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Bali leaders are calling on the government to subsidize airfares for international tourists to make holidays to the island more affordable.
The news comes as ministers confirmed they will introduce new policies to reduce the rising costs airlines face when landing in the country.
I Nyoman Astama, vice president of the Bali Tourism Industry Association (GIPI), told reporters that subsidized flights would help boost the tourism sector and improve the visitor experience, “especially for a significant number of target markets, of course.”
Leaders like Astama point to rising air fares to and from Indonesia’s airports, including Bali’s Ngsuti Ngurah Rai International Airport.
Astama said industry experts were concerned that rising airfare prices would affect the number of foreign tourists visiting Bali.
He noted in particular that rising air ticket prices could reduce the number of foreign tourists from Europe visiting Bali.
“Air ticket prices have increased by up to two times. Before, Rp 15 million one-way to Europe was enough, but now it goes up to Rp 25 million – that’s almost double,” Astana said. Looking at travel trends, there has been a surge in interest from European tourists to travel to Bali, but the rising airfares may deter those who are still in the planning stages of their trip.
“Fortunately, Australian tourists still make up a large proportion of international tourists visiting Bali and international tourist visitation remains on a strong trend,” Astama added.
Astama explained that promotion is still needed to maintain and increase foreign tourist visits. He said there is an urgent need for both online and offline promotion, which also requires more cooperation between the government and the tourism industry.
He explained: “This is what we mean by subsidies and incentives for the industry. These incentives can be provided independently or jointly through platforms, i.e. associations – for travel agencies, via Asita, for example. Through this collaborative incentive, we hope to see a stabilisation and even an increase in foreign tourist visits.”
“Quality is key, not just quantity, in order to achieve sustainable and regenerative tourism. Tourism has a positive impact on government, industry, society and the environment,” Astama added.
Comparing the marketing strategies of Bali’s main competitors, the tourism expert concluded: “Apart from the variety of attractions, their promotional strategies and budgets may be bigger than ours, so we need to address that so that foreign tourist visits to Bali continue to increase.”
Of course, subsidising flights will help encourage tourists to book flights to Bali, especially those looking for last-minute getaways.
Last week, Indonesia’s Minister of Investment and Maritime Affairs, Luhut Binsar Pandjaitan, told reporters that the country was preparing aviation efficiency measures to reduce aviation costs.
“We are preparing several measures to improve flight efficiency and reduce ticket prices, including evaluating aircraft operating costs,” Pandjaitan said in a statement posted on his social media accounts.
The minister added that the most expensive cost of operating an aircraft is the cost per block hour (CBH). He feels this needs to be evaluated to find ways to reduce it. “We are also formulating a phased plan to reduce the CBH value based on the aircraft type and flight service,” Pandjaitan said.
The minister did not deny that Indonesia’s CBH is among the highest in the world. “Compared to ASEAN countries and other populous countries, Indonesia’s air ticket prices are probably the second highest after Brazil,” he wrote.
With the tourism industry’s requests for air freight subsidies and Minister Pandjaitan’s promise, tourists should keep a close eye on flight prices and may be able to get some great deals on tickets soon.
