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Replacing Missing Chinese Market

Indonesia’s Tourism Minister Says Domestic Tourism and MICE Sectors to be Heavily Stimulated to Offset Any Loss in Chinese Tourists

Kompas.com reports that Indonesia’s Minister of Tourism and the Creative Economy has admitted that the sudden downturn in Chinese tourism is being felt by a number of tourism destinations across the nation. Because of this, the Government is working to persuade domestic travelers to holiday in Indonesia in order to help sustain the national tourism industry.

“The effect (of fewer Chinese tourists) has already been felt in several tourism destinations, but efforts to increase domestic tourism is just one of our efforts to generally protect our tourism industry,” said Minister Wishnutama following a ministerial coordination meeting held at the President’s office on Thursday, February 6, 2020.

Wishnutama said that in 2019 some 2.07 million Chinese tourists visited Indonesia spending an average estimated US$1,400 dollars each. By extension, this equates, by extension, to some US$ 2.8 billion in foreign exchange earnings for the Indonesian economy. Adding: “But if the negative trend in Chinese tourists spreads to other tourism markets, this will have a psychological impact of a potentially increasing negative impact.”

The Indonesian Minister postulates that over the course of a year, the potential foreign revenue losses for Indonesia could eventually amount to US$4 billion.

Wishnutama expressed his concerns that current efforts to stimulate domestic travel in Indonesia will actually manage to cover any shortfall caused by a downturn in Chinese tourism. The Minister’s concerns are only heightened by the fact that the extent and time-length of the novel coronavirus crisis remain yet unknown. To compensate for the loss of Chinese tourists, in addition to stimulating domestic tourism flows to Bali, North Sulawesi, and Bintan - efforts are underway to significantly increase the meeting, incentive, conference, and exhibition (MICE) segment.

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