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Bullish on Indonesian Tourism

Buoyed by Strong Performance in 2011, Indonesia Predicts 8 million Visitors in 2012

(1/6/2012) Despite a troubled world economy, total foreign tourist arrivals for all of Indonesia grew 8.9% for the eleven months January-November 2011.

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Based on data supplied by the National Statistic Bureau, foreign tourist arrivals for the month of November 2011 totaled 654,900 representing an increase of 13.28% as compared to November 2010. On a cumulative basis for January-November, 6.92 million foreign tourists came to Indonesia, putting the country within striking distance of achieving 7 million visitors for the entire year once the final tally is completed.

Indonesia has set a target of 7.1 million visitors nation-wide for 2011.
A review of Indonesia’s major gateways through the end of November 2011, the greatest growth in foreign tourist arrivals occurred at Adi Sucipto Airport in Yogyakarta (268.8%), Adi Sumarno in Solo (129.3%) and Husein Sastranegara in Bandung (76.4).

Meanwhile the biggest decline in foreign tourist arrivals for the same period took place in Makassar (down 47.2%) and Tanjung Uban in Bintan (down 2.3%).

Indonesia’s Minister of Tourism and the Creative Economy Mari Elka Pangestu remains optimistic that Indonesia’s tourism economy is insulated to a large extent from the economic woes of the U.S.A. and Europe. Quoted in Kompas, Pangestu said, “our promotion will attack emerging markets like Russia, India and other Asian nations.”

The government estimates that the foreign exchange earned from tourism in 2011 will exceed US$8.5 billion, an increase of 11.8% over 2010. This is due to a large extent to the increase in the average level of expenditure from US$1,085.70 in 2010 to US$1,118.20 in 2011.

The government remains extremely “bullish” on the prospects for national tourism, estimating 8 million tourist visitors in 2012 generating US$8.96 billion in foreign exchange.

The government is also wisely prioritizing domestic tourism. In 2011 an estimated 172.99 million domestic holidays generating Rp. 114.6 trillion (US$12.73 billion) in revenues took place. Indonesian travelers are also spending more on vacations, averaging Rp. 641,740 (US$71). This figure is expected to increase to Rp. 700,000 (US$78) per person in 2012.