New Consumer Goods market report from Business Monitor International: "Indonesia Tourism Report Q3 2013"
Boston, MA -- (SBWIRE) -- 08/02/2013 -- BMI's Indonesia Tourism report examines the long term potential for growth offered by the country's expanding tourism market. International arrivals and outbound departures are expected to increase throughout the forecast period through to 2017 leading to positive growth across all market indicators.
Domestic economic growth is providing a boost to outbound tourism, with the number of departures expected to increase by over 9% per year between 2013 and 2017. At the same time we expect to see increased expenditure on travel and transport items. Inbound travel is expected to increase at a slightly slower rate, through growth will still be substantial at 3.5% to 5% per year.
The global economic crisis may impact on international arrivals to Indonesia, as the credit crunch limits travel from major Western markets and results in a decline in arrivals from North America and only small growth from Europe. However, this should be offset by arrivals from within the Asia Pacific region, which we are expecting to grow by over 9% in 2013 and around 4% throughout the remainder of the forecast period.
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Indonesia's tourism market will benefit from substantial investments in the country's travel infrastructure which is sorely in need of large scale expansion. The government announced US$43bn of infrastructure investment in April 2012, improving air, rail and road transport, which should boost the long term growth of the tourism industry and support the expansions planned by several of the world's leading hotel groups. In particular, Indonesia needs to focus on improving airports and airline safely. Currently there are 4 international airports supported by a range of smaller local airports providing domestic and global connectivity.
Indonesia has a range of tourist attractions and is particularly well renowned for its range of beaches, especially on the island of Bali. However tourists may be deterred by the threat of terrorist attacks, particularly if the country suffers from a decline in political stability.
- Many of the top global hotel chains are expanding their presence in the country, with major groups Accor and Starwood planning to open several new hotels in the next few years. Domestic brands also continue to expand reflecting the growth potential of the tourism market.
- Expansion in the number of hotels will result in strong growth in the amount of accommodation available, with the number of hotel rooms increasing from 147,000 in 2013 to 161,000 in 2017. - Outbound travel is expected to increase by around 9% per year throughout the forecast period, with smaller but still strong growth expected in inbound arrivals. By 2017 we expect arrivals to reach over 9.7mn and departures to reach 13mn.
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