Jakarta: PT Garuda Indonesia Tbk president director I Gusti Ngurah Askhara Danadiputra announced Thursday that Garuda Indonesia Group decided to cut prices of air tickets by 20 percent for all domestic routes.
The members of Garuda Indonesia Group are Garuda Indonesia, Citilink, Sriwijaya Air and NAM Air.
"It is in line with the aspirations of the public and a number of industry associations. It is also in line with the instruction from the president," He said in a written statement received by Medcom.id.
He is confident that the policy could boost demands. He also hopes that jet fuel price could decrease in the near future.
According to reports, jet fuel price contributes to 35-40 percent of total operational costs. In the second place, leasing contributes to 25-30 percent of the costs.
The Indonesian Hotel and Restaurants Association (PHRI) earlier claimed that the tourism industry is badly affected by the recent airfare hike. The organization urged President Joko "Jokowi" Widodo to resolve the issue.
"The occupancy rate was only around 55 percent last year. It was primarily influenced by the issue," PHRI chairman Hariyadi Sukamdani told reporters early this week.
Quoting a report from the Central Statistics Agency (BPS), the country welcomed 1.41 million foreign tourist arrivals in December 2018. It increased by 21.43 percent compared to the previous month.
In the meantime, the room occupancy rate (TPK) of star classification hotels in Indonesia reached an average of 59.75 percent in December 2018. It decreased by 0.44 percentage point compared to the previous month.
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