What are the impacts of lifting international travel bans to Indonesia’s tourism industry? What are the industries that benefit from the tourism industry?

Being the world’s fourth populous nation, Indonesia is the largest archipelago in the world and consists of five major islands with 30 smaller groups, in which there are a total of 17,508 islands and 6000 are inhabited. Given its wide range of attractions and activities, the Indonesian government had hoped to use this industry to further promote economic growth. 

After almost 3 years of the Covid-19 pandemic, the WHO had declared that international travel restrictions have been proven ineffective to lessen the spread of the virus. With that, travel bans to certain countries have been lifted and have impacted several industries. 

The Overview of the Indonesia Tourism Industry During the Pandemic

Indonesian tourism has been experiencing a delay especially with the ongoing COVID-19 pandemic. With travel restrictions implemented to restrict mobility, international travel has been put in a halt and led to negative quarterly growth of tourism in Indonesia, especially the island of Bali being particularly affected by the pandemic. Foreign tourist arrival decreased by almost 85% affecting the island’s hospitality, food and beverages sector as the hardest.

By 14 October 2021, the Indonesian government had reopened several places for international tourists. Though there are several requirements needed for traveling to Indonesia like booster vaccines, antigen results and pcr results, traveling to Indonesia is more accessible than it used to be. In addition, the Indonesian government had been heavily marketing promoting domestic tourism to boost the industry. Although the number of domestic trips acquired has surpassed international visitors, domestic tourists only spend on half of what international visitors in Indonesia spend. Thus, the uptake from domestic tourism couldn’t compensate for the losses incurred from the decrease in international tourists. 

Countries Who Have Lifted Their Travel Bans 

1. Australia 
2. Japan
3. United Kingdom
4. United States
5. Singapore

Potential Industries That Have Prospects in Indonesia’s Tourism

1. Hospitality Industry
2. Food and Beverages Industry
3. Aviation Industry

To read the full explanation for this subsector, you could read it at

Impact of Lifting Travel Bans to Indonesian Tourism

It is evident that tourism was the most negatively impacted sector due to the covid-19 pandemic. The World Travel and Tourism Council reports a loss of almost USD 4.5 trillion, with the contribution to GDP dropping by a shocking 49.1% compared to 2019. The impact of lifting travel bans to Indonesian tourism would be:

• Recovery of the sector
• Impact number of employment
• Contribute to social and economic development of Indonesian communities
• Aviation, hospitality, and food and beverages industry will surely be affected positively with the fact that borders of countries have reopened

Enter Indonesia’s Tourism Industry with BRIGHT Indonesia 

Given the abundance of tourism locations that Indonesia provides, the tourism industry is an interesting industry to look at, especially with its future prospects.

BRIGHT Indonesia is an ideal business partner for you. We will assist you on the ground, including virtual assistants during the mission, logistical planning, and detailed communication. It can cause your company to focus on developing partnership cooperation rather than the hassles of the business trip.

BRIGHT Indonesia provides several services such as Market Insight Research, Business Partnership Engagement, Management and Strategy Consulting, and Foreign Direct Investment. The services will help your business to:

1. Assist you in expanding and developing your business by identification of potential partners.
2. Secure the agreement between client companies and future Indonesian business partners by providing a list of potentially suitable partners, arranging business meetings, and acting as a liaison.
3. Supporting our foreign client companies from the private sector with developing corporate or business unit strategies or helping your company from public sector organizations with public policy.
4. Link client companies both from the private and public sectors in global foreign direct investment (FDI) through training and assisting your company in entering FDI source countries to gather investment for your company’s local markets.

For more information, email info@brightindonesia.net.