Indonesia Needs $20 Billion For Tourism Development
Investvine, A Company of Inside Investor, Ltd.
Mar 02, 2018

Indonesia’s initiative to create and promote ten “new Balis” – ten new tourists destinations that could become as popular as the crowded holiday island – would require about $20 billion in investment, the government calculated, hoping for developers from China, Singapore, Thailand and other countries to foot half of the bill.

Plans are to invest in tourism infrastructure in Lake Toba, Tanjung Kelayang, Tanjung Lesung, Kepulauan Seribu & Kota Tua Jakarta, Borobudur, Bromo-Tengger-Semeru, Mandalika, Labuan Bajo, Wakatobi and Morotai.

Indonesia’s ministry of tourism projects that, by 2019, these places will draw ten million additional tourists annually, which would boost the country’s tourism industry of currently four per cent of gross domestic product to 20 per cent by 2019.

According to tourism minister Arief Yahya, around 120,000 hotel rooms, 15,000 restaurants, 100 recreational parks and 100 diving operators will be added to the destinations, said. Other infrastructure will also be built, such as solar facilities as green power sources.

China is projected to be one of its biggest backers, thanks to Indonesia’s participation in China’s Belt and Road Initiative. China also would be among the most important source countries for additional tourists to Indonesia, and special promotion campaigns are planned there.

In 2017, Indonesia welcomed around 14 million foreign visitor arrivals, a new record high and up 21.9 per cent year-on-year from 11.52 million foreign visitor arrivals in the preceding year. However, the country failed to achieve its 2017 target of attracting 15 million foreign tourists, with the main reason being heavy volcanic activity at Bali’s Mount Agung.

This year, Indonesia expects the number of foreign tourist arrivals to increase to 17 million, with a projected revenue of around $16 billion, up from $15 billion last year.

Photo by Artem Beliaikin on Unsplash

Company Investvine, A Company of Inside Investor, Ltd.
Contact Imran Saddique