Ross Woods is a seasoned hotel investment advisor with over 30 years of global experience, bringing unparalleled expertise to the rapidly evolving world of hospitality, tourism, and investments.
As the founder of Hotel Investment Strategies, he specialises in hotel investment strategy, asset management, and market forecasts, with a deep focus on Indonesia and Southeast Asia. Ross leverages big data to spot trends, providing actionable insights that empower operators and investors alike to navigate the complexities of the market, from identifying growth opportunities in emerging destinations like North Sulawesi to fostering sustainable tourism practices in Bali.
With his finger on the pulse of the industry, Ross offers a strategic lens on how Indonesia can sustain its momentum while adapting to global challenges and evolving travellers’ demands.
Here’s what he has to say.
Indonesia saw a 20.45% increase in international arrivals in 2024, with 11.56 million visitors by October, and a massive Rp28.86 trillion invested in hotels and restaurants. What do you see as the key drivers behind this growth, and how sustainable do you think this boom is over the next five years?
Indonesia’s tourism and hospitality sectors are experiencing a period of remarkable momentum, driven by a convergence of structural and strategic factors.
First, proactive government initiatives, such as expanded visa programmes, the development of Special Tourism Economic Zones, and significant investments in air and port infrastructure, have made Indonesia more accessible and attractive to international travellers. Jetstar Asia’s direct flight from Singapore to Labuan Bajo, for example, is a game changer. It:
- Reduces barriers for international tourists, making Labuan Bajo more accessible than ever;
- Opens the gateway to Indonesia’s eastern islands, encouraging multi-destination travel from key markets like Singapore, Australia, and Europe;
- Paves the way for increased regional connectivity, linking other islands and areas such as Bali, Lombok, and Raja Ampat through expanded airline routes;
- This connectivity transforms Labuan Bajo from a niche destination into a central hub for exploring East Indonesia.
Policy support has played a critical role in building investor confidence and stimulating development across the tourism value chain.
Second, Indonesia’s diversification of its tourism offerings has broadened its appeal beyond traditional leisure destinations. Strong promotion of wellness tourism, eco-tourism, culinary experiences, and cultural immersion is capturing a wider range of traveller segments seeking authenticity, sustainability, and more personalised experiences.
Third, the continued growth of the domestic middle class, despite its recent decline in market share, is providing a stabilising foundation for tourism demand. A more affluent, mobile domestic market enhances the sector’s resilience to global shocks and creates a deeper, more consistent demand base for both domestic and international hospitality products.
Fourth, Indonesia’s rising position in international tourism competitiveness rankings, reflected by its advancement to 22nd globally in the World Economic Forum’s 2024 Travel & Tourism Development Index, signals that the country’s strategic advancements in competitiveness, service excellence, and destination management are earning increasing international recognition.
Looking ahead, sustaining this growth over the next five years will depend on the country’s ability to address critical challenges. Overconcentration in a few major destinations risks over-tourism, environmental degradation, and social strain. Future success will require shifting from a volume-driven model to a quality-driven approach that emphasises sustainability, spreads benefits across a broader geography, and reinforces Indonesia’s brand as a leader in high-value, culturally authentic, and environmentally responsible tourism.
Indonesia has an extraordinary opportunity not only to grow tourism numbers but also to redefine its position as Southeast Asia’s most sustainable and resilient tourism economy.
You’ve recently expanded your work to Bali, partnering with Seven Stones Indonesia and exploring sustainable projects like the Natha Loka Eco Resort. How do you see Bali balancing its role as a top tourist destination with the growing demand for sustainable and eco-friendly tourism practices?
My expansion into Bali, including my collaboration with Seven Stones Indonesia and involvement in sustainable projects like the Natha Loka Eco Resort, reflects a growing recognition that Bali must evolve to secure its long-term future as a world-class tourism destination.
Bali stands at a pivotal crossroads. On one hand, it remains one of the world’s most iconic tourism brands, with strong appeal across multiple visitor segments. On the other hand, years of rapid growth have exposed critical vulnerabilities: environmental degradation, strain on natural resources, cultural dilution, and uneven economic benefits for local communities.
