The Tourism Industry in Indonesia is expanding across a wider range of destinations, creating new opportunities for businesses involved in accommodation, food and beverage, transportation, travel services, and other tourism-related activities. While Bali remains one of the country’s best-known international destinations, recent figures show that visitor growth is increasingly visible in other regions. For investors, entrepreneurs, and foreign companies exploring the Indonesian market, the changing landscape raises an important consideration: how can growing tourism demand be translated into sustainable business activity?
The latest figures from Indonesia’s Ministry of Tourism point to continued growth in both international arrivals and domestic travel. In 2025, Indonesia recorded 15.39 million international tourist visits, an increase of 10.80% compared with 2024 and above the national target of 14 million to 15 million visits. Domestic travel also reached approximately 1.2 billion trips, the highest figure recorded at the time.
The momentum continued in 2026. From January to August, Indonesia recorded 10.58 million international tourist visits, representing year-on-year growth of 5.38%. Domestic travel reached 842.15 million trips during the same period, increasing by 4.29% compared with the corresponding period of the previous year.
These figures point to a tourism market supported by two distinct sources of demand. International visitors bring spending from overseas, while domestic travelers sustain activity across a broad range of destinations and service providers. For businesses, this creates opportunities to explore different customer segments, operating models, and locations. The more important question is whether commercial planning, service quality, and regulatory preparation can keep pace with the market’s development.
The Tourism Industry in Indonesia Is Growing Beyond Traditional Destinations
The geographic distribution of tourism growth offers a particularly interesting signal for businesses considering expansion. During the first quarter of 2026, international tourist visits to Manado-Likupang in North Sulawesi increased by 60.42% compared with the same period in 2025. Lake Toba in North Sumatra recorded growth of 33.40%.
Domestic tourism showed similarly significant increases in selected destinations. Lake Toba recorded 106.68% growth in domestic visitor trips across the reported 2025–2026 comparison, while Lombok-Gili Tramena in West Nusa Tenggara registered growth of 75.45%.
The figures suggest that tourism activity is becoming more geographically diverse. Established destinations continue to attract attention, while other regions are drawing increasing numbers of travelers. For businesses, such a shift can broaden the range of locations worth evaluating, especially for accommodation, food services, local transportation, tour operations, destination experiences, and supporting commercial activities.
However, visitor growth should not automatically be interpreted as proof that every destination offers an attractive investment opportunity. A sharp percentage increase may reflect a smaller starting base, and rising arrivals do not necessarily translate into consistent demand throughout the year. Business feasibility still depends on factors such as transport connections, visitor spending patterns, accommodation supply, operating costs, workforce availability, local infrastructure, and the characteristics of the target market.
A tourism business built around international visitors may require a different service model from one that primarily serves Indonesian families or domestic group travelers. Language capabilities, booking channels, payment preferences, service standards, and seasonal demand can all influence operating decisions. Location selection therefore requires more than comparing regional growth percentages.
Read also: Indonesia Targets US$24 Billion in Tourism Earnings Through Six Special Economic Zones
The spending patterns of visitors also provide useful context. During the first half of 2026, average international tourist expenditure rose by 6.36% to US$1,313 per arrival, equivalent to approximately Rp22.59 million at the reported conversion. Spending covered accommodation, food and beverages, souvenirs, entertainment, local tour packages, and other travel-related needs.
Higher average spending may create opportunities for businesses capable of delivering services that meet visitor expectations. Yet the average should not be treated as a guaranteed revenue figure for an individual hotel, restaurant, tour operator, or retail business. The figure represents spending across visitors and different categories of expenditure, rather than the income received by any single business.
A more useful business approach is to examine the specific needs that remain underserved in each location. A destination attracting longer-stay visitors may present a different set of commercial needs from a destination focused on short trips. Communities receiving more domestic travelers may offer opportunities for businesses designed around local preferences and price points. The strongest business case comes from identifying a clear market need and building an operating model around that demand.
