Indonesia sustainable tourism industry is set to leap forward with a CAGR of 27.3% through 2034. The industry is valued at USD 17.4 billion in 2024, and by 2034, is likely to reach USD 195 billion.

Attributes	Description
Estimated Indonesia Sustainable Tourism Industry Size (2024E)	USD 17.4 billion
Projected Indonesia Sustainable Tourism Industry Value (2034F)	USD 195 billion
Value-based CAGR (2024 to 2034)	27.3%

Category-wise Insights

Segment	Eco-tourism (Tourism Type)
Value Share (2024)	37%

Segment	26 to 35 Years (Age Group)
Value Share (2024)	34%

Snapshot img

Indonesia Tourism And Hotel Market Size 2025-2029

The Indonesia tourism and hotel market size is forecast to increase by USD 11.44 billion, at a CAGR of 6.5% between 2024 and 2029.

The Tourism and Hotel market is experiencing significant shifts driven by several key trends. Firstly, there is a growing preference for local and authentic experiences, with travelers seeking unique journeys. This trend is transforming the way hotels and tourism businesses operate, with an increasing focus on personalized services and community engagement. Secondly, the widespread availability of the Internet and the growing influence of online testimonials are shaping consumer behavior. Travelers now rely heavily on online reviews and social media recommendations when making booking decisions, making it crucial for hotels and tourism businesses to maintain a strong online presence and excellent customer service. Cultural tourism and big data analytics offer opportunities for unique experiences and insights into local traditions and trends.
However, the market also faces challenges, including the unpredictable impact of climate change and unexpected weather developments. However, as Indonesia seeks to attract foreign exchange through international tourism, the domestic segment may experience a slight decline in market share. Extreme weather events can disrupt travel plans, damage infrastructure, and negatively affect tourism businesses. Adapting to these challenges will require innovative solutions, such as implementing sustainable practices and investing in weather forecasting technology to minimize disruptions and mitigate risks. By focusing on these trends and challenges, hotels and tourism businesses can capitalize on market opportunities and navigate the evolving landscape effectively.

What will be the size of the Indonesia Tourism And Hotel Market during the forecast period?

Request Free Sample

In the dynamic tourism and hotel market, data-driven insights play a pivotal role in shaping trip itineraries and enhancing guest experiences. Conference facilities are increasingly adopting integrated systems for efficient meeting planning and event management. Mobile check-in and voice assistants streamline the guest journey, while search engine optimization and travel blogging boost online visibility. Review management is crucial for maintaining a positive online reputation. Cloud-based solutions enable personalized recommendations based on customer journey mapping and destination guides. IOT devices, such as smart room technology and wearable technology, offer automated services like keyless entry and virtual assistants.
Catering services, content marketing, and paid advertising are essential components of effective marketing strategies. Travel advisories remain vital for ensuring guest safety and satisfaction. Incorporating these trends into business strategies can help hotels stay competitive and thrive in the evolving tourism landscape.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Domestic
  International


Class Type

  Chain hotels
  Independent hotels


Customer Type

  Leisure
  Business


Geography

  APAC

    Indonesia

By Type Insights

The domestic segment is estimated to witness significant growth during the forecast period. The Indonesian tourism market is marked by a thriving domestic sector and a growing focus on international tourism. Domestic travel, fueled by residents' familiarity with local policies, language, and culture, remains a significant contributor to the industry. To boost tourism, the Indonesian government promotes various activities, including sustainable tourism, sports tourism, culinary tourism, and cultural tourism. These initiatives aim to encourage residents to explore different experiences within the country. In addition, the integration of technology is transforming the tourism landscape.

