Leaders in Bali are calling on the government to help subsidize flight tickets for international tourists, making a vacation on the islands more affordable.
The news comes as Ministers have confirmed they are introducing new policies to reduce the rising costs airlines face for touching down in the country.
Speaking to a reporter, the Deputy Chairman of the Bali Tourism Industry Association (GIPI) Bali, I Nyoman Astama, said that subsidized flights would help boost the tourism sector and improve the tourist experience, noting that “especially for target markets, of course, with significant numbers.”
Leaders like Astama have noted an increase in flight prices in and out of Indonesia’s airports, including for the likes of I Gusti Ngurah Rai International in Bali.
Astama said that industry experts fear that the high price of plane tickets will have an impact on the volume of foreign tourists visiting Bali.
He noted specifically that the number of foreign tourists from Europe may decrease in number coming to Bali due to the price of plane tickets.
Astana shared that there has been an “increase in ticket prices up to two times. Previously, IDR 15 million one-way to Europe was enough; now, it’s up to IDR 25 million. So it’s almost doubled.” While travel trends show a steep increase in European tourists’ interest in Bali travel, rising flight costs could deter those who are still in the planning stages of a trip.
Astama added, “Fortunately, Australian tourists are still firmly contributors to foreign tourists to Bali, so foreign tourist visits are still a positive trend.”
Astama explained that promotions are still needed to maintain and increase foreign tourist visits. He shared that promotions, both online and offline, are urgently needed, and for this purpose, further collaborations between the government and the tourism industry are also needed.
He explained, “That’s what we mean by subsidies or incentives to industry. These incentives can be given independently or collectively through platforms, namely associations. For travel agents, for example, via Asita. Through this collaboration incentive, it is hoped that foreign tourist visits will stabilize or even increase. “
“Not only in quantity or quantity but also in quality. This is in order to realize sustainable tourism and regenerative tourism. Tourism has a positive impact on government, industry, society and the environment.” Astama added.
The tourism expert concluded by comparing the marketing strategies of Bali’s main competitors: “Apart from the variety of attractions, it could be that their promotional strategies and budget are greater than ours. Because of that, we need to work around it so that foreign tourist visits to Bali continue to increase.”
Flight subsidies would, of course, help encourage more tourists to book flights to Bali, especially those who are looking for a last-minute getaway.
Speaking just last week, the Indonesian Minister for Investment and Maritime Affairs, Luhut Binsar Pandjaitan, told the press that he is preparing aviation efficiency measures to reduce flight costs.
In a written statement published on his social media accounts, Minister Pandjaitan shared, “We are preparing several steps for flight efficiency and reducing ticket prices, for example evaluating aircraft operating costs.”
He added that it is the Cost Per Block Hour (CBH) that is the most expensive aspect of an aircraft’s operating costs. He feels this needs to be assessed in order to identify ways in which it can be reduced. Minister Pandjaitan said, “We are also formulating a stagey to reduce the CBH value based on the type of aircraft and flight service.”
The Minister didn’t deny that Indonesia’s CBH is amongst the highest in the world. He wrote, “Compared to ASEAN countries and the high population countries, Indonesia’s flight ticket price will be the second most expensive after Brazil.”
With these added calls for flight subsidies from the tourism sector and commitments from Minister Pandjaitan, tourists should keep a close eye on flight prices and may be able to snatch great deals super soon!
