Indonesia: Domestic tourists spend more than foreign visitors

..domestic tourists spend more on local MSME products than foreign tourists,

Jakarta (ANTARA) - Domestic tourists continue to contribute more to local economies through spending on locally produced goods than international visitors, a senior official at Indonesia's Ministry of Tourism said on Wednesday.

Masruroh, Expert Staff to the Minister for Digital Transformation and Tourism Innovation, said domestic travelers remain the largest source of spending for micro, small and medium enterprises (MSMEs) across Indonesia.

"I remain convinced that domestic tourists spend more on local MSME products than foreign tourists," Masruroh told reporters on the sidelines of the Islamic Financial Dialogue in Jakarta.

She said domestic travel serves as a key driver of regional economic activity, creating millions of jobs and increasing local government revenues beyond the foreign exchange generated by international tourism.

According to data from the Ministry of Tourism, domestic tourists contributed about Rp1,954 trillion (approximately US$120 billion) in tourism expenditure, accounting for a significant share of total tourism consumption nationwide.

Masruroh said spending on transportation, accommodation, food and beverages, and souvenirs directly benefits businesses in tourist destinations, allowing money to circulate across regions throughout the country.

Higher hotel occupancy rates and increased restaurant activity also boost local government revenue through taxes collected from hotels, restaurants and entertainment businesses, she added.

"Foreign tourists are highly visible because one of our key performance indicators is foreign exchange earnings, which are calculated based on the number of visitors, their length of stay and their spending while in Indonesia. However, although domestic tourism does not bring money into the country from abroad, it redistributes income from one region to another," she said.

Masruroh said Indonesia is also working to improve the quality of its halal tourism sector as part of its strategy to strengthen its position as one of Asia's leading Muslim-friendly travel destinations. She noted that Indonesia has 19 provinces where more than 90 percent of the population is Muslim, providing strong potential for developing destinations, tourism products and services that align with Muslim-friendly tourism principles.

According to Masruroh, Indonesia was named Muslim Destination of the Year in the Global Muslim Travel Index 2025. She said the government plans to further strengthen the country's halal tourism ecosystem through cross-sector collaboration, including expanding prayer facilities and improving the availability of access to halal-friendly food services.

Overall, the tourism sector contributed 3.9 percent to Indonesia's gross domestic product (GDP) in the first quarter of 2025, based on preliminary data from Statistics Indonesia (BPS).

The sector also employed more than 25.88 million people nationwide, according to the agency's National Labor Force Survey (Sakernas) conducted in February 2025.

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Translator: Fitra, Azis Kurmala

Editor: M Razi Rahman

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