Indonesia's tourism sector has shown significant volatility over the past ten years, with foreign tourist arrivals (wisman) reflecting both global crises and recovery efforts.

Data from the Central Statistics Agency (BPS) shows that in 2020, foreign tourist visits fell sharply to 4.05 million, down 74.84% from the previous year.

The decline continued in 2021, reaching 1.56 million visits, or a 61.57% drop from 2020.

These decreases were the result of travel restrictions and lockdowns during the COVID-19 pandemic.

Following the easing of restrictions, visits rebounded in 2022 to 5.89 million, nearly four times higher than the previous year.

The upward trend continued, reaching 13.90 million foreign tourist visits in 2024.

Foreign Exchange from Tourism on the Rise

Tourism plays a dual role in Indonesia’s economy, boosting growth and generating foreign exchange (devisa).

According to the Ministry of Tourism, foreign exchange earnings from tourism rose significantly post-pandemic, reaching US$16.71 billion by 2024.

This growth correlates with the rise in foreign tourist visits and reflects the positive impact of tourism-related policies and stimulus.

Foreign exchange enters Indonesia through direct spending by tourists and foreign investment in tourism infrastructure such as hotels, resorts, and supporting facilities.

Spending Patterns of Foreign Tourists

BPS data for 2024 shows that the average foreign tourist spent US$1,391.85 per visit.

The largest portion, 37.21% or around US$517.97, went to accommodation. Spending on food and beverages followed at 19.85% or US$276.35. Meanwhile, tourists spent an average of US$158.35 on shopping and souvenirs.

Tourist spending activates a wide range of economic activities, including accommodation, food services, creative industries, transportation, tourism services, and micro, small, and medium enterprises (UMKM).

The Role of Tourism in Supporting the Rupiah

Tourism-generated foreign exchange helps strengthen Indonesia’s foreign currency reserves, which are crucial for maintaining currency stability.

“As a comparison, imagine Indonesia as a shop,” the article explains.

“When foreign tourists come and spend money in U.S. dollars, the shop earns foreign currency. That money can be saved for imports or foreign debt payments. The more foreign money earned, the less the shop needs to borrow, and the prices of goods, represented by the rupiah exchange rate, remain stable.”

Multiplier Effect Across Sectors

Tourism is a cross-sector driver of economic activity. Its multiplier effect boosts not only tourism-related services but also sectors that support and benefit from visitor spending.

The sector plays a vital role in enhancing economic resilience and maintaining a stable macroeconomic environment.

PHOTO: UNSPLASH

This article was created with AI assistance.