In the first half of 2025, foreign visitor numbers hit 7.05 million, up 9.44% year-on-year. Yet, average spending per visitor fell sharply across two consecutive quarters, sparking concern over the sector’s yield and long-term economic contribution.
Key Facts & Background
- 7.05 million foreign arrivals from January–June 2025, up 9.44% vs. H1 2024.
- June 2025 alone saw 1.41 million arrivals, climbing 8.42% (mtm) and 18.20% (yoy).
- Top visitor origins:
- Malaysia: 236.4K (16.7%)
- Singapore: 183.7K (13%)
- Australia: 154.2K (10.9%)
- China: 113.5K (8%)
- Average spending per visit:
- Q2 2025: US$1,119.71 (~Rp18.47 million)
- Q1 2025: US$1,277.17 (~Rp21.08 million)
- Q2 2024: US$1,443.72 (~Rp23.82 million)
- Hotel occupancy rates:
- June 2025: 49.98%, up 1.70% (mtm), but down 4.71% (yoy)
- Bali leads with 64.66% occupancy, boosted by sports and cultural events.
Strategic Implications
Indonesia’s robust tourism growth affirms strong international interest, especially among regional neighbors. The diversification of source markets—including Malaysia, Singapore, Australia, and China—suggests stable inbound demand, offering resilience amid global travel fluctuations.
However, the declining average tourist expenditure raises concerns over the sector’s economic depth. Lower spending may reflect shorter stays, tighter budgets, or shifts toward more cost-conscious travel behavior. It signals a need to enhance value per visit—through premium experiences, improved services, and higher-yield segments like wellness and eco-tourism.
The dip in hotel occupancy rates, despite rising arrivals, suggests mismatches in accommodation pricing, distribution, or demand patterns. Bali’s strong performance underscores the role of targeted events in drawing higher tourism engagement. This offers a blueprint for regional tourism boards: invest in curated local experiences to stimulate visitor spending and longer stays.
To sustain growth and boost economic returns, Indonesia must pivot toward experience-based tourism, better analytics on traveler behavior, and integrated strategies that link promotions, hospitality, and infrastructure. The travel boom is real—but converting volume into value will define its long-term impact.
Experience-based tourism offers a way to unlock greater economic returns. This means curating immersive, culturally rich, and localized journeys that go beyond sightseeing—such as culinary trails, artisan workshops, eco-villages, wellness retreats, and sports or cultural events. These higher-value experiences not only encourage longer stays but also amplify per capita tourist spending through emotional engagement and differentiated offerings.
In essence, Indonesia’s tourism future lies in transforming volume-driven growth into value-centric development. That means measuring impact not just in visitor numbers, but in community upliftment, business sustainability, and regional inclusivity. The travel boom is real—but its benefits will depend on how thoughtfully the country designs its tourism ecosystem.