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UPDATE 1-Indonesia sees drop in tourism spending next year

Tue Dec 23, 2008 4:27pm IST
 
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By Karima Anjani

JAKARTA, Dec 23 (Reuters) - Indonesia's tourism ministry said on Tuesday it expects a decline in tourist spending next year because of the global economic crisis, but sees visitor arrivals in a similar range to 2008.

Tourism accounts for about 3 percent of gross domestic product in Southeast Asia's biggest economy, but some areas, including the resort island of Bali, are heavily dependent on tourism for jobs and growth.

A recent shortage of alcohol in Jakarta and Bali, and concerns over Indonesia's new anti-porn law -- seen by some as a threat to artistic, religious and cultural freedom in the diverse archipelago -- have led some tourists to complain or even threaten to stay away.

Other deterrents include long queues at the visa and immigration counters, and fears about the safety record of Indonesia's domestic airlines.

"I understand that for foreigners alcohol is like tea or coffee for us, if there's no alcohol then tourists are reluctant to come here," Culture and Tourism Minister Jero Wacik told a press briefing, adding that the issue was being resolved, particularly in top-tier hotels.

Importing alcohol has became prohibitively expensive following a clampdown by the authorities on widespread smuggling and under-invoicing of wines and liquor.

Earnings from tourism are forecast to fall to $6.5 billion next year, from an estimated $7.57 billion in 2008, the ministry said in a statement, with the average tourist expected to spend $1,000 per visit to Indonesia next year, compared with $1,178 per visit in 2008, and $970 in 2007.  Continued...

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