We expect annual arrivals growth of around 4-5% per year throughout our forecast period, increasing from 8.3mn in 2013 to 10.3mn in 2018, an increase of more than 2mn. Indonesia's fellow Asia Pacific countries are expected to continue to dominate the country's inbound arrivals market; Singapore and Malaysia, the two biggest source markets, are expected to account for more than 4.3mn visitors by 2018. Arrivals from China, another key source market, are also set to increase, with Indonesia expanding its range of travel connections to this huge potential market.
Growth in outbound travel from Indonesia is also expected to increase, at a slightly faster rate than inbound arrivals growth. Annual growth of more than 7% in the coming years will bring the number of annual outbound tourists from Indonesia to 12.9mn by the end of the forecast period in 2018. Indonesia offers an enormous potential tourism market, being one of the most populous countries in the world and enjoying a period of relatively strong economic growth. Therefore, while small, it does offer strong potential for development.
The government in Indonesia is highly supportive of the tourism industry, investing in the country's transport infrastructure in particular. Indeed, the government in April 2012 pledged USD43bn across road and rail transport. This investment is important if Indonesia wants to keep up and even outpace the expected increases in demand. While the main island of Bali is easily accessible, many of the more remote islands are inaccessible and would benefit from...
The Indonesia Tourism Report has been researched at source and features Business Monitor International (BMI)'s independent assessment and forecasts for tourist expenditure; government expenditure on tourism; passenger arrivals and departures by mode of transport, reason for travel, origin and destination; and the accommodation market.
BMI's Indonesia Tourism Report provides industry professionals and strategists, corporate analysts, associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on the Indonesian tourism industry.Key Benefits
CoverageBMI Industry View
- Benchmark BMI's independent tourism industry forecasts for Indonesia to test other views - a key input for successful budgetary and planning in the Indonesian tourism market.
- Target business opportunities and risks in the Indonesian tourism sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Indonesia.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. KPIs and latest activity).
This contains a synopsis of our forecasts, and any changes, together with an overview of key trends and developments in the tourism industry, and an assessment of the impact of various economic and national factors which might affect the sector. It also covers new transport projects, new hotel developments, and acquisitions.Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the tourism sector and within the broader political, economic and business environment.BMI Industry Forecast Scenario
Forecasts to end-2018 for all key indicators (see list below), supported by explicit assumptions, plus analysis of key downside risks to the main forecasts:
Inbound tourism: Arrivals (000), arrivals growth (% y-o-y), arrivals by region, growth (% y-o-y), arrivals by country, growth (% y-o-y), top 10 countries based on arrivals, growth (% y-o-y).
Outbound tourism: Departures (000), growth (% y-o-y), departures by regional destination (000 and growth % y-o-y).
Travel: Methods of travel for arrivals (Air, Ship, Rail), (000) and (% growth y-o-y), international Tourism receipts for transport (US$bn), (growth % y-o-y), international Tourism receipts for travel items (US$bn), (growth % y-o-y).
Hotels: Hotel industry value (US$bn), (growth % y-o-y), (%GDP), (per capita), (per employee), number of hotels and like establishments (000), (growth % y-o-y), total overnight stays, (000), (growth % y-o-y), length of stay, occupancy rate (%), number of hotel rooms, (000), (growth % y-o-y).Industry Risk Reward Ratings
BMIs Tourism Industry Risk Reward Ratings provide a country-comparative Risk Reward Ratings index aimed at investors (tour operators, tourism infrastructure investors, financial institutions) in the regional tourism market.
The ratings methodology makes sophisticated use of over 40 industry, economic and demographic data points.
We also have Security Risk Reward Ratings which provide a detailed assessment of possible threats to the country (and by extenuation to the tourism industry), ranging from economic and political upheaval, to terrorist attacks and organised crime levels.Market Overview
This contains a comprehensive overview of the tourism industry in the country, its overall value, the value of its hotels industry, trends in the hotels industry and any new developments. It also contains an evaluation of the top 10 global hotel groups presence in the country, which brands are present in which cities, the number of hotels and any planned developments and strategies. The Market Overview also considers the tourism infrastructure developments in the country, in particular transport infrastructure projects such as ports and airports. Tables are also included from our regularly updated Key Projects Database, which contain details of projects, their value, the time frame, their current status, the companies involved and their estimated completion dates.Company Profiles
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMIs industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape.
The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
BMI expects healthy growth across a range of key tourism market indicators in Indonesia. Higher volumes of domestic and foreign tourists will boost tourism-related expenditure as well as the overall value of the industry. Located in the midst of the booming Asia Pacific region, Indonesia looks set to take advantage of the expected increases in both inbound arrivals and outbound departures throughout our forecast period to 2018.