November 8, 2024 9:32 pm

Sandi Highlights Tourism Sector’s Vulnerability Amid Rupiah’s Slide Toward Rp17,000

During The Weekly Brief with Sandi Uno at the Ministry of Tourism and Creative Economy headquarters in Jakarta on Monday (22/4), Minister Sandiaga Uno provided a comprehensive analysis of the adverse effects of the rupiah’s depreciation towards Rp17,000 per US dollar on Indonesia’s tourism sector. While acknowledging potential benefits, Sandiaga emphasized the need to address the prevailing challenges facing the industry.

Foremost among these challenges is the anticipated surge in airfare prices, attributed to the volatility in aviation fuel costs. Sandiaga underscored the potential disruption this could cause to domestic tourism and the deterrence it poses to international visitors. To counteract this trend, Sandiaga advocated for the development of cost-effective tourism packages tailored to meet the evolving demands of travelers.

“Packages such as purification ceremonies (melukat) in Bali have emerged as popular choices due to their affordability,” Sandiaga noted, highlighting the importance of adapting to shifting consumer preferences.

Additionally, Sandiaga cautioned against potential price increases in domestic tour packages, urging industry players to prioritize affordability and accessibility. He stressed the importance of aligning pricing strategies with the purchasing power of consumers amidst the rupiah’s depreciation, thus ensuring the continued growth and sustainability of the tourism sector. Despite geopolitical tensions surrounding Israel and Iran, coupled with the Eid al-Fitr holiday period, the rupiah experienced a marginal recovery to Rp16,237 per US dollar on Monday (22/4) afternoon.