Indonesia reports that tourism sector is recovering well

Hotel analytics company Hotelivate published its report on Indonesian Tourism, which shows the sector is recovering well due to an increase of tourist arrivals at Bali and Jakarta.

Indonesia has seen a significant increase in occupancy rates and average daily rate (ADR) due to an increase in domestic tourism. The sector’s growth was not restricted to Bali and Jakarta, as significant increases could also be seen in other major cities.

Bali and Jakarta, however, remain the top Indonesian destination, registering ADR increases of 14 percent a year and 11 percent a year, respectively. ADRs in Bali’s luxury hotels have risen from US$400 to US$2,000 by the end of 2024.

Who’s flying to Indonesia?

Australia remains the largest group of tourists visiting Indonesia. However, India and China are also becoming important markets for tourism.

Experts attribute this to the increase in disposable earnings among Chinese and Indian travellers in the past two years.

Domestic visitors who travelled inland also contributed significantly. The Indonesian middle class, which is expected to triple from 45 million people in 2021 to 135, million by 2030, will take 5.6 trips a year, or around 40% more than the average traveller. A large portion of these travellers will be on leisure trips.

Hotelivate has also stated that additional investments in infrastructure – specifically improved connectivity – will spur on further growth in the tourism industry.