Indonesia’s Tourism Score Is Rising. The Investment Map Is Still Uneven

Quick answer: Indonesia’s tourism competitiveness improved in the World Economic Forum’s 2026 index, but investment is still concentrated in Bali and Jakarta. For Lombok investors, the signal is a policy ambition to spread tourism investment across priority destinations and special economic zones, not evidence that capital has already shifted or that returns will follow.

A higher national score can strengthen Indonesia’s tourism proposition, but it does not tell an investor whether a particular destination is ready for more visitors or whether a project will perform. The useful question for Lombok is whether the government’s stated distribution goals become practical improvements in access, services and attractions.

The Context

Indonesia’s score in the World Economic Forum’s Travel and Tourism Development Index rose from 4.46 in 2024 to 4.56 in 2026. The country ranked 23rd globally, sixth in Asia-Pacific and second in Southeast Asia, behind Singapore. These results, reported by Antara Business from a Ministry of Tourism briefing, are a measure of national competitiveness. They are not a ranking of individual islands or investment projects.

The index presents a mixed picture. Indonesia ranked first globally for prioritisation of travel and tourism, with a score of 6.12. It also placed fifth for price competitiveness, ninth for natural resources, and 15th for cultural resources and socio-economic impact. At the same time, the ministry identified tourism services and infrastructure, health and hygiene, digital readiness, travel openness, and safety and security as areas needing improvement.

“Investments remain heavily concentrated in Bali and Jakarta and are largely focused on amenities.”

The Tourism Ministry, as reported by Antara Business

That observation matters more to a Lombok investor than the national ranking alone. The investment story is not simply that Indonesia is more competitive. It is that the government says capital is unevenly distributed, and wants to encourage a wider geographic spread and a broader mix of projects.

A stronger national score, with unfinished work

An index score compresses a wide range of conditions into a comparable national measure. It can help investors understand how a country positions itself against alternatives, but it cannot settle practical questions about a destination: whether visitors can move around easily, whether local services meet expectations, or whether a particular attraction can draw demand beyond a peak period.

The ministry’s own list of areas for improvement gives the ranking necessary context. Weaknesses in digital readiness, hygiene or safety can affect the visitor experience even when a country has strong natural and cultural assets. For a destination investor, those conditions influence how much support a project may need to provide itself, and how robust its offer is likely to be across different types of guests. That is an investment lens, not a conclusion supplied by the index.

The same care applies to price competitiveness. Indonesia’s fifth-place position may support its appeal to travellers comparing destinations, but it does not establish that an individual hotel, villa or attraction can charge a particular rate. Pricing depends on the product, its location, service and access to demand. The national indicator is context for a business case, not a substitute for one.

The policy ambition and the capital flows

Realised tourism investment rose 56.05 per cent, from Rp47.14 trillion in 2024 to Rp73.56 trillion in 2025, according to figures cited by the Tourism Ministry. That is a substantial increase in reported sector-wide investment. It does not, by itself, show how much reached Lombok, which project types received it, or whether new capacity is already operating.

The ministry says it wants investment spread more evenly across other regions, especially the 13 Priority and Regenerative Tourism Destinations and tourism special economic zones. It also wants to broaden investment beyond amenities and into tourist attractions. These priorities matter because a destination needs reasons to visit as well as places to stay. Yet an announced direction is not the same as committed capital, completed infrastructure or sustained visitor demand.

For Lombok, Mandalika is relevant as a tourism special economic zone around the MotoGP circuit. Antara’s report also links MotoGP with the area’s sport-tourism positioning. That gives investors a concrete example of a nationally visible destination strategy, but the article provides no Mandalika-specific investment total or forecast. It would be premature to infer that the national increase in tourism investment has translated into a corresponding local uplift.

Marine tourism is another stated area of interest. The ministry has promoted marina and yachting infrastructure to international organisations and identified Raja Ampat, Labuan Bajo and more than 700 diving sites as part of Indonesia’s marine tourism potential. This describes a national opportunity set. It does not establish a marina pipeline or a particular investment opportunity in Lombok.

| Indicator in the Antara report | What it says | What it does not establish | |---|---|---| | WEF tourism score | Rose to 4.56 in 2026 | The readiness of a specific Lombok project | | Realised tourism investment | Rp73.56 trillion in 2025 | The amount invested in Lombok | | Hotel occupancy | