With Indonesia on track to become a $2 trillion economy in the next five years and a top 10 economy by 2030, together with diverse range of attractions, landscapes and cultures, we are excited about the opportunities ahead for the country.

In our latest research, we identify five broad topics and initiatives we believe will support growth in the tourism and hotel sectors going forward.

Top 5 trends and initiatives to watch in the hospitality industry

One

2018 marked the 12th consecutive record year for international visitor arrivals to Indonesia, registering a 12.6% year-on-year (y-o-y) growth to 15.8 million. The rate of growth in international visitor arrivals accelerated in recent years, achieving a compound annual growth rate (CAGR) of 13.8% from 2014 to 2018, compared to a CAGR of 7.7% from 2010 to 2014.

The accelerated growth from 2014 to 2018 was supported by the government's relaxation of visa entry requirements and the introduction of new flight routes.

In 2016, the Tourist Visa Free Facilities was extended to 169 countries from 45 previously. The government also extended the Visa on Arrival to 61 countries to include some of Indonesia's top 10 feeder market such as Australia, France, Japan, Saudi Arabia, United Kingdom and United States of America.

Regular direct charter flights were introduced from several cities in China to Manado and Batam via Lion Air and Sriwijaya Air, as well as flight routes from Chongqing to Bintan via air carrier Citilink.

Korean Air also recently started operating flights from Korea directly to the island of Lombok.

Timor Leste, Indonesia's fourth largest source market, registered significant visitor arrivals growth, fuelled by Garuda Indonesia and Air Timor's introduction of new weekly flights.

Download the full report here.