Machine learning and predictive analytics enable personalized experiences for travelers, while online travel agencies and e-commerce platforms offer convenience and affordability. Environmental sustainability and social responsibility are increasingly important in the tourism industry. Green hotels and sustainable tourism practices are gaining popularity, as travelers seek to minimize their carbon footprint. Virtual and augmented reality technologies offer deep experiences, allowing travelers to explore destinations before they visit. Travel safety and security are essential concerns, with tour operators and travel agents offering solutions to ensure a worry-free journey. Business travel continues to be a significant segment, with artificial intelligence and customer relationship management

In 2023, Indonesia Travel Insurance Market reached a value of USD 62.0 million, and it is projected to surge to USD 143.7 million by 2030

The Indonesia tourism and hotel market is experiencing robust growth, projected to reach a market size of $29.47 billion in 2025, with a Compound Annual Growth Rate (CAGR) of 6.2% from 2025 to 2033. This expansion is fueled by several key drivers. Increased international and domestic tourist arrivals, driven by Indonesia's diverse natural beauty, rich culture, and growing popularity as a destination, are significantly boosting demand for hotel accommodations. Furthermore, rising disposable incomes within Indonesia are empowering more citizens to engage in domestic tourism, further fueling the market. Government initiatives promoting tourism infrastructure development and investment in sustainable tourism practices are also contributing to this positive trajectory. The market is segmented by domestic versus international tourism and by hotel class type (chain hotels and independent hotels), with both segments contributing significantly to the overall growth. The competitive landscape is characterized by a mix of international hotel chains and locally owned establishments, each employing various competitive strategies to attract guests. Challenges remain, including managing the environmental impact of tourism and ensuring the sustainability of the industry's growth. Effective regulatory frameworks and sustainable practices are crucial for mitigating these challenges and ensuring the long-term health of the Indonesian tourism and hotel market. The forecast period (2025-2033) anticipates continued growth, driven by ongoing infrastructure improvements, diversified tourism offerings, and strategic marketing initiatives. The increasing popularity of ecotourism and experiential travel offers opportunities for unique hotels and resorts to thrive. The presence of established international hotel brands alongside local players fosters healthy competition, leading to innovation in services and offerings. However, potential risks exist, including global economic uncertainty, potential disruptions from natural disasters, and the need for continuous adaptation to evolving tourist preferences. Maintaining a balance between economic growth and environmental protection remains a key priority to ensure the sustainability of this vibrant sector. Analyzing market positioning of key companies like Aryaduta Hotel Group, Jin Jiang International Holdings, and The Ascott Ltd., reveals various competitive strategies including luxury offerings, budget-friendly options, and strategic location choices. Understanding these strategies is essential for new entrants and existing players seeking to navigate this dynamic market successfully.

The absolute economic contribution of tourism in Indonesia was forecast to continuously increase between 2024 and 2029 by in total **** billion U.S. dollars (+***** percent). After the ninth consecutive increasing year, the economic contribution is estimated to reach ***** billion U.S. dollars and therefore a new peak in 2029. Depited is the economic contribution of the tourism sector in the country or region at hand.The shown data are an excerpt of Statista's Key Market Indicators (KMI). The KMI are a collection of primary and secondary indicators on the macro-economic, demographic and technological environment in up to *** countries and regions worldwide. All indicators are sourced from international and national statistical offices, trade associations and the trade press and they are processed to generate comparable data sets (see supplementary notes under details for more information).Find more key insights for the absolute economic contribution of tourism in countries like Malaysia and Myanmar.

