Indonesia is on track for a record year of international tourism in 2025, smashing previous pre-pandemic levels.
Research by the World Travel & Tourism Council suggests international visitor spend will reach IDR344 trillion for 2025, almost 12% up on 2019 levels. This degree of growth underlines Indonesia’s position as a tourism powerhouse within the Southeast Asian region, says the WTTC.
A public-private commitment to growth
“Indonesia’s success story is no accident,” said Julia Simpson, president and CEO of the WTTC. “It is the result of bold leadership, targeted investments and close collaboration between the private and public sectors. The Ministry of Tourism and Creative Economy has charted a clear path for growth – one that prioritises sustainability, local communities and resilience.”
Combined with a strong private sector response to the opportunities, tourism now accounts for around 5.5% of the country’s economy, supporting around 14 million jobs.
According to the Economic Impact Research undertaken by WTTC and Oxford Economics, the next decade should see Indonesia continuing to enjoy the economic and societal benefits of increasing tourism. By 2035, it is estimated the country’s tourism sector could be worth IDR1,897 trillion. By then, the sector will have grown to deliver 17 million jobs, as both domestic and international travel grow.
Along with the growth comes challenges. The Indonesian island of Bali has already been seen to be suffering, thanks to its popularity among international visitors. The local government there has put limits on the construction of new hotels, villas and nightclubs in some locations, reacting to the concerns of local people who are negatively impacted by traffic, and the loss of local heritage and countryside.
However, aside from Bali, the country has a raft of other attractions, and places to visit. Local developers are reacting by looking to build hotel accommodation supporting tourism growth in these new destinations.
Among hotel groups expanding fast in the country is Archipelago International, notably with its Aston brand. The group has Aston branded hotel and convention centre projects under construction in Cimone, Depok, Kediri, Kolaka City and Yogyakarta.
Growing local, regional brands
In addition there are Aston hotels being built in Kediri, Malang and Morowali. The group’s Alana brand is also growing its footprint, with new builds under way in Batam and Sentani.
The major international brand groups are also busily adding to their coverage across the country. Marriott has a Marriott branded hotel in Gelora under construction, plus a Westin, Four Points by Sheraton and Tribute Portfolio hotel being developed in Nusantara. In the coming months, it will open Four Points hotels in Pontianak, and Bekasi, plus a Westin resort in Jalan Duyung, an island location off Batam City.
IHG Hotels & Resorts is also adding inventory across Indonesia. Later this year, it will open the 162 room voco Bandung Setiabudi. And its construction pipeline includes a luxury Regent hotel in Jakarta; a Crowne Plaza branded hotel close to Komodo International Airport; and a Holiday Inn resort in Jakarta.
