Indonesia is a magnet for tourists due to its stunning natural beauty and fascinating cultural heritage. Domestic and international tourists traveling to all corners of the country not only spur the growth of the
but also become a major driver for Indonesia’s accommodation industry. In 2021, preliminary figures showed that the
in Indonesia amounted to approximately 79.17 trillion Indonesian rupiah. This was an increase of around five trillion Indonesian rupiah compared to the previous year.
How is the current state of the Indonesian accommodation industry?
The accommodation industry in Indonesia is growing in response to the increasing flow of tourists arriving and staying in accommodation facilities. The industry was severely impacted by the coronavirus (COVID-19) pandemic as the government imposed social and border restrictions to mitigate the impact of the pandemic. Many
hotels and similar establishments were forced out of business, resulting in a decline of around one hundred such establishments in 2021.
After reopening the borders and removing all quarantine requirements, as well as scraping on-arrival COVID-19 testing for international inbound travelers, accommodation in Indonesia started to recuperate. The country saw an increase in hotel room occupancy rates, crawling back to pre-pandemic levels. In 2022, the o
ccupancy rate of star-rated hotels in Indonesia continued to increase from September to December, with an occupancy rate of more than fifty percent. Similarly, the
occupancy rates of non-star hotels have been rising after plunging during the pandemic.
Why is the hotel industry important in Indonesia?
The hotel industry represents the biggest segment of the Indonesian accommodation industry, with yearly revenues reaching billions of U.S. dollars in the last decades. After plummeting during the heat of the COVID-19 pandemic, Indonesia's hotel industry experienced a rapid rebound, reaching revenues close to pre-pandemic figures in 2021. The
revenue of the hotel industry in Indonesia is expected to continue to rise and reach 5.6 billion U.S. dollars by 2027.
Indonesians are getting back into traveling
After travel restrictions put the brakes on their travel plans, many
Indonesians are now ready to splurge on travel, lodging, and vacation. A recent study revealed that Traveloka was the
go-to online travel agency among Indonesian travelers as of December 2022. Meanwhile, Tiket.com came in second as the most preferred online travel agency. The availability of promotional offers and discounts was the top
reason for using online travel agencies among Indonesian consumers in 2022. Some other reasons in favor of online travel agencies include the ease of use of the apps or website page and the lower prices offered.
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