There Are Incentives That Are More Effective Than Paying Influencers

Illustration. (Photo: Unsplash)

JAKARTA - The negative impact of COVID-19 has begun to be felt directly in a number of economic sectors in the country. One of them, the tourism sector. Therefore, the government through the Ministry of Finance provided an incentive stimulus. However, observers assess the ticket discount stimulus amid the outbreak of this virus is ineffective.

Economic researcher from the Institute for Development of Economics and Finance (INDEF), Bhima Yudhistira, said that the government should fully provide incentives to sectors that have a direct impact. Not by giving airplane discounts to partnering with influencers to bring in tourists.

"From the supply side, it is assisted. That is more pronounced than influencer sponsorship or airline fares. This needs to be helped by the affected sectors, because expecting foreign tourists to come is relatively difficult to accept common sense," he said, when contacted by VOI, in Jakarta, Tuesday. , March 3.

Instead of spending funds to collaborate with influencers, said Bhima, it would be better for the government to provide deferral (Income Tax) for corporate income tax and a reduction in Value Added Tax (VAT) for entrepreneurs in areas affected by the decline in tourists. For example in Bali and Lombok.

Likewise, member of Commission X in charge of tourism Andreas Hugo said, this incentive was only to respond to the special situation faced by Indonesian tourism due to the COVID-19 virus outbreak and was temporary. Therefore, he considered, there was no need for additional incentives. This is because what has been decided must first be seen in its impact over a period of one month.

"We give it a month to see the response of tourists to this incentive policy. If this has a significant positive impact, it is necessary to consider extending this incentive to other flight routes. Add or less must be evaluated first. No need to panic about this situation," he said. .

As is known, the Government has prepared incentives by providing an additional allocation of Rp. 298.5 billion. The stimulus is intended for airlines and agents to be able to provide special discounts to tourists. The total discount incentive for airline tickets is IDR 98.5 billion. The rest was allocated for promotion of IDR 103 billion, tourism activities of IDR 25 billion, and media relations and influencer services of IDR 72 billion.

To boost the number of domestic tourist visits, the government also provides a 30 percent discount for 10 priority tourist destinations. The discount is given with a quota of 25 percent of the number of aircraft seats on each flight. The tourist destinations in question include Lake Toba, Yogyakarta, Malang, Manado, Bali, Mandalika, Labuan Bajo, Bangka Belitung, Batam and Bintan. The discount will be valid for three months from March to May 2020.

The government will also subsidize or provide grants to local governments affected by the reduction in tax rates for hotels and restaurants in the regions by Rp. 3.3 trillion.