Indonesia Sustainable Tourism Market is Expected to Grow at 27.3% CAGR in 2032 | FMI

The Indonesia sustainable tourism market is forecast to total US$ 10.2 Mn in 2022. Demand is slated to surge at a a 27.3% CAGR over the assessment period, in comparison to the CAGR of 21.4% registered between 2017 to 2021.

The Indonesia sustainable tourism industry is following various promotional activities such as direct marketing, discounts, offering free giveaways, and hosting events activities to promote their services. As the majority of potential customers are millennials who prefer social media to search and discover travel packages, companies are investing in advertisement on social media channels to improve sales.

Aside from that, the country’s service sector is gradually aiming for the contactless/online payment trend. When contactless transactions are allowed, customers save time by not trying to sort through cash or enter their PIN. The introduction of mobile payments has also made carrying a wallet out-of-date. Travel agencies and cash counters at tourist locations are offering cashless payment methods to offer convenience to tourists.

“Rising focus on sustainable development across remote locations in Indonesia, along with government-backed initiatives to support eco-friendly practices in the tourism sector will continue fueling the growth in the market,” says an FMI analyst.

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Key takeaways

• 26-35 age group segment will continue to hold the highest share in market.
• The domestic tourist segment will remain highly lucrative in the tourist type category
• In terms of tour type, the package tours segment is estimated to account for a dominant share in the market.
• Based on booking type, demand in the online segment will remain high through 2032.

Competition Landscape

Leading companies operating in the Indonesia sustainable tourism market are focusing on maintaining sustainable tours and eco-friendly practices during the trip, advertising popular tourist destinations in Indonesia, and new offers to improve sales.

Leading companies providing sustainable tourism in Indonesia are Altai Travel, Travelxism Sustainable Tour, Sumatra Eco Travel Bukit Lawang- Tours & Trek, Javaindo Ecotourism Tour & Service, Exo Travel Indonesia, Happy Trails! Asia-Indonesi, Azimuth Adventure Travel Lt, Satguru Indonesia-Travel Management Compan, K.B.A Tur (PT. Karang Bali Asli Tur, Delokal- Travel Like loca, Authentic Indonesi, Trijaya Travel: Sumatra Tour & Travel Agent Meda, Destinazones, Wild Sumatra Tours and others.

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Indonesia Sustainable Tourism Market by Category

Tourism Type:

• Eco-Tourism
• Green Tourism
• Soft Tourism
• Community Tourism

Booking Channel:

• Phone Booking
• Online Booking
• In-Person Booking

Tourism Type:

• Domestic
• International

By Tourist Type, Indonesia Sustainable Tourism Market is segmented as:

• Independent Traveler
• Tour Group
• Package Traveler

Consumer Orientation, Indonesia Sustainable Tourism Market is segmented as:

• Men
• Women

By Age Group, Indonesia Sustainable Tourism Market is segmented as:

• 15-25 Years
• 26-35 Years
• 36-45 Years
• 46-55 Years
• 66-75 Years