Tourism Industry Suffers Rp10tn Losses in 2020 due to Pandemic

TEMPO.CO, Jakarta - The Indonesian Chamber of Commerce and Industry (Kadin) recorded that until the end of 2020, losses suffered by the tourism industry due to the Covid-19 pandemic and the lockdown, or locally known Large-Scale Social Restriction (PSBB), reached more than Rp10 trillion.

“It is clear that the business players face huge losses, and the contraction is clearly seen from the gross domestic product (GDP) of the previous two quarters and will also be reflected in the GDP at the end of the year (2020),” said Kadin deputy head for international relations, Shinta Kamdani, in a written statement on Monday, Jan. 11, 2021.

However, Shinta opined that the enforcement of the restrictions of community activities (PPKM) across Java-Bali until Jan. 25, would not significantly affect the tourism industry as the previous PSBB did.

“The economic contraction will only be recorded at the last PSBB because the drivers of the demand still exist, and the government and the business players are becoming more familiar with the PSBB protocols. Yet this projection truly depends on its application, particularly the disciplinary method,” she explained.

Shinta further asked the central and regional governments to cooperate in logistics given that several provinces in Java and Bali were obliged to impose PPKM.

“Because the current PSBB covers many dense provinces simultaneously so the biggest threat to the economy is on the intergovernmental coordination regarding logistics of goods between regions,” she added.

Also Read: Minister Sandiaga Uno Prepares Agenda for Sports-based Tourism 

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