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Indonesia Expects Heavy Inflow of Asian Tourists over US and European Tourists
Jun 22, 2009

The number of tourists from the Asian countries is predicted to scale up in Indonesia during the second half of 2009 due to economic slowdown in the US and European countries.

The Culture and Tourism Ministry has recently said that the Indonesian tourism industry will see a new demographic change in the number of tourist arrivals in the second half of 2009 as the proportion of Asian tourists will increase, as reported by The Jakarta Post.

Given the negative impact of economic crisis on the EU countries and US, it is expected that the inflow of tourists from these two regions will slightly dip. 

The predicted demographic change in tourist arrivals is a cumulative effect of two convergent factors – economic slowdown in the US and EU countries and positive growth in emerging economies of Asia. Moreover, the inclination of Asian tourists to spend vacations within the continent because of easy affordability and diverse tourist destinations is expected to boost Indonesia reputation of a good tourist spot in the region. 

The new trend is expected to escalate foreign tourist arrivals in Indonesia during the second half of 2009 by nearly 3% in comparison of the same period previous year (2008). The Indonesian hotel and restaurant market is likely to see similar growth of 2%-3% by the end of 2009.

According to the figures released by Central Statistics Agency (BPS), the tourist arrivals in the country have started to show signs of recovery from slowdown, particularly in top tourist spots such as Bali where 676,336 visitors reported in April 2009, an increase of 8.79% from April 2008.

With presidential election schedule to occur in July 2009, major international events such as Coral Triangle Initiative Summit in Manado, the Tour de Singkarak, the World Ocean Conference and the annual meeting of Asian Development Bank in Bali would support the government’s efforts to achieve the target of attracting 6.5 Million foreign tourists in the country. 

According to a Research Analyst at RNCOS, “Although the number of Asian tourists in Indonesia will increase, the impact on the growth of the industry will not be much as the average stay of these tourists (excluding Japan) is usually lower than the European tourists. Hotels and restaurants operators have become more active about their promotional campaigns to attract visitors.”

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