Indonesia sees a significant surge in foreign tourist visits in early 2024, marking the highest number in four years, driven by favourable economic conditions and increased investment in the tourism sector.
According to data from Acting Head of the Central Statistics Agency (BPS) Amalia Adininggar Widyasanti, in the first four months of 2024, foreign tourist visits were the highest in the last four years. During January-April 2024, 4,098,714 visits were recorded. This marks an increase of 24.85 percent compared to the previous year’s 3,282,960 visits.
In 2020, during the same period, Indonesia recorded only 2,807,397 foreign tourists. Meanwhile, in 2021 and 2022, the BPS recorded that the number of foreign tourists only reached 642,510 and 465,003, respectively.
“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 Widyasanti during a press conference at the BPS Head Office in Jakarta, on Monday, 3rd of June 2024.
The increase in the first half of 2024 was dominated by tourists from Malaysia, Australia, China and Singapore. Uniquely, the average tourist spends 7 nights in Indonesia. Tourists from Africa are also recorded as having a longer holiday period, namely 14 nights. Hong Kong is the country with the total number of tourists who have the shortest stay time, namely 2 nights. Meanwhile, on average, tourists from Yemen spent the longest time with a total of 57 nights.
Additionally, the large number of foreign tourists coming to Indonesia is due to the depreciation of the rupiah. Professor of Tourism from Udayana University, I Putu Anom, said that the weakening of the rupiah against the US dollar causes product prices in Indonesia to become cheaper, thus increasing the purchasing power of foreign tourists.
“The purchasing power of foreigners will automatically increase,” said Anom to the press, on Tuesday, 26th of June 2024.
This positive trend was welcomed by the Minister of Tourism and Creative Economy, Sandiaga Uno. Nevertheless, he said that Indonesia still needs more investment in the tourism sector.
Uno stated that in 2023, Indonesia recorded investment realisation in the tourism sector of US$3,604 million or around Rp58.64 trillion. However, 80 percent of this investment was concentrated in star hotels, restaurants, cafes and fitness centres.
It was also noted that the realisation of investment 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 emphasised that to support sustainable tourism, Indonesia needs an investment of more than US$15 to US$20 billion. The Minister of Tourism and Creative Economy expressed optimism that the 2024 International Tourism Investment Forum (ITIF) could attract more investors from within and outside the country to invest in Indonesia’s tourism sector.