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Tourism in Indonesia

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Map of entry points with Visa on Arrival facility

Tourism in Indonesia is an important component of the Indonesian economy as well as a significant source of its foreign exchange revenues. The vast country of sprawling archipelago has much to offer; from natural beauty, historical heritage to cultural diversity. According to the World Travel and Tourism Council, the direct contribution of travel and tourism to Indonesia's GDP in 2014 was IDR 325,467 billion (US$26,162 million) constituting 3.2% of the total GDP. By 2019, the Indonesian government wants to have doubled this figure to 8 percent of GDP and the number of visitors needs to double to about 20 million. The tourism sector ranked as the 4th largest among goods and services export sectors.

In year 2015, 9.73 million international visitors entered Indonesia, staying in hotels for an average of 7.5 nights and spending an average of US$1,142 per person during their visit, or US$152.22 per person per day. Singapore, Malaysia, China, Australia, and Japan are the top five sources of visitors to Indonesia.

The Travel and Tourism Competitiveness Report 2015 ranks Indonesia 50th out of 141 countries overall. The report ranks the price competitiveness of Indonesia's tourism sector the 3rd out of 141 countries. It mentions that Indonesia has quite good travel and tourism policy and enabling conditions (ranked 9th). The country also scores quite good on natural and cultural resources (ranked 17th). However, the country scored rather low in infrastructure sub-index (ranked 75th), as some aspect of tourist service infrastructure are underdeveloped.

In 2016, the government was reported to be investing more in tourism development by attracting more foreign investors. The government has given priority to 10 destinations as follows: Borobudur, Central Java; Mandalika, West Nusa Tenggara; Labuan Bajo, East Nusa Tenggara; Bromo-Tengger-Semeru, East Java; Thousand Islands, Jakarta; Toba, North Sumatra; Wakatobi, Southeast Sulawesi; Tanjung Lesung, Banten; Morotai, North Maluku; and Tanjung Kelayang, Belitung. As quoted in the Jakarta Post, the government is aiming for 275 million trips by domestic tourists by end of 2019. The government has also secured commitments from potential investors, totalling US$70 million in the areas of building accommodation, marina and ecotourism facilities in 3 of the 10 areas.

Both nature and culture are major components of Indonesian tourism. The natural heritage can boast a unique combination of a tropical climate, a vast archipelago of 17,508 islands, 6,000 of them being inhabited, the second longest shoreline in the world (54,716 km) after Canada. It is the worlds largest and most populous country situated only on islands. The beaches in Bali, diving sites in Bunaken, Mount Bromo in East Java, Lake Toba and various national parks in Sumatra are just a few examples of popular scenic destinations. These natural attractions are complemented by a rich cultural heritage that reflects Indonesia's dynamic history and ethnic diversity. One fact that exemplifies this richness is that 719 living languages are used across the archipelago. The ancient Prambanan and Borobudur temples, Toraja, Yogyakarta, Minangkabau, and of course Bali, with its many Hindu festivities, are some of the popular destinations for cultural tourism.


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