Saturday, June 28, 2025
Indonesia is poised to achieve a record-breaking year in international tourism in 2025, surpassing pre-pandemic levels and setting new benchmarks for the Southeast Asian region. This growth is underpinned by a combination of strategic government initiatives, robust public-private sector collaboration, and substantial investments in tourism infrastructure. Projections indicate that international visitor spending will reach IDR344 trillion in 2025, marking a nearly 12% increase compared to 2019 figures. The country’s continued expansion of hotel capacities, development of new tourist destinations beyond Bali, and commitment to sustainable tourism practices ensure that Indonesia is well-positioned to lead the region. This record-breaking performance will not only benefit Indonesia’s economy but also establish the country as a top global player in the tourism industry.
The recovery and growth of Indonesia’s tourism sector is attributed to strategic leadership, significant investments, and a cooperative effort between the public and private sectors. The Ministry of Tourism and Creative Economy has set a clear and sustainable growth agenda, focusing on community welfare and resilience. This collaborative approach has not only attracted more visitors but has also ensured that the economic benefits of tourism are spread across the nation.
Tourism now accounts for approximately 5.5% of Indonesia’s GDP, supporting about 14 million jobs. This contribution is expected to grow further, with projections indicating that by 2035, the tourism sector will be worth IDR1,897 trillion, creating around 17 million jobs as both domestic and international travel continue to rise. This growth highlights the vital role of tourism in driving economic development and creating job opportunities for Indonesians.
Despite the booming tourism sector, challenges have surfaced, particularly in high-traffic locations like Bali. The island’s immense popularity has placed considerable pressure on its infrastructure and environment. Local communities have raised concerns about the erosion of cultural heritage, growing traffic congestion, and environmental degradation. In response, the local government has introduced measures to limit the construction of new hotels, villas, and entertainment venues in specific areas, aiming to balance growth with the preservation of Bali’s unique heritage and natural beauty.
Nevertheless, beyond Bali, Indonesia offers a wealth of other tourist attractions that are gaining increasing attention. In response to the rising demand, developers are focusing on expanding tourism infrastructure in emerging destinations. Archipelago International, for instance, is expanding its Aston brand across the country, with ongoing projects in Cimone, Depok, Kediri, Kolaka City, and Yogyakarta, among others. This expansion helps meet the growing need for accommodations outside traditional tourist hotspots.
Alongside local brands, global hotel chains are also intensifying their presence in Indonesia. Marriott International, for example, is developing several properties in the country, including a Marriott hotel in Gelora and additional Westin, Four Points by Sheraton, and Tribute Portfolio hotels in Nusantara. Marriott is also planning to open new Four Points hotels in Pontianak and Bekasi, as well as a Westin resort on Jalan Duyung, an island destination near Batam City.
IHG Hotels & Resorts is another major player expanding its portfolio in Indonesia. Later this year, the company will open a voco hotel in Bandung Setiabudi with 162 rooms. In addition, IHG’s pipeline includes the development of a luxury Regent hotel in Jakarta, a Crowne Plaza near Komodo International Airport, and a Holiday Inn resort in Jakarta. These developments illustrate the strong demand for both high-end and mid-range hotels across the country.
As Indonesia’s tourism industry continues to expand, sustainability remains a key focus. Both the public and private sectors are committed to ensuring that tourism growth is balanced with the preservation of the environment, cultural heritage, and local communities. The government’s focus on sustainable development, combined with investments in infrastructure, is helping to ensure that the benefits of tourism are widely distributed, while maintaining the country’s appeal as a top destination.
The success of Indonesia’s tourism sector is also evident in the growth of domestic travel. As international visitors return, the domestic tourism market has flourished, driven by increased interest from local travelers exploring new destinations within the country. This trend is expected to continue as the government ramps up its efforts to promote sustainable, inclusive tourism.
With its stunning natural beauty, rich culture, and diverse offerings, Indonesia is set to remain a major player in the global tourism market. As the sector grows, it will continue to be a key driver of economic development, job creation, and community empowerment. By prioritizing sustainability and inclusivity, Indonesia is ensuring that its tourism industry remains resilient and continues to thrive for years to come, offering both domestic and international travelers unforgettable experiences.
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