GIPI Urges Tourism Levies to Be Reinvested in the Tourism Sector

JAKARTA, JakartaWeekly.com — Hariyadi Sukamdani, chairman of the Indonesian Tourism Industry Association (GIPI), has raised concerns that government spending on tourism remains relatively small compared with the revenue generated by the sector.

Hariyadi said the Ministry of Tourism’s budget for 2026 stood at Rp1.8 trillion, while revenue from visa fees reached Rp5.03 trillion in 2024. Regional governments also collect tax revenue from tourism-related activities, including hotel and restaurant taxes.

In Jakarta, hotel tax revenue reached Rp1.9 trillion in 2023, while restaurant tax revenue amounted to Rp3.94 trillion in the same year, Hariyadi said. In Bali, combined hotel and restaurant tax revenue reached Rp8.66 trillion in 2025.

According to Hariyadi, revenue collected from the tourism sector has not been fully allocated to support its growth. He also said tourism promotion remained below its potential due to limited government funding.

“Given the revenue potential, the amount allocated back to support the tourism sector is relatively small,” Hariyadi said in Jakarta on Wednesday, October 14, 2026.

He added that the revenue figures he cited covered only two regions: Jakarta and Bali.

Hariyadi noted that other countries allocated substantial budgets to tourism promotion. Singapore, for example, allocates around Rp4 trillion solely for promotion through the Singapore Tourism Board (STB), he said.

Beyond funding and promotion, Hariyadi outlined developments in Indonesia’s tourism sector in 2026, covering accommodation, aviation and foreign tourist arrivals.

Accommodation Supply Rises 19.5%

Based on GIPI’s observations, the supply of hotels and other accommodation in Indonesia increased by 19.5% in 2025 compared with 2021. The total reached 34,702 establishments, including star-rated hotels and other accommodation, up from 24,086 in 2021.

However, the increase in supply has not been accompanied by a recovery in occupancy rates to pre-COVID-19 levels. Average occupancy stood at 49.26% in 2025, below the 54.99% recorded in 2019. In 2021, the average occupancy rate was 36.66%.

Hariyadi said there was a correlation between the increase in accommodation supply and changes in occupancy rates. Despite the 19.5% growth in supply, occupancy remained below its 2019 level.

Nevertheless, he described the accommodation sector as relatively stagnant overall, given the increase in supply. The decline in occupancy of around five percentage points compared with 2019 did not necessarily indicate a deterioration in business conditions, he said.

“In terms of guest numbers and business growth, the increase has been relatively insignificant,” Hariyadi said.

Aircraft Fleet Shrinks

In the aviation sector, data presented by the Indonesian National Air Carriers Association (INACA) showed that the number of airline aircraft declined from 616 in 2019 to 560 in 2026.

Of the total fleet, 366 aircraft were ready for operation, while the remaining 194 were undergoing maintenance or were in repair facilities.

Domestic air passenger numbers also declined. Indonesia recorded 79.4 million domestic air passengers in 2019. By 2025, the figure had fallen to 61.2 million, a decrease of around 22.9% compared with 2019.

International passenger numbers also dropped, from 37.3 million in 2019 to 34.7 million in 2025, a decline of around 7%.

Hariyadi said the aviation figures could be reconfirmed with INACA. Based on the data he presented, passenger numbers had fallen, although business conditions across the respective sectors remained relatively stable.

Foreign Tourist Arrivals Could Reach 16.2 Million

Foreign tourist arrivals in Indonesia reached 10.578 million during January–August 2026, according to Hariyadi. The figure represented average growth of 5.38% compared with the same period in 2025.

If the monthly growth trend continues, foreign tourist arrivals for the full year of 2026 are projected to reach 16.2 million.

This would put Indonesia’s tourism sector within reach of its pre-pandemic arrival levels. In 2019, the country recorded 16.11 million foreign tourist arrivals.