Business Owners Warn of Looming Dangers, Criticise Data on Surge of Foreign Tourists to Indonesia
The surge in foreign tourists (wisman) to Indonesia is deemed insufficient to ensure the quality of growth in the national tourism sector. The Indonesian Hotel and Restaurant Association (PHRI) assesses that the increase in visitor numbers does not automatically deliver tangible economic impacts in the regions.
PHRI Secretary General Maulana Yusran stated that regional governments play a vital role in ensuring the tourism sector truly benefits the local economy.
“If it does not have an impact, the increase in wisman is meaningless. It is merely recorded as a statistical contribution,” Maulana told CNBC Indonesia on Thursday (7/5/2026).
PHRI views that the government’s focus has so far been too heavily placed on visitor numbers. However, more important primary indicators are the impact on hotel occupancy, employment absorption, and regional revenues.
According to Maulana, regions capable of creating quality destinations will more easily attract high-spending tourists. Yet, this cannot be achieved without business oversight and good regional governance.
“The government is one, with central and regional levels. But do not keep blaming the centre. The centre cannot possibly manage over 500 regencies and cities,” he said.
PHRI assesses that the quality of tourist destinations is not solely determined by promotion or the number of arriving tourists. Factors such as the environment, spatial planning, business legality, and waste management are also key determinants of the tourism sector’s sustainability.
On the other hand, regional governments are said to have complete tools for oversight, from tourism offices, spatial planning, environmental agencies to ATR/BPN in their respective areas.
“If we talk about quality destinations, all businesses must comply with regulations, have proper spatial planning, and absorb employment. Only then can we discuss quality destinations,” Maulana said.
PHRI warns that the tourism industry now faces increasingly complex challenges. Besides global geopolitical pressures, business actors also face rising operational costs and market slowdowns.
According to Maulana, this situation will become even heavier if implemented regulations only add to business costs without providing real solutions on the ground.
“Business licensing continues to increase its burden while the market share does not significantly rise, even tending to decline in some cases. That is the danger,” he said.
PHRI also assesses that the recent trend of rising wisman needs to be read carefully because the post-pandemic comparison base is still low. Therefore, the government is urged not to focus solely on chasing visitor numbers.
“Wisman is indeed growing high because the data base is low after the pandemic. So it is somewhat difficult if we only look at growth figures without seeing the impact,” Maulana concluded.