Tourism Investment Grow 23 Percent
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Tourism investment realization comprised of foreign investment (PMA) of US$594.59 million and domestic investment (PMDN) of US$139.06 million. Foreign investment in star hotel development made up 56 percent of total investment. The rest consisted of management consulting (27 percent) and restaurant (7 percent). Domestic investment comprised star hotel development (65 percent), water tourism (21 percent) and amusement parks (4 percent). Some 51 percent were Singapore-based investors.
On tourist arrivals, Arief said that the number of foreign tourist arrivals from January to October 2016 was 9,403,641 or grew 9.54 percent year-on-year. He expects that until late December, the target of 12 million foreign tourist arrivals will be exceeded, with an estimated 1.3 million arrivals in November and 1.5 million arrivals in December. “I’m optimistic that it will be surpassed as the said months are the peak periods,” he said.
To attract tourists in 2017, Arief will roll out three priority programs: digital tourism, homestay and air connectivity. According to him, digital tourism is a strategy to win global markets, particularly that of 26 countries. Digital tourism program will kick off with the launch of ITX (Indonesia Tourism Exchange), which will bring together travel agencies, accommodation operators and attractions to facilitate transactions.
Earlier, President Joko Widodo had instructed his subordinates to bring in up to Rp670 trillion worth of investment. According to Jokowi, investment proposals in tourism sector can help the government to achieve the target. “We must simply establish the product support, positioning, packaging and promotion.”
The Investment Coordinating Board (BKPM) chairman Thomas Lembong said that several Chinese investors are interested to develop national tourism industry. He named Fosun International and HNA Group as prospective investors. Fosun International is a company actively investing in tourism and fashion industries. The HNA Group is China’s first airline company.
Questions & Answers
Q.What proportion of total investment came from foreign sources, and where did the majority of this foreign investment go?
What proportion of total investment came from foreign sources, and where did the majority of this foreign investment go?
Foreign investment made up US$594.59 million of the total. Of this, 56 percent was directed towards star hotel development, with management consulting and restaurants also receiving significant portions.
Q.Which specific investors from China have shown interest in the national tourism industry?
Which specific investors from China have shown interest in the national tourism industry?
The Investment Coordinating Board chairman mentioned Fosun International and HNA Group as prospective investors. Fosun International invests in tourism and fashion, while HNA Group is China's first airline company.
Q.What three priority programmes does the Tourism Minister plan to use to attract tourists in 2017?
What three priority programmes does the Tourism Minister plan to use to attract tourists in 2017?
To attract tourists next year, the Minister plans to roll out three priority programmes. These are digital tourism, homestay initiatives, and improving air connectivity to various destinations.
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