Indonesia's international tourist arrivals are on track to reach pre-pandemic levels or slightly higher in 2026, according to the Confederation of Indonesian Tourism Associations (GIPI). From January to August 2026, arrivals rose by 5.38 per cent year-on-year to 10.58 million, and if the trend continues, total arrivals for the year could hit 16.2 million, just above the 16.11 million recorded in 2019.
Despite the rise in arrivals, the tourism sector is not fully back on track. Hotel occupancy averaged 49.26 per cent in 2025, down from 54.99 per cent in 2019, even as accommodation units increased to 34,702 from 27,607 in 2021. Air traffic also declined, with the number of aircraft falling to 560 in 2026 from 616 in 2019, and domestic passenger numbers dropping to 61.2 million in 2025 from 79.4 million in 2019.
Revenue from visa fees reached 5.03 trillion rupiah in 2024, while hotel and restaurant tax receipts in Jakarta and Bali were significant. However, the Ministry of Tourism's 2026 budget was around 1.8 trillion rupiah. A weaker rupiah could improve price competitiveness, but high airfares remain a challenge.
GIPI plans to work with travel agencies to promote packages and target regional areas, including in Malaysia. Domestically, new destinations and the creative economy offer potential, but strategies must consider regional differences, and high airfares outside Java continue to be a problem.
For travellers, Indonesia remains accessible with international arrivals nearing pre-pandemic levels, but higher airfares and lower hotel occupancy may affect costs and availability. The industry is focusing on regional promotions and packages, which could open up new destinations.
