“Indonesia’s domestic market is underpinning the growth of tourism.” This is little surprise.
The world’s fourth-largest population is expected to generate 1.4 billion domestic trips in 2023. In addition, a “demographic dividend,” whereby a youthful population is driving economic growth will support expansion of tourism and hospitality through the 2020s.
This week, Gary and Hannah assess the travel outlook in South East Asia’s largest country with Jakarta-based Ross Woods, an experienced hotel investment and strategy consultant. Ross discusses the recovery of different hotel segments over the past 12 months across the Indonesian archipelago, and the hotel development pipeline.
We also look at the international air travel sector, which remains dominated by Jakarta and Bali, and the prospects for inbound and outbound flight growth in regional airports. Plus, we look at the current status of the Five Priority Destinations project to develop different regions of the country for tourism and reduce the visitor economy’s reliance on Bali. And we look at the short-term rentals sector. Is there any chance Bali could replicate the decision of Penang in Malaysia to ban STRs in residential buildings?