T

he government will accelerate tourism development by attracting more foreign investors to build infrastructure, accommodation and supporting facilities, particularly in 10 prioritized destinations. “Since we are aiming for 20 million foreign visitors and 275 million trips by domestic tourists by the end of 2019, it has become more important to engage foreign investors in building infrastructure, accommodation and supporting facilities,” said Hiramsyah Thaib, head of the team for the acceleration of development in the 10 prioritized destinations.

The 10 destinations are Borobudur, Central Java; Mandalika, West Nusa Tenggara; Labuan Bajo, East Nusa Tenggara; Bromo-Tengger-Semeru, East Java; Thousand Islands, Jakarta; Toba, North Sumatra; Wakatobi, Southeast Sulawesi; Tanjung Lesung, Banten; Morotai, North Maluku; and Tanjung Kelayang, Belitung.

Hiramsyah delivered the keynote speech during the Tourism, Hotel Investment and Networking Conference (THINC) held in Nusa Dua, Bali, where he promoted investment opportunities in the 10 areas to some 300 participants, which included foreign investors.

During the event, the government also secured commitments from three potential investors to build accommodation, marina and ecotourism facilities in three destinations, with a total investment of US$70 million.

The three projects include the development of a marina in West Lombok, worth $30 million. The ground-breaking of this project will take place this month.

The second project is by PT Celecton Hotels and Resorts International, which has committed to building three- and four star-hotels with a Japanese-style design in Cikarang and Karawang, West Java, with an investment value of $20 million.

The third is the development of ecotourism in all national parks across the archipelago, as committed to by PT Indonesian Paradise Property. The pilot project, worth $1.8 million will be carried out in Alas Purwo National Park in Banyuwangi, East Java.

Among the largest projects that are currently ongoing is the development of a resort complex in Mandalika by the Indonesian Tourism Development Corporation (ITDC). Mandalika is expected to replicate the success of a luxurious tourist area in Nusa Dua that is also operated by the company.

Abdulbar M. Mansoer, ITDC president director, told a media conference recently that the ground-breaking of the first hotel in Mandalika would take place next month.

He said the first five tenants, comprising four accommodation and one water-processing company, were ready to start building their facilities on the 1,200-hectare site this year. The four accommodation providers are international chain hotels: Pullman, Club Med, Royal Tulip and Marriott.

Within the next two years, 1,200 hotel rooms — out of a total of 10,000 rooms to be built in the area, will be operating.

The government has allocated Rp 1.8 trillion ($136.8 million) to develop Mandalika. It has also granted the area the status of Special Economic Zone, which provides investors with tax and fiscal incentives as well as other assistance in doing business.

Besides developing tourism facilities, the government said it was continuing to improve accessibility to the 10 destinations.

Recently, the government improved access to Lake Toba by opening direct flights from Jakarta to Silangit Airport in North Tapanuli, North Sumatra. The flight has shortened the journey to the lake, which is only around 30 minutes’ drive from Silangit.

Tourism is one of the five main sectors that contribute the highest revenues to the country. Data from the Investment Coordinating Board (BKPM) showed that investment in the tourism sector in the first half of this year amounted to $858.67 million, comprising $791.99 million in foreign investments and $66.68 million in domestic investment. In terms of tourist arrivals, the country welcomed 5.2 million foreign tourists during the first half of this year, accounting for 44 percent of the total target of 12 million throughout the year.

In 2015, the number of foreign tourists visiting Indonesia reached 10.4 million, contributing $12.3 billion in revenue. Meanwhile, the number of trips by domestic tourists reached 259 million trips.