Indonesian authorities are considering subsidizing air tickets to boost tourism. The government plans to reduce airfares by providing state subsidies, addressing the issue of high prices noted by both officials and tourism industry stakeholders.
The proposed plan already includes lowering aircraft maintenance costs and reducing taxes. Now, there’s also a suggestion to subsidize air tickets for tourists, similar to a practice already in place in neighboring Malaysia.
Many industry leaders have observed a steady increase in the cost of flights to and from Indonesian airports, including Bali’s Ngurah Rai International Airport. I Nyoman Astama, Deputy Chairman of the Bali Tourism Industry Association (GIPI), pointed out that rising ticket prices could lead to a decline in European tourists. He mentioned that “ticket prices have significantly increased, sometimes even doubled.” Previously, 15 million rupiah was sufficient for a flight from Europe, but now it may require up to 25 million rupiah.
Such conditions, for example, a drop in foreign tourist visits, will clearly impact Balinese tourism as a whole. Until now, income from the tourism sector has been the dominant contributor to Bali’s economy, which means that Bali’s economy still heavily depends on tourism.
“Fortunately, Australian foreign tourists are still firmly the largest contributor of foreign tourists to Bali, so foreign tourist visits are still on a positive trend,” said Astama.
This is helped by the relatively close distance between Australia and Bali, compared to Europe, so the high price of tickets does not have much of an impact.
Astama added, “Tourism that has a positive impact on the government, industry, society, and the environment is crucial.” He also highlighted the importance of continuous efforts to promote Balinese tourism to stay competitive in the global market, with Thailand being one of Bali’s main competitors.
Additionally, the high cost of domestic flights is prompting Indonesian tourists to opt for overseas travel packages to destinations like Thailand, Japan, and South Korea. Subsidizing flights will certainly help encourage more tourists to book tickets to Bali, especially those making last-minute travel decisions.
By addressing these issues, the Indonesian government aims to ensure that Bali remains a top destination for tourists from around the world, sustaining its vital tourism industry and supporting the local economy.
