Indonesia: A Rapidly Growing Tourism Market Full of Opportunity

Indonesia continues to affirm itself as one of the most dynamic and promising global tourism destinations, thanks to a unique combination of natural wealth, cultural diversity, and a stable political-economic framework. According to the latest UN Tourism report, the country welcomed over 13.9 million international visitors in 2024, marking a strong post-pandemic recovery, alongside more than one billion domestic trips in the same year (source: UN Tourism, 2025).

Tourism represents a strategic pillar for Indonesia’s economic growth, contributing significantly to GDP, employment, and regional development. Over the past decade, the sector has attracted around USD 16.1 billion in investments, with 34.7% from foreign capital and the remainder from domestic investors. Forecasts indicate an average annual GDP growth of 5.1% for 2025–2026, supported in part by the vitality of the tourism sector.

The Indonesian government has adopted forward-looking development strategies, such as the 10 Super Priority Destinations initiative and the creation of Special Economic Zones (SEZs) dedicated to tourism. These are backed by tax incentives, regulatory simplification, and infrastructure investment, with a focus on emerging segments such as eco-tourism, wellness, gastronomy, sports tourism, and luxury hospitality. The country also prioritizes training and innovation, fostering an inclusive and sustainable tourism ecosystem.

Major foreign investors include Singapore, China, Japan, and the United States, with the latter particularly active in sustainable tourism and green hospitality projects. Corporations such as Marriott and MasterCard have launched partnerships to develop low-impact hotels and renewable-energy-powered resorts. The government aims to attract up to USD 6 billion in green investments over the coming years, promoting responsible and forward-thinking practices.

2024 marked a turning point for Indonesia’s global tourism reputation: the country climbed 14 spots in the World Economic Forum’s Travel & Tourism Development Index (TTDI), ranking 22nd out of 119 nations, second in ASEAN after Singapore, and sixth in the Asia-Pacific region. This makes Indonesia the most improved country globally since 2019, with a 4.5% score increase.

The TTDI evaluates tourism competitiveness across multiple pillars. Indonesia stands out in particular for:

• Sustainability and resilience: The country has rapidly adapted to post-pandemic challenges through integrated strategies and collaborative efforts at local, regional, and international levels, strengthening recovery capacity.

• Cross-sector collaboration: Its success is rooted in strong cooperation among public institutions, private stakeholders, and global organizations, involving partners such as UNWTO, WTTC, IATA, and leading data providers.

• Development policies and innovation: The government has implemented targeted policies to enhance attractiveness and competitiveness, with a focus on digitalization, education, and infrastructure.

• Appeal to foreign investors: The rise in TTDI ranking reflects increased investor confidence, driven by a more favorable regulatory environment and green incentives.

• Destination management and global image: Indonesia’s ability to promote emerging destinations and showcase its rich cultural and natural heritage has reinforced its position compared to regional competitors like Thailand, Malaysia, and Vietnam.

The TTDI highlights that Indonesia’s strength lies in its capacity to design integrated and sustainable strategies, actively involving all stakeholders in the tourism value chain and promoting resilient and inclusive growth.

At Twissen, we observe that Indonesia—thanks to its strategic vision and strong commitment to sustainability—is emerging as one of the most attractive tourism markets for medium- to long-term investment, offering diverse opportunities within a rapidly evolving context.

Francesco Redi

President and founder at Twissen. Manager in Local Development, Tourism Policies,  EU Funds. He cooperates with several European universities, public bodies, development agencies, DMOs and enterprises.