Not Just Crowds: HIPPI Reveals New Challenges for the Tourism Industry
The Indonesian Indigenous Entrepreneurs Association (HIPPI) has stated that the recovery of the tourism sector must be accompanied by broader economic benefits for local business actors. Amidst increasing tourist visits, attention must also be given to strengthening the economic value generated at each destination.
HIPPI’s Head of Tourism and Culture (Strategic and Research Compartment), Rizanto Binol, noted that while several tourist destinations are currently showing increasingly busy activity, this rise in visits has not been fully matched by equitable income growth for local businesses.
“Visitors are present, but spending is not. Growth without balance will only create pressure at the bottom. This situation reveals a paradox: destinations are crowded, but not all business actors are reaping commensurate economic benefits,” Rizanto said in a statement in Jakarta on Saturday (20/6/2026).
According to him, changes in tourist consumption patterns have contributed to this condition. Tourists now tend to be more selective in their spending, opting for shorter trips and prioritising more affordable activities.
Therefore, HIPPI is urging that tourism development should not solely focus on increasing visitor numbers, but also on strengthening the economic value felt by communities and businesses in tourist areas.
Rizanto stated that the measure of success for the tourism sector must include the extent of economic benefits retained in the region and its contribution to strengthening local enterprises.
“Indonesian tourism must not only be statistically busy, but must be strong as an ecosystem. The measure of its success is how much benefit remains in the region, is felt by local businesses, and strengthens the culture and economy of the community,” Rizanto said.
To enhance the economic impact of tourism, HIPPI has identified several areas that can be reinforced. One is increasing the capacity and competitiveness of local businesses so they can gain greater benefits from the growth in tourist visits.
Additionally, the development of thematic tour packages, the curation of craft products, and the integration of culinary MSMEs are seen as ways to encourage tourists to stay longer and increase their spending during trips.
HIPPI also considers the involvement of local tour guides, artisans, artists, and indigenous communities crucial for strengthening a destination’s appeal while broadening the economic benefits received by the community.
Furthermore, digital transformation for tourism MSMEs needs continuous strengthening, not only in promotion but also in business management, digital reputation, and payment systems that are increasingly accessible to tourists.
According to Rizanto, local cultural richness can also serve as a differentiating factor that strengthens the competitiveness of Indonesian tourist destinations amidst global competition.
“Healthy tourism is not just busy tourism, but tourism that sustains small businesses, culture, jobs, and the hopes of the community. Tourism development must increasingly dare to shift from a promotional approach to an ecosystem approach,” he said.