China, India and Europe Stimulate Tourism Growth in Indonesia

China is likely to become Indonesia top market by the end of the year, taking over Singapore, traditionally Indonesia’s largest inbound market.

Indonesia tourism evolution is characterized since the start of the year by accelerating growth rates from China, Europe and India. According to data communicated by Indonesia Ministry of Tourism, total international arrivals to the world’s largest archipelago progressed by 7.5% to reach 3.52 million between January and April 2016. Growth has been particularly stimulated by overseas markets, China PRC and India, showing the benefits of visa abolition for most countries around the world.

China is in fact likely to turn into the number 1 market for Indonesia tourism. From January to April, Chinese travellers grew by 21.5% reaching 469,000 arrivals. This is marginally smaller than total tourist movements from Singapore, which reached during the same period 480,000 arrivals. Singapore – as Indonesia’s most mature market- is meanwhile progressing at slow pace, up by only 3.5% since the start of 2016.

Another good surprise came since the start of the year from India, which recorded the highest growth of any inbound market. Indian travellers to Indonesia are up by 31.5% since the beginning of the year, reaching 116,000 arrivals. India could progress even further once non-stop flights will be made available between both countries.

Garuda Indonesia has already announced many times its will to open new routes from either Delhi and Mumbai to Indonesia. Indonesia AirAsia X is also looking at serving most probably Bali-Mumbai. Indonesia sees India as one of its most promising market. Total arrivals in 2015 from India reached 262,000 and is projected to jump to 350,000 this year with a target for over 500,000 travellers by 2020.

Another good evolution has been seen from Europe. Most large European markets are growing again with double-digit figures, following a slump in 2015. the UK is leading growth from Europe with total arrivals up by 25% this year, followed by Germany -up by 34%; France, up by 19.5% or the Netherlands up by 17%. To be noticed is also the very good performance of the USA, up by 17%.

Traditional markets to Indonesia recorded a more moderate growth with Australian arrivals up by 4.2%, Malaysia by 2%, Japan and Taiwan by 1.5% each. Only South Korea recorded a decline from January to April with a slump of 4.5%.

Looking at arrivals by Port of Entry, Bali is -not surprisingly- the main winner. With 1.44 million international arrivals, Bali is up by 17.2% (January to April 2016) and represents 41% of all total arrivals. It is followed by Jakarta (up by 4.6%) with 807,000 arrivals and a market share of almost 23%. Batam continues to be the third largest destination in Indonesia with 510,000 international arrivals, down by 1.2%. Very strong growth rates were recorded during the period at Yogyakarta International Airport (up by 30.8%), Lombok International Airport in West Nusa Tenggara (+28.4%), Padang Minangkabau Airport in West Sumatra (+27.7%) and Bandung International Airport in West Java (+20%).