Jakarta. Indonesia's tourism is trailing behind its ASEAN counterparts as it attracts less foreign holidaymakers than its Southeast Asian neighbors, according to an industry association.

Indonesia has set a goal to bring in between 14 million and 16 million international tourists this year. Last year, as many as 13.9 million foreigners visited Indonesia, the Central Statistics Agency (BPS) data showed. Despite the bigger target, it turns out that other fellow ASEAN members are far more popular among foreign holidaymakers.

"ASEAN countries such as Thailand, Malaysia, Singapore, and Vietnam are way more advanced when it comes to attracting foreign visitors. We were ahead of Vietnam back in 2017. However, Vietnam can now attract 17 million foreign visitors a year. Thailand could even reach 35.5 million [international tourists] in 2024," Hariyadi Sukamdani, who chairs the Indonesian Hotel and Restaurant Association (PHRI), recently told Beritasatu TV. 

Hariyadi found the numbers to be ironic as Indonesia had more hotel rooms compared to Thailand. This should have given Indonesia a competitive advantage. He also attributed the foreigners' preference for other ASEAN countries to Indonesia's visa policy.

"Thailand has allowed a visa-free entry for citizens of 85 countries. Indonesia's visa-free policy is still only limited to ASEAN nations. ... Our government is more focused on posting non-tax revenue from visa. But the economic benefits from attracting foreign visitors is far greater than what the country can earn from visas," Hariyadi said.

According to PHRI, the hotel industry is a large contributor to the regional economy through the taxes it pays. Hariyadi, however, claimed that the government did not reallocate the collected taxes to promote or improve tourist destinations. He also hoped that Indonesia could provide incentives for the tourism sector just like Turkiye, which had attracted a whopping 55 million people throughout 2024.

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