Tourism in Indonesia, enriched by the nation’s sprawling archipelago of 17,000 islands, provides worldwide tourists with an array of captivating experiences.

Beyond its natural tourist attractions and rich cultural heritages, lie promising investment prospects. Nonetheless, to thrive in the tourism sector, understanding visitor preferences is key.

In this article, we delve deeper into the intricacies of Indonesia's tourism landscape, gaining insights to ensure positive growth in this dynamic and competitive sector.

Longer Than A Fortnight

The level of comfort and safety in a destination significantly influences how long foreign tourists stay. The more secure they feel, the more time they are willing to spend in Indonesia.

International travelers often plan extended visits to explore Indonesia for several days or even weeks, while domestic tourists typically opt for shorter trips, often just for 2 or 3 days or a single day.

Data from the Central Statistics Agency (BPS) reveals that Russian tourists, with a total of 158,943 people in 2019, spent an average of 19.66 days in Indonesia. Not too far behind, 14,663 Pakistani tourists enjoyed an average stay of 19.11 days, while visitors from various European countries stayed between 14.84 to 18.03 days, showcasing their appreciation for Indonesia's diverse tourism offerings.

In 2022, there was a notable decrease in these figures, largely attributed to the pandemic's influence on tourism in Indonesia.

Throughout the pandemic, the average duration of stay for international visitors dropped to just under 3 days, although this metric began to show improvement last year. As per the Travel Tourism and Development Index (TTDI), Indonesia's global tourism competitiveness also saw a noteworthy increase, jumping 12 positions to the 32nd spot worldwide, surpassing fellow ASEAN nations like Malaysia, Thailand, and Vietnam.

Sunset in Labuan Bajo, a key highlight of tourism in Indonesia.

(Source: william kusno)

Meaningful Experience vs Material Goods

Apart from the duration of their stays, a notable trend among global tourists visiting the Asia Pacific region is the growing preference for experiences over material goods.

According to the Mastercard Economics Institute, modern tourists are now dedicating a larger portion of their budgets towards experiences like dining, recreational activities, and enjoying nightlife, rather than buying souvenirs.

Remarkably, spending at bars, nightclubs, and live music venues witnessed a 72 percent surge in 2022. This increase is likely attributed to the waning effects of the pandemic, allowing people to gather around and attend festivals, exhibitions, and music events.

Furthermore, the research conducted by the Mastercard Economics Institute reveals a 31 percent uptick in restaurant spending as well. Tourists no longer limit themselves to savoring local delicacies but also indulging in high-end dining experiences that show the best of Asia Pacific's cuisines.

In terms of the budget itself, we have top spenders from Belgium, the Netherlands, Denmark, Russia, and Switzerland, averaging USD 1,326 to USD 1,412 in expenses in 2019. Saudi Arabian visitors tend to spend even more, up to USD 1,592.

In contrast, tourists from Malaysia and Singapore tend to demonstrate more restrained expenditure patterns. Despite being significant contributors to Indonesia's tourist influx, visitors from Malaysia and Singapore typically have briefer stays and allocate less money, averaging around USD 485 and USD 849 respectively.

New Attractions for Tourists in Indonesia

Indonesia's tourism industry has witnessed remarkable growth in recent years. In July 2023, foreign tourist visits in Indonesia reached 1.12 million, marking a remarkable increase of 196.85% compared to the same period in 2022.

When considering the data from January to July alone, foreign tourist visits in Indonesia have also tallied 6.3 million, just a few steps away from this year's target of 7,4 million.

While still a way off from the 2019 figure of 16.1 million foreign tourists, it is evident that the tourism sector in Indonesia is on the path to recovery. This surge can also be attributed to the hosting of numerous international events in Indonesia this year, including official state functions, sporting competitions, and concerts featuring renowned global artists.

The Indonesian tourism sector itself is also introducing various innovative strategies, including village-based tourism and medical tourism, which add an intriguing dimension to its developmental trajectory.

For instance, the Bali government has taken a bold step by establishing special economic zones in Bali. One of them is the Sanur EZ, which boasts the region's top-notch healthcare facilities. 

This move was prompted by the recognition that Bali, as one of Indonesia's major tourist destinations, is particularly susceptible to economic upheavals if the tourism sector faces disruptions, as witnessed during the pandemic.

In similar veins, the North Sulawesi government aims to leverage its 57 hospitals and 2,903 doctors to create a robust health tourism network.

By diversifying regional income sources and developing a more sustainable tourism strategy, it is hoped that they can safeguard against economic uncertainties and promote responsible tourism practices, benefiting local communities and the environment.

Navigating Tourism in Indonesia

In conclusion, the tourism landscape in Indonesia is ever-evolving, shaped by factors like visitor preferences, global events, and innovative strategies. Understanding what draws tourists and how they spend their time and money in Indonesia is crucial for the growth and development of this dynamic sector.

Askpert.id's Consumer Insight service can further illuminate these trends, providing tailored data and analysis to guide businesses and investors in making informed decisions. Learn more about our services here.