According to a survey by Rakuten Insight on online travel agencies (OTAs) conducted in June 2023, around ** percent of respondents in Indonesia claimed that they had used Traveloka, followed by Tiket.com and Agoda. Traveloka is an Indonesian startup turned unicorn company that provides flight tickets, hotel booking services, and more. Why are online travel agencies thriving in Indonesia? Growing internet penetration and smartphone adoption have fueled the growth of online travel agency (OTA) use in Indonesia. The young, tech-savvy population increasingly prefers the convenience of online travel bookings. OTAs in Indonesia attract users with competitive processes, diverse options, and user-friendly interfaces, simplifying the travel planning process. The rise of digital payment systems and growing trust in online transactions further boost their popularity. As tourism expands, OTAs continue to provide accessible and efficient travel services, solidifying their crucial role in Indonesia’s travel industry. The economic impact of tourism in Indonesia Tourism is pivotal in Indonesia’s economy, contributing significantly to the Gross Domestic Product (GDP) and employment. In 2019, before the pandemic hit, the tourism industry accounted for about **** percent of the GDP, with international tourists spending billions on accommodation, food, and entertainment. Tourism also supports millions of jobs directly in hospitality and travel services, and indirectly in other sectors such as transportation, retail, and food services. The industry is experiencing a strong recovery post-pandemic, with the government heavily promoting domestic tourism and improving infrastructure. In addition, sustainable tourism is now a key focus. Indonesia aims to balance economic growth with environmental conservation and cultural preservation, ensuring tourism remains a vital economic driver.

The Indonesia Surfing Tourism Industry is poised for tremendous growth, with its market value rising from USD 9.2 billion in 2025 to USD 28.7 billion by 2035, supported by a strong CAGR of 12%. The growth is supported by Indonesia's world-class and varied surf spots, including Bali, Sumatra, and the Mentawai Islands, which remain popular among surfers worldwide. With international popularity growing for Indonesia's surf destinations, more and more surfers are heading for Indonesia's unusual shore breaks, from easy waves suited for beginners to difficult reef breaks.

Market Overview

Attribute	Value
Estimated Indonesia Industry Size (2025E)	USD 9.2 billion
Projected Indonesia Value (2035F)	USD 28.7 billion
Value-based CAGR (2025 to 2035)	12%

The "Wonderful Indonesia Ecotourism Initiative," launched by the Indonesian government in 2023, has improved the conditions of eco-tourist travels and attracted those with sensitivity to nature. This effort is for improving sustainable infrastructure and promoting less recognized eco-destinations, plus the seeking of local participation for a truly immersive and natural experience. Bali, Java, and Sumatra remain on top, as these two have built up their established infrastructures and iconic attractions that echo through the world's ecological tourism. With evolving awareness about the environment during global tourism and the diversities of Indonesia promoted through various governmental initiatives towards eco-friendly travels, by 2023, eco-tourism in the Indonesian market attained a value at approximately IDR 45 trillion, further fueled by growing, global awareness about sustainable tourism practices, government initiatives over eco-friendly travels, an increasing level of biodiversity featured in Indonesia, and most especially nature destinations. Critical destinations that typify eco tour trips to Indonesia are Bali and various iconic destinations: Raja Ampat, Komodo Island National Park, Bromo-Tengger Semeru, and Lake Toba natural wonders that host different or peculiar ecosystems where efforts relating to their conservations can still be undertaken using tourism events. Indonesia Eco-Tourism Market Overview and Size

In 2024, the Indonesian travel set market decreased by -1.4% to $2.4M for the first time since 2020, thus ending a three-year rising trend. In general, consumption continues to indicate a significant increase. Travel set consumption peaked at $2.5M in 2023, and then dropped modestly in the following year.

The Indonesia faith-based tourism market is forecast to reach US$ 292 Million in 2022, with demand growing at an 11.3% CAGR over the assessment period. The share of Indonesia's faith-based tourism market in the global faith-based tourism market is approximately 4% - 9%.

Attributes	Key Insights
Indonesia Faith-Based Tourism Market Estimated Size (2022)	US$ 292 Million
Indonesia Faith-Based Tourism Market Value-based CAGR (2022 to 2032)	11.3%
Indonesia Faith-Based Tourism Market Top Players Share in 2021.	6% - 9%

