The SEA Hotel Expansion Summit 2014 was organized so as to gather insights from industry professionals on the current trends in the tourism sector and to discuss its potential and limitations.

1. 1
Overview and trends
in Tourism sector
Jeffrey Bahar
Deputy Chief Executive Officer
Spire Research and Consulting
29 October 2014

2. 2
Stator
Number of visits to Indonesia (2009 – 2013)
10,000,000
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
• Description of the company’s products
2,000,000
• 1,000,000
Description of the company’s business
• Description 0
of the company’s technology
• Description of the company’s contents
2009 2010 2011 2012 2013
Number of inbound tourists to Indonesia
Top 4 countries
No. Country 2012 2013 Increase
1 Singapore 1,271,443 1,400,000 10.11 %
2 Malaysia 1,133,430 1,200,000 5.87 %
3 Australia 909,176 928,279 2.10 %
4 China 618,223 747,921 20.98 %
Total 8,044,462 8,802,129 9.42 %
8.8 million foreign visitors
245 million domestic trips
Most foreign inbound trips are short
and medium term (average 7.5 days),
spending 13.13 million IDR per visit
Top 5 destinations:
Bali, Jakarta, Batam & Riau Islands,
East Java, North Sumatera
Major growth in arrivals from China,
Philippines, Malaysia, India and
Germany
Foreign revenue: 321.57 trillion IDR
Domestic revenue: 171.50 trillion IDR
Domestic trips and spending
increased due to a stronger middle
income class
Indonesia and Tourism
Facts and Figures

3. 3
Stator
Indonesia and Tourism
Facts and Figures
Indonesia GDP Forecast By Industry
Total Economy
Automotive Manufacturing
Banking
Financial Services
Chemical Manufacturing
• Description of the company’s products
• Description of the company’s business
• Description of the company’s technology
• Description of the company’s contents
Higher Education
Travel and Tourism
Education
Mining
0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00%
The total GDP expansion of the travel & tourism sector was 123% between 1990
to 2013 while the economy expanded by 171%.
The GDP is expected to grow at an annual average of 4.6% over the next
decade.

4. 4
Indonesia and Tourism
Facts and Figures
Growing popularity of Indonesia as a tourist destination shows growth of
travel and tourism sector.
Weakening of Rupiah boosted in-country tourism expenditure growth as
local prices became cheaper.
Growing internet penetration shows increase in online transactions
especially through mobile phones.
Inbound tourists came primarily from Singapore, Malaysia and China.

5. 5
Impact on Economy
Tourism sector boosts
economy
GDP growth
Rise in GDP percentage
Employment
Impact on exports
Increase in tourist arrivals
Foreign tourists
Rise in number
Entry points
ASEAN Visa
GDP growth
Contributed to USD85 billion of
Indonesia’s GDP in 2013
Tourism generated 9.1% of GDP
in 2013
91% would do it if possible
Employment: A total of 9.4
million jobs (direct, indirect
and induced) sustained in 2013
Export figures expanded to
119% between 2000 to 2013.
Travel and tourism represent a
significant source of export
revenue for Indonesia
Source: Indonesia Investments (March 2014)

6. 6
Impact on Economy
Tourism sector boosts
economy
GDP growth
Rise in GDP percentage
Employment
Impact on exports
Source: Indonesia Investments (March 2014)
Foreign tourists arrivals for
January to March 2014 was 2.2
million; 10.1% increase from
last year
Rise in number of tourist arrivals
from 702,000 (February) to
765,000 (March) this year
More than 6.81 million foreign
tourists entered Indonesia
through 3 entry points in 2013
(Bali, Jakarta and Batam)
Implementation of a common
ASEAN Visa by end of 2015 will
boost foreign tourist numbers
Increase in tourist arrivals
Foreign tourists
Rise in number
Entry points
ASEAN Visa

7. 7
Challenges
• Competition in
airline industry
• Recent closure
of smaller airlines
due to debt
issues
• Lack of
infrastructure
• Curbs intra and
inter island
connectivity
Source: World Travel and Tourism Council’s (WTTC) 2014 Economic Impact Research Report
• Lack of English
language
proficiency
amongst
Indonesians
•Creates
communication
gap between
foreign tourists
and locals

8. 8
Conclusion
The tourism sector in Indonesia
witnesses steadily increasing
number of tourists each year
Indonesia presents much
opportunities for economic
growth
Indonesia’s tourism sector
provides an incentive for
more investment for service
providers
The government plans to
allocate USD140 billion for
further transport infrastructure
developments
Indonesia’s tourism
sector is poised for
growth.
Indonesia ranked as
the 13th most attractive
destination in Asia-
Pacific to commence
travel & tourism
operations
Promotional tourism
campaign called
“Wonderful Indonesia”
launched by Tourism
Ministry in 2012
Inbound arrivals
reached a record
8.6 million in 2014
Robust growth for
sector yet
challenges
remain.
Sustainable tourism
needs to
implemented in
order to maintain
natural resources
Proper
infrastructure and
better tourist
facilities (hotels,
restaurants and so
forth) will lead to
more investment

9. 9
Question & Answer

10. 10
Tel: (62) 5794 5800
Fax: (62) 5794 5808
Wisma 46, Kota BNI 25th Floor,
Unit #07-09
Jakarta 10220
id.info@spireresearch.com
www.spireresearch.com