“The tourism industry, including hotels, restaurants, travel bureaus, and creative economic businesses engaged in advertisement, film, and so on, can benefit from the incentives “

The Indonesian government will allocate Rp3.8 trillion in its budget to revive the tourism sector through granting of several incentives to tourism operators in the country. The incentives include subsidy and income tax allowance, deputy I to the presidential staff, Febry Calvin Tetelepta, said at a webinar on tourism during the COVID-19 pandemic here on Thursday.

“The tourism industry, including hotels, restaurants, travel bureaus, and creative economic businesses engaged in advertisement, film, and so on, can benefit from the incentives,” he stated.

The World Tourism Organization has noted that tourism has been the most-affected sector during the COVID-19 pandemic. According to data from the Tourism and Creative Economy Ministry, the number of foreign tourists visiting Indonesia is expected to plunge to 5 million this year compared to 16 million last year.

Meanwhile, the number of domestic tourists is predicted to fall to 120 million in 2020 from 303 million last year. As a result, the country’s foreign exchange earnings from the tourism sector are projected to fall to US$15 billion from the target of US$21 billion for this year.

“Bali Named Among Top Post-Pandemic Destinations”

Speaking to participants at the webinar, including those from the Tourism and Creative Economy Ministry, the Finance Ministry, the Cooperatives and Small and Medium Enterprises Ministry, and the Coordinating Ministry for Maritime Affairs and Investment, Febry said the chief of presidential staff has played a role in building cooperation among a number of parties to help revive the tourism sector.

The government’s seriousness in handling the COVID-19 pandemic has sent a positive signal and helped in building prospective tourists’ confidence, he said.

Another step taken towards reviving the sector has been the reopening of Bali for tourism in stages, starting July this year. Other tourist destinations, including those in Bintan Island, Bangka Belitung province, and Banyuwangi district in East Java will also be reopened soon. “Of course, they will be reopened through simulation and stringent preparations,” Febry said.

He expressed the hope that creative economic agents would be proactive and take the optimum advantage of the stimulus and relaxation policies.