The regional shift also has implications for investors assessing destinations beyond Bali. Diversifying into other locations may offer access to developing markets, but each region needs its own commercial assessment. Tourism growth provides a reason to investigate an opportunity, while demand research, financial projections, operational planning, and regulatory checks help determine whether the opportunity is viable.
The Tourism Industry in Indonesia Requires Stronger Business Readiness and Compliance
As tourism activity expands, business readiness becomes increasingly important. Growing visitor numbers can increase demand for accommodation and related services, but the long-term value of that demand depends partly on the quality and reliability of the businesses serving travelers.
Indonesia’s Ministry of Tourism has been working to improve the organization of the short-term accommodation sector. As of September 23, 2026, a total of 113,692 short-term accommodation businesses had obtained a Business Identification Number, known as Nomor Induk Berusaha or NIB. That represented an increase of 44,852 businesses, or 65.2%, compared with March 31, 2025, when the program began.
The ministry has also carried out field reviews and business development activities in seven provinces, partnered with nine online travel agencies to support policy communication and implementation, and organized coaching clinics attended by 1,553 business operators.
These measures highlight an important aspect of tourism development. A destination’s reputation depends partly on how businesses operate, how visitors are treated, and whether service providers can compete under fair conditions. Poorly managed accommodation, unclear business arrangements, and inconsistent service standards can undermine visitor confidence even when demand is increasing. Clearer business administration helps establish a more reliable foundation for growth.
The increase in accommodation businesses holding NIB also indicates that formal business registration is receiving greater attention. For entrepreneurs preparing to enter the sector, understanding the relevant registration and licensing requirements should be part of the initial business plan rather than a task postponed until operations are about to begin.
An NIB is an important element of business registration, but it should not be assumed to satisfy every regulatory requirement for every tourism activity. The applicable requirements can depend on the business classification, risk level, location, operational scope, and other sector-specific conditions. An accommodation provider, travel operator, restaurant, transport business, and tourism management company may face different obligations even when all operate within the broader tourism ecosystem.
Accurate business classification is particularly important. Selecting an appropriate Indonesian Standard Business Field Classification, known as Klasifikasi Baku Lapangan Usaha Indonesia or KBLI, helps identify the activities covered by a business registration and the licensing requirements associated with those activities. A description that is too broad or inconsistent with the actual operation can create difficulties when a business later expands, applies for additional permits, or undergoes administrative review.
Foreign investors face an additional consideration: the suitability of the intended business structure and the applicable foreign investment conditions. Not every tourism-related activity necessarily follows the same ownership rules or licensing pathway. The requirements for a proposed accommodation business may differ from those for a travel service, property-related activity, food business, or other tourism operation. Relevant classifications and restrictions should therefore be checked before capital commitments are made.
Regulatory preparation also affects practical decisions. Investors assessing several destinations may need to understand how the proposed business activity, ownership structure, and location interact with the applicable requirements. Securing a promising property or negotiating a commercial agreement before conducting these checks can introduce avoidable risk if the intended activity cannot proceed under the planned arrangement.
From a business perspective, compliance is most useful when integrated into the operating plan. Company establishment, licensing, tax administration, employee arrangements, and financial reporting are connected responsibilities. Addressing each requirement in isolation can create inconsistencies, while a coordinated approach can help businesses prepare for growth with a clearer understanding of their obligations.
The policy direction also reinforces the relationship between formal business operations and destination quality. Tourism businesses need room to grow, while visitors need safe and reliable services and local communities need economic activity that can be sustained. Effective administration helps connect these interests, although compliance alone cannot guarantee strong demand, profitability, or a positive visitor experience. Service quality, commercial discipline, and a realistic understanding of the market remain essential.
The Tourism Industry in Indonesia Opens Opportunities for Investors and Business Service Providers
The economic contribution of tourism extends beyond hotel rooms and visitor attractions. Every trip can generate demand across multiple businesses, including restaurants, cafés, souvenir retailers, tour operators, local transport providers, event organizers, and companies supplying goods or services to the wider hospitality sector.
