Indonesian tourism industry hoping for nine million foreign visitors in 2013

Press Release   •   Nov 04, 2013 15:13 GMT

Volumes within the Indonesian tourism industry increased over 2008-2012, driven by promotional activity and an increase in domestic and international airline capacity and routes.

Inbound tourist volumes have expanded at a compound annual growth rate (CAGR) of 3.20% over the past four years, and are expected to record marginal growth over 2013−2017, at a CAGR of 1.29%.

The Indonesian government has set the ambitious target of welcoming a total of nine million foreign tourists in 2013. In 2014, it wants at least 10 million foreigners to visit Indonesia. The government expects these increases to originate mainly from the Asia-Pacific region itself.

Continuous per capita income growth, improving public infrastructure and more affordable transportation continued to fuel spending on travel and tourism in Indonesia during 2012. Positive growth was seen across various economic areas ranging from economy or budget up to the luxury segments both for business and leisure purposes.

Indonesia's domestic tourism growth is led by a rising middle-class population. In the first quarter of 2013, the National Statistics Bureau stated that Indonesians made 3.41% more trips, 55.7 million, compared to 53.86 million during the same period in 2012. Those with highest propensity to travel are residents from East Java, Central Java, West Java, Jakarta, North Sumatra, and Bali.

Among Indonesia's many tourist attractions, the government has identified 16 priority destinations to be developed in the coming years to attract international tourists in the country.

The 16 destinations are Lake Toba, Pangandaran, the Borobudur and Prambanan areas, Yogya-Sleman, the Bromo-Tengger-Semeru area, Lombok and the Rinjani volcano, Flores, Wakatobi, Toraja, the Derawan islands, Pulau Weh in Aceh, the Togean islands, the Thousand Islands and Old Batavia, and Bali's southern and northern coasts, as well as the area around Mount Batur.

As a highly populated country covering a vast area and number of islands, Indonesia has vast long term travel and tourism growth potential, especially considering many tourist sites and infrastructures are still underdeveloped.

Economic growth and growing disposable incomes are expected to boost revenues within the tourism industry in the future.

For more information on the Indonesian tourism industry, see the latest research: Tourism Market Research

Follow us on Twitter @CandMResearch issues news updates and report summaries covering all major industries and sectors. The service provides additional client monitoring and timely alerts to breaking industry and sector news leading the day's business headlines. News articles, written by our staff, contain additional analyst insight, providing value added insight for our readers. News updates and real-time alerts on newly-released market reports are also available from our Facebook page, Twitter feed @CandMResearch and RSS links. We also welcome inquiries from business journalists and the news media.