Indonesia Urged to Measure Tourism Success Beyond Visitor Numbers

The success of tourism should not be measured solely by the number of arrivals but must be expanded to include its multiplier effect on the economy, according to Azril Azahari, Chairman of the Indonesian Tourism Scholars Association (ICPI). He argued that performance indicators should go beyond hotel occupancy rates or ticket sales to encompass the impact on micro, small, and medium enterprises (UMKM), transport, culinary businesses, the creative economy, and job creation. “There is a direct effect, an indirect effect, and an induced effect. We need to calculate the total and see which is the strongest. Currently, our data only covers the direct effect,” Azril told ANTARA on Monday. He explained that the multiplier effect demonstrates how tourist spending can stimulate economic activity in other sectors, flowing from hotels to restaurants, transport providers, souvenir traders, creative economy players, and micro-businesses at destinations. Azril noted that Indonesia currently lacks a comprehensive calculation of the tourism sector’s multiplier effect, meaning the sector’s real contribution to the national economy is not fully represented. He added that while increasing tourist numbers is an important indicator, tourism performance should also be assessed by its contribution to Gross Domestic Product (GDP), employment absorption, and Indonesia’s position compared to other ASEAN countries in terms of total foreign tourist visits. “A sector can be considered superior if it contributes more than 15 percent to the gross domestic product, or even above 20 percent, and this must be compared with other sectors,” he said. Furthermore, he stressed that tourism development should prioritise the quality of visits, with indicators such as length of stay and tourist spending considered more reflective of economic benefits than merely pursuing high arrival numbers. This strategy is also deemed important for maintaining the sustainability of destinations, as encouraging tourists to stay longer and spend more can spread economic benefits without causing overtourism. With more comprehensive measurements, the government would have a stronger basis for formulating tourism development policies. Data from the Central Statistics Agency (BPS) recorded that in June 2026, the total number of foreign tourist arrivals to Indonesia was 1.39 million, with an average length of stay of 10.30 nights and an average spending of 1,285 US dollars per visit.