Rising After The Pandemic, Investors Are Optimistic About The Prospects Of The Indonesian Tourism Industry

Coastal illustration (Doc. Creator)

JAKARTA - The travel industry in Southeast Asia is rising after the pandemic, driven by the growth of the middle class and the increasing number of novice tourists. This sector is predicted to continue to grow rapidly thanks to its significant growth potential, both at the regional and global levels. In Indonesia, despite the impact of global economic conditions and domestic challenges, the Indonesian tourism sector recorded extraordinary performance.

According to data from the Central Statistics Agency (BPS), the number of foreign tourist visits in the January to November 2024 period reached 12.66 million people, an increase of 20.17% compared to the previous year. This achievement indicates the potential of the Indonesian tourism sector which is getting stronger.

By 2025, the Indonesian Ministry of Tourism targets the number of foreign tourist visits (tourists) to reach 14 million people, showing high optimism for the potential of this sector.

Not only that, Indonesia also experienced a significant increase in the Travel and Tourism Development Index (TTDI) ranking which in 2024 was recorded as the second highest in Southeast Asia. This increase provides great opportunities, especially in the field of investment and creating new jobs in the tourism sector.

Optimism for this sector is also reflected in the steps taken by a number of global investors, such as Creator, the leading private equity company in Southeast Asia. Recently, Creator acquired the majority stake in the MG Group, a leading B2B hotel distribution company in Indonesia. This acquisition has been the 11th Creator investment in Indonesia since 2011, as well as marking the company's commitment to supporting the Indonesian economy, especially in sectors that have high growth potential such as tourism.

Brahmal Vasudevan, Founder and CEO of Creator explained, This acquisition confirms the Creator's dedication to supporting Indonesia's rapidly growing economy, in particular through involvement in growth-oriented businesses. This investment also marks the first step of the Creator into the global travel industry, one of the sectors that is classified as growing fast and the most dynamic one.

Founded in 2000, the MG Group has grown to become an industry leader in Indonesia while expanding its reach in Southeast Asia. By utilizing a large-scale distribution technology platform, the MG Group connects more than 8,000 accommodation buyers with more than 350,000 accommodation providers worldwide.

With the prospect of getting brighter, the Indonesian tourism sector is expected to continue to be an attraction for investors, creating great opportunities for long-term growth in this industry.