Indonesia posts strong inbound growth

VISITOR arrivals, tourism receipts and foreign investments are on the rise for Indonesia, putting the country on track to achieve its targets for 2014.

Speaking at a media conerence in Jakarta yesterday, Mari Elka Pangestu, minister of tourism and creative economy, said: “Visitor arrivals have shown a sharp increase in the last seven months. As such, the arrivals target of 9.3-9.5 million (for this year) will be achieved.”

From January to July, arrivals grew 9.4 per cent year-on-year to 5.3 million.

The minister’s confidence also stems from the trend of stronger arrivals in the second half of the year. Indonesia last month hosted the 3rd Bali International Choir Festival, Dreamfields Festival in Bali and Asian Fashion Week in Surabaya, while a number of events scheduled for October will likewise boost arrivals.

Tourism revenue is expected to reach US$11 billion by end-2014, a 10.7 per cent increase over 2013.

Mari said that these figures could become a benchmark for newly elected Indonesian president, Joko Widodo, and his cabinet in determining goals for the next five years.

She added: “The ministry is preparing mid-term and strategic plans (based on) various assumptions to achieve the next five-year target.”

As for tourism investments, they are also up at US$256 million, with foreign investments making up the bulk at US$243 million, more than double the amount in 2013.

“Jakarta received the most foreign investment, followed by Bali. The fact that Riau ranks third in receiving foreign investment shows the spread of investment to new destinations in the country,” commented Mari.

Growth in tourism GDP stands at 6.9 per cent for the first half of the year, outstripping the 5.2 per cent of national economic growth. The industry contributed Rp136.8 trillion (US$11.8 billion) to GDP during the same period.

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