Rp 800m earmarked for tourism promotion

DENPASAR: The city administration has allocated Rp 800 million (US$86,596) for tourism-related promotion activities in its 2010 budget.

Denpasar tourism agency head Putu Budiasa said Saturday the fund would be used to produce printed materials, to participate in domestic tourism exhibits and to finance several well-known cultural festivals.

No budget was set aside for overseas promotions and exhibitions.

"For those activities abroad we could always ask the assistance of the provincial team to bring our promotional products there," Budiasa said. - JP

Source: thejakartapost.com | 03/08/2010

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A trail of heritage conservation in progress

Talks are intensified among leaders at the railway company PT Kereta Api Indonesia (PT KAI), with restoration projects for old locomotives and other aspects such as stations, railway tracks and warehouses, are under way.

The project results are open for the public to see. For example, the Tanjung Priok station in North Jakarta and old locomotives that are at the Ambarawa train museum in Ambarawa, Central Java.

One of the old locomotives that undergoes conservation, TD-100, or Tedi, is being displayed at PT KAI’s main office in Bandung. Tedi was made in 1926 by Werkspoor, a Dutch train factory. It could run 15 kilometers per hour between Rengasdengklok, Karawang, Cikampek and Cilamaya, transporting crops and merchandise until 1970.

The main office complex itself are conserved old buildings. Built in 1864, the complex has two fireproof buildings. Djoko Margono, an official at PT KAI, said that his team also found an underground tunnel, but they had not entered it for it might contain lethal gases.

Another conservation work in progress is Dayang Sumbi house, a property that serves as a guesthouse for clients. The house, built in 1927 by Dutch officer Ernst Gerard Oscar Kelling, was modified with more rooms. But with the spirit of conservation blooming in the company, the house is now undergoing restoration.

Saptawan Yunandri, architect in charge of the restoration project, said that his team had torn down new additions such as bathrooms, bedrooms and terraces.

“The conservation and development plan of the house is to transform it into the company’s gallery and showroom. The house can also be rented for meetings since it has a café and several meeting rooms,” he said.

Another asset waiting for restoration is a warehouse complex in Cikudapateuh. Sprawling on the 45-hectare land are 24 railway warehouses, an abandoned railway track and an old locomotive situated in the middle of the tracks.

Ella Ubaidi, executive vice president for conservation and heritage assets at PT KAI, said that her company would hold a tender for the master plan of the complex.

“Perhaps we can turn this area into a railway museum, with old locomotives taking visitors from one place to another within the complex.

She said that her company had planned to make 2011 the year of train tourism. One of the plans made for that particular year includes an added panoramic car to the Priangan line.

“We will also ask each train operation area to propose a conservation of one old station. We have nine operation areas, so there will be nine stations getting revamped,” she said.

Source: Tifa Asrianti | The Jakarta Post | Sun, 03/07/2010

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International hotel operators boost Medan’s stature

As more international hotel chains have opened in Medan over the past two years, North Sumatra should benefit from its wider international exposure to potential foreign tourists and investors through world-wide promotion.

But as more international hotel operators entered the top-end market in the N. Sumatra provincial capital while the global economy was weakening since late 2008, a price war seemed inevitable within the 5-star property range.

The 234-room Grand Angkasa virtually dominated the top-end hotel market until 2007. But three more 5-star properties — The Ar-yaduta, Grand Swiss-Belhotel and JW Marriott — came on stream in the country’s third largest city in 2008, followed by the Grand Aston Cityhall in January.

“Even the 287-room Marriott, which opened in late 2008 with a big bang and tried to stand out of its class eventually joined the price war that was triggered by the sudden supply of so many rooms,” Grand Swiss-Belhotel’s public relations manager Lisa Ngadio told The Jakarta Post in Medan.

However, Djodi Trisusanto, vice president of Jones Lang LaSalle Hotels property consulting company in Jakarta, is still upbeat about the market for upscale hotels in Medan.

Trisusanto noted Medan is the main gateway to Sumatra and close to Malaysia and Singapore. Commodity prices are recovering along with stronger economic growth and a new modern international airport is under construction near the city.

These factors will make Medan, a favorite destination for long-haul tourists and a popular venue for domestic business meetings, exhibitions, conventions and incentive tours, he said.

“We should also remember that Medan is the fifth largest destination for foreign tourists with 150,000 arrivals last year or up 14 percent from 2008, despite the sluggish international economy,” Trisusanto added.

He also pointed to another demand-generator for hotels in Medan — Lake Toba, the world’s largest volcanic lake — if adequately promoted, could woo more foreign tourists.

