Hippi: Visitor Numbers Rise, but Tourist Spending Declines

REPUBLIKA.CO.ID, JAKARTA — The Indonesian Indigenous Entrepreneurs Association (Hippi) assesses that the tourism industry, particularly the recreation sector, is facing pressure. The decline in tourists’ purchasing power is said to be squeezing the profit margins of industry players.

This situation is not reflected in the visitor numbers, which remain relatively high. Hippi notes a change in tourists’ consumption patterns, tending towards curbing spending. Low-cost or free activities are becoming the choice, so business revenues are not commensurate with the number of visitors.

“For these tourists, their way of travelling is a form of adaptation. For businesspeople, this traveller mentality places them in a risky position,” said Hippi General Chairman Erik Hidayat in his statement on Thursday (16/4/2026).

According to Erik, current tourism policies are too focused on targets for the number of tourists and promotion. However, field conditions show that business players are facing cost pressures and declining revenue quality.

“We are not saying that growth is unimportant. But growth without balance will only create pressure at the bottom,” said Erik.

Hippi assesses that tourism is not just about visits, but an ecosystem involving many sectors. Food SMEs, daily workers, to local transportation are said to be highly dependent on tourism activities.

“The weakening of this sector has very broad impacts. Until now, there have not been many policies targeting this sector, let alone providing real support, incentives, or stimulus,” said Erik.

Hippi encourages the government to strengthen more responsive policies to the conditions of business players. In addition, an approach is needed that does not only chase the number of visits, but also encourages tourist spending.

“A more equitable distribution of tourism benefits, keeping tourism as one of Indonesia’s economic hopes,” said Erik.

Hippi assesses that strengthening business players is key to the sustainability of the tourism sector. Without policy support, the current visible growth risks being unsustainable.