How has the recovery of tourism been doing so far this year?
We did slightly better in 2023 than 2022. Total arrivals in 2023 was 500,000, almost 60 per cent compared to pre-pandemic.
While arrivals are improving this year, it is not what we have expected. Many markets are still not fully revived. This year, we hope to close with a minimum of 700,000 arrivals.
What is hampering recovery?
The implementation of visa-on-arrival is an issue. Indonesia offered the visa-free facility for 169 countries pre-pandemic, but suspended this during the pandemic. Currently, travellers, other than those from South-east Asian countries, need to apply for a 30-day visa-on-arrival, which costs 500,000 rupiah (US$31) per person.
This is challenging, especially for travellers on chartered flights from China, as they tend to pair Singapore with Bintan. These travellers have to pay another 500,000 rupiah to re-enter Bintan from Singapore to catch their flights home.
This is also an issue for travellers who arrive through Singapore – the main international gateway to Bintan. A family of four, for example, would have to pay an additional two million rupiah on top of a ferry ride.
Our (Riau Islands) governor has requested that the central government reinstates the visa-free policy or come up with a shorter visa and cheaper tariff – he suggested US$10. While the Directorate General of Immigration has approved the shorter visa period, implementation is pending the Ministry of Finance’s approval for the proposed tariff.
However, we see potential in the Chinese travel market as its economy this year (is expected) to improve by 5.6 per cent. As such, there is likelihood that a lot (more) people from China will travel. Even if only one per cent of Chinese travel, that translates to over 10 million people.
If Bintan can get 150,000 from China, that is already (an improvement from) last year, which welcomed less than 10,000 Chinese travellers.
What about the other markets?
We saw fewer guests from Europe and Japan (compared to pre-pandemic), while arrivals from South Korea are slowly improving.
What are you doing to boost arrivals to Bintan Resorts?
We set up a representative office in Seoul, South Korea last October, and in Shanghai, China last November. Now, we are embarking on having a representative in India. (Based on) a survey we conducted with VFS Global, there are many enquiries (from India), so we are confident that the market will return.
We appointed Avia Tour early this year to represent us in Indonesia, particularly to (attract travellers from) Jakarta and the surrounding areas. We lack domestic branding. We know Indonesians like to go to Bali, but Bintan offers a different aura. Bintan may be perceived as a pricey destination, but we offer quality. Bintan may not have the shopping facilities that people like, but it does not lose out in terms of hospitality, tourism – especially if travellers are looking for a tranquil beach resort – and safety. I’m sure that out of 270 million Indonesian people, there are many who want places that are not as busy as Bali.
On top of opening representative offices, we are now aggressively attending all the trade shows to reintroduce Bintan to the international market.
What new product developments are taking place in Bintan?
Together with some investors, we are setting up a polo club with race tracks, equestrian and polo facilities, as well as international stable management. Currently, we are looking at between 200 and 300 horses in the stable, and we expect this to be ready by 1Q2025. We feel that this sport will attract travellers, especially those from Asia-Pacific.
Beside that, once Mövenpick is ready by the end of this year, we hope to also organise MICE activities. Even though (the property) can only accommodate up to 1,000 people, it is a good start.
We are also setting up our own exhibition centre, a standalone convention facility with a capacity of up to 10,000 people. We have already allocated five hectares of land for the development. This is (scheduled) to be ready by 2026, (along with) the opening of our airport.
This year, four hotels are entering the market: Four Points by Sheraton Bintan, Lagoi Bay opened last February; Indigo and Holiday Inn will be ready in July and August; Mövenpick will open by end of the year.
Author: www.ttgasia.com
published 2024-05-30 12:50:17
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