Indonesia tourism ministry eyes low-cost carrier terminals, targets foreign travellers

The Indonesia tourism ministry has revealed plans to bolster its airports with low-cost carrier (LCC) terminals to boost foreign tourist arrivals to the country.

The move comes as LCC services saw a 55% growth rate yearly, compared to full-service carriers which grew at 7%, tourism minister Arief Yahya explained, according to The Jakarta Post. For example, one terminal could be switched to a LCC terminal for Indonesian airports.

The move is also a bid to meet the target of 20% growth for tourist arrivals yearly, which includes a target of 20 million foreign tourists in 2020. Arief added depending on full service carriers alone would not be sufficient in meeting the target.

Currently, budget airlines such as AirAsia, Scoot, Jetstar are also subject to higher tariffs as they are using the full-service carrier terminals. However, landing at LCC terminals could lower tariffs as much as 50%, the report added.

Marketing Interactive has reached out to the tourism ministry for comment.

The move was also well met by AirAsia group CEO Tony Fernandes, who praised Indonesia Jokowi and the local government for being part of the “LCC revolution” in a LinkedIn post. The post referenced the LCC terminal two of Soekarno-Hatta airport which services both international and domestic flights.

“This is going to be an incredible steer for Indonesia towards more growth and development. The number of LCC terminals in the region will only continue to rise from here as more countries acknowledge the benefits of low-cost travel,” Fernades added.

This is not the first time Indonesia’s tourism ministry signalled a high interest in targeting foreigners. Earlier this year, it revealed plans to acquire 700,000 tourists from India. This is compared with 485,000 Indian tourists from the year before. This was to be done by targeting Indian tourists visiting Malaysia and Singapore.

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