Indonesia tourism posts losses of over 7 billion USD due to COVID-19

A quiet resort in Bali (Photo: Nikkei)

Jakarta (VNA) – The tourism sector of Indonesia has fallen into deep difficulties due to the impact of the COVID-19 pandemic, with losses incurring so far amounting to around 7 billion USD.

The number of foreign visitors to Indonesia in October this year, though picking up 4.57 percent from the previous month, showed a decrease of 88.25 percent from the same period last year to 158,200, according to the country’s statistics agency BPS.

Statistics of the Indonesian Hotels and Restaurants Association (PHRI) showed the sector shrank 11.86 percent in October year on year. About 78.5 percent of the workforce of the hotel industry have lost their jobs.

Deputy chairman of PHRI Maulana Yusran said hotels now mainly serve domestic travellers, noting hotels in Bali reported the lowest occupancy rate in the country in October, equivalent to only 9.53 percent of the rate in October 2019. 

Before the COVID-19 pandemic broke out, Indonesia expected to welcome 18 million foreign visitors in 2020, compared to 16.1 million international arrivals in 2019.

However, in the first 10 months of this year, there were only 3.72 million foreign visitors, down 72.35 percent year on year.

Spokesperson of the Ministry of Tourism and Creative Economy Prabu Revolusi said the country aims to welcome 13-14 million foreign tourists next year. The goal is feasible, he said, adding that Indonesia has set up tourism corridors with China, Singapore and the Republic of Korea, and is engaging in talks with Japan on a similar move./.