Indonesian Tourism Scholars Association Flags Challenges for Tourism Sector, Urges Visa-Free Policy Review

Azril Azahari, chairman of the Indonesian Tourism Scholars Association (ICPI), identified four major issues that need attention as Indonesia's tourism sector navigates global dynamics affecting competitiveness. Speaking to ANTARA, he said aviation fuel (avtur) prices in Indonesia remain relatively high, which influences airlines' decisions on whether to open routes to the country.

He also pointed to high domestic flight ticket prices as a constraint on domestic tourist mobility, noting that while government fare-reduction incentive programs are a positive step, their effectiveness is limited since they only apply during certain periods.

Notably, Azahari called for an evaluation of the visa-free entry policy. While he acknowledged the policy remains important for attracting foreign visitors, he argued it needs to be balanced with better oversight. He proposed applying a reciprocal principle to visa-free arrangements with partner countries, warning that the current setup contributes to high crime rates, particularly in Bali, and fuels a 'shadow economy' of untracked, untaxed economic activity.

He further noted that spending by foreign tourists does not always benefit local businesses, as some choose accommodations or services managed by foreign operators, limiting the contribution to local tax revenue and the domestic economy.