Providing comprehensive up-to-date hotel and tourism information such as tourist arrivals, hotel performance trends, as well as existing and future hotel supply information, this publication seeks to provide stakeholders with insights into various markets in Indonesia.

Across the archipelago, specific markets covered in IHW 2014 are Jakarta, Surabaya, Bandung, Bali, Bintan, Bogor, Lombok, Medan, Yogyakarta and Makassar.

Through the release of IHW 2014, HVS aims to serve as your guide to tourism and hotel investment in the world’s largest archipelago; and subsequently, together with various industry players, to contribute further to the progress and development of Indonesia’s tourism industry.

Highlights of the IHW 2014 include:

• The Indonesian economy has grown from strength to strength in recent years, in line with Acceleration and Expansion of Economic Development Master Plan (MP3EI).
• The effect of Indonesia’s growing economy on its tourism industry has been profound. The direct contribution of travel and tourism to Indonesia’s GDP was 3.1% of GDP in 2013, growing by 8.4% over the previous year, the largest growth recorded by any G20 country in 2013.
• Indonesia welcomed 8.8 million international travellers in 2013, which translates to a growth of 9% over 2012 arrivals. The country is projected to see 9.3 - 9.5 million international tourists this year, an increase of 6% to 8% over 2013.
• In terms of hotel room supply in Indonesia, between 2009 and 2013, the nation witnessed the openings of 538 classified establishment or 52,716 rooms, corresponding to a CAGR of 9.5%.
• The Tourism and Creative Economy Ministry is currently aiming at the realisation of better geographical diversification of tourism investment in the country. This enables other less popular or untapped tourist destinations such as Lombok, Bintan, Flores, Komodo Island, Yogyakarta and Manado to grow with improved accessibility and adequate tourism infrastructure.
• We see growth in the smaller hotel markets going forward, such as Yogyakarta, where the rising number of visitors, supported by a robust economy, is proving to be very attractive to investors and is driving the rapid development of new hotels in the budget and mid-range segment. Similarly, in Kalimantan, the buoyant economy, driven by the timber and oil & natural gas industries, has sparked the need for more hotel rooms.
• IHW 2014 concludes that Indonesia’s tourism sector continues to hold great potential in both the travel industry as well as the tourism services industry, supported by creation of global awareness about Indonesia’s numerous tourism destinations and ongoing improvements in tourism infrastructure.

To download the Indonesia Hotel Watch 2014 by Marc Kramer, Bryan Chen and Feny Sindarta, please click here.