The growing global demand for sustainable and eco-conscious tourism presents Bali not with a constraint, but with a strategic opportunity to reimagine its future. The shift is already underway, seen in government initiatives promoting green certifications, private sector investment into eco-resorts and sustainable infrastructure, and evolving visitor preferences prioritising authentic and responsible experiences.
Projects like Natha Loka Eco Resort embody this next chapter: developments that are not merely ‘low impact,’ but regenerative, community-connected, and culturally respectful. These types of projects signal a broader industry trend where long-term competitiveness will increasingly depend on how destinations manage environmental stewardship, authenticity, and local community integration.
To balance mass tourism with sustainability, Bali will need a layered approach: tighter zoning regulations, infrastructure investments that prioritise water, waste, and energy resilience, incentives for eco-certification, and a greater focus on ‘value per visitor’ rather than simply ‘visitor volume.‘
Bali’s ability to successfully navigate this transformation will determine whether it retains its leadership in global tourism or gradually cedes ground to newer, more sustainably positioned destinations. I remain optimistic that with the right partnerships, forward-looking policy frameworks, and strong private sector leadership, Bali can not only adapt but set a new benchmark for excellence in the evolving era of global tourism.
Emerging provinces like North Sulawesi and West Nusa Tenggara are gaining attention for their tourism potential, with unique offerings like diving sites and natural wonders. What opportunities and challenges do you see for investors looking to develop hospitality projects in these less-saturated regions?
Provinces like North Sulawesi, West Nusa Tenggara (NTB), and East Nusa Tenggara (NTT) are promising areas for hospitality investment in Indonesia today. Their natural assets, from world-renowned diving sites to untouched coastal landscapes and cultural richness, offer a solid foundation for differentiated tourism experiences that global travellers increasingly seek.
For investors, the opportunities are considerable. First-mover advantage in these regions allows for the creation of unique, market-defining properties that can command premium positioning. Additionally, the lower land and development costs compared to mature destinations like Bali present attractive entry points for projects focused on authentic, experience-driven tourism.
However, realising the full potential of these opportunities requires a sophisticated, long-term strategy. Investors must navigate infrastructure gaps, limited availability of skilled labour, and evolving regulatory frameworks. A deep understanding of local communities, environmental carrying capacity, and sustainable development principles will be critical to success.
The future competitiveness of projects in these regions will depend not merely on replicating Bali’s model, but on shaping distinct tourism narratives, ones that honour ecological integrity, celebrate cultural identity, and deliver high-value, low-footprint visitor experiences.
In my view, the investors who thrive in North Sulawesi and NTB will be those who embrace thoughtful, phased development models, forge strong local partnerships, and commit to building resilience into both their assets and their operating models from the outset.
Technology is reshaping hospitality, from AI-driven guest services to online booking platforms. How are Indonesian hotels adapting to these innovations, and what tech trends do you think will have the biggest impact on the sector by 2030?
Indonesia’s hospitality sector is in the initial stages of a significant technological evolution. While international hotel brands operating in Indonesia have often been the first movers in adopting AI-driven guest services, dynamic pricing algorithms, and seamless mobile check-in technologies, local hotel groups are rapidly recognising that digital transformation is no longer optional; it is essential to competitiveness.
Many Indonesian hotels are now investing in sophisticated property management systems, channel management tools for optimising online distribution, and customer relationship management (CRM) platforms to enhance personalised guest experiences. In parallel, there is growing experimentation with AI-powered chatbots, digital concierge services, and predictive analytics to enhance operational efficiency and guest satisfaction.
Looking ahead to 2030, I believe three technology trends will be particularly transformative:
- Hyper-Personalisation through AI: AI and machine learning will allow hotels to anticipate guest preferences more precisely, delivering bespoke experiences at scale, from customised room settings to predictive activity recommendations;
- Sustainability Tech Integration: Technologies that monitor and manage water usage, energy consumption, and carbon footprints will become essential, driven by both regulatory pressures and growing guest demand for eco-responsibility;
- Decentralised Booking and Loyalty Platforms: Blockchain-enabled systems could transform the way loyalty programs, direct bookings, and guest identities are governed, empowering consumers with greater control while enabling hotels to build deeper, more direct relationships with their guests.
