The Indonesian tourism industry may grow rapidly, but how about Indonesian tourism investment? Since the industry is aimed to be the nation’s top foreign exchange earner, its role toward the national economy is strengthened. The government itself is ambitious to be a world-class sustainable tourist destination.
At least, it’s not an empty ambition. In 2014, there were 9.4 million overseas tourists came to Indonesia. By 2017, the number has climbed to over 14 million and continues to grow. With such a big number, the foreign exchange earnings are automatically increasing. It also leads to new job opportunities for local workers and businesses.
Transition to digital
If we see the global tourism market, there is actually a decline in amount. There was a decrease of 20% in 2018, compared to the previous year. However, Indonesia is still optimistic about its targets. Seeing the number of overseas visitors in Indonesia, the growth in the airline industry and change of lifestyle, the chance is still open.
Today, tourists rely on their gadget and technology to explore new places. When they look for accommodation, they look on their gadget. When they seek local delicacies, they go to Google to get a recommendation. This unconscious transition turns out to have such a huge impact on Indonesian tourism investment.
The Indonesian government aims this transition to increase their global competitiveness. By creating a technology-friendly destination and accommodation, Indonesia will look more appealing for the investor to invest. This strategy is reasonable if we see Indonesian digital market. In 2017, it had reached US$27 trillion and predicted to grow as high as US$100 trillion in 2025.
The digital tourism, tourism 4.0, aims for more millennial tourists. Until now, among the total inbound tourists come to Indonesia, 50% of them are millennials. In the future, the number is predicted to double.
Spain and Malaysia are such perfect examples of this. They aimed to multiply the number of millennials by 4 times bigger in 2030. Spain is already on the way to achieve that target. The European country now equips its main destinations with the digital ecosystem. It isn’t only limited to the tourist attraction, but also the arrival experience on the airport to the post-trip experience.
Aside from the digital transition, the Indonesian government also designates some places as priority destinations. There is a total of 10 tourist attractions that make to the list. They spread all over Indonesia, from Sumatra, Java, Sulawesi, Maluku, and East Nusa Tenggara.
A couple of designed destinations have already managed to grab the deal of investment. Lake Toba in North Sumatra is one of them. Currently, the combined value of projects in the Lake Toba area has already reached IDR1 trillion (approximately US$69 million).
There is also Mandalika on the island of Lombok. The designed place has already managed to attract IDR13 trillion (approximately US$89t million). Since it’s also designed as Special Economic Zone (specialty on agro and ecotourism industry), investors can have the benefit of financial incentives if they are investing there.
The Indonesian tourism industry has experienced rapid growth lately. The growth is not only about the number of tourists that comes to the country, but also with the investment. The Indonesian government had already proven that they are serious in developing their tourist destination. The crystal clear planning combines with the beauty of Indonesia itself is an arsenal to get more investment for the tourism sector. Ready to invest in Indonesian tourism?