16 Oct 2023 | News & Feature

On the Domestic Tourism Sector: Sit back, and relax, but fasten your seatbelt

  • Recent shifts in the global commodity market may heighten the strain on Indonesia’s current account balance. Unfortunately, the travel segment of the current account is unlikely to offer substantial support, with signs pointing to a decline in average tourist spending.
  • While the weakened Rupiah could help limit travel imports, it may not lead to a significant surge in travel exports, considering the equally feeble position of other Asian currencies.
  • The domestic tourism sector remains in a consolidation mode due to persistent challenges. However, the modest progress in the sector is not a cause for alarm, given Indonesia’s diversified economic activities.