Indonesia Travel Market in 2025

30 May , 2016  

Indonesia travel market will grow at 18% per year (CAGR/compounding growth rate) until 2025. From $5 billion in 2015,  it will be worth $24.5 billion by 2025, consolidating its dominance in South East Asia, as confirmed by Tnooz.

That’s one thing Google and Temasek revealed in their joint-forecast on South East Asia economy published on May 24. Those numbers are part of the US$200 billion opportunity in SE Asia for both tech entrepreneurs and investors that they concluded in their report.

This is good news for Indonesia-based OTAs. Because it can be said that the market growth will reflect theirs too and, in a way, is a direct result of their efforts of marketing, expanding and refining their services.

Many factors support Indonesia travel market growth.

First. According to the same report, with 19% CAGR, Indonesia is the fastest growing internet market in the world; a growth that will see internet users in Indonesia grow to a staggering 215 Million in just 5 years (in 2020).

The second factor is equally central to that growth, namely the increase of both the qualities and quantities of travel-related startups.

“Affordable smartphones and affordable data are really driving this revolution.”

While both the first and second factors owe their existence to the quote above–said by Rajan Anandan, Google’s managing director of Southeast Asia and India–the third factor, meanwhile, is unique to Indonesia alone.

Indonesia is one place in the world that have enough travel destinations to support such growth. One thing for sure, it won’t lack places to visit and all kinds of natural attractions to wow at.

Some Reasons to Visit Indonesia

Paper Lantern on Waisak Day

Paper lanterns released on Waisak Day, Borobudur. Pic courtesy of @lingkarindonesia

Candi Plaosan, Yogyakarta, at sunrise

Candi Plaosan, Yogyakarta, at sunrise. Pic courtesy of @lingkarindonesia

Lighthouse, Pulau Lengkuas Belitung

Lighthouse, Pulau Lengkuas Belitung. Pic courtesy of @lingkarindonesia

The picturesque vibe of Andeman, Malang, East Java. Pic courtesy of @lingkarindonesia

The picturesque vibe of Andeman, Malang, East Java

Mandorak Sumba

Rocks, sands and crystal clear water in Mandorak, Sumba. Pic courtesy of @lingkarindonesia

Saonek, Raja Ampat, Papua

Saonek, Raja Ampat, Papua. Pic courtesy of @lingkarindonesia

Candi Ratu Boko, Yogyakarta, a great Pre-Wedding photo shoot location.

Candi Ratu Boko, Yogyakarta, a great Pre-Wedding photo shoot location. Pic Courtesy of @lingkarindonesia


I mean, come on!  Just look at those places! If things like that can’t attract visitors, I don’t know what can. And that’s just but a few of what Indonesia has to offer. And this, ladies and gentlemen, the richness of the realm of Indonesia, there’s no stronger base than this to build a massive, multi-players industry. Regarding this, don’t forget to check our page that contains FAQ on Indonesia travel destinations.


There’s no such thing as free lunch, especially for a lunch that big. Given that the $ 200 Billion market for SE Asia will need $40-$50 billion investments in the next 10 years to materialize, Indonesia needs further investments at least equal to its current size ($5 billion) to reach that level of market growth.

Indonesia infrastructures expansion and tourism-related management and marketing are a joke to say the least. They don’t have to remain that way, though.

Policy makers need to understand how important it is to optimize their efforts and results in both fronts.

They could use the emergence of travel-related startups (OTAs, booking engines, sharing economy based services) that cater to both local and international tourists as a signal to improve things.

Profitability and sustainability are difficult to maintain when you’re selling a place that don’t even have basic infrastructure as basic as electricity grids, let alone internet connection. This profitability in turn can improve the local economy for good, hence creating a perfect loop that started from everyone doing the right action to anticipate the upcoming growth.

Go to this link to see the actual report.

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