Robert Go, Jakarta – Indonesia's recent decision to revoke free visa-on-arrival facilities for tourists from nearly 40 countries has come under fire for dealing another blow to the tourist industry and jeopardising thousands of jobs in the country.

Tourism experts said that at a time when arrival numbers are down and the industry is hit hard by the lingering effects of the Bali blasts, the Iraq war and now Sars, the country should be relaxing regulations to invite as many tourists as possible.

Instead, they complained, the government is making it more difficult and, by imposing a levy, making it more expensive for foreigners to visit Indonesia.

Last year, the country received 4.8 million visitors and earned only about US$3.4 billion – both figures a quarter lower than the levels in previous years. This year, given the global economic situation, experts were expecting arrivals to be under four million, but with the new rules, they are cutting their estimates further.

Mr Stefan Reisner, owner of the Puri Asri hotel in Ubud, Bali, told The Straits Times: "The problem is pretty severe already. Higher costs and more difficult visa arrangements are going to turn people off the idea of visiting Indonesia even more."

Explaining how bad the situation is, he said hotels in his area, known to be an arts haven and cultural centre in Bali, have an occupancy rate of only about 10 to 15 per cent. He added: "At a time like this, the government should be helping the industry, and not enact policies that harm it."

Similar voices echoed from across the country. Jakarta-based Ms Yanti Sukamdani, president of the Indonesian Hotel and Restaurant Association, said that an industry worth about US$5 billion a year before the Bali blasts could be irrevocably damaged by the new policy.

Till last month, tourists from 48 countries were entitled to automatic 60-day visas free of charge at any of the Indonesian ports of entry, but now that list has been whittled down to only 11. Travellers from the United States, Australia and anywhere in Europe, among other destinations, are now excluded from this list.

Citizens of the excluded countries would each have to pay around US$50 for a visa, and might have to deal with the hassle of applying for it before starting their trips.

Justice Minister Yusril Ihza Mahendra defended the policy, saying it would ensure tighter security, and Tourism Minister I Gede Ardika said the country would benefit from the inflows because of the visas.

There is, however, still some confusion about how the process will actually work. Although President Megawati Sukarnoputri signed the decree on visas on March 31, her subordinates have yet to fully work out the details of the new policy.

For instance, it is unclear whether travellers from the excluded countries can get their visas renewed after expiry or they have to leave and then re-enter Indonesia.