Indonesias Tourism: Recovery, Challenges, and the Path Forward

TheIndonesia.co - Tourism has long been a vital pillar of Indonesia’s economy, creating jobs and generating significant national income. Since the COVID-19 pandemic subsided, the sector has shown encouraging signs of recovery and growth.

According to Antara News Agency, in 2023, data from the Ministry of Tourism and Creative Economy (Kemenparekraf) revealed that tourism contributed $14 billion in foreign exchange, driven by 11.68 million international tourist arrivals. The sector also accounted for 3.83% of Indonesia’s GDP.

By April 2024, the momentum continued with over 1.07 million foreign visitors and 749.1 million domestic trips recorded the previous year.

Yet, as tourism booms, it also faces pressing challenges that threaten its sustainability and long-term success.

The Global Warning: Sustainability Risks in Tourism

According to UNESCO’s latest report on global tourism, five critical threats stand out:

• Overtourism – Tourist numbers exceeding site capacity.
• Climate change – Rising temperatures and environmental degradation.
• Cultural commodification – Loss of authenticity as culture becomes commercialized.
• Environmental damage – Pollution and destruction linked to mass tourism.
• Socio-economic inequality – Disparities worsened by tourism-driven economies.

Overtourism: A Looming Threat

Popular Indonesian destinations like Bali, Yogyakarta, and Labuan Bajo experience overtourism, especially during holiday seasons. This influx often overwhelms local infrastructure, disrupts community life, and harms natural ecosystems.

This isn’t unique to Indonesia. Countries such as Spain, Croatia, Iceland, and Thailand have successfully curbed overtourism through strategies like:

• Limiting visitor numbers,
• Promoting lesser-known destinations,
• Implementing tech-based reservation systems,
• Educating tourists on responsible travel.

As Rioberto Sidauruk, Expert Staff Member of Commission VII of the Indonesian Parliament and a Strategic Policy Observer in Industry and Tourism, observes, “The challenge lies not just in managing numbers, but in reshaping tourism models to prioritize long-term ecological and social sustainability.”

Indonesia, he suggests, can adopt such proven methods by embracing smart technology, destination diversification, and comprehensive tourism education.

Climate Change and Tourism

Climate change poses a global threat to tourism, particularly to nature-based destinations. Rising temperatures, melting polar ice, and extreme weather events all put pressure on ecosystems.

Countries like:

• Costa Rica – use sustainable tourism certification systems,
• The Maldives – invest in ecosystem restoration and emission reduction,
• The Philippines (San Vicente) – integrate eco-tourism with community involvement,
• Germany (Spessart region) – diversify tourism activities year-round to reduce reliance on snow-based travel.

Sidauruk highlights that Indonesia, too, must take proactive steps by promoting eco-tourism, strengthening ecosystem restoration, and developing climate-resilient tourism infrastructure. “A green, inclusive, and locally anchored tourism model isn’t a luxury anymore—it’s a necessity,” he adds.
The Cultural Balancing Act

Cultural commodification—where traditions, art, and rituals are turned into tourist attractions—can erode authenticity.

However, some countries have managed this delicately:

• Mexico – Indigenous communities in Yucatán lead tourism efforts, preserving traditions while benefiting economically.
• Botswana – Empowers rural, especially female-led, communities through training and tourism businesses.
• Abu Dhabi – Invests in cultural infrastructure (e.g., Louvre Abu Dhabi) without losing its heritage.
• In Indonesia, Peanglipuran Village in Bali is a model. The community runs its own tourism efforts, preserving customs and engaging visitors in authentic cultural experiences.

Sidauruk stresses that this bottom-up approach must be scaled: “Empowering communities to be both custodians and beneficiaries of their cultural heritage ensures tourism uplifts rather than erodes local identity.”

Toward Green Tourism

Environmental damage from unchecked tourism is a growing concern.

Costa Rica and Iceland are front-runners in eco-tourism. They have:

• Strict sustainability standards,
• Promoted off-the-beaten-path destinations,
• Engaged locals in conservation efforts.

Indonesia has had similar success in Labuan Bajo, where local and government collaboration protects Komodo National Park through visitor caps and reef conservation.

Sidauruk recommends scaling such initiatives nationwide: “A strong Green Tourism policy that centers on local empowerment and conservation is essential to preserving Indonesia’s natural treasures.”
Infrastructure and Human Capital

Countries with world-class infrastructure and skilled tourism workforces like Singapore, Japan, and Thailand offer lessons in:

• Integrated public transport,
• Tourist-friendly facilities,
• Continuous training and certification programs for tourism workers.
• UNESCO also recommends introducing tourism education early and expanding training for tourism professionals.

Sidauruk advocates for a similar direction: “Indonesia must treat human capital development as a strategic priority. That means integrating tourism education into schools, enhancing vocational training, and ensuring our hospitality professionals meet global standards.”

Conclusion: A Path Toward Sustainable Growth

Indonesia's tourism sector has rebounded post-pandemic, playing a crucial role in economic recovery and job creation. However, its future depends on addressing key challenges: overtourism, climate impacts, cultural erosion, and environmental strain.

The way forward lies in embracing sustainable tourism through:

• Eco-tourism policies,
• Community empowerment,
• Responsible visitor education,
• Infrastructure and workforce development,
• Strategic use of technology.

By learning from global best practices and tailoring them to local contexts, Indonesia can build a tourism sector that is resilient, inclusive, and beneficial for generations to come.

As Rioberto Sidauruk emphasizes, “Tourism must not only generate income, but also preserve the soul of our destinations—our people, culture, and environment.”