Hike in fuel price expected to hit Indonesian tourism hard
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With the intended increase in fuel prices nearing its deadline, concern is sweeping through Indonesia's tourist industry at the effect a hike would have.
Bagus Soediana, chairman of the Bali Tourism Transportation Association (Pawiba), said transportation rates had remained the same since 2005, despite rocketing prices for vehicle parts and fuel.
“We have not changed the rates in the last eight years. The rates were decided by two organisations – Pawiba and Asita [the Association of Indonesian Tour and Travel Agencies],” Soediana said.
Soediana commented that the two organisations would have to adjust rates for travel accommodation, wages, procurement of vehicle parts and many other things.
The central government intends to raise the price of subsidised gasoline to 6,500 rupiah (Bt204) per litre and diesel to 5,500 rupiah per litre, both up from 4,500 rupiah per litre.
Asita and Pawiba had earlier set standard rates for transportation to several tourist destinations in Bali, including Kuta, Sanur, Ubud, Bedugul and Kintamani.
The two associations also fixed standard tariffs for airport transfers and additional visits to other tourist sites.
Ketut Eddy Darma Putra, chairman of the Land Transportation Owners and Operators Association (Organda), admitted that there would be a significant increase, around 30 per cent, for transportation tariffs.
“We will comprehensively study the plan prepared by Organda headquarters in Jakarta,” Putra said.
Sapta Nirwandar, deputy tourism and creative economy minister, admitted that the planned price rise would seriously impact the country’s tourist industry.
“Hotels, travel companies and creative industries are bracing for the possible impact of fuel hikes. They need to carefully calculate additional costs caused by the hike,” Nirwandar said.
Tourism, he was convinced, would survive and remain lucrative.
“I am still optimistic that the price hike will not decrease the quality of our tourism products,” he said.
Perry Markus, secretary of the Bali-branch Association of Indonesian Hotels and Restaurants (PHRI), was certain that hotels and restaurants would have to increase prices as operational costs would rocket. “The rise in fuel prices will be followed by other commodities,” he said.
Markus suggested that the hotel and restaurant industry consider prices set by neighbouring countries, like Malaysia and Thailand.
