The Impact of Rising Fuel Prices for the World of Tourism

fuel prices go up

Quoted from CNBC (6/9/2022), The Indonesian government officially raised the price of fuel oil (BBM) on Saturday (3/9/2022) starting at 14.30 WIB. This increase made the price of Pertalite from Rp 7.650/liter to Rp 10.000/liter. Then, subsidized Solar which was previously Rp. 5.150/liter to Rp. 6.800/liter and the price of Pertamax from Rp. 12.500 to Rp. 14.500/liter. The increase in fuel prices is predicted to have an impact on various business sectors. So, what is the impact of rising fuel prices for the world? tourism? Here Gotravela Indonesia summarizes it from various sources.

Tourism rates are predicted to soar

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

Responding to this, Sandiaga asked the perpetrators to recalculate carefully and ensure the costs were in line with the people's purchasing power. It will also rush to process social assistance if needed. "We will not remain silent, we will continue to take to the field, giving input. And if we need social assistance, of course we will speed up the process,” he said.

Tourist tricks survive

Not much different from the Minister of Tourism and Creative Economy, tourism observer, Taufan Rahmadi hopes that tourism industry players and the creative economy are expected to be able to make operational cost efficiency. "Hotel business players 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 the increase in fuel prices will have an impact on the world of tourism. The tourism industry players will make price adjustments ranging from hotel room rates, transportation, to other tourist services.

Impact on the world of tourism

As a result of the price adjustment, he estimates that the impact of rising fuel prices will also have an impact on reducing the number of tourists. "Tourist visits will decrease, because hotel rents will also increase due to the increase in fuel prices," he added. This effect is expected to occur considering that the skyrocketing fuel prices will usually be followed by price increases, not only for airline 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 in the tourism business. "All tourism actors will definitely make tariff adjustments," he explained again.

However, the increase is considered to be only temporary. The reason is, usually the tourism industry and the creative economy are often able to adapt quickly and have solutions for rising fuel prices.

He also hopes that tourism actors can make operational costs efficient in responding to this rising fuel price. "Hopefully, tourism actors can adapt to the increase in fuel prices. Like doing efficiency from operational costs, "he said, threading hope. (y)

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