Indonesian Political, Business & Finance News

Indonesia Urged to Measure Tourism Success Beyond Visitor Numbers

| Source: ANTARA_ID Translated from Indonesian | Tourism Economics
Indonesia Urged to Measure Tourism Success Beyond Visitor Numbers
Image: ANTARA_ID

“So there is a direct effect, an indirect effect, and an induced effect, which is a follow-on or downstream impact.”

Jakarta (ANTARA) - The Chairman of the Indonesian Tourism Scholars Association (ICPI), Azril Azahari, has said that the success of tourism should not be measured solely by visitor numbers, but must be broadened to include the multiplier effect on the economy.

According to him, tourism success is not sufficiently measured by hotel occupancy rates or the number of tickets sold, but also by its impact on micro, small and medium enterprises (UMKM), transport, culinary businesses, the creative economy, and job creation.

“So there is a direct effect, an indirect effect, and an induced effect, which is a follow-on or downstream impact. So we calculate the total, and then identify which is strongest. Our data only covers the direct effect,” Azril told ANTARA on Monday.

In his view, the multiplier effect can show how much each tourist expenditure stimulates economic activity in other sectors. For example, tourist spending is not only enjoyed by hotels, but also flows to restaurants, transport providers, souvenir vendors, creative economy players, and micro-enterprises in tourist destinations.

He assessed that Indonesia does not yet have a comprehensive calculation of the magnitude of the tourism sector’s multiplier effect. As a result, the real contribution of tourism to the national economy has not been fully captured.

He also explained that while an increase in tourist numbers is an important indicator, tourism performance should also be viewed in terms of its contribution to Gross Domestic Product (GDP), employment absorption, and Indonesia’s position compared with other ASEAN countries in terms of total foreign tourist arrivals.

“A sector can be considered a leading sector if it accounts for more than 15 per cent of gross domestic income, or 20 per cent and above. It has to be compared with other sectors,” said Azril.

On the other hand, developing the tourism sector must also prioritise the quality of visits. Indicators such as length of stay and tourist spending are considered more reflective of economic benefit than merely pursuing high visitor numbers.

He judged that this strategy is also important for maintaining the sustainability of tourist destinations. By encouraging tourists to stay longer and spend more whilst in Indonesia, economic benefits can be felt more widely without causing tourist congestion or overtourism.

With more comprehensive measurement, the government is considered to have a stronger foundation for formulating tourism development policies.

Data from Statistics Indonesia (BPS) recorded that in June 2026, total foreign tourist arrivals to Indonesia reached 1.39 million people, with an average length of stay of 10.30 nights. Meanwhile, foreign tourists’ spending during their time in Indonesia was recorded at 1,285 US dollars.

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