Indonesia tourism shifts from volume to quality-driven growth

Tourism Beyond Numbers

While arrivals matter, Indonesia’s strategy increasingly prioritizes spending, jobs, and long-term impact. Tourism now employs 25.9 million people across the full ecosystem—from transport and accommodation to culture and creative industries—making it one of the country’s largest employment sectors.

Tourism’s contribution to GDP reached close to 4% by the third quarter, with forecasts from major Indonesian banks suggesting it may already be closer to 4.9%. Tourism receipts stood last year at US$13.82 billion with an average spending of USD 1,259 per arrival. In 2026, tourism could generate US$ 22 to 24.7 billion with an average spending per arrival of US$1,372 to US$ 1,404.

“The message is clear: tourism is no longer “low-hanging fruit,” but a driver of national development,” described Ni Made Ayu Marthini.

Employment in tourism is projected to rise to 26.5 million, while the sector’s GDP contribution target stands at 4.6 percent.

Priority Markets and Strategic Focus

Given Indonesia’s size—more than 17,000 islands—the government has made deliberate choices about where to focus. Indonesia has 15 priority source markets including Japan, Malaysia, Singapore, India, Saudi Arabia, Germany, the UK and France among others. These markets were selected based on growth, connectivity, and spending patterns.

On the destination side, development efforts are concentrated on key areas called the 12 “other Bali”. Beyond Bali, it comprises among others Lake Toba, Batam/Bintan, Bangka Belitung, Jakarta, Borobudur/Yogjakarta, Mount Bromo, Mandalika, Labuan Bajo, Wakatobi, and Raja Ampat. Jakarta, Bali, and Batam/Bintan remain core hubs, accounting for roughly 70 percent of foreign arrivals. The success of the 12 “other Bali” is however not that strong. “We need to reassess our promotion of those destinations as we want to take some of the pressure faced by Bali by enhancing the appeal of other destinations. We currently work at new strategies,” told Marthini.

Tourism 5.0 and Digital Innovation

In between, Indonesia makes an increased use of AI and digital innovation. In late 2025, the Ministry of Tourism launched Tourism 5.0, introducing AI-driven personalization through its official website. At the center is “MAIA,” an artificial intelligence travel companion designed to provide reliable, tailored information and enhance the visitor experience from planning to arrival.

This digital shift complements ongoing collaboration with industry partners through trade shows, familiarization trips, digital campaigns, and international promotions.

MaIA the new AI launched by Indonesia Ministry of Tourism (Photo: LC/Cleverdis)

Quality Tourism as a Flagship Vision

Indonesia’s overarching theme 2026 is quality tourism—focusing on meaningful experiences, environmental responsibility, and cultural respect. Key pillars include marine tourism, wellness and health tourism, gastronomy, arts and culture, and design.

Indonesia’s marine assets are among the world’s best, while wellness tourism draws on both modern facilities and deep-rooted traditions, including Javanese movement-based meditation. In gastronomy, Indonesia is gaining global recognition, with Ubud named by UN Tourism as a global gastronomy prototype, alongside Tokyo.