In August, the Government of Indonesia launched a new program called “the Indonesia Tourism Investor Club (ITIC)” to foster better communication and collaboration among investors, policy makers, and local authorities in tourism sector. The platform is expected to streamlining investment processes and providing dedicated space for regular updates on market trends and opportunities. The program is established in response to investors’ request on a more regular and focused platform for communication during the Indonesia Tourism Investment Forum (ITIF) which generates the potential investment deals worth approximately 52.9 million USD for the Southeast Asian nation.
The Ministry of Tourism and Creative Economy also announced the task force to address the issue of high airfares in the country, following the report from Indonesian National Air Carriers Association (INACA), that the country's aviation industry is currently stagnating and incurring losses despite high ticket price. The taskforce expect to work on reducing domestic flight prices by approximately 10% by October, and to ensure that Indonesia’s aviation industry operates efficiently.
Tourism investments in Indonesia experience significant surge this year, especially in light of the landmark 3 billion USD investment agreement between Indonesia and the UAE to upgrade the country’s infrastructure and expand its tourism destinations. According to the World Travel & Tourism Council (WTTC), Indonesia’s tourism sector is expected to generate over 5 percent of the country's GDP in 2024, marking a 12.3% increase from the previous year and a 7.7% rise compared to pre-pandemic levels in 2019.
