Indonesia expects continued Double Digit growth in Tourism Investments : needs 800 more hotels

Friday, 10 May 2013 | 1076

“ In 2012, total Investments in tourism reached US$ 869.8 million, soaring an incredible 210.86% over investments in 2011, which registered a total of US$279.8 million. For  2013 we donot expect to achieve the same increase”  said  Minister for Tourism and Creative Economy, Mari Elka Pangestu, “but we are confident  that we will continue to at least enjoy  double digit growths” continued the Minister, who was keynote speaker at the Indonesia Hospitality & Tourism Investment Conference 2013 on 7 May.


A number of companies are already committed to invest in Indonesia’s tourism. The Radisson group , for example has signed a cooperation agreement with Panorama to build  12  hotels in the next three years, while Accor will also build 57 hotels on various islands in Indonesia in the coming three years. Other major hotel chains committed to invest are Hilton Worldwide and Marriott.


Meanwhile, PT MNC Land Tbk has already made a cooperation agreement with Club Med to manage the special tourism zone of Mandalika in South Lombok, West Nusatenggara, stated Minister Pangestu.   


In order to maintain the momentum in investments, the Ministry has allotted 8 potential tourism locations. These are on Sabang (in Aceh), around Lake Toba (North Sumatra) on Bintan (the Riau Islands), Belitung (in the Bangka-Belitung Province), Tanjung Lesung (in Banten), Bugam Raya (in Central Kalimantan), the Mandalika area (Lombok, West Nusatenggara) and the Wakatobi Islands (Southeast Sulawesi) . 


Additionally,  16 strategic zones have been identified, that include the Thousand Islands and Old Batavia (in Jakarta), the Borobudur temple complex (Central Java), Mount Bromo (East Java) and Raja Ampat (West Papua).


On his side, Chairman of HVS China& Southeast Asia, David Ling, estimated that since Indonesia’s own domestic  tourism is growing by leaps and bounds, recording 253 million trips in 2012 and expected to grow 3% per year  to reach 400 million trips in 2023, this means that the country  will need to add 800 more hotels on top of the existing 1,623 hotels spread over the archipelago. Those additional hotels will open 200,000 employment opportunities in the Tourism sector, he said.


The World Bank estimates that Indonesia’s middle class (who are potential tourists) has reached 135 million this year.
Last year 8.04 million international tourists visited Indonesia. The government targets international arrivals in 2013 to reach between 8.6 million to 9 million. 


(Sources: Kompas daily, Bisnis Indonesia,


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