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View all search resultsRI tourism recovery at risk as foreigners tighten purse strings
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Life’s a beach: Tourists pose for photographs on Kuta Beach in Bali on Jan. 4, 2019. (AFP/Sonny Tumbelaka)
I
ndonesia’s tourism recovery may be facing stronger headwinds as would-be foreign visitors limit their leisure spending amid the threat of a global recession, threatening hard-won gains in the pandemic-battered industry.
The World Bank, International Monetary Fund (IMF) and Organization for Economic Cooperation and Development (OECD) have downgraded their global economic growth projections for 2022 and 2023, with some estimates much lower than anticipated figures, while inflation forecasts have been revised up.
Spikes in energy and food prices partly triggered by Russia’s invasion of Ukraine, aggressive monetary tightening policies to combat high inflation and zero-COVID measures in China are among the factors believed to be behind the bleak projections.
The IMF expects much reduced household purchasing power as increasing prices squeeze living standards around the globe.
Regarding the situation, Indonesian Hotel and Restaurant Association (PHRI) deputy chairman Maulana “Alan” Yusrana told The Jakarta Post on Thursday that current global economic turmoil would affect tourism as well, as it would affect people’s willingness to travel abroad.
“Months ago, we struggled with mobility restrictions, but when those were loosened, now comes another hurdle, with recessions and soaring inflation in many countries,” Alan said.
Read also: World economy to slow down, 'paying the price of war': OECD
