Development dynamics of tourism in Indonesia Contents Introduction

Opportunities in the Tourism Industry of Indonesia
With increasing numbers of foreign visitor arrivals (both tourists and foreign businessmen) in combination with +5 percent GDP growth and investment growth, there is growing demand for hotels, condominium hotels (which combine features of apartments and hotels), as well as conferences and exhibition venues. If the government target of welcoming 20 million foreign visitors by 2020 is indeed achieved then there is plenty of need for investment in the country's hospitality industry. Moreover, the ASEAN Economic Community (AEC), which will see its birth at the end of 2015, implies intensifying trade relations in the ASEAN region (resulting in more demand for hotel accommodations etc).
However, Bali and Jakarta have already seen a large influx of investment in recent years (especially in the upper end of the market) leading to excessive supply. Investors who want to establish hotels in these regions (as well as existing hotels) need to come up with original and creative new concepts to become market leaders.
Overview Indonesia's Tourism Sector:

	2016	2017	2018	2019
Contribution to GDP (%)	11	13	14	15
Foreign Exchange Earnings (in IDR trillion)	172.8	182.0	223.0	275.0
Employment (in million)	11.7	12.4	12.7	13.0