Jakarta. As people’s purchasing power weakens, Indonesians will likely hold back on spending this holiday season, according to an analyst.

Transportation Ministry data shows that nearly 110.7 million Indonesians will go on holiday to celebrate Christmas and the new year. But analyst Tira Mutiara said that Indonesians this year would still go on vacation, but they would be refraining from having long trips and visiting premium destinations.

“Road trips, staying at nearby hotels and visiting local tourist destinations are increasingly becoming more popular. It is not only affordable, but it is also less stressful compared to having to be stuck in severe traffic congestion or the extreme weather,” Tira told Jakarta Globe's sister publication Investor Daily in Jakarta on Monday.

Rising food prices also prompt people to become more selective in setting their vacation budgets. People now prefer to go on shorter holidays and focus on essential activities. The upcoming 12-percent value-added tax (VAT), which will enter into force next month, also adds pressure on people. Even so, Indonesians do not want to entirely sacrifice their year-end holiday, according to Tira.

“Going on vacations is not just an economic activity, but it fulfills an emotional need to reconnect with the family and loved ones. It lets us take a break from our daily routine,” Tira said.

The year-end holiday is expected to become a major contributor to the economy. The fourth quarter also often becomes the success indicator to the annual growth. The upcoming travels are set to spur domestic consumption, particularly in transport, tourism, trade, and accommodation. Lower airfare for domestic flights are also set to boost tourism. The travel season will also become a boon to the local micro, small and medium enterprises (MSMEs) in tourist destinations.

Government estimates show that domestic tourists would make 78.2 million trips this month. Indonesia will also likely have up to 1.32 million foreign tourist arrivals.

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