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Indonesia loses 1.1 billion in income as tourists stay away

Source
Straits Times - October 20, 2001

Jakarta – Over 1.3 million visitors have cancelled trips to Indonesia because of heightened anti-American sentiment since the United States launched air strikes against Afghanistan – resulting in the loss of US$1.1 billion in potential tourist income, said a government minister.

State Minister of Communications and Information Syamsul Mu'arif said on Thursday: "We are in a difficult position as several countries, especially Western countries, are warning their citizens who planned to make trips here not to come due to our domestic political situation."

The average tourist who stays 11 days in Bali spends US$77.35 per day. The cancellation of visits by 1.3 million tourists represents a potential loss of US$1.1 billion in income. The government, as well as some private institutions, have predicted that tourist arrivals will decline this year, from the 5.1 million tourists recorded last year and the 4.8 million in 1999.

Mr Syamsul attributed the projected drop in foreign tourists to the travel warnings by some Western governments, as well as the increased cost of air travel. Following the September 11 terrorist attacks in the US, airlines around the world, including Indonesian flag carrier Garuda Indonesia, have had to increase their air fares simply because they have to pay higher insurance premiums for their aircraft.

"The attacks by the United States against Afghanistan have affected the global economy, as well as ours. Should we cut our bilateral ties with the US, I'm afraid it would have a more serious impact on our national economy," said Mr Syamsul, referring to calls by some militant groups for the government to sever diplomatic ties with the US.

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