Tourism and hotel market in Indonesia size to grow by close to USD 22 billion from 2021 to 2026; A descriptive analysis of customer landscape, vendor assessment, and market dynamics.
The market's growth momentum will accelerate at a CAGR of 11.81% during the forecast period.
Vendor Landscape - The tourism and hotel market in Indonesia is fragmented, with the presence of several regional vendors. A few prominent vendors that offer tourism and hotel in Indonesia in the market are Aryaduta Aryaduta Hotel Group, Double-Six Luxury Hotel Seminyak, Grandmas Plus Hotel Airport, Katamaran Hotel and Resort, Kempinski Hotels SA, Le Eminence Hotel Convention and Resort, Pesona Alam Resort and Spa, Pullman Ciawi Vimala Hills Resort Spa and Convention, Puri Sari Beach Hotel, and Shanghai Jin Jiang International Hotels Group Co. Ltd. and others.
The tourism and hotel market in Indonesia is at its growing stage. This statistical study of the tourism and hotel market in Indonesia encompasses successful business strategies deployed by the key vendors.
The tourism and hotel market in Indonesia is fragmented and the vendors are deploying growth strategies such as price, government licensing, service portfolio, quality, brand, and safety measures to compete in the market.
Technavio has segmented the market based on tourists (domestic and international) and hotel type (chain hotels and independent hotels).
The domestic segment will grow at a significant rate during the forecast period. The domestic tourism segment dominates the market in focus. The segment is expected to continue to lead the market during the forecast period due to advantages such as the familiarity of such tourists with the country's tourism policies, rules, and language and culture. Domestic tourism in Indonesia is driven by the absence of currency exchange issues and the importance of regional economic growth.
Download a Sample Report
Tourism And Hotel Market In Indonesia – Market Dynamics
Leading Drivers - The increasing preference for local and authentic experiences is one of the key drivers supporting the tourism and hotel market growth in Indonesia. Some tourists focus more on exploring local communities and their cultures, which are considered one of the most critical aspects of Indonesia's tourism and hotel market. These tourists prefer buying local products instead of souvenirs and undertaking adventure trips in public transport instead of taxis.
Also, having dinner in a restaurant that uses zero-kilometer ingredients, including local, low-impact primary ingredients, such as meat, cheese, and honey. This new form of tourism is expected to become popular among tourists as they are becoming more aware of the environmental impact of tourism. This will fuel the market's growth in focus during the forecast period.
Key Trends - Growing internet access and online testimonials is another factor supporting the tourism and hotel market growth in Indonesia. The Internet provides consumers with all the essential information related to travel besides customer-generated reviews through testimonials.
For instance, booking.com, one of the prominent booking portals, provides users with booking options depending on the type of trip they wish to take. In 2020, the website had over 65 million guest reviews. Online testimonials are expected to garner more attention as they help travelers plan their visits and related itinerary. This is expected to positively impact the tourism and hotel market in Indonesia during the forecast period.
Major challenges - The factors such as climate change and unexpected weather developments is hindering the tourism and hotel market growth in Indonesia. Tropical hurricanes, floods, and rising sea-water levels pose big problems to Indonesia by severely deteriorating tourism infrastructure, resources, and buildings.
Also, rebuilding and maintaining infrastructure could be a highly time-consuming process, depending on the severity of the natural calamity. Environmental disasters directly affect agriculture, biodiversity, human health, and the tourism industry, which involves a recovery period of 20 to 24 months. In contrast, any political unrest takes about 27 months to recover. These factors may impact the market's revenue growth, which is another challenge for the tourism and hotel market in Indonesia during the forecast period.
Get the report here
The predicted growth for the luxury hotel market size from 2022 to 2027 is USD 54.46 billion at a decline of a CAGR of 4.5%. This market forecast report extensively covers segmentation by type (upscale, upper-upscale, and luxury), ownership (chain and independent), and geography (North America, Europe, APAC, Middle East and Africa, and South America.
The size of the capsule hotel market is expected to increase by USD 49.14 million from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 10.24%. This report extensively covers segmentation by mode of booking (offline booking and online booking) and geography (APAC, North America, Europe, South America, and Middle East and Africa).