Indonesia Welcomes 6.07 Million Tourists by May

Indonesia received 6.07 million international visitors during the first five months of 2026, an increase of 7.68% from the same period a year earlier. May arrivals reached 1.38 million and rose by 5.83%, while hotel occupancy improved and first-quarter tourism revenue increased to US$4.05 billion. The government retains its full-year target of 16 million to 17.6 million international arrivals, although the upper end will require a marked acceleration during the remainder of the year.

International arrivals continue to increase

Indonesia welcomed 1.38 million international visitors in May 2026, 5.83% more than in the same month of 2025. The result exceeded April’s 1.25 million arrivals. The room occupancy rate at classified hotels reached 50.76%, rising by 2.48 percentage points year on year.

The TV BRICS report published on June 13 used April data. At that stage, cumulative arrivals had reached 4.68 million, up by 8.24% from the first four months of 2025. April alone produced growth of 7.22%.

The subsequent May release confirms continued expansion but shows a modest reduction in the annual growth rate. Cumulative growth eased to 7.68% from 8.24% at the end of April. The market is still expanding, but has not yet entered a period of sharply accelerating arrivals.

Malaysia and China support inbound demand

Malaysia was Indonesia’s largest source market in April, providing 207,957 visitors. China ranked second with 133,986 arrivals. Geographic proximity, extensive air links and land and sea connections support a large volume of short regional trips.

Neighbouring markets improve the resilience of tourism because they depend less on long-haul flights. Their visitors, however, usually spend less per trip than travellers from Europe, North America and Australia.

The average international visitor spent US$1,267 per trip in Indonesia in 2025. Malaysian visitors spent an average of US$594 and Singapore residents US$624. Average expenditure reached US$1,213 for China, US$1,437 for Australia, US$1,825 for the United Kingdom, US$1,933 for the United States and US$2,090 for Switzerland.

The difference explains Indonesia’s shift from measuring success only through arrival numbers toward higher-value tourism. Length of stay, accommodation, food, transport and entertainment spending, as well as the amount retained by local companies, are increasingly important indicators.

Tourism revenue reaches US$4.05 billion

International tourism revenue increased by 6.3% year on year to US$4.05 billion in the first quarter of 2026. Revenue therefore grew slightly more slowly than visitor arrivals, potentially reflecting changes in source markets, length of stay and exchange rates.

Tourism remains an important source of foreign currency and demand for hotels, airlines, restaurants, transport operators, tour companies and small businesses.

National revenue does not show how the benefits are distributed. A large share is concentrated in Bali, Jakarta, the Riau Islands and a limited number of other tourism centres. Increasing Indonesia’s total arrivals does not automatically generate equivalent growth in employment or business income across every province.

The upper target requires faster growth

Indonesia is targeting between 16 million and 17.6 million international visitors in 2026. The country recorded 15.39 million arrivals in 2025. The lower target represents growth of approximately 4%, while the upper target would require an increase of about 14.4%.

Following 6.07 million arrivals through May, Indonesia needs another 9.93 million visitors to reach 16 million. That is equivalent to an average of approximately 1.42 million arrivals per month from June to December.

Reaching 17.6 million would require another 11.53 million arrivals, or approximately 1.65 million per month. The average during the first five months was about 1.21 million.

The lower end appears achievable if seasonal demand remains firm. The upper level requires substantially stronger monthly figures, supported by airline capacity, competitive fares, favourable exchange rates and stable demand in major source markets.

Bali receives almost half of foreign visitors

Bali’s Ngurah Rai airport handled 6.91 million international arrivals in 2025, representing approximately 44.9% of Indonesia’s total. Soekarno-Hatta airport in Jakarta received 2.76 million, or about 17.9%, while Batam accounted for 1.59 million, or 10.4%.

The concentration makes Bali the principal driver of the tourism recovery but also increases environmental and infrastructure pressure. Additional visitors place greater demands on roads, water supplies, waste systems and housing.

High demand supports hotels, villas, restaurants and commercial property in established resort areas. New accommodation supply and possible development restrictions, however, can produce very different conditions between individual parts of the island.

