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Increase in VoA Levies Does Not Affect MICE Market

Increase in VoA Levies Does Not Affect MICE MarketPolicy of central government raising the levy of Visa on Arrival (VoA) at USD 10 did not really have an impact on the MICE travelers spending holidays to Bali. Chairman of the Indonesia Congress and Convention Association (INCCA) of Bali Chapter, IB Surakusuma, said on Wednesday (Jul 30) the increase of VoA could be adjusted because most MICE guests were luxurious MICE travelers. As with previous report, the Ministry of Law and Human Rights raised the cost of immigration service effective July 3, 2014. The cost of passport application was IDR 355,000 from IDR 255,000. Meanwhile, the cost of Visa on Arrival (VoA) for 30 days was raised to USD 35 from USD 25. This policy is set in Government Regulation No. 45/2014 on the type of non-tax revenue rates prevailing in the Ministry of Law and Human Rights.

Surakusuma explained the increase of VoA as much as USD 10 from the previous one was apparently made all of a sudden. Such an increase would not result in a complaint in the MICE market. He said the handling contract agreement could be revised according to the applicable regulations.
Further, he said that MICE travelers had different character from leisure guests. Incentive (MICE) travelers, for instance, their holiday in Bali were entirely on the account of the company. He said that any changes in the VoA levies including other costs would be fully covered by the company. International companies giving high concern to their employees would bear all the cost increases on holidays in Bali. “To MICE travelers, the increase in VoA as much as USD10 will certainly be considered a reasonable amount,” he said.

According to him, MICE travelers were categorized into luxury MICE that would not be too affected by the increase in VoA at USD 10. Conversely, the increase would strongly be felt by leisure travelers namely those belonging to budget traveler category. (BTN/015)