Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Car rental; Demand factors; Health & wellness tourism; Tourism flows domestic;
Tourism flows inbound; Tourism flows outbound; Tourism receipts and
expenditure; Tourist attractions; Transportation; Travel accommodation; Travel
retail
Executive summary
Growth carpeted with economy potential stopped short
Travel and tourism in Indonesia in 2008 started well with positive growth in
terms of inbound and outbound tourism flows, but ended with a sharp drop
towards Q4 that year due to the global economic climate. Despite this, the
hype surrounding Indonesia' s exotic tourist attractions, its food and spas,
together with its abundance of natural resources enables it to cope with the
serious threat of economic downturn. In fact, Indonesia registered a stronger
growth rate by garnering sales from tourism products such as accommodation,
transportation and many others by the end of the review period.
Visit Indonesia 2008 program to boost inbound tourists
Meanwhile, as part of the government' s efforts to attract foreign visitors to
Indonesia, the country introduced the Visit Indonesia 2008 slogan and a series
of tourism events to help improve awareness and build enhanced relations with
potential international destinations. Airport renovation is underway, together
with facilities development from the private sector. As a result, the country
witnessed significant growth of arrivals, albeit in business and leisure from
particularly Asian neighbouring countries such as Singapore, Malaysia and
South Korea. However, as the various tourism initiatives are to be followed by
fast and effective improvements to buildings and the tourism infrastructure,
revolutionary changes are yet to be seen.
Rising competition as chained hotels gear up for better quality
Foodservice and hotels are two industries that experienced the most dynamic
growth in 2008. With a great many international food chains available in
Indonesia it has heated up the competition, but also increased tourist
spending on food. Many hotel chains have noticed the emerging potential of
Indonesia and decided to expand their businesses by adding more outlets
throughout the country, in second tier cities such as Surabaya, Medan or Bali.
In a similar vein, many older independent and chained hotels are being
renovated to provide better quality service and facilities to appeal to
frequent travellers and tourists.
Low cost carriers continue to shine as Adam Air exits the market
Towards 2008, Indonesia' s airline industry experienced a significant boost,
especially among low cost carriers. Despite a series of air accidents in
previous years, some low cost carriers managed to improve their image by
upgrading their safety measures, and by adding new routes both domestically
and internationally. March 2008 also highlighted the sharp drop of low cost
carriers in terms of volume and value sales due to Adam Air declaring
bankruptcy and withdrawing from the market. However, airlines such as Lion
Air, Sriwijaya and AirAsia continued to enjoy improved sales in terms of
number of seats sold in 2008.
Positive outlook for tourism as Indonesia opens up for free markets
The future performance of travel and tourism in Indonesia is expected to
remain bright due to a more active approach from industry players and the
government. Once the Open Sky policy takes effect, it will produce a more
competitive environment leading to a more conducive environment for growth for
tourism flows inbound and outbound. Government initiatives to launch the new
terminal 3 at Soekarno-Hatta international airport in Jakarta by April 2009
will also facilitate the development of local airlines that plan to bring in
more new aircraft to support growing demand for lower cost alternatives.
| 
View Cart
