The Indonesian government will provide discounts of up to 30 percent for foreign and local tourists in an effort to boost Indonesia's tourism sector. This was stated by President Joko Widodo in a cabinet meeting on Monday 17 February 2020.
Presiden Jokowi during the meeting
Details of incentives have not been announced because they are still in the finalization stage, but discounts will be given for tour packages to certain destinations (Bali, Likupang in North Sulawesi, Bintan and Batam in Riau Islands, Yogyakarta, Lombok and Labuan Bajo), other offers, and discounts for flights and hotels. In addition, the government will also offer several incentives for business people in the tourism industry such as travel agents, hotels and airlines to help them get through difficult times.
This incentive is the government's reaction to boost the tourism sector because recently many tourists have canceled their vacation plans to Indonesia due to fears of the corona virus outbreak. The Indonesian Hotel and Restaurant Association has recorded around 20,000 cancellations for Bali since early January.
The Minister of Tourism said, Indonesia could suffer a potential loss of up to USD 2.8 billion from Chinese tourists. In 2019, Indonesia received 16.1 million foreign tourists, of which 12 percent came from China. In addition, as a result of the travel ban imposed by the government to and from China, Garuda Indonesia has stopped 40 flights to China, while Lion Air Group, has suspended 30 flights to China.
