Tuesday, February 6, 2024
Will there be a change in Indonesia’s tourism scene?
It appears politicians in Indonesia are playing Russian roulette with the travel and tourism industry of their country.
The price-conscious visitors from Australia, ASEAN or even Europe and North America had seen Bali and the rest of Indonesia as an affordable and attractive vacation destination. This may change soon.
40-75 percent local entertainment tax is about to be implemented. It seems to be designed to discourage visitors from coming to Bali and having drinks and fun.
Like every destination, everyone is looking for higher spending visitors, often forgetting this number mix may not always work.
Especially when it comes to getting a massage or wellness treatment, the government in Jakarta or Bali is aggressively looking for higher-spending visitors and more sophisticated health tourism.
Numerous initiatives to make Indonesia a medical tourism destination are on the rise. But the implementation, potential, and infrastructure have not been tested or put in place yet.
The government however agrees to put the implementation of such a tax on the side to discuss more details.
In the meantime, some spa owners in Bali already are taking legal action on their behalf.
The Hotel and Restaurant Association sees the danger of massive job losses, saying the tax increase is too high to be ignored by travellers.
It will influence overseas tour operators and travel providers to recommend competing destinations to their clients and there are plenty.
In an interview Bali travel and tourism leaders see this tax-raising initiative as another shocking challenge with enormous consequences after businesses just adjusted to a new profitable normal after the COVID vacuum.
Just in December, Indonesia introduced a new 60-day tourist visa to encourage visitors to stay longer. There are no reports that this is turning out to be a success.
Experts say corruption and favoritism on having to pay such taxes is another way of influencing politicians, specifically knowing of upcoming elections in the country.
It’s feared companies targeted for the taxes may be cherry-picked depending on their political affiliation and stand.
The future of tourism in Indonesia may once again come into a suspense state or better it may be time to visit the Islands of the Gods before the tax increase and enjoy a spa treatment.
Sunday, April 28, 2024
Sunday, April 28, 2024
Sunday, April 28, 2024
