At the recent HICAP Update 2018 held in Singapore, what remained evident was that the country continues to attract the interest and investment of developers and hoteliers despite some of the stagnation and challenges posed.
New international airports, the decongestion of traffic along major roads and transportation nodes and hotel development remain key issues to tackle following Indonesia’s plan to build up "10 new Balis" in a bid to diversity the tourism industry.
At the recent HICAP Update 2018 held in Singapore, what remained evident was that the country continues to attract the interest and investment of developers and hoteliers despite some of the stagnation and challenges posed.
Lucienne Kristi Anhar, the co-owner and managing director of Tugu Hotels & Restaurants, spoke of Lombok, a destination that has been attracting interest for some time.
While bureaucracy is “not a particularly difficult issue compared to other destinations, there are many grey areas in regulations” and “wrong developments can ruin a destination” she said.
She cautioned against mass tourism development without regard for the destination’s existing Muslim population in neighbouring villages and unique charm.
Meanwhile, Lake Toba, a massive 100km by 30km volcanic lake in the northern island of Sumatra, one of the destinations the central government earmarked for tourism, will finally be getting crucial infrastructure.
Developed in the 1990s, about the same time as Bali was also emerging, the destination has since stagnated as road accessibility worsened. With the surge of motor vehicles on the road, a trip from Medan to Lake Toba now takes three to four hours.
But the government has big plans for the destination. A design masterplan covering 600ha is being developed, with plans to populate it with eco-based properties, said Lake Toba Tourism Board’s president director Arie Prasetyo.
At the moment, hotel developments mainly range in the two- to three-star tiers; no international operators have yet opened doors.
There has also been steps to improve air connectivity. Last October, the Silangit International Airport (DTB), formerly a regionally airport, expanded to include its first international chartered flight to Singapore operated by Garuda Indonesia, which has seen 98% occupancy. Prasetyo is hoping to bring other carriers like SilkAir, Scoot and Jetstar onboard.
Prasetyo also said that the tourism authority is working with Singapore Tourism Board and International Enterprise Singapore to attract tourism and investments.
A new toll road connecting Lake Toba to Medan - already one-third complete - will be ready by 2019. The first of three segments opened last year, with the second segment due to open sometime this year.
Another potential area of development is cruise, which Prasetyo hopes will bring up visitor arrivals.