Domestic Tourists Drive Increase in Hotel Occupancy in Indonesia

JAKARTA, KOMPAS.com - Demand from domestic tourists for hotels in Indonesia showed a significant increase throughout the end of last year. This marks a strengthening recovery in domestic travel, in line with changes in booking patterns and tourist behaviour. This figure rose 5.6 percentage points compared to the previous year and became the second highest globally after Canada. In contrast, the share of international guests fell to 52 per cent from 57 per cent in 2024, making the composition of domestic and international demand now almost balanced. This increase aligns with the annual rise in domestic travel in Indonesia, which reached 19 per cent. Additionally, the hotel booking cancellation rate was recorded at 11.38 per cent, the lowest in the world. Booking lead time has also become shorter. Hotel booking time dropped 7 per cent to an average of 19 days, far below the global average of 32 days. Country Manager for SiteMinder Indonesia, Fifin Prapmasari, said the decrease in cancellations, bookings made closer to the stay date, and shorter stay durations reflect the enthusiasm of domestic tourists to explore their own country. “For hotels, this opens new opportunities. The increase in demand for domestic travel allows for needs-based pricing and greater creativity in local offerings,” Fifin said, quoted from an official statement on Thursday (19/03/2026). This encourages hotel industry players to leverage deep knowledge of what local tourists like and need to promote unique hotel facilities while designing various attractive offers. “Domestic tourists are a significant force and hotels should capitalise on their growth, just as they do for international guests who continue to dominate the overall demand share,” she added.