Tourism sector to see dramatic changes

IN an interview on the tourism outlook and pathways for the sector's revival, Indonesia's Minister of Tourism and Creative Economy, Sandiaga Salahuddin Uno, says that they will see dramatic shifts.

BT: Indonesia's important tourism sector has been badly hit by the Covid-19 pandemic. How do you see the outlook for the next six to 12 months?

Minister: The Covid-19 pandemic has devastated Indonesia's tourism sector and this will force us to enter "a whole new world". There will be a mega shift in industry, especially in the tourism and creative economy sector. In general, there are three shifts: mega, macro, and micro.

At the mega level, the major changes include those in technological, regulatory, social, economic and environmental areas. For example, Covid-19 vaccine availability, accelerated digitalisation, the social anxiety situation, as well as the rise of nationalism.

At the macro level, the shifts will create a new competition map. The tourism industry will be shaped by four characteristics: hygiene, low-touch, less-crowd and low-mobility. The success of the tourism industry depends on those who are able to adapt to it.

The micro shift is a change at the customer level. There are three shifting areas in this level. First, this pandemic situation will give birth to an empathic society that is high in social solidarity.

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Second, consumer needs will also shift from self-actualisation back to the bottom of the pyramid of needs - food, health and safety. Third, changes in consumer lifestyles that are becoming more virtual and the rise of stay-at-home lifestyles.

BT: What steps are being taken by the government to revive international tourism in your country?

Minister: For now, we are focused on accelerating vaccination. The Ministry of Tourism and Creative Economy continues to collaborate with various stakeholders to build vaccination centres in various regions of the country with targets for the general public, and also for the tourism and creative economy workers.

Vaccination is the main way to go so that we can get out of the Covid-19 crisis. That will mean Indonesia can gain the trust from the international community. We are also preparing the end-to-end implementation of CHSE (Certification of Hygiene, Health, Safety, and Environmental Sustainability) certification for every foreign tourist from arrival to departure.

BT: How is the CHSE certification supposed to help in developing tourism? How does the scheme work and who benefits from it?

Minister: In the future, the importance of strict health protocol standards will become part of people's daily lives. The CHSE certification must continue to be applied strictly because this programme will create a symbiotic mutualism between the tourists and the tourism industry owners. Tourists don't need to be afraid to travel, or stay at hotels because they get health, safety and comfort guarantees.

BT: Can you share with us on how Indonesia plans to work on the travel bubble arrangement for international tourism?

Minister: We are still finalising the travel bubble arrangement between Indonesia and several other countries such as the UAE, Qatar, Singapore, China, and the Netherlands.

The government will carefully consider the various criteria that apply to the prospective partner country. For example, countries that will cooperate in the travel bubble must have good handling of Covid-19, flight connectivity between the two countries, as well as preparation for end-to-end CHSE implementation to ensure the safety of tourists and communities around the destination.

BT: How will the proposed flow of international tourists work?

Minister: Currently we are still finalising the travel bubble plan, especially in the areas of Bali, Batam, and Bintan, while continuing to monitor the development of the Covid-19 pandemic situation.

We focus on ensuring that the travel bubble requirements can be met, such as vaccination rates, the control of the spread of Covid-19, as well as the availability of adequate health facilities.

BT: What are the plans to reopen Bali and the other key tourist spots in Indonesia?

Minister: Due to the current situation, Indonesia is still implementing social restrictions called PPKM (Implementation of Public Activity Restrictions). So, the opening of Bali, which was planned for the end of July, had to be postponed. However, the coordination and synchronisation of policies in preparation for the opening of Bali continues.

Later when the situation is conducive, Bali will be ready to be reopened. There are at least three things that must be implemented immediately to prepare for the reopening of Bali and other tourist destinations - the vaccination rate of 40 per cent to 80 per cent, the rate of new Covid-19 infections in the destination area must be below 100, and the implementation of end-to-end CHSE certification for foreign tourists.

When Bali is ready to be opened there will be three destination points as a pilot project: Nusa Dua, Ubud and Sanur.

BT: How is the industry responding to the government's plans to revive the tourism business in the country?

Minister: The tourism industry is an industrial sector that has been devastated by the Covid-19 pandemic since last year. The tourism industry players are currently in need of assistance and they really hope that the tourism gates will be reopened soon. It is our duty to carefully prepare the plan for opening tourism in the midst of this pandemic situation.

We have prepared an assistance budget for the tourism actors for the amount of Rp2.4 trillion (S$226 million) to protect the workers, so that there are no layoffs in this industry. Hopefully this assistance can help to increase the hotel occupancy rate and push it up to 40 per cent. We are also preparing a plan to open a Vaccine Tour in Bali, and this plan has the full support of both the Governor and the tourism industry players. Vaccine tourism is expected to be able to revive the economy in Bali.

As for vaccine tourism, the government of Indonesia is planning to provide the Sinovac vaccine for foreigners (at a certain fee). The Pfizer, Moderna and Novavax vaccines would also be considered if their supply permits. The vaccine visits would last for 14 days so that the tourists could have two shots - one on the day they arrive and the other one on the day they leave, while the people flying to Bali will now need Covid tests.