Indonesian outbound immune to elections effect

UNDETERRED by the upcoming national elections and weak local currency, the Indonesian travel industry put up a strong showing at the Association of Air Ticketing Companies in Indonesia (ASTINDO) Fair 2014 over the weekend.

ASTINDO president Elly Hutabarat said the organising said: “The 4,000m2 (exhibition) space was sold out within 24 hours after we launched the fair to sellers last January. This year, 50 travel companies, 10 airlines and 17 NTOs overseas and Indonesia regional tourism offices, plus hotels and media participated at the show.”

The three-day show was aiming for 75,000 visitors and a total transaction of Rp82 billion (US$7.2 million), a 20 per cent increase over 2013. Some 70 per cent of the ASTINDO Fair total sales last year were outbound.

“This is a challenging target as Indonesia is facing the elections (and travellers might refrain from travelling) and although the rupiah is stronger it has not reached the level it used to be (in early 2013), but with better promotions and support from our partners, we hope to achieve it,” said Elly.

Figures from the show were still being generated at press time, but anecdotal evidence suggests that sales were positive.

Bank Central Asia’s (BCA) bank senior general manager head consumer card, Santoso, said the decline of the rupiah in the last five months of 2013 prompted some market segments to switch to cheaper destinations and pick lower categories of accommodations.

“However, we have seen that since the beginning of the year, the interest to travel has grown again. I would expect the number of travellers and spending will be up again this year and travel fairs such as ASTINDO Fair, where travellers can get special airline fares, packages and the benefits of payment in instalments, cashbacks and other promotions are sought after,” said Santoso.

BCA cardholders’ overseas spend increased from roughly 10 per cent of total spend in 2012 to 15 per cent in 2013, while for premium cardholders this rose from 30 to 50 per cent.

Singapore, Malaysia, Hong Kong were the major destinations where travellers were spending, but South Korea and Japan were becoming more popular, said Santoso.

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