The government's lofty ambition to develop "new Balis" as tourist magnets around the country has run up against challenges in Mandalika on the island of Lombok, where the tourism concept relies heavily on motorsport.
he government's lofty ambition to develop "new Balis" as tourist magnets around the country has run up against challenges in Mandalika on the island of Lombok, where the tourism concept relies heavily on motorsports.
The core project has changed hands multiple times, as it was launched by PT Emars, then passed on to PT Bali Tourism Development Corporation (BTDC) and most recently to PT Indonesia Tourism Development Corporation (ITDC).
The state-owned enterprise has been tasked with developing the Mandalika tourism area in West Nusa Tenggara since 2018.
ITDC boasts that it clinched seven new partnership deals this month worth a combined investment of Rp 1.5 trillion (US$97.5 million) for the advancement of the Mandalika Special Economic Zone (SEZ), encompassing a variety of ventures, such as sports events and hotels.
However, experts say numerous issues need to be addressed to stimulate tourism in the region, and they question whether Mandalika has what it takes to transform Lombok into a destination comparable to Bali.
The Superbike World Championship race held at the Mandalika Circuit in March this year resulted in financial losses estimated at Rp 100 billion, Kompas reported in September. In July, InJourney estimated that the motorbike event lacked appeal for potential sponsors seeking investment opportunities.
Furthermore, InJourney director Dony Oskaria told CNN Indonesia in June that the Mandalika Circuit had incurred losses estimated at Rp 50 billion as a result of hosting the MotoGP race.
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