The InJourney Tourism Development Corporation (ITDC) announced that organizing the MotoGP race at the Mandalika Circuit, located in West Nusa Tenggara, resulted in a substantial economic impact, with total revenues reaching approximately 4.96 trillion rupiah, according to a study conducted by the Institute of Technology Management in Indonesia.
Troy Reza Waraka, the operations director at ITDC, confirmed that this event is not just an international sporting occasion but also plays a vital role in enhancing both the national and local economy. The event attracted 140,324 spectators, leading to a hotel occupancy rate of 100% in the Mandalika area.
Event Details
The Pertamina Mandalika International Circuit is a major attraction for sporting events in Indonesia, and data showed that hotel occupancy rates on Lombok Island reached 93%, while in Mataram city, it reached 90%. Additionally, over 600 small and medium enterprises participated in the event, providing more than 3,000 job opportunities, with 67% of these workers coming from Central Lombok.
The development of the Mandalika area is a long-term investment aimed at creating an integrated sports tourism system in Indonesia, linking the sports and tourism sectors and contributing to the enhancement of the local economy, including support for small and medium enterprises.
Background & Context
Historically, Indonesia has seen a growing interest in developing sports tourism, as the government aims to enhance its status as a global tourist destination. The Mandalika Circuit represents part of this trend, designed to host international sporting events, reflecting the country's commitment to developing its tourism infrastructure.
MotoGP is one of the most prominent sporting events in the world and has contributed to boosting tourism in many countries that host it. By organizing this event, Indonesia hopes to attract more tourists and increase global awareness of its tourism potential.
Impact & Consequences
Studies indicate that organizing the MotoGP race in Mandalika could have a multiplier effect on the Indonesian economy, contributing to increased tourism activity and stimulating the local economy. This event also enhances Indonesia's national brand on the international stage, potentially attracting new investments in the future.
ITDC is working to ensure the sustainability of international event organization in Mandalika by coordinating with all stakeholders to maximize the benefits from these events. The company also aims to improve transparency and enhance governance to ensure sustainable added value for the community and the economy.
Regional Significance
This success in organizing sporting events in Indonesia serves as a model for Arab countries seeking to develop sports tourism. Arab nations can benefit from Indonesian experiences in promoting sports tourism, contributing to diversifying income sources and enhancing the local economy.
In conclusion, the success of MotoGP in Mandalika demonstrates how major sporting events can create positive economic and social impacts, emphasizing the importance of investing in sports and tourism infrastructure.