Panorama upbeat despite slowing global economy

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INDONESIA’s Panorama group is targeting a revenue increase of 15 per cent and a net profit of 30 per cent this year, confident that the strengthening rupiah and government initiatives will keep the nation’s tourism climate strong amid the global economic slowdown.

Budi Tirtawisata, group CEO of Panorama Group, stated why he was sanguine when speaking at the annual Panorama Management Conference in Malang last weekend. He said: “We see that the global economy is (affected) by China’s economic slowdown, however, the Indonesian rupiah is strengthening as the US dollar stabilises.”

“The government has a promotional budget of 5.2 trillion rupiah (US$385 million), four times bigger than last year’s. They are doing the country’s brand and product management. There is also growing awareness of regional destinations.”

Tirtawisata: Indonesian tourism to remain healthy

Tirtawisata added that the group should also accelerate growth in the first quarter of this year, despite it traditionally being a low season.

“(In 2015) we achieved 18.5 per cent of the full year target in 1Q and 48 per cent by 2Q. This year, we are targeting 22 per cent and 52 per cent respectively,” he said, adding that margins, not just sales, should increase.

He further identified inbound travel, MICE, hotels and bus transportation as having strong growth potential this year, while its taxi business will still be receiving headwinds from the likes of Uber and Grab Car.

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