Transportation and Accommodation are the Biggest Supporters of Tourism

Indonesia's tourism sector is considered to be rebounding after the Covid-19 pandemic was brought under control. However, the government still has much work to do to boost this sector.

East Ventures, in collaboration with Katadata Insight Center (KIC) and PwC Indonesia, conducted research to map the future potential of tourism.

The team observed that the tourism industry is projected to grow by 14% annually until 2027, driven by the transportation and accommodation sub-sectors.

In 2020, the value of tourism transactions reached only Rp234 trillion, the lowest in the last five years. Despite this, transportation and accommodation still contributed significantly, at Rp101 trillion and Rp36 trillion respectively.

In 2021, the transaction value increased to Rp331 trillion, and the following year it rose to Rp419 trillion.

For 2023, the value is projected to reach Rp649 trillion.

However, despite the rapid growth, the value of tourism transactions in 2023 is predicted to not yet return to pre-pandemic levels.

"The total number of air passengers in 2023 is predicted to remain below the 2019 number, thus impacting transactions in the transportation sub-sector," the research team wrote in its report.

Furthermore, the accommodation sub-sector recovered faster thanks to the growing trends of staycations and work from destination that developed during the pandemic.

On the other hand, the team also sees potential for improving the competitiveness of Indonesian tourism.

Several steps are believed to be able to drive the growth of the tourism industry, such as increased infrastructure spending and the development of the 5 Super Priority Tourism Destinations (DPSP). In addition, digital businesses can offer the use of technology to support efforts to realize the potential of Indonesian tourism.

Data compiled from Euromonitor and PwC Analysis. This report is included in the East Ventures-Digital Competitiveness Index (EV-DCI) 2023 with the theme *Digital Justice for All Indonesian People*.

The following are the transaction values and projections for tourism by sub-sector:

* 2020
* Total Rp234 trillion
* Transportation Rp101 trillion
* Accommodation Rp36 trillion
* Shopping Rp47 trillion
* Activities Rp12 trillion
* Culinary Rp1 trillion
* Others Rp38 trillion

* 2021
* Total Rp331 trillion
* Transportation Rp155 trillion
* Accommodation Rp77 trillion
* Shopping Rp49 trillion
* Activities Rp12 trillion
* Culinary Rp0.4 trillion
* Others Rp38 trillion

* 2022
* Total Rp419 trillion
* Transportation Rp187 trillion
* Accommodation Rp100 trillion
* Shopping Rp70 trillion
* Activities Rp24 trillion
* Culinary Rp11 trillion
* Others Rp26 trillion

* 2023 (estimate)
* Total Rp649 trillion
* Transportation Rp295 trillion
* Accommodation Rp152 trillion
* Shopping Rp107 trillion
* Activities Rp40 trillion
* Culinary Rp27 trillion
* Others Rp27 trillion

(Also read: After the Pandemic, the Transaction Value of the Healthtech Sector is Projected to Continue to Increase)