Minister of Tourism and Creative Economy Sandiaga Uno targets investment value in Indonesia’s tourism sector to reach up to US$8 billion in a decade.
Minister Uno highlighted this target while attending the “World Travel and Tourism Council” event in Riyadh, Saudi Arabia, that entailed a bilateral investment and business meeting with several parties to increase more investment in the tourism sector.
“We agreed on three things, (first) Indonesia will become a feature country and will be chosen to be the host of the Global Tourism Economic Forum in the next two years,” the minister remarked while meeting Executive Committee Member of the World Travel & Tourism Council (WTTC) Pansy Ho as in an official statement in Jakarta on Friday.
The meeting chose Indonesia as the host for the Global Tourism Economy Forum in the next two years, as Pansy Ho holds the position of Deputy Chairperson and Secretary General of the Global Tourism Economy Forum.
Second, Uno said, Pansy Ho, who is concurrently Group Executive Chairman and Managing Director of Shun Tak Holdings Limited, will explore investments, particularly in Bali, in establishing international-scale hotels.
“They are looking at Bali and five super-priority tourism destinations (DPSP) to build 5-star quality hotels or more,” he remarked.
Furthermore, opportunities are being explored for Indonesian tourism industry players to return to work in the Chinese market in future since Pansy also holds the position of Executive Chairman of the China Chamber of Tourism (CCT).
“Then, at the Global Tourism Economic Forum meeting, Indonesia is expected to begin to work in the Chinese market that has been closed so far due to the zero COVID-19 policy. We are already waiting for tourism from China to recover,” Uno remarked.
In addition, the minister held a meeting with delegates from the Federation of Saudi Chambers that are keen to invest in eight tourism special economic zones (SEZs): Nongsa SEZ, Tanjung Kelayang SEZ, Tanjung Lesung SEZ, Lido SEZ, Singhasari SEZ, Mandalika SEZ, Morotai SEZ, and Likupang SEZ.
Sandiaga also met representatives of the United Gulf Industrial Consortia, who expressed interest in 12 sustainable projects in Indonesia, including one in Raja Ampat, West Papua,
“The series of meetings are expected to have a positive impact in increasing the value of investment in the country’s tourism sector,” he remarked.
Investment realization in the tourism and creative economy sectors in 2020 until the first quarter of 2022 was recorded at Rp5.31 trillion. The Ministry of Investment noted that the value of existing investment projects in five DPSP reached Rp172.2 billion (US$11.67 million).
The value of ongoing commitments reached Rp1.552 trillion (US$106.24 million), while the value of investment interest in the five DPSPs is Rp1.186 trillion (US$81.19 million).
Investment and business bilateral meetings will be coordinated with cross ministries and agencies.
This effort is expected to increase the amount of investment in the tourism sector to reach US$6-8 billion for 5-10 years in order to achieve a contribution rate of five percent to the gross domestic product (GDP) and eight percent for the creative economy sector in the next five years, so that the total combined contribution between the two sectors is 13 percent.
Source: Antara News