The coronavirus outbreak, which is currently a global concern, first emerged in Wuhan, Hubei Province, China. The rapid spread of the coronavirus is predicted to cause a slowdown in the economy of the affected countries, and this threat will be felt in various sectors, including tourism. China is a major source of international tourists, accounting for over 10% of the global tourism market, equivalent to 135 million tourists annually. China is also a popular global tourist destination, though Wuhan itself is not a frequently visited destination. As a result, there will likely be a decline in global tourist movements from China, and a shift to non-China destinations.

Panorama, or PT Panorama Sentrawisata Tbk. (PANR), as a tourism business group in Indonesia with a focus on Inbound and Travel & Leisure (Outbound), is implementing risk management efforts by mapping the challenges and opportunities to face this situation.

Inbound

The coronavirus outbreak has not had a direct impact on Panorama Destination or PT Destinasi Tirta Nusantara Tbk. (PDES), a subsidiary of Panorama operating in the inbound sector or handling international tourists. This is because Panorama Destination does not target China as a source market, thus the impact on the company is indirect. PDES's largest market share comes from Western Europe, Eastern Europe, Scandinavia, followed by Southeast Asian and South Asian countries, Africa, the Middle East, and Arab countries. However, indirect impacts related to market perceptions could occur.

"Tourism is influenced by perception, so it is important to build a positive perception that Indonesia remains a safe and comfortable destination to visit," said AB Sadewa, VP of Brand & Communications at Panorama. Panorama Destination actively provides updates to partners in source markets by sending positive news about the developments in Indonesian tourism. "There is an opportunity for the leisure and MICE market to switch destinations to Indonesia. The government should lobby international airlines and travel agents in countries that are target markets for inbound tourism to Indonesia, possibly offering incentives for wholesalers and MICE players who successfully redirect international tourists to Indonesia," added Sadewa.

Travel & Leisure (Outbound)

Through the Panorama JTB Tours brand, which offers various outbound and domestic travel packages, Panorama has not seen a significant decline due to the coronavirus. This is because the portfolio of Chinese and Hong Kong travel products accounts for less than 9%. In fact, growth has occurred during the first quarter of 2020 with an 83% increase in bookings. The largest portfolio includes destinations in Western Europe, Eastern Europe, the UK, Scandinavia, Russia, Turkey, and neighboring countries, which account for over 50% of the market.

In addition to regular travel packages, Panorama JTB Tours also offers incentive tour management services for companies wishing to reward their partners, customers, or employees. Panorama also provides protection against the coronavirus through travel insurance and supplies face masks and hand sanitizers for each group tour participant to ensure safety and comfort while traveling. To further boost the Travel & Leisure sector, Panorama JTB Tours has prepared domestic overland travel packages (by bus) to various destinations in Java, Bali, and Lombok, including Bromo, Dieng, Yogyakarta, Banyuwangi, Bali, and Lombok, with durations ranging from 5 to 12 days. This package will be launched soon to provide a choice for domestic travelers looking to explore the Trans-Java toll road while enjoying culinary tourism to Instagrammable destinations.

AB Sadewa stated that the first thing the government should do is raise Indonesia's status as a coronavirus-free country to promote the country. "We hope the government can soon make a statement that Indonesia is free from the coronavirus. Bali has already declared itself free of the virus, so both international and local tourists can feel safe and at ease when traveling," he said. This can help strengthen the perception of Indonesia as a safe and comfortable destination.

In general, Panorama's tourism business, besides inbound and travel & leisure, which includes media, hospitality, and transportation, has not been affected by the coronavirus outbreak. Panorama is currently running a campaign titled "Keep Traveling and Stay Healthy," where all Panorama business units spread information on the importance of maintaining health so that people can continue to travel with peace of mind. Maintaining cleanliness and health helps the body stay strong against viruses. It is hoped that the spread of the coronavirus will soon be resolved, allowing people to engage in activities safely and comfortably.

About PT Panorama Sentrawisata Tbk

PT Panorama Sentrawisata Tbk (IDX: PANR) was established in 2001. It is a publicly traded Indonesian company focused on advancing the tourism industry in Indonesia and is the parent company of 32 subsidiaries, including joint ventures with prestigious global partners. Supported by five business pillars: Inbound; Travel & Leisure; Media (Convention and Exhibition Organizer, Publication); Hospitality; and Transportation, PANR has become the most integrated tourism company in Indonesia. One of PANR’s subsidiaries, PT Destinasi Tirta Nusantara Tbk (IDX: PDES), in the Inbound pillar, handles foreign tourists entering Indonesia from Europe, the Americas, Asia, Australia, and the Middle East, and is also a publicly traded company listed on the IDX since 2008. PANR also holds a minority investment in a public transportation company, PT WEHA Transportasi Indonesia (IDX: WEHA).