Colliers International property analyst Ferry Salanto estimated there were about 3,635 hotel rooms in the 3 to 5-star bracket in Medan as of early this year, of which the top quality category accounted for 25 percent.

“There will still be an additional supply of rooms in the non-star rated and three-star category within the next three years. But I don’t think there would be any more new properties in the 4 and 5-star category coming on stream until 2012,” Salanto observed.

Ricky Theodores, the general manager of the 205-room Grand Aston Cityhall, said the top-end hotel market still depends largely on domestic business travelers.

“More than 60 percent of our guests are domestic business travelers. Only about 25 percent consist of foreign travelers [leisure and business],” Theodores told the Post in Medan.

Lisa Ngadio concurred that the main drivers of the 4 and 5-star hotel market are domestic and foreign business travelers with the latter group coming mainly from Singapore and Malaysia.

“We cannot expect a significant number of upscale foreign tourists within the near future if local operators cannot come up with more attractive package programs. Moreover, most infrastructure that caters to foreign travelers is still inadequate,” Lisa added.

Theodores was nevertheless quite bullish about the prospects for the hotel market in view of the strong economic recovery expected this year and the role of Medan as the growth hub for North Sumatra and the Aceh economy.

He attributed his bullish sentiment to the business-friendly attitude of the Medan administration which has increasingly been aware of the important role of the travel industry as a major source of income.
“I expect an average occupancy rate performance of 70 percent this year, up significantly from 50-60 percent last year because economic growth is synonymous with business growth,” Theodores added.
JW Marriot’s public relations manager Handajani Susilaning Rahayu shared Theodores’ optimism, saying the market would continue to grow as the local economy continued to expand.

Moreover, as more international hotel operators enter Medan, they will contribute to promoting the travel industry in the city and N. Sumatra in general through their world-wide networks, she told the Post in Medan.

“With more international hotels entering the market, they will help bolster the potential of Medan through additional promotion and publicity via their global networks,” Handajani added.

Theodores added that if each of the international operators will come up with innovative ideas to help win a greater market share then this will further contribute to Medan’s development.

Source: Vincent Lingga, The Jakarta Post, Medan | Fri, 03/05/2010

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Strict rules on tour services sought

The Association of the Indonesian Tours and Travel (Asita)'s Bali branch has strongly urged Bali administration to regulate unlicensed travel agencies on the island.

Aloysius Purwa, Asita's chairperson, said that the operation of illegal travel agencies has ruined the image of Bali as a tourist island.

"Their operations have disturbed the island's tourism industry. Many of them are operating online. But, they have no license and have no proper programs. Their main concern is to get as many tourists as possible without thinking of guest safety," Purwa said.

Based on data from the Bali Tourism Office, there are 635 registered travel agencies operating on the island. "However, there are many more agencies operating without required licenses," Purwa pointed out.

Purwa estimated that the local administration has yet to take stern action against illegal travel agencies. "Anybody can run a tourism business as long as they obtain the necessary permits and licenses," Purwa maintained.

The provincial administration has proposed a bylaw on the operation of tour and travel agencies in Bali to the legislative council.

Bali Governor Made Mangku Pastika confirmed that the proposed bylaw was aimed at strictly regulating the operations of illegal tourist-related industries.

Any tour and travel agencies are required to submit their operation reports every six months to the Tourism Office.

"Many of them violated the regulation. The existence of the planned bylaw was urgently needed to also regulate illegal workers in the tourism industry," the governor added.

Pastika went further, saying that many illegal tourist-related businesses employed foreign workers without the necessary working permits and documents.

"Any employers must report their workers to the related agencies," Pastika added.

The proposed bylaw will consist of 21 articles and 14 sub-articles that refer to the existing 2009 Tourism Law and the 2007 Government Decree concerning the job division between the central, provincial and regional governments on tourism issues.

The governor revealed that many illegal tour and travel agencies have forced their clients to participate in special tours and have forced them to buy souvenirs and gifts in specific shops, boutiques or markets for the sake of commission fees.

Deputy Chairman of Bali Legislative Council I Gusti Bagus Alit Putra said that discussion on the proposed law is still underway.

"We expect to finish it by April," said Alit Putra.

The bylaw, when finished, would regulate any illegal tourist activities.

"Controls from the authority over illegal tour and travel agencies and other business activities in an effort to preserve Balinese culture and ethics," Alit Putra said.

Purwa commented that the bylaw is a start, but the authority should enforce it properly.

"Law enforcement must be enacted by the authority to prevent people from violating the bylaw," he said.

Source: Ni Komang Erviani, The Jakarta Post, Denpasar | Fri, 03/05/2010

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