Accommodation in Indonesia - statistics & facts
With its stunning natural beauty and rich cultural heritage, Indonesia is a magnet for tourists. Domestic and international tourists traveling to all corners of the country not only spur the growth of the travel and tourism industry but also become a major driver for Indonesia’s accommodation industry. In 2023, preliminary figures showed that the gross domestic product (GDP) of the accommodation industry in Indonesia amounted to approximately 120 trillion Indonesian rupiah. This was an increase of around 15 trillion Indonesian rupiah compared to the previous year.
As the largest part of the accommodation industry, the hotel industry is thriving with the increasing number of inbound tourists. The hotel segment generates substantial revenues, projected to reach 6.5 billion U.S. dollars by 2029. The hotel industry is crucial for Indonesia's economy, significantly contributing to tourism revenue, job creation, and foreign exchange earnings. It also supports related sectors like transportation, retail, and food services, fostering overall economic growth and development. The industry's expansion not only stimulates local economies but also enhances Indonesia's global tourism profile. With its significant contribution to economic stability and growth, the hotel industry remains a cornerstone of Indonesia's economic development and a key driver of its appeal as a world-class tourist destination.
Hotel industry: the backbone of Indonesia’s accommodation sector
The COVID-19 pandemic severely impacted Indonesia's accommodation industry, leading to a significant decline in the number of establishments in 2021. However, the industry has since made a robust recovery, signaling a positive turnaround. In 2023, the occupancy rate of classified hotels in Indonesia was at around 50 percent, approaching the pre-pandemic levels. Similarly, non-star hotels have experienced a rebound in occupancy rates following previous declines caused by the pandemic.As the largest part of the accommodation industry, the hotel industry is thriving with the increasing number of inbound tourists. The hotel segment generates substantial revenues, projected to reach 6.5 billion U.S. dollars by 2029. The hotel industry is crucial for Indonesia's economy, significantly contributing to tourism revenue, job creation, and foreign exchange earnings. It also supports related sectors like transportation, retail, and food services, fostering overall economic growth and development. The industry's expansion not only stimulates local economies but also enhances Indonesia's global tourism profile. With its significant contribution to economic stability and growth, the hotel industry remains a cornerstone of Indonesia's economic development and a key driver of its appeal as a world-class tourist destination.