Expanding tourism in North Sumatra, Lombok, Central Java, East Nusa Tenggara, Sulawesi and other regions would distribute revenue more widely and reduce reliance on a single destination. The outcome depends on transport access, accommodation standards and the ability to keep visitors in a region for more than a short stop.

Domestic tourism provides a second source of demand

Indonesian residents made 106.16 million domestic tourism trips in May, an increase of 8.69% from a year earlier. Outbound travel by Indonesian residents declined by 6.05% to 550,380 trips.

The large domestic market reduces the exposure of hotels and transport companies to changes in foreign demand. National holidays, school breaks and religious celebrations create separate travel peaks that do not always coincide with the international tourism season.

Domestic trips stood at 97.55 million in April and were 24.14% below the previous year. The fall was heavily affected by differences in the holiday calendar, illustrating why individual months need cautious interpretation.

The combination of domestic and inbound demand supports accommodation outside the main international resorts, particularly in destinations associated with cultural, culinary, religious and event tourism.

Hotel occupancy moves above 50%

The classified-hotel occupancy rate increased to 50.76% in May from 48.28% a year earlier. April occupancy was 48.83%. The improvement indicates that rising arrivals are translating into additional demand for formal accommodation.

An occupancy rate of about 51% remains moderate for hotel operators. The national average combines heavily visited resorts and major cities with provinces where properties face limited demand.

More guests do not automatically generate higher profits. Labour, electricity, water, food, maintenance and online booking costs can rise faster than room revenue. Additional hotel construction also increases competition and restricts operators’ ability to raise rates.

Events are intended to spread tourism demand

The 2026 Karisma Event Nusantara programme includes 125 curated events across Indonesia. It is designed to encourage travel beyond the principal resorts, support low-season demand and involve local small businesses.

By early June, programme events held in 15 provinces had involved 20,669 workers and 3,936 micro, small and medium-sized enterprises. The reported economic turnover exceeded 45.57 billion rupiah.

Events can lift hotel occupancy for a limited period, but lasting benefits require a regular calendar, convenient transport and attractions that continue to draw visitors after a festival ends.

The government is also supporting tourism villages and local business certification. By May 30, 31,548 halal product certifications had been facilitated for businesses operating across 1,116 tourism villages in 34 provinces.

Indonesia focuses on sustainable tourism

Indonesia’s 2026 strategy prioritises tourism that is safe, sustainable and beneficial to local communities. The ministry highlights environmentally certified accommodation, integrated waste management, reduced use of single-use plastics and activities connected with conservation and ecosystem restoration.

The approach is particularly important for island destinations, where rapid visitor growth can place immediate pressure on limited natural resources. Certification will have little effect unless infrastructure, development control and public services expand at the same pace as tourism.

For property investors, the shift creates demand for energy-efficient hotels and accommodation with water-saving and waste-processing systems. Older properties may require significant capital expenditure to meet the expectations of operators, lenders and international guests.

Higher arrivals do not guarantee balanced development

The first five months confirm that Indonesia’s international tourism recovery remains intact. Visitor numbers have exceeded the previous year, tourism revenue is rising and hotel occupancy has improved.

The principal uncertainty concerns the quality of growth. Neighbouring countries generate large numbers of trips but lower expenditure per visitor. Long-haul markets provide higher spending but are more sensitive to airfares and global economic conditions.

Bali’s share of almost half of all international arrivals increases infrastructure risks and makes the national result dependent on one island. Regional promotion can change the distribution only where destinations have direct connections, sufficient accommodation and a clearly defined tourism product.

As International Investment experts report, the increase to 6.07 million visitors is steady but does not yet guarantee that Indonesia will reach the upper target of 17.6 million. Revenue per trip and the share of spending retained in local economies are becoming more meaningful than arrival numbers alone. The main risk is a widening divide between Bali and the rest of the country: established resorts may encounter infrastructure limits, while emerging destinations struggle with insufficient flights and accommodation. Investors should assess seasonality, occupancy, average room rates and the future construction pipeline in each individual location rather than rely on national tourism growth.