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The Importance of Domestic Tourism

Indonesian Tourism Main Revenue Source Continues to be Domestic Tourists.

(5/16/2005) Domestic travelers continue to be the mainstay of the national tourism industry, according to figures released by the Indonesian Hotel and Restaurant Association (PHRI) and the Department of Culture and Tourism.

According to the Marketing Deputy of the Ministry of Culture and Tourism, Udin Saifuddin, quoted in the Indonesian-language Bisnis Indonesia, the 6 million foreign tourist targeted for Indonesia in 2005 will generate around US$5.5 billion in foreign exchange while the estimated 102 million domestic tourists will spend around US$10.2 billion in the local economy.

Over the coming 5 years the Ministry of Culture and Tourism is projecting spending by international tourist to increase at an annual average rate of 13.5% while domestic tourism spending is expected to increase at an annual average of 10% during the same period.

In order to further stimulate domestic tourism spending, the Government is supporting a number of local travel expositions aimed at encouraging Indonesian to take more holidays domestically. In addition, the Ministry for Research and Technology, is funding a series of technology exhibitions across the country in 2005 to help create regional tourism events through educational outreach programs to the Country's more remote locales.