REPUBLIKA.CO.ID, JAKARTA -- Tourism Minister Arief Yahya said that the decision of domestic low-cost carrier (LCC) to charge additional fee for checked baggage would undermine the tourism sector. He expressed disappointment over the imposition of paid baggage policy, as tourism would become one sector that is directly affected by the policy.

"Certainly, it would undermine the tourism sector. Simple, it is price elasticity. Demand will decrease when price increase," Yahya stated here on Wednesday.

The minister noted that demand of air services has declined sharply since the plan was made public early this month. "The decline is relatively sharp; in Riau, for example, it declined by 40 percent. This must be understood," he remarked.

According to Yahya, such policy should not be made all of a sudden. "I think if it was to be increased or made as a paid baggage policy, it should not have been imposed hastily."

The policy, he added, would hit tourism sector as tourists spend maximum for air transportation. However, the minister would not change the target of tourist visit in 2019.

"People will spend 30 to 40 percent of their budget for air transportation," he elaborated.

Indonesia's largest low-cost carrier announced that domestic flights of Lion Air and Wings Air would no longer include a free baggage allowance of 20 kilograms and 10 kilograms per passenger, respectively.

Under the new rules, each passenger is allowed to bring one piece of cabin baggage, weighing a maximum of 7 kilograms, as well as one personal item, such as laptop bag, baby equipment, reading material, binoculars, or handbag. Meanwhile, Citylink would charge the additional fee starting from Feb 8.

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