The Indonesian tourism industry: a bright future and opportunities for Australia

22 Mar 2018

Tourism in Indonesia has more than doubled over the past decade, with some media reports claiming that 2017 saw over fifteen million tourists visit the archipelago state. The tourism industry has flourished and become a major driver of the economy and a central feature of the government’s economic growth strategy. To facilitate further growth, the Indonesian Government is hoping to replicate the success of Bali as a tourist destination in a number of other locations spread across Indonesia.

Key points:

- The Indonesian tourism industry is a major economic driver and will continue to be fuelled by the surge of inbound tourists from China.

- The lack of tourism infrastructure and the funds needed to remedy it will be a major challenge for Indonesia. It is a problem that could hamper the goal of attracting twenty million tourists in 2019.

- The growing “halal tourism” market holds significant potential for Indonesia.

- While Australian tourists play a key role in the Indonesian tourism industry, the same cannot be said for the number of Indonesian tourists coming to Australia.

- Adjusting Australian visa requirements for Indonesian tourists to better match those of other South-East Asian countries could help to encourage a larger Indonesian presence in the Australian tourism industry.

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