Indonesia’s tourism sector is showing signs of recovery after a year of lockdowns and travel bans due to the COVID-19 pandemic. In May, according to National Statistics Indonesia, the country recorded a 9% growth in tourist arrivals, with 945,590 visitors. This is more than double the number from the same period last year. According to Outbox’s latest SEA performance May updates, this is also the highest growth rate in the area.
International events spur tourism growth
The increase in foreign arrivals to Indonesia in May can be attributed to the hosting of international events such as the ASEAN summit. The summit was held in Labuan Bajo, a popular tourist destination in East Nusa Tenggara province, and brought together leaders from 10 Southeast Asian countries and representatives from China, Japan, South Korea, Australia, and India.
The event highlighted Indonesia’s potential as a regional center for business and diplomacy, as well as its natural and cultural attractions. Labuan Bajo is famous for its scenic views of Komodo National Park, home to the endangered Komodo dragons, and its beautiful beaches and islands.
Top source markets/regions
Despite travel restrictions in some countries, Indonesia has still been successful in attracting visitors from its neighboring and regional partners. Malaysia, Australia, and Singapore remain the top three source markets for foreign arrivals in May, as they have been for the previous two months.
Source: BPS – Statistics Indonesia
Indonesia’s top 5 source markets include Malaysia with 17.20% of total arrivals, followed by Australia with 12.24%, Singapore with 11.98%, China with 5.71%, and India with 5.38%.
Source: BPS – Statistics Indonesia
In terms of regions, ASEAN is the key region for Indonesia, accounting for more than 46.6% of total arrivals in the first five months of 2023. Europe is the second key region, accounting for 20.8% of total arrivals, with a uniform distribution among markets in this region. Oceania follows, accounting for 16.4% of total arrivals to Indonesia.
Indonesia sets a new target of 8.5 million foreign arrivals in 2023
The positive results in May indicate a gradual reopening of Indonesia’s tourism sector, which has been severely impacted by the pandemic. In the first five months of 2023, the country received only 4.12 million visitors, equivalent to 70% of total arrivals in 2022, reaching 56% of the 2023 target. Nonetheless, Indonesia’s tourism ministry is hopeful that the situation will improve in the second half of the year as more people are vaccinated and more destinations reopen to international travelers. The ministry has increased its target for foreign arrivals in 2023 from 7.4 million to 8.5 million.
To promote Indonesia’s tourism products and services, the ministry has launched several initiatives such as digital marketing campaigns, online travel fairs, virtual tours, and travel bubbles with selected countries. These efforts aim to help Indonesia regain its position as one of the region’s most attractive and diverse destinations.
