Local Festivals Form Great Strategy to Boost Local Economies
Events that are organized in the regions of Indonesia should be able to boost the local economies as a big number of domestic and foreign people come to visit the events. These visitors need a place to stay, eat & drink, and are usually interested in buying some local souvenirs. Hence, their money is injected in the local economy.
I Gde Pitana, Deputy of Marketing Development at Indonesia's Tourism Ministry, said a district or city can promote itself by organizing a local event, for example a festival. This is actually a very effective strategy. "Take Jember for example (located in East Java). This district used to be relatively unknown until it started to organize the annual Jember Fashion Carnival in the early 2000s," Pitana said.
As a result, more and more events are being organized in the regions, especially events that focus on local cultures. Based on data from Indonesia's Tourism Ministry, a total of 109 events will be held in the regions of Indonesia in full-year 2018. These festivals also attract a rising amount of foreign tourists.
Local authorities are increasingly stimulating (and investing in) such local events. For example, M Yanuarto Bramuda, Head of the Culture and Tourism Division at the Banyuwangi District (East Java), said local festivals are a "bonus for local districts". Therefore, the Banyuwangi district will invest up to IDR 1.3 billion (approx. USD $90,000) in the organization of the Banyuwangi Ethno Carnival. This event, which starts on 28 July 2018, is expected to attract up to 100,000 people from outside Banyuwangi. Therefore, hotels and homestays are bound to be fully booked during the event.
Bramuda said Indonesian tourists are estimated to spend up to IDR 2 million (approx. USD $140) per day, while foreign tourists tend to spend up to IDR 3.5 million (approx. USD $240) per day. Thus, the event could attract around IDR 25 billion (approx. USD $1.7 million) in funds that are injected in the local economy.
Meanwhile, Yogyakarta, which is among the well-known places of Indonesia, set aside more than IDR 11 billion (approx. USD $750,000) this year for its festival and creative economy budget. Local authorities aim to welcome up to five million foreign tourists and 400,000 local tourists supported by the local festivals this year.
Biggest Events in Indonesia in 2018:
| Event | Location | Date |
| Java Jazz | Jakarta | 2 - 4 March 2018 |
| Pesta Kesenian Bali | Bali | 16 June - 14 July 2018 |
| Banyuwangi Ethno Carnival | Banyuwangi | 28 - 29 July 2018 |
| Jember Fashion Festival | Jember | 7 - 12 August 2018 |
| Asian Games 2018 | Jakarta, Palembang | 18 August - 2 September 2018 |
| Iron Man 70.3 | Bintan | 19 August 2018 |
| Festival Payung Indonesia | Solo | 20 august - 8 September 2018 |
| Sanur Village Festival | Bali | 24 - 28 August 2018 |
| Karnaval Kemerdekaan | 25 August 2018 | |
| Grand Karnaval Indonesia | Jakarta | 27 August 2018 |
| Annual IMF-World Bank Meeting | Bali | 12 - 14 October 2018 |
| Borobudur Marathon | Magelang | 18 November 2018 |
Source: Kontan
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