The impact of rising fuel prices

Quoted from CNBC (6/9/2022), The Indonesian government officially increased the price of fuel oil (BBM) on Saturday (3/9/2022) starting at 14.30 WIB. This increase brings the price of Pertalite from IDR 7.650/liter to IDR 10.000/liter.

Then, Subsidized Diesel from Rp. 5.150/liter became Rp. 6.800/liter and the price of Pertamax from Rp. 12.500 rose to Rp. 14.500/liter.

It is predicted that the increase in fuel prices will have an impact on various business sectors. So, what impact will rising fuel prices have on the world of tourism? Here Gotravela Indonesia summarizes it from various sources.

Fuel Prices Rise Rates Predicted to Soar

Yes, the increase in fuel prices is suspected to have an impact on increasing tariffs for tourism services and creative economy products by up to 20 percent. "We predict an increase at the level of tourism and creative economy actors, perhaps 10-20 percent," said Minister of Tourism and Creative Economy Sandiaga Uno in a written statement on Saturday, September 3 2022, as reported Tempoco (4/9/2022).

Read more Ministry of Tourism and Creative Economy Responds to the Impact of Rising Fuel Prices

In response to this, Sandiaga asked the perpetrators to recalculate carefully and ensure that their costs follow people's purchasing power.

His party will also rush to process social assistance if necessary. “We will not remain silent, we will continue to go to the field, provide input. "And if you need social assistance, of course we will speed up the process," he said.

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Not much different from the Minister of Tourism and Creative Economy, Tourism observer, Taufan Rahmadi, hopes that tourism industry and creative economy players will be able to make operational costs more efficient. "Hotel business actors must be able to implement green energy programs, which are environmentally friendly to reduce operational costs," he said as released by Antara, Monday (5/9/2022).

This step is necessary considering that increasing fuel prices will have an impact on the world of tourism. Tourism industry players will make price adjustments ranging from hotel room rates, transportation, to other tourism services.

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Impact on the world of tourism

As a result of this price adjustment, he estimates that the impact of rising fuel prices will also result in a reduction in the number of tourists. "Tourist visits will decrease, because hotel rents will also increase due to the increase in fuel prices," he added.

It is suspected that this effect will occur considering that the skyrocketing price of fuel is usually followed by an increase in prices not only for plane tickets or travel. However, suppliers of basic commodities were forced to increase prices as a result of rising transportation costs.

Thus, all businesses will make price adjustments, including the tourism business. "All tourism actors will definitely make tariff adjustments," he explained again.

However, it is estimated that this increase will only be momentary. The reason is, usually industry Tourism and the creative economy are often able to adapt quickly and have solutions to rising fuel prices.

He also hopes that tourism actors can make operational costs more efficient in responding to this increase in fuel prices. "Hopefully tourism actors can adapt to this increase in fuel prices. "Like making operational costs more efficient," he said, raising hopes. (y)