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National tourism and aviation outlook in 2023
The tourism industry is one of the industries hit hard by the COVID-19 pandemic since 2020. After three years, the tourism industry is showing a gradual recovery. Room occupancy rates in several areas have also shown good signs of recovery with several regions recording a pre-pandemic level.
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Number of flights based on airline groups from Soekarno-Hatta International Airport. (Mandiri/FlightRadar24)
T
he tourism industry is one of the industries that has been hit hard by the COVID-19 pandemic since 2020. After three years, the tourism industry is showing a gradual recovery. Room occupancy rates in several areas have also shown good signs of recovery with several regions recording a pre-pandemic level.
The number of tourists visiting Indonesia has also increased gradually, although it is still far from the 2019 level. However, the recovery of tourist visits is also in line with the recovery of several neighboring countries, such as Thailand, Singapore and Malaysia, which in 2022 recorded between 25 and 30 percent from pre-pandemic level.
There are several positive factors that will drive tourism recovery in the future.
First, the government revoked the public activity restriction (PPKM) on Dec. 30, which brings fresh air to the Indonesian tourism industry. The repeal of PPKM will allow the community to travel without limiting the capacity in gathering. The recovery in the number of domestic tourists, which is faster than the recovery for foreign tourists, is also encouraging the domestic tourism industry to further recover.
Meanwhile, air-transport mobility improved at the peak of the 2022/2023 Christmas and New Year holidays. Data from the Transportation Ministry show that the movement of domestic airplanes and passengers departing on H-7 to D+10 for the 2022/2023 Christmas and New Year holidays increased when compared to the same period in 2021/2022.
Domestic aircraft movements were recorded at 28,778, an increase of 23.77 percent compared to the previous period, while domestic passenger movements amounted to 3.2 million passengers, or grew 39.06 percent compared to the previous period.
Second, the border opening for arrivals of tourists from China, who can accelerate the number of tourists arriving in Indonesia. The Tourism and Creative Economy Ministry sets a target of between 120,700 and 255,300 of Chinese tourists arriving in Indonesia in 2023. As one of the largest market countries for tourism in Indonesia, the return of Chinese tourists can support the total target in 2023 of having foreign tourists of between 3.5 million to 7.4 million.
