Indonesia reports tourism sector recovering well

Hotel analytics firm Hotelivate released its report on the Indonesian tourism sector which shows that it is recovering well thanks to a spike in tourist arrivals in Bali and Jakarta.

While foreign tourist arrivals have not, as yet, returned to pre-pandemic levels, Indonesia saw significant growth in terms of occupancy rates and average daily rates (ADRs) thanks to a boom in domestic tourism. At the same time, growth in the sector was not limited to Bali and Jakarta as significant increases were also seen in several major cities.

Nevertheless, Bali and Jakarta remain the top Indonesian destinations, registering ADR growth year-on-year of 14 percent and 11 percent respectively. At the same time, ADRs for Bali’s luxury hotel scene has risen from around US$400 in 2019 to US$2,000 as of the end of the first half of 2024.

Who’s flying into Indonesia?

Currently, Australians remain the largest group of international tourists arriving in Indonesia, though both India and China are becoming increasingly important source markets, contributing significantly to the tourism sector. 

Experts attribute this development to the increase in disposable income among Chinese and Indian travellers over the past couple of years.

Domestic visitors travelling inland top various destinations within the country also contributed significantly. As the Indonesian middle class is projected to triple, growing from 45 million in 2021 to 135 million by 2030, those in this economic bracket are expected to take 5.6 trips per year, around 40 percent more than other travellers, with a significant portion traveling for leisure.

Hotelivate also noted that additional investments in infrastructure, specifically into improved connectivity, are what will spur further growth in the country’s tourism industry.