Travel and tourism sector in Indonesia promises growth in coming years

The travel and tourism sector in Indonesia grew by 8.4% in 2013, the faster for any G-20 country so far. The latest research from the World Travel and Tourism Council (WTTC) highlighted Indonesia’s double-digit growth in international tourist spending (15.1%), and 7.2% in the overall growth of the economy from domestic tourism alone. As the country witnesses rapid economic growth, its burgeoning middle class has taken to travelling for both business and leisure in larger numbers. This has helped expand the market further. The country has also seen growth in numbers of international visitors, who are bringing valuable export income to the country. This is supported partly by the devaluation of Indonesian currency, the rupiah, against the US Dollar. The country’s move from agriculture-based to service-based economy has also helped in sustaining the sector.

As per the market research reports Indonesia, 2014 looks bright for the travel and tourism sector as it is expected to grow a further 8.1%, outperforming the general economy by 2.8%. The WTTC expects growth for international visitor exports (14.2%) and above-average continued growth for domestic tourism spending (6.3%). The number of foreign arrivals had been recorded as 4.55 million by the end of the first half of 2014, up from the 4.15 million foreign visitors last year. The country is optimistic that this year’s target of welcoming 9.5 million foreign visitors will be realized soon, as in 2013the total number of travelers to the country was recorded as 8.8 million.

Furthermore, with the travel and tourism sector set to see impressive growth in 2014, as per research on Indonesia,there will also be an increased number of tourism receipts and job creation. However, this will only come true when the country continues to invest in branding and promotion. Bringing in visa facilitation policies spur on growth further. Lastly, with Indonesia having many natural and cultural riches, government initiatives will ensure that they are protected for the future, giving the overall segment a much-needed boost.

The number of foreign tourists that visited Bali in the first six months of this year rose to 15.75% to 1.72 million from last year’s data. Of these, most were from Australia, which is closely followed by China, Malaysia and Japan. The local government of Bali has already prepared itself to welcome three million foreign tourists. As per research on Indonesia,Bali is the most popular tourist destination in the country as the island offers beautiful scenic beauty, culture and a lively nightlife.

Despite the growth prospects, market experts feel that the government also needs to take action. With predicted growth rates of about 4%, it is important to capitalize on the opportunities, which will require popular destinations and regional authorities to create favorable and safe environments for visitors. This would also mean increased investments in the infrastructure and human resource support that would facilitate a successful and sustainable industry. Even at the national level, it is important that policymakers do much more to implement open visa regimes and employ intelligent rather than punitive taxation policies, because only when right steps are taken will the industry be a true force.