Samosir Island on Lake Toba
HAVING taken the lead in the development of Indonesia’s secondary destinations for tourism, the Indonesian tourism ministry is now appealing for hospitality investors in the private sector to follow suit.
The 10 destinations that have been selected as focus areas for tourism development are Lake Toba, Tanjung Kelayang (Belitung), Tanjung Lesung (Banten), Thousan Islands (Jakarta), Borobudur Temple, Bromo-Tengger-Semeru (East Java), Madalika (Lombok), Labuan Bajo, Wakatobi (Southeast Sulawesi) and Morotai (North Maluku).
The government has undertaken infrastructural development in these areas, such as theupgrading of Silangit airport near Lake Toba, ring road construction around Samosir Island on Lake Toba, the Special Economic Zoning of Tanjung Lesung and Mandalika, Henky Manurung, head of tourism business investment division, Indonesia Ministry of Tourism, told TTG Asia e-Daily.
Speaking to the media at the 2nd HICI in Jakarta yesterday, Henky appealed to investors to embark on projects, specifically hotel developments, in these emerging destinations.
He said the first three months of the year has seen tourism investment increase by 17.7 per cent to US$268.5 million, 95.5 per cent of which were from foreign investment.
Matt Gebbie, director, Pacific Asia for Horwath HTL, also sees investment potential in Indonesia’s secondary destinations: “In the last 10 to 15 years we have seen hotel developments concentrating in major destinations like Bali and Jakarta. But this has changed in the last couple of years (with a growing focus on) secondary cities.
“I think the push for development in 10 new destinations (introduces an even) broader range of potential in Indonesia. We have Morotai and Wakarobi for niche tourism such as diving, and Bromo and Borobudur which are perhaps more targeted to be mass destinations.”
However, he pointed out the importance of having destination management efforts in these destinations. “(It is important to know) who will take care of Wakatobi, Morotai, Toba as a whole.”
When asked what the considerations of international brands are when entering into fledgling destinations, Rio Kondo, vice president, development & executive director, Indonesia and Malaysia for AccorHotels, cited air connectivity, ground infrastructure and local population size are important factors.
“(An emerging destination) may not be attractive now, but it takes about two years to develop a hotel and usually three to four years for the business to stabilise,” he added. “We also look at the industrial sector, and other developments in the area that will support the hotels later on.”
