Indonesia’s travel and tourism sector continues its upward trajectory. Last year, the sector grew by an estimated 29.5%, accounting for 4.8% of the country’s GDP. Another positive indicator of progress was the creation of more than half a million (543,000) new jobs during this time, with employment returning to levels not seen since 2019.
Now, the latest data released by the World Travel & Tourism Council (WTTC) 2024 Economic Impact Research (EIR) forecasts a record-breaking year for tourism in Indonesia, with annual international visitor spending projected to reach US$ 19.1 billion before the end of the year. If current trends continue into Q4, Indonesia’s tourism sector would almost return to pre-pandemic levels in terms of revenue, falling short by just 5.4% compared to 2019.
The figures from WTTC paint a very positive picture of tourism potential for Indonesia, with metrics such as economic contribution and domestic visitor spending also expected to raise the bar and set new records. Overall, tourism’s contribution to Indonesia’s economy (5.1% in 2024) is expected to show a YoY increase of 12.3%, and actually outstrip 2019 contributions by 7.7%.
It is estimated that the sector currently comprises around 12.5 million jobs. Looking to the future, this figure is expected to reach at least 17 million by 2034, meaning one in nine people will be working in travel and tourism by that time. Ultimately, this is indicative of Indonesia’s growing popularity, the health of its tourism sector and the willingness of the government to put its weight behind development of the sector.
According to Julia Simpson, who is the President and CEO of the World Travel & Tourism Council President, “the outstanding growth of Indonesia’s Travel & Tourism sector is a clear indicator of the government’s strategic vision and commitment to the sector. Its policies have fostered an environment conducive to investment and development, significantly enhancing Indonesia’s status as a premier travel destination.”
According to Indonesia’s own national statistics bureau (BPS), international visitor arrivals were 1.15 million in May 2024, an increase of 7.36% compared to April (month (month-to-month) and 20.11% compared to May 2023 (year-on-year). In the first 5 months of this year, from January to May 2024, Bali welcomed 2,392,336 foreign tourists, marking a significant increase of 27.46% compared to the same period in 2023.
Together, these data reveal the rapid recovery of Indonesian tourism following the pandemic era, and hint at the nation’s potential in the years ahead. With a growing reputation on the global stage and wide array of destinations still being developed, the sky is the limit.