Scope of Report

Attributes	Details
Estimated Market Size (2022)	US$ 292 Million
Value-based CAGR (2022 to 2032)	11.3%
Top 5 Players Share (2021)	6% - 9%
Forecast Period	2022 to 2032
Historical Data Available for	2017 to 2021
Market Analysis	US$ Million for Value
Key Region Covered	South Asia
Key Countries Covered	Indonesia
Key Segments Covered	Tourism Type, Booking Channel, Tourist Type, Tour Type, Age Group, and Region.
Key Companies Profiled	Golden Rama Tours & Travel Panorama Destinations Kakaban Tours & Travel Manta Dive Flores Exotic Tour The Seven Holiday Gogonesia.com H.I.S. Tours & Travel Jakarta Chan Brothers Travel Best Tour & Travel Indonesia Avia Tour Dwidaya Tour Mal Grand Indonesia Smailing Tour Wita Tour Pan Travel AntaVaya Group Raptim Tours & Travel Indonesia HOPE Travel
Report Coverage	Market Forecast, Company Share Analysis, Competition Intelligence, Drivers, Restraints, Opportunities and Threats Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives

Indonesia Travel Bag Market growth is driven by rising travel activity and increasing disposable incomes.

In Indonesia Medical Tourism Market, offering valuable insights, key market trends, competitive landscape, and future outlook to support strategic decision-making and business growth.

In 2022, the tourism sector contributed around **** percent to Indonesia's GDP, showing an increase of about *** percent from the previous year. The tourism sector's contribution to Indonesia's GDP in 2022 has increased as the country started to recover from the COVID-19 pandemic.

Some of the recent competitor trends and key information about competitors include: There's still, however, significant fragmentation as much big movement happening into making contributions or the growth in the segment come under players falling. These include international travel agencies operating locally, online platforms with their packages to offer towards eco-tourism activities, and locally operating tourism agencies. Top players mainly that deal in business eco tours include Green Indonesia Tours, Flores Komodo Eco Tour, I Like Local, Responsible Travel, and Wonderful Indonesia. Competitive Landscape in Indonesia Eco-Tourism Market

Future Outlook and Projections for Indonesia Eco-Tourism Market on the Basis of Revenues in USD Billion, 2024-2029 The ecotourism market in Indonesia is likely to record robust growth by 2029 at a significant CAGR throughout the forecast period. This can be attributed to rising international interest in sustainable tourism, promotional initiatives taken by governments to support ecotourism, and increased consciousness regarding protection of the environment among tourists. What Awaits Indonesia Eco-Tourism Market?

In 2024, approximately 6.3 million international visitors to Indonesia arrived at the Ngurah Rai International Airport in Bali. Bali is Indonesia's main driver of tourism, attracting visitors from all over the world.

Snapshot img

Indonesia Hospitality Market Size 2024-2028

The Indonesia hospitality market size is forecast to increase by USD 7.78 billion, at a CAGR of 6.2% between 2023 and 2028.

The market is experiencing significant shifts, driven by the increasing preference for local and authentic experiences. This trend is fueled by the growing number of domestic and international tourists seeking unique and culturally immersive stays. Additionally, the rise of the digital age has given way to increased internet access and the influence of online testimonials, which play a crucial role in shaping travelers' decisions. Technology is transforming the hospitality sector, with data analytics, virtual concierge services, mobile applications, and the Internet of Things (IoT) becoming essential components. However, the market faces challenges in implementing tourism policies effectively. The complex regulatory environment and varying implementation standards across regions pose obstacles for hospitality businesses aiming to expand and maintain compliance.
To capitalize on the market's opportunities and navigate these challenges, companies must focus on delivering authentic, locally-inspired experiences while navigating the intricacies of the regulatory landscape. By staying agile and responsive to evolving consumer preferences and policy requirements, businesses can differentiate themselves and thrive in Indonesia's dynamic hospitality market.

