoted in the Indonesian-language Bisnis Indonesia, Mr. Udin Saifuddin, the Deputy Director of Marketing in the Ministry said, "promotion and marketing of Indonesian tourism at this time will focus on the region, primarily ASEAN, East Asia, Oceania (Australia), and the Middle East."

Indonesia a Low Spender on Promotion

In total, the Government has set aside Rp. 90 billion (approximately US$ 10.6 million) for promotion and marketing in the current year.

This amount is minimal in comparison with the funds being spent by competing destinations in the region. According to Saifuddin, "if compared with other Southeast Asian countries, like Malaysia who allocate US$ 100 million and Thailand who spends US$ 120 million, Indonesia's allocation is very small."

The Minister of Culture and Tourism had originally requested an allocation of US$ 41.7 million for tourism expenditures in 2004, but after several budget slashing sessions were eventually only funded US$ 13.3 million for total Ministry expenditures for 2004.