Indonesia’s demographic profile (young, mobile-first, and tech-savvy) suggests that adoption will accelerate, especially as midscale and upscale properties compete for digitally fluent domestic and regional travellers. Hotels that strategically integrate technology not just to streamline operations but to enhance authenticity, personalisation, and sustainability will be the clear winners in Indonesia’s hospitality landscape by 2030.
The Indonesian government has been promoting ‘quality’ over ‘quantity’ tourism, particularly in the luxury sector, which you’ve noted as resilient even during challenges like COVID-19. How do you see this shift impacting the luxury hotel market, especially in destinations like Jakarta and Bali?
The Indonesian government’s deliberate shift toward promoting ‘quality’ over ‘quantity’ tourism is both timely and strategically necessary. It reflects an important recognition that sustainable tourism growth cannot be based solely on rising visitor numbers; it must prioritise visitor value, experience quality, and environmental and cultural stewardship.
In the context of the luxury hotel sector, particularly in Jakarta and Bali, this shift is highly consequential. Luxury properties have historically demonstrated resilience through global disruptions, including during COVID-19, due to their ability to command higher yields, attract financially secure clientele, and pivot more effectively to changing market dynamics.
Over the next five years, I expect to see three major impacts on the luxury hotel market:
- Elevated Brand Differentiation: Operators will need to deepen their storytelling, authenticity, and experiential design to capture increasingly discerning travellers who are seeking not just opulence but meaningful, culturally rooted experiences;
- Sustainability as a Core Value Proposition: Environmental and social responsibility will move from being a niche positioning to an essential brand standard. Luxury guests are demanding visible commitments to sustainability, wellness, and community engagement;
- Greater Focus on Domestic High-Net-Worth and Regional Travellers: Jakarta’s and Bali’s luxury hotels are already adjusting to a more regionalised luxury travel market, with strong demand coming from within Indonesia and neighbouring ASEAN countries, rather than solely relying on long-haul markets.
This policy shift reinforces the segmentation of Indonesia’s hospitality industry: those assets and operators who invest in quality, in service, design, sustainability, and guest personalisation will outperform. The long-term winners will be those who view ‘luxury’ not just as a price point, but as an ethos of excellence, authenticity, and care for place and people.
Domestic tourism in Indonesia has been a major growth driver, with 81.3 million arrivals in 2024, a 29.83% increase from the previous year. How can hospitality businesses better cater to domestic travellers, and what role do you see them playing in the sector’s recovery and future growth?
Domestic tourism has become the cornerstone of Indonesia’s hospitality sector resilience and will continue to be a critical engine of growth in the years ahead. Indonesian travellers are increasingly sophisticated, seeking not just affordability, but higher-quality, experience-rich offerings that deliver authenticity, convenience, and personalised service.
To better cater to this growing segment, hospitality businesses must recalibrate their value propositions. This means designing products and experiences that resonate with local tastes and cultural preferences, from culinary offerings and wellness experiences to curated cultural engagements and family-focused amenities. Payment flexibility, loyalty programmes tailored to domestic travellers, and stronger regional marketing campaigns are also essential.
Importantly, domestic travellers are more frequent, more loyal, and more dependable than international visitors, particularly during periods of global disruption. They are the backbone of occupancy stability across both urban and resort markets.
In the future, I see domestic travellers playing an even greater role, not just as volume drivers, but as key influencers shaping the types of hospitality experiences offered across Indonesia. Properties that meaningfully engage with this segment, investing in relevance, personalisation, and emotional connection, will be well-positioned to outperform in an increasingly competitive and dynamic market.
For more details and insights, you can contact Ross Woods directly via email ross.woods@hotelinvestmentstrategies.com or through Seven Stones Indonesia via email hello@sevenstonesindonesia.com