Tourism
From The Report: Indonesia 2019
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Boasting the world’s largest tropical coastline and renowned cultural heritage sites, Indonesia is becoming a leading tourism destination in South-east Asia. Strong gains have been noted internationally, with the World Economic Forum declaring Indonesia the region’s fourth-most-competitive destination after Singapore, Malaysia and Thailand in its most recent “Travel and Tourism Competitiveness Report” for 2017. Globally, Indonesia ranked 42nd out of 136 economies, an increase of eight spots over 2016. Tourist arrivals have recorded gradual growth in recent years – with 14m and 15.8m in 2017 and 2018, respectively, according to the Ministry of Tourism – but a string of natural disasters and other challenges have impacted the achievement of certain targets. This chapter also contains interviews with Shirley Tan, CEO, Rajawali Property Group, and Henry Hendrawan, CFO, Traveloka.

Articles from this Chapter

Overview

Despite falling below mid-term targets, arrivals record steady: growth thanks to diversification and infrastructure upgrades Off the beaten track
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Boasting the world’s largest tropical coastline and renowned cultural heritage sites across more than 17,000 islands, Indonesia is becoming a leading tourism destination in South-east Asia. Strong gains have been noted internationally, with the World Economic Forum (WEF) declaring Indonesia as the region’s fourth-most competitive destination after Singapore, Malaysia and Thailand in its most recent “Travel and Tourism Competitiveness Report” for 2017. Globally, Indonesia ranked 42nd…

Analysis

New destinations: A series of setbacks in 2018 proved unable to slow tourism growth
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Faced with the prospect of a severe recession from weaker oil and metals prices and falling export revenue, the government of President Joko Widodo launched an ambitious five-year strategic plan in 2015. The initiative to promote tourism in the archipelago, also known as the Strategic Plan of the Ministry of Tourism (MoT) 2015-19, entailed an overhaul of relevant government ministries, branding, budgeting and strategy. It addressed foreign visas, airport infrastructure, Cabinet composition…

Interview

Shirley Tan, CEO, Rajawali Property Group, on ensuring: Indonesia continues to grow as a popular tourist destination Capitalising on potential
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Interview:Shirley Tan What potential does Indonesia offer to both domestic and foreign investors, and which cities or provinces in Indonesia offer the biggest potential? SHIRLEY TAN: Indonesia has a large economy, and the tourism industry is multiplying particularly quickly, especially in Bali and Jakarta. Despite the sector’s merits, foreign direct investment in real estate and tourism remains in its early stages, unlike that in more mature markets, which reach a large number of investment…

Analysis

Trend-setters: Outbound tourism from China drives growth across Asia Pacific
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Over the course of less than two decades, China has gone from being a minor player to being the world’s largest and most lucrative source of outbound tourists. In 2017 alone Chinese nationals made more than 131m trips outside of their national borders, spending approximately $300bn in the process. The growing volume and financial clout of Chinese tourists presents considerable opportunities – while simultaneously posing new challenges – for hoteliers, tour group operators, retailers…

Analysis

Trend-setters: Outbound tourism from China drives growth across Asia Pacific
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Over the course of less than two decades, China has gone from being a minor player to being the world’s largest and most lucrative source of outbound tourists. In 2017 alone Chinese nationals made more than 131m trips outside of their national borders, spending approximately $300bn in the process. The growing volume and financial clout of Chinese tourists presents considerable opportunities – while simultaneously posing new challenges – for hoteliers, tour group operators, retailers…

Interview

Competitive edge: Henry Hendrawan, CFO, Traveloka, on using online booking to leverage domestic assets and regional trends
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Interview:Henry Hendrawan What are some of the key trends you observe among domestic and international tourists? HENRY HENDRAWAN: Indonesian tourism seems to have benefitted from the government’s infrastructure programme in terms of increased domestic demand. For example, during the Christmas and New Year holidays in 2018, we observed exceptionally strong demand for accommodation in second- and third-tier cities, as well as in areas surrounding the new Trans-Java toll road, such as Cirebon,…

Overview

Room to manoeuvre: The hospitality sector is expanding and evolving to support: growing numbers of international travellers
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Aided by easier and cheaper travel, global tourism has experienced two decades of almost uninterrupted growth. According to the World Bank, the number of international departures more than doubled between 1997 and 2017, from 687m to 1.57bn per annum. With the global middle class estimated by the US-based think tank Brookings Institution to be expanding by as many as 160m people per year, it is perhaps unsurprising that almost half of the growth in tourist numbers was accounted for by departures from low- and middle-income countries, which advanced from 121m in 1997 to 564m in 2017. There was also significant growth in the number of arrivals…