Tourism Investment Grow 23 Percent

Tourism Minister Arief Yahya said that investment realization in tourism sector during January to September 2016 reached US$1,094 billion (Rp14.7 trillion), a 23 percent increase year-on-year. “The highest [percentage of] investment was made in star hotel development,” Arief said yesterday as quoted from the Tourism Ministry website.

Tourism investment realization comprised of foreign investment (PMA) of US$594.59 million and domestic investment (PMDN) of US$139.06 million. Foreign investment in star hotel development made up 56 percent of total investment. The rest consisted of management consulting (27 percent) and restaurant (7 percent). Domestic investment comprised star hotel development (65 percent), water tourism (21 percent) and amusement parks (4 percent). Some 51 percent were Singapore-based investors.

On tourist arrivals, Arief said that the number of foreign tourist arrivals from January to October 2016 was 9,403,641 or grew 9.54 percent year-on-year. He expects that until late December, the target of 12 million foreign tourist arrivals will be exceeded, with an estimated 1.3 million arrivals in November and 1.5 million arrivals in December. “I’m optimistic that it will be surpassed as the said months are the peak periods,” he said.

To attract tourists in 2017, Arief will roll out three priority programs: digital tourism, homestay and air connectivity. According to him, digital tourism is a strategy to win global markets, particularly that of 26 countries. Digital tourism program will kick off with the launch of ITX (Indonesia Tourism Exchange), which will bring together travel agencies, accommodation operators and attractions to facilitate transactions.

Earlier, President Joko Widodo had instructed his subordinates to bring in up to Rp670 trillion worth of investment. According to Jokowi, investment proposals in tourism sector can help the government to achieve the target. “We must simply establish the product support, positioning, packaging and promotion.”

The Investment Coordinating Board (BKPM) chairman Thomas Lembong said that several Chinese investors are interested to develop national tourism industry. He named Fosun International and HNA Group as prospective investors. Fosun International is a company actively investing in tourism and fashion industries. The HNA Group is China’s first airline company.

Latest articles

Fashion
Levi’s unveils new Icon store at Palladium Mall Mumbai

Sign up for newsletters


Must read

Behind the Buzz
Retail News Asia — Your Daily Fix of What’s Happening in Asian Retail

We’re here to keep you in the loop—every single day. Whether you’re running a small local shop, scaling an online biz, or part of a global brand making moves in Asia, we’ve got something for you.

With 50+ fresh stories a week and 13.6 million readers, Retail News Asia isn’t just another news site—it’s the go-to source for all things retail across the region.
Retail Updates
Fresh updates. Real insights. Delivered daily or weekly—no spam, just retail gold.

Copyright © 2014 -2025 | Retail News Asia