In Business, News, Tourism

Image: Domestic airlines arriving and departing at Ngurah Rai Airport. Credit: Wikipedia.

The decision by the central government to force airlines to lower domestic flight prices before July 1 has received a positive response from the Badung Tourism Office. It is believed that the policy announced yesterday of lowering the prices will have an impact on tourist arrivals to the Island of the Gods, and especially Badung.

“When the price of airplane tickets rises, it definitely has an impact on domestic tourist arrivals. But now with the anticipated price drop, hopefully it will increase tourist visits to Bali,” said Badung Tourism Head I Made Badra on Monday (6/24) and quoted by NusaBali this morning.

The Indonesian government made an agreement with the airline industry to reduce the price of airline tickets which should come into effect this week. The government will continue to evaluate the movements in the ticket prices.

“It will be by the end of this week, no later than July 1, 2019,” Coordinating Minister for Economic Affairs, Darmin Nasution said yesterday when met in the DPR RI, Jakarta, Tuesday (6/26).

Darmin explained that the drop in airplane ticket prices would lower during certain periods.

The Ministry of Transportation has already tried previously to force the airlines to reduce the ticket prices in the range of 12 percent to 16 percent. However, the actual reduction wasn’t very significant.

“Some prices will remain the same as is now. But for instance, the less busy moments through the day and late night flights should drop, while the price will remain higher in the morning and early evening,” Darmin said.

All eyes will be on the airlines websites this week to see if the reduction becomes a reality.

Showing 3 comments
  • Dave
    Reply

    A lot of people i have spoken to in australia .say they have decided on other destinations to take their families for holiday .. due to the rising cost to vacation in bali…ie entry and exit 10 isd per person
    Adds up for a family of 5 on a budget..and the overstay a simple miscalculation can be very costly now..cost tripled ???!!!

  • aegisint
    Reply

    All airfares in Indonesia are regulated by the Ministry. In this case the ministry decides what amount of discounting can be offered by an airline against its full fare ticket price, which has to be stated to the government. There is a formula that the ministry applies to this, that formula having been approved by the House. The airlines indeed approached the ministry earlier in the year complaining that the regulation prevented them from offering deeper discounts. So the headline here is misleading. There are other reports that the government will allow deeper discounts on less popular routes to encourage air travel to more remote locations as well.

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