Jakarta, CNBC Indonesia - The surge in foreign tourist visits to\nIndonesia has yet to fully benefit the hospitality industry. Amid the\nrise in the number of foreign tourists arriving throughout the first\nquarter of 2026, hotel occupancy rates have not shown significant\nimprovement, particularly in Bali.<\/p>\n
Statistics Indonesia (BPS) recorded 3.43 million foreign tourist\nvisits from January to March 2026, an increase of 8.62% compared to the\nsame period last year. This figure marks the highest since 2020.<\/p>\n
General Secretary of the Indonesian Hotel and Restaurant Association\n(PHRI), Maulana Yusran, acknowledged that the increase in foreign\ntourists is indeed occurring. However, its impact on the hotel industry\nhas not been evenly distributed across regions.<\/p>\n
\u201cThe increase in foreign tourists is recorded at airports, and there\nhas indeed been a rise compared to 2020. But the target is actually to\nsurpass the 2019 achievement of around 16 million foreign tourists,\u201d\nMaulana told CNBC Indonesia.<\/p>\n
Foreign tourist movements are currently concentrated in key areas\nsuch as Bali, Jakarta, Riau Islands, Yogyakarta, and East Java. Among\nthese, Bali remains the primary destination for foreign tourists.<\/p>\n
However, the high influx of foreign tourists to Bali has not\nautomatically boosted hotel occupancy rates. The prevalence of illegal\naccommodations poses the main challenge currently facing the hospitality\nindustry.<\/p>\n
\u201cThe challenge in Bali is that the increase in foreign tourists is\nnot matched by an increase in hotel occupancy due to the abundance of\nillegal accommodations. They operate but lack the proper permits in\naccordance with regulations,\u201d he said.<\/p>\n
Weak oversight of business permits has allowed many informal\naccommodations to proliferate unchecked. This situation is seen as\ndetrimental to official hotels and reduces potential local revenue\n(PAD).<\/p>\n
\u201cEvery business must contribute to PAD and job absorption. If illegal\noperations are tolerated, their contribution diminishes. Foreign\ntourists increase, but they do not contribute to PAD,\u201d he stated.<\/p>\n
Maulana noted that this is reflected in hotel occupancy rates, which\nremain around 50%. In the first quarter of 2026, the average hotel\noccupancy in Bali was about 54%, while in March it was around 56%.<\/p>\n
\u201cCompared to last year, it is slightly higher. But not yet\nsignificant,\u201d he said.<\/p>\n
PHRI also highlighted BPS data showing average foreign tourist\nspending reached US$1,345.61, or approximately Rp23.27 million per visit\nduring the first quarter of 2026. The largest expenditures were on\naccommodation, food and drink, and souvenir shopping.<\/p>\n
Nevertheless, the hotel industry has not yet directly felt this surge\nin spending.<\/p>\n
\u201cThe increase in foreign tourist spending has not been felt in\nhotels. Hotels can only significantly raise room rates when occupancy\nexceeds 70%,\u201d Maulana said.<\/p>\n
He mentioned that only certain hotels with special appeal are\ncurrently benefiting from the rise in foreign tourists. Overall, the\nimpact has not been uniform across the entire hotel industry in\nBali.<\/p>\n
\u201cMany tourists choose to stay in boarding houses, private homes, or\nother accommodations that are prevalent there. This ultimately does not\ncontribute to hotel businesses or PAD,\u201d he said.<\/p>\n
Previously, Deputy for Distribution and Services at Statistics\nIndonesia (BPS), Ateng Hartono, stated that the foreign tourist visits\nover the three months were the highest since 2020. Specifically for\nMarch 2026, the number reached 1,088,166 visits, down 6.17% monthly but\nup 10.50% annually.<\/p>\n
\u201cThe foreign tourist visit achievement for January-March 2026 is the\nhighest since 2020,\u201d Ateng said during a press conference at his office\nin Central Jakarta on Monday (4\/5\/2026).<\/p>\n
On average, foreign tourists spent around US$1,345.61, equivalent to\nRp23.27 million (at Rp17,300 exchange rate), during their stay in\nIndonesia in the first quarter of 2026.<\/p>\n
\u201cIn the first quarter of 2026, the largest proportion of foreign\ntourist spending was allocated to accommodation at 37.23%. This was\nfollowed by spending on food and drink at 20.17%, and shopping and\nsouvenirs at 11.04%,\u201d Ateng said.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/foreign-tourists-surge-but-indonesian-hotels-remain-underoccupied-whats-going-on-1778148979", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }