International Tourists in 2023 Expected to Exceed Pre-Pandemic Levels
This year, the Indonesian tourism industry is expected to bounce back as the COVID-19 restrictions were lifted in December. The Tourism and Creative Economy Ministry has set a target of 7.4 million international tourists in 2023.
According to data from the government, the foreign exchange earnings in the tourism sector between January and October 2022 stood at $4.26 billion. This is a significant increase from a mere $500 million a year earlier. During a seminar in Jakarta, Sandiaga Uno, the Tourism Minister, said that a lot more needs to be done to boost the number of foreign tourists.
Most foreign tourists in Indonesia come from countries including Australia, China, India, Singapore, and Malaysia.
Offering Hope for the Economy
Indonesia has not fully recovered from the economic impact of the COVID-19 pandemic. The number of domestic flights is still at around 71 percent of the pre-pandemic period. Tourism is a major driver of the Indonesian economy; before the pandemic, it contributed about 5.6% of the country’s GDP. Thus, if the targets are reached, this would be a huge boost for the overall economy.
Domestic Tourism Also Increasing
The number of domestic tourists is set to double to 1.4 billion compared to last year, producing Rp 90.7 trillion in state earnings. This is great news, for Domestic Tourist Traffic had already exceeded pre-pandemic levels when 600 Indonesians decided to travel around the country between January and September 2022.
Tourism Industry Becomes Lively
With the government targeting so many international tourists in 2023, there is a sense of optimism among tourism-related companies. Companies in the sectors have already been receiving incentives, and the policies in the future are also expected to be favourable to them.
Looking to Start a Company in Indonesia?
The boost in tourism means that it is just the perfect time for entrepreneurs in the sector to venture into Indonesia. Honestly, the industry bouncing back wasn’t a matter of if but when. Thus, new startups and investors who’d put their expansion plans on hold can now finally resume their journey.
You can contact 3E Accounting if you’re looking to start a company in Indonesia. We’ll make sure your incorporation is done in the fastest time without any hassle.