The Ministry of Tourism has reported that more than 95% of tourism businesses are operated by micro, small, and medium-sized enterprises. This shows the importance of smaller businesses within the tourism ecosystem. Increased visitor activity can create opportunities for local entrepreneurs, while larger businesses and investors may contribute through accommodation development, distribution networks, partnerships, and supporting services.
For entrepreneurs, the range of possible business models makes careful planning particularly valuable. A company entering the market may focus on accommodation, travel arrangements, destination experiences, food services, or a supporting activity serving tourism operators. Each model comes with its own customer base, investment needs, operating structure, and regulatory considerations. A business plan should reflect the selected activity instead of assuming that general tourism growth will support every model equally.
International investors also need to evaluate how a proposed venture will be established and managed in Indonesia. The process can involve selecting an appropriate legal entity, defining the business activities, checking foreign investment eligibility, preparing the relevant registrations, and identifying any additional sectoral or location-related requirements. These decisions influence the company’s ability to operate within the scope of its intended business.
Once operations begin, the administrative workload develops alongside commercial activity. Revenue and expenses need to be recorded properly, applicable tax obligations must be addressed, and payroll arrangements need to reflect the company’s staffing model. Businesses employing Indonesian staff or engaging foreign professionals may also need support with recruitment, employment administration, and immigration requirements, depending on the circumstances.
Workforce planning deserves particular attention as tourism businesses expand into multiple locations. Service quality often depends on the availability of trained employees, consistent operating procedures, and effective day-to-day management. Companies bringing overseas management or specialists to Indonesia must also ensure that the relevant immigration arrangements match the purpose and activities of each foreign national. Visa and stay permit requirements should be reviewed based on the actual circumstances rather than treated as a standard step that applies identically to every employee.
The expansion of tourism beyond established destinations can therefore generate several layers of business demand. One opportunity may involve the direct provision of services to travelers, while another may involve helping tourism operators manage legal, administrative, financial, and workforce requirements. For investors entering a new market, dependable business support can make the preparation process more structured and help identify administrative gaps before they disrupt operations.
Bizindo supports businesses at different stages of entering and operating in Indonesia. Company Establishment services can assist with the preparation of a suitable business structure, including a PT PMA where appropriate under the applicable requirements. Business Licensing and KBLI consultation can help companies identify the relevant business classifications and licensing considerations for planned activities.
For businesses that have started operating, Accounting and Tax Reporting services can support financial administration and tax compliance. Recruitment and Employer of Record services may also be relevant for companies building a local workforce, subject to the needs and arrangements of the business. Immigration Services can assist with relevant visa and stay permit requirements for foreign professionals, while Expat Relocation services can support the practical arrangements associated with moving personnel to Indonesia.
The appropriate combination of services depends on the business model, ownership structure, location, and operating requirements. A tourism venture does not automatically need every service, and professional support does not replace the need to comply with the applicable laws or obtain decisions from the relevant authorities. The objective is to connect business planning with the administrative steps needed to put the plan into practice.
The continued growth of the Tourism Industry in Indonesia presents reasons for investors and entrepreneurs to examine opportunities across a broader range of destinations. The increases recorded in Manado-Likupang, Lake Toba, and Lombok-Gili Tramena illustrate the changing distribution of visitor activity, while the expansion of registered accommodation businesses highlights the importance of formal and well-managed operations.
Turning that momentum into a viable business requires a clear understanding of the target market, a realistic financial plan, the right business structure, and appropriate licensing and operational arrangements. Bizindo provides support across company establishment, business licensing, accounting and tax reporting, recruitment, and immigration-related services to help businesses prepare for their activities in Indonesia.
For companies evaluating opportunities in Indonesia’s growing tourism sector, early preparation can help align commercial plans with the requirements of doing business locally. Contact Bizindo to discuss the support relevant to a planned tourism-related venture, from establishing the business structure to managing the administrative requirements that follow.
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