Following the global recovery from the COVID-19 pandemic, Indonesia’s tourism sector has bounced back strongly, with international tourist numbers growing steadily year on year. In the first four months of 2024, the number of international visitors reached its highest level in four years, according to Statistics Indonesia (BPS) acting director-general Amalia Adiningar Widhyasanti.
A total of 4,098,714 international tourists visited Indonesia between January and April 2024, recording a significant increase of 24.85 percent compared to 3,282,960 in the same period last year. This figure marks the highest recorded number of international tourist arrivals in the first four months of the year since 2020.
In April 2024 alone, Malaysian visitors reached 170,600, the highest number, accounting for 16% of the total international tourist arrivals of 1,066,958 for the month. This was followed by Australia with 127,970 (11.99%), China with 85,960 (8.06%) and Singapore with 81,230 (7.61%).
The average length of stay for foreign tourists in April 2024 was 7.92 nights. Tourists from ASEAN countries stayed an average of 4.39 nights, while tourists from Africa stayed an average of 14.67 nights. Notably, tourists from Yemen stayed the longest on average at 57.53 nights, while tourists from Hong Kong stayed the shortest at 2.04 nights.
Promoting investment in Indonesia’s tourism sector
Despite Indonesia’s tourism industry showing a strong trend, Tourism and Creative Economy Minister Sandiaga Uno stressed the need for more investment in the sector. Speaking at the 2024 International Tourism Investment Forum in Jakarta, Uno revealed that Indonesia is set to achieve tourism investment of US$3.604 billion (approximately Rp 58.64 trillion) in 2023, with 80% of that investment focused on star-rated hotels, restaurants, cafes and fitness centers.
Tourism investment in the first quarter of 2024 reached $943.4 million (Rp 15.35 trillion), falling short of the target of $3 billion (Rp 48.91 trillion). During this period, the largest recipients of foreign direct investment (FDI) were star-rated hotels, restaurants and apartment hotels.
Uno stressed the need for more investment in the broader tourism ecosystem, including sustainable tourism products and inclusive community-based tourism. He expressed optimism that the 2024 International Tourism Investment Forum will further attract domestic and foreign investors to invest in Indonesia’s tourism sector, especially the infrastructure that supports it.
To support sustainable tourism, Indonesia needs investments of over US$15-20 billion. The Minister highlighted Indonesia’s recognition as the world’s most Muslim-friendly tourism destination by the Global Muslim Travel Index (GMTI) in both 2023 and 2024, as well as its significant rise from 32nd to 22nd in the Tourism Development Index for 2024, as factors that will attract further investment.
Partner with a consultant for a smooth journey
Partnering with a competent business consultant is the most effective way to develop a market entry strategy that goes beyond the capabilities of your in-house team. An experienced consulting firm or market entry service provider in Indonesia has the expertise to adapt to evolving technology, stay on top of the latest regulations, and understand the ever-changing competitive landscape.
Moreover, it can be very useful to hire a consultant to guide you on your trip to Indonesia, whether for business or leisure, as they will provide you with comprehensive advice on the necessary documents and procedures to obtain an entry permit into Indonesia and a stay permit for the specified period.
One of Social Expat’s renowned partners, Lets Move Indonesia is a leading business consultancy with a proven track record in assisting with business setup and company registration in Indonesia. They have also successfully completed over 35,000 visa and residence permit applications for foreigners in Indonesia. For socialites interested in visiting and setting up a business in Indonesia, Lets Move Indonesia is the ideal partner to start your journey smoothly, guided, efficient and hassle-free.