Foreign Tourist Arrivals in Indonesia, 2013-2016:
Month
|
Tourist Arrivals
2013
|
Tourist Arrivals
2014
|
Tourist Arrivals
2015
|
Tourist Arrivals
2016
|
January
|
614,328
|
753,079
|
723,039
|
814,303
|
February
|
678,415
|
702,666
|
786,653
|
888,309
|
March
|
725,316
|
765,607
|
789,596
|
915,019
|
April
|
646,117
|
726,332
|
749,882
|
901,095
|
May
|
700,708
|
752,363
|
793,499
|
915,206
|
June
|
789,594
|
851,475
|
815,148
|
857,651
|
July
|
717,784
|
777,210
|
814,233
|
1,032,741
|
August
|
771,009
|
826,821
|
850,542
|
1,031,986
|
September
|
770,878
|
791,296
|
869,179
|
1,006,653
|
October
|
719,900
|
808,767
|
825,818
|
1,040,651
|
November
|
807,422
|
764,461
|
777,976
|
|
December
|
766,966
|
915,334
|
913,828
|
|
Total
|
8,802,129
|
9,435,411
|
9,729,350
|
|
Foreign Tourist Arrivals in Indonesia, 2007-2015:
|
2007
|
2008
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
Foreign Tourists
(in millions)
|
5.51
|
6.23
|
6.32
|
7.00
|
7.65
|
8.04
|
8.80
|
9.44
|
9.73
|
The table above shows that the number of foreign tourist arrivals in Indonesia has grown steadily between 2007 and 2015. This solid performance is supported by a reduction in terrorist incidents in Indonesia. Although small, there exists a radical Muslim community that not only believes Islam should be the sole guidance in life (and society) but is also willing to use extreme measures (violence) to reform and uproot established conditions. A series of terrorist attacks aimed at westerners (the 2002/2005 bombings in Bali and the 2009 Ritz-Carlton/Marriott bombings in Jakarta) managed to stagnate foreign tourist arrivals as a large group of westerners ignored Indonesia as a holiday destination in the months following such a violent incident (within a year tourist numbers recover). The 2009 Ritz-Carlton/Marriott bombings explain why growth of tourist arrivals in 2009 was limited (see table above). After 2009 there have not been any terrorist attacks aimed at westerners. This success is due to efforts of the country's special counter-terrorism squad (Densus 88), which is funded by the American government and is trained by the CIA, FBI and US Secret Service. After 2009, when radical groups started to operate in smaller networks (which are more difficult to trace) attacks have been aimed at symbols of the Indonesian state (such as policemen), not on symbols of the western world. This is probably a reaction to the many arrests made by Densus 88 in recent years.
What is Blocking Development of Indonesia's Tourism Industry?
In the World Economic Forum's Travel & Tourism Competitiveness Report, which "measures the set of factors and policies that enable the sustainable development of the Travel & Tourism sector, which in turn, contributes to the development and competitiveness of a country,” Indonesia jumped from rank 70th in 2013 to 50th in 2015, an impressive improvement. This jump was caused by Indonesia's rapidly growing number of foreign visitor arrivals, national prioritization of the tourism industry and investment in infrastructure (for example the mobile phone network now covers most areas of the country, while air transport infrastructure has been expanded). The report states that the competitive advantages of Indonesia are price competitiveness, rich natural resources (biodiversity), and the presence of several heritage sites.
However, the report also stated that Indonesia is not placing enough emphasis on environmental sustainability (resulting in deforestation and endangered species, while only a minimal fraction of the used water is treated). The report also mentions safety and security concerns, specifically the business cost of terrorism. Another concern is that Indonesia lags behind Singapore (11th), Malaysia (25th) and Thailand (35th) in the ranking of the 2015 Travel & Tourism Competitiveness Report.
The lack of adequate infrastructure in Indonesia is a persistent problem, not only because its raises logistics costs steeply thus making the investment climate less attractive but also because it limits the smoothness of traveling for tourists. Infrastructure on Bali is great and acceptable in Jakarta (except for the grave traffic congestion) but outside Bali and Jakarta most of the country's infrastructure is inadequate, particularly in the eastern part of Indonesia where there is a shortage of airports, ports, roads and hotels. The lack of inter and intra island connectivity means that a number of Indonesian regions that contain huge tourist potential cannot be reached easily.
Besides infrastructure, education also forms an obstacle. Although on the island of Bali as well as in the luxury hotels of Jakarta most native people working in the tourism sector are pretty fluent in English (and sometimes even other non-Indonesian languages), in the more remote areas of Indonesia natives have difficulty to communicate with tourists. Therefore, a focus on the study of English would help to overcome this situation. This language barrier has been reason for a portion of Singaporeans to choose Malaysia as their holiday destination instead of Indonesia. Most foreign visitors that enter Indonesia come from Singapore, followed by Malaysia and Australia.
Points of Entry
Most foreigners enter Indonesia at Ngurah Rai International Airport on Bali, the island that is the most popular holiday destination for foreign tourists in Indonesia. This island is home to most of Indonesia's Hindu minority and offers tourists all sorts of Balinese Hinduism-related arts and culture as well as a lively nightlife and beautiful countryside.
The second main point of entry is Soekarno-Hatta International Airport, located just outside of the capital city of Jakarta. Many tourists start their holiday by staying a couple of days in Jakarta before traveling to other parts of Indonesia. Jakarta is also the economic center of Indonesia and although it is not allowed by law there are many foreigners that use a tourist visa (valid for 30 days) to participate in business meetings or events in Jakarta.
The third-most used port of entry in Indonesia is Batam, the largest city in the Riau Islands Province of Indonesia, across the Strait of Singapore. Batam has rapidly developed into an industrial boom-town and transport hub. The city is part of a free trade zone in the Indonesia-Malaysia-Singapore Triangle. Since 2006, Batam (together with Bintan and Karimun) form part of a Special Economic Zone with Singapore, implying that trade tariffs and value-added taxes for goods shipped between Batam and Singapore are eliminated.
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