The Indonesian government offers a 50% discount on airline tickets to convince local and foreign travelers to visit their favorite travel destinations amid the industry crisis due to coronavirus.
According to the authorities, this will increase the flow of guests to 10 main destinations - Batam, Bali, Yogyakarta, Silangit, Malang, Labuan Bajo, Lombok, Manado, Tanjung Pandan and Tanjung Pinang.
"This program is expected to boost domestic tourist arrivals by 25 percent and international arrivals by 10 percent. Cheaper hotel rates will make up an additional 5 percent," Budi said in Jakarta. "In total, we expect an increase of between 30 percent and 40 percent [in tourist arrivals] to keep the tourism business going in those destinations," said Transportation Minister Budi Karya Sumadi.
$ 31.9 million is allocated from the treasury to reduce domestic airline ticket fares by 30%, while three state-owned enterprises, including the oil and gas company Pertamina and operators of the Angkasa Pura and Airnav airports, will offer incentives to reduce fuel and ground handling costs, which are key components in determining the cost of tickets.
In 2019, 16.1 million international arrivals were registered in Indonesia, which is 1.8% more than in the previous year. However, the country's dependence on Chinese tourists, which accounted for almost 13% of total international arrivals last year, makes it particularly vulnerable to the global tourist downturn caused by the Covid-19 outbreak.
According to government estimates, a sharp decrease in the number of arrivals from China could cost the country $ 2.8 billion of potential revenue loss this year.
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