Jakarta. Indonesia's tourism industry is regaining momentum as a surge in domestic travel helps offset global economic uncertainty, although analysts caution that a sustainable recovery will ultimately depend on stronger growth in international visitor arrivals.

Domestic travelers made 106.16 million trips in May, up 8.69% from 97.67 million a year earlier, according to Tourism Ministry data. The increase was supported by public holidays and extended holiday periods that encouraged more Indonesians to travel within the country.

During the first five months of 2026, domestic tourism reached 523.22 million trips, an increase of 2.86% from the same period last year.

Indonesia Travel Agent Association (ASTINDO) Chairwoman Pauline Suharno said the school holiday and summer travel season continued to support both domestic and outbound tourism. She said domestic travelers play a critical role in sustaining Indonesia's tourism industry during periods of global uncertainty.

“More affordable airfares, better public transportation, and improved tourism infrastructure would enable domestic travelers to play an even greater role in supporting the industry during periods of geopolitical uncertainty,” Pauline said.

She added that the weaker rupiah could also help attract more international visitors by making Indonesia a more affordable destination. However, she said the country must continue improving tourism facilities, service quality, and workforce professionalism to attract higher-spending visitors.

Tourism analyst Azril Azhari said the sector rebounded in 2024 and 2025 following the COVID-19 pandemic but lost momentum this year because of escalating tensions in the Middle East, higher aviation fuel costs, rupiah weakness, and softer consumer spending.

“The increase in domestic tourism has helped cushion the slowdown, but only temporarily,” Azril said.

He argued that a recovery driven mainly by domestic tourism is unlikely to be sustainable because foreign visitors contribute more significantly to export earnings and local economies through higher spending.

As a result, Azril said the government's target of attracting 16 million to 17.6 million foreign visitors this year may prove difficult to achieve given the weakening global economy.

Instead of focusing primarily on visitor numbers, he said Indonesia should evaluate tourism performance using indicators such as average length of stay, visitor spending, tourism's contribution to gross domestic product (GDP), and its broader economic multiplier effect.

Tourism Minister Widiyanti Putri Wardhana said domestic tourism remains the main engine of the industry's recovery while continuing to support national economic growth.

“This achievement shows that Indonesia's tourism industry remains resilient and continues to serve as an important driver of economic growth,” she said.

Foreign Arrivals Continue to Recover
International tourism also improved, although at a more moderate pace.

Indonesia welcomed 1.38 million foreign visitors in May, up 5.83% from a year earlier. Total foreign arrivals reached 6.07 million during the January-May period, an increase of 7.68% year on year.

Growth was led by visitors from Southeast Asia, while arrivals from the Middle East, other parts of Asia, Oceania, Africa, and the Americas also increased.

Europe remained the only major market to decline, with arrivals falling 5.91%, reflecting continuing geopolitical uncertainty.

Deputy Tourism Minister Ni Luh Puspa said the recovery was also evident in the hotel sector.

The occupancy rate at star-rated hotels rose to 50.76% in May from 48.28% a year earlier, while the January-May average increased to 46.99%, up from 44.85% during the same period of 2025.

“Higher hotel occupancy is a positive signal because it reflects stronger tourist activity, higher business revenues, job creation, and broader economic activity across tourism destinations,” she said.

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