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Hotel News in Brief
Aug 18, 09 | 1:45 am
Steady Start To 2009
Indonesia had a relatively strong start to 2009 according to tourist arrivals data. About 1.82mn tourists visited the archipelago over the January-April period, representing annual growth of 1.35%, according to figures from the Central Bureau of Statistics (Badan Pusat Statistik, BPS). At a time when its neighbours are struggling with falling visitor numbers, this is an impressive result. Looking forward, Indonesia should continue to benefit from its status as a 'low-cost' Asian holiday destination. It has not been as affected by the ongoing credit crunch as some of its peers have. However, it is hard to see how the country will entirely escape from the ongoing economic crisis gripping developed world markets. We still believe that a very slight fall in tourist arrival numbers is the best case scenario for 2009, with 2010 proving essentially flat. Beyond this point however, we see scope for a rapid rebound in the industry as demand returns. Fundamentally, we can remain upbeat on the long-term potential for Indonesian tourism.
Difficult Operating Environment
The current global economic slowdown is providing a challenging backdrop for companies operating within the Indonesian tourism industry at present. A report in The Jakarta Post underlined the seriousness of the current situation, quoting Harry Waluyo, director of the Ministry of Culture and Tourism's Data and Network Centre, as saying that the domestic tourism industry could lose 20% of its workforce, 4.41mn people. The analysts will continue to monitor the situation in Indonesia to see if any further changes to our tourism forecasts prove necessary. For now, the country's attraction as a 'low-cost' destination is insulating it from some of the turmoil gripping other Asian tourism sectors.
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