Travel and tourism in Indonesia - statistics & facts
The tourism industry is an important part of Indonesia’s economy, contributing over two percent of its gross domestic product. The importance of international tourism in its regions, however, varied greatly, with the island of Bali being arguably Indonesia’s most popular tourist destination. Prior to 2020, tourism in Indonesia was experiencing steady growth, spurred by increasing numbers of foreign visitors. However, the outbreak of the COVID-19 pandemic in 2020 showed how precarious it was for an economy to be so heavily geared towards international tourism.
By developing and marketing more tourist destinations to international visitors, the Indonesian government aims to boost economic growth through the tourism industry. The average expenditure of international visitors in Indonesia is considerably higher than the average expenditure of domestic tourists, which is very favorable for the growth of the industry. Beyond generating revenue through inbound tourism expenditure, international tourism attracts investments and capital into tourism-related businesses. Additionally, international tourism enhances local economies by improving infrastructure and creating jobs. In recent years, employment in Indonesia’s tourism sector had been steadily increasing.
Indonesia as a global tourism destination
Indonesia is a vast archipelago and offers tourists a wide range of attractions and activities, from romantic beach holidays, wellness tourism, culture, to adventure and sports, including some of the best dive spots in the world such as Raja Ampat. In 2021, the Indonesian Tourism and Creative Economy Ministry had singled out five ‘super-priority’ destinations to promote: Lake Toba in Sumatra, Borobudur in Java, Labuan Bajo in East Nusa Tenggara, Mandalika in West Nusa Tenggara, and Likupang in North Sulawesi. A budget of 351.6 billion Indonesian rupiah was allocated in 2022 to develop these destinations further.By developing and marketing more tourist destinations to international visitors, the Indonesian government aims to boost economic growth through the tourism industry. The average expenditure of international visitors in Indonesia is considerably higher than the average expenditure of domestic tourists, which is very favorable for the growth of the industry. Beyond generating revenue through inbound tourism expenditure, international tourism attracts investments and capital into tourism-related businesses. Additionally, international tourism enhances local economies by improving infrastructure and creating jobs. In recent years, employment in Indonesia’s tourism sector had been steadily increasing.
