After successfully curbing the threat of the Covid-19 pandemic, the tourism sector, especially in Indonesia, is currently back on its feet. Every year, foreign tourist arrivals in the country continue to show a significant increase.

The number of foreign tourist arrivals in the first four months of 2024 even managed to rise to the highest position in the last four years. Acting Head of Statistics Indonesia (BPS), Amalia Adininggar Widyasanti, conveyed that the number of foreign tourist arrivals in January-April 2024 was recorded at 4,098,714, an increase of 24.85% compared to the same period last year, which amounted to 3,282,960 visits.

Meanwhile, the number of foreign tourist visits in the same period in the previous three years was recorded to only reach 642.51 thousand, 465.03 thousand, and 2,807,397 in 2020. Whereas in the pre-Covid-19 pandemic period between January - April 2019, the number of visits reached 5,031,873.

"For information, the total number of foreign tourist visits in the first quarter of 2024 is the highest in the last four years, namely since 2020," said Amalia during a press conference at the BPS Headquarters, Jakarta, Monday (June 3, 2024).

Of the total number of visits, Amalia explained, the largest contributor, especially in April 2024, came from Malaysia with 170.6 thousand visits, or around 16% of the April 2024 total foreign tourist visits which amounted to 1,066,958 visits.

The second place is occupies by Australia with 127.97 thousand (11.99%) visits. Followed by Chinese tourists with 85.96 thousand (8.06%), and Singaporean tourists with 81.23 thousand (7.61%).

Meanwhile, in terms of length of stay, foreign tourists visiting in April 2024 have spent an average of 7.92 nights in Indonesia. When categorized by nationality, it is found that ASEAN tourists mostly spent an average of 4.39 nights in Indonesia while African tourists spent an average of 14.67 nights. The longest length of stay was recorded by Yemeni tourists with an average of 57.53 nights. While the shortest is recorded by Hong Kong tourists with an average length of stay of 2.04 nights.

Boosting Investment

Despite the improvement in the country's tourism climate, Minister of Tourism and Creative Economy Sandiaga Uno revealed that Indonesia is in need of greater investment in the tourism sector. This was delivered by the Minister during his speech at the 2024 International Forum for Tourism Investment in Jakarta, on Wednesday (Jun. 5).

According to Sandiaga, in 2023 Indonesia recorded investment realization in the tourism sector of US$3,604 million or around Rp58.64 trillion. However, 80 percent of the investment is only concentrated in star hotels, restaurants, cafes, and fitness centers.

It was also noted that investment realization in the tourism sector in the first quarter of 2024 only reached US$943.40 million (Rp15.35 trillion) from the target of US$3,000 million (Rp48.91 trillion). Meanwhile, the three business sectors that received the most foreign direct investment (FDI) during the quarter were star hotels, restaurants, and apartment hotels.

"We need more investment in the ecosystem, including the development of sustainable tourism products and inclusive community-based tourism," he said.

Furthermore, Minister Sandiaga emphasized that to support sustainable tourism, Indonesia needs more than $15 to $20 billion in investment. The Minister said he was optimistic that the 2024 International Tourism Investment Forum (ITIF) could attract more domestic and foreign investors to invest in Indonesia's tourism sector.

"Not only for hotels, restaurants, and cafes, but also for tourism supporting infrastructure. Moreover, Indonesia has been recognized as the world's best Muslim-friendly tourist destination by the Global Muslim Travel Index (GMTI) in 2023 and 2024. This is supplemented by a significant improvement in Indonesia's position in the 2024 Tourism Development Index that moves from 32nd to 22nd. Thus, we are confident that we can create a three-time larger investment in these sectors," Sandiaga concluded.

Writer: Eri Sutrisno
Editors: Ratna Nuraini/Elvira Inda Sari/Erik Limantara
Translator: Aisah Amanda