What will be the size of the Indonesia Hospitality Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2018-2022 and forecasts 2024-2028 - in the full report.
Request Free Sample

The Indonesian hospitality market is characterized by a focus on community engagement and sustainable tourism, with pricing strategies tailored to cater to diverse customer segments. Brand perception and service quality are key differentiators, as hotels prioritize cultural tourism experiences and risk management to ensure guest safety and security. Tourism development and emergency procedures are crucial elements of operational efficiency, with local economic impact and destination marketing driving revenue optimization. Talent acquisition and employee engagement are essential for delivering exceptional guest service, while hospitality design and accessibility standards enhance the overall guest experience.
Data analytics and guest feedback inform revenue optimization strategies, with safety and security measures integrated into hotel operations. Distribution channels and hospitality software enable efficient management of customer insights, ensuring operational excellence in the competitive Indonesian hospitality industry.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Type

  Domestic
  International


Service

  Food service
  Accommodation


Geography

  APAC

    Indonesia

By Type Insights

The domestic segment is estimated to witness significant growth during the forecast period.

The domestic the market is thriving, with locals driving the majority of tourism within the country. This segment's dominance is attributed to the ease of navigating the country's policies, rules, language, and culture. However, the focus on international tourism is expanding, allowing developing countries to earn foreign exchange. Fitness centers and swimming pools are popular hotel amenities, enhancing guest experience. Channel management systems facilitate seamless reservations and revenue optimization. Sustainability initiatives, such as waste management practices and carbon footprint reduction, are gaining importance. Online reputation management is crucial for maintaining a positive image. Hotels invest in marketing strategies, including content marketing and digital campaigns, to attract guests.

Training programs ensure high-quality customer relationship management. Hospitality technology integration, including mobile apps, online booking engines, and revenue management systems, streamlines operations. Event planning services cater to various needs, from corporate events to weddings. Bar and banquet management systems optimize service delivery. Spa services offer relaxation and rejuvenation. Green building standards ensure eco-friendly structures. Cloud-based solutions enable efficient property management. Accessibility features cater to diverse guest needs. Cultural experiences and tourist attractions add value. Guest wi-fi solutions keep guests connected. Loyalty programs retain repeat business. Sustainability certifications demonstrate commitment to the environment. Hotel branding and social media marketing boost visibility.

Leisure travelers seek unique experi

The Indonesian hospitality market, valued at $22.17 billion in 2025, is projected to experience robust growth, exhibiting a Compound Annual Growth Rate (CAGR) of 6.2% from 2025 to 2033. This expansion is fueled by several key drivers. Firstly, Indonesia's burgeoning tourism sector, driven by increasing international and domestic travel, significantly boosts demand for accommodation and food services. Secondly, rising disposable incomes among Indonesians are fueling domestic leisure travel and spending on hospitality experiences. Thirdly, strategic government initiatives aimed at improving infrastructure and promoting tourism are creating a favorable investment climate. The market is segmented into domestic and international tourism, and services encompassing food service and accommodation. Major players like Archipelago International, Garuda Indonesia, and Sahid Hotels & Resorts compete in this dynamic landscape, employing diverse competitive strategies including brand expansion, strategic partnerships, and service differentiation. However, challenges such as infrastructure limitations in certain regions and seasonal fluctuations in tourist arrivals pose potential restraints to market growth. The forecast period of 2025-2033 anticipates continued growth, driven by the factors mentioned above. The increasing popularity of eco-tourism and experiential travel are emerging trends shaping the market. Companies are adapting by focusing on sustainable practices and unique offerings to cater to evolving consumer preferences. While competition is intense, the market's overall growth potential remains strong, presenting significant opportunities for established players and new entrants alike. Further analysis suggests that the international segment likely holds a larger market share than the domestic segment, given Indonesia's popularity as a tourist destination. Growth in the food service sector is expected to slightly outpace the accommodation sector, reflecting trends towards diversified dining experiences and a growing culinary tourism segment.

In Indonesia Travel Insurance Market, The market is influenced by the increasing complexity of travel arrangements and the growing need for financial protection against unexpected disruptions.

Indonesia Extreme Tourism Market growth is driven by changing consumer preferences, advances in technology, and the influence of social media, this market is poised for continued expansion.