Visa-free access boosts tourism in Indonesia

Tourism in Indonesia will finish the year with an increase in total contribution to national GDP, job creation, investment and visitor exports, according to the World Travel & Tourism Council (WTTC).

The decision in 2016 of the Indonesian government to grant visa-free access to 169 countries has been a significant contributing factor to the sector’s expansion.

The total contribution of the Travel & Tourism sector to Indonesia’s GDP is forecast to rise by 4.3% in 2017, above 2016 levels, when it accounted for 6.2% of GDP, according to WTTC. The total contribution of Travel & Tourism to the economy equalled IDR770,310.0bn (US$57.6bn) in 2016.

Travel & Tourism’s contribution to employment is expected to expand by 1.7% this year, in comparison with 2016, 6.8 million jobs; and expand by 2.9% per year over the next decade to 9.1 million jobs in 2027.
 

Spending increase

Foreign spending on tourism is expected to increase by 3.1% this year, in comparison with 2016, when it generated IDR173,433.0 billion (US$13bn), or 7.6% of all exports. Travel & Tourism investment in 2016 was IDR180,886.0 billion (US$13.6bn), or 4.4% of total investment. It should rise by 2.9% in 2017, and expand by 6.6% per year over the next ten years to IDR352,864.0bn (US$26.5bn) in 2027.

Jakarta is one of Asia’s largest city tourism economies, with Travel & Tourism contributing US$6.9 billion to the city each year. It is also in the top ten of the world’s fastest growing cities, with a growth of 10% a year forecast over the next ten years. Jakarta is an important driver of tourism within Indonesia, accounting for 40.7% of Indonesia’s tourism GDP.

Helen Marano, WTTC’s senior vice president, addressing delegates at the Indonesia Tourism Outlook – Prospect and Tourism Challenges Indonesia, said: “Indonesia is one of the world’s most dynamic Travel & Tourism economies, topping the leagues of both size and growth.

“The government’s prioritisation of the sector, reflected in the removal of visas for citizens from 169 countries and the level of investment in the country’s tourism sector, is impressive. With such positive prospects for Indonesia’s Travel & Tourism it’s more important now than ever, that growth is managed in a sustainable and inclusive way.”