Travel in Indonesia

Growth in travel flows decelerates, but Chinese tourists remain a bright spot for Indonesia

Whilst Indonesia’s economy was slowly gaining momentum in 2019, post-election-result rioting in Jakarta added to the previous year’s undesirable list of incidences including consecutive terrorism attacks and the Lion Air plane crash, increasing the negative impact on the nation’s tourism industry. Although the number of inbound arrivals in 2019 grew at a fair rate, the increment was half that of the previous year and the lowest of the entire review period.

Online bookings are in the ascendancy

Indonesia’s huge population are digitally literate and internet usage is expanding steadily each year, while smartphone ownership is high and rising rapidly. The convenience that comes with making online travel-related transactions directly, eg with a hotel, or via a third party site, such as Trivago, is highly appealing to a rising number of people.

Airline carriers raise ticket prices significantly as fuel costs escalate

The hike in airline ticket prices, especially towards the end of 2018 till the first semester of 2019, has led to lower demand for air travel in Indonesia. Owing to considerable rises in operating costs, especially the cost of fuel, many carriers have had no choice but to pass on the extra expense to customers.

Informal short-term rentals pose a challenge to budget hotels

Budget hotels are being pressured by informal rental lodging options such as Airbnb, and deceleration in growth is predicted for them as a result. Online rental services such as Airbnb and Airy Rooms provide potential travellers with private accommodation at a competitive price.

While remaining a work in progress, Indonesia will still draw the crowds

The tourism industry in Indonesia will continue to thrive as the government is making tremendous efforts to promote the nation’s attractions to the world. It is also developing the country’s infrastructure and facilities so that travellers to Indonesia will be comfortable enough during their stay and make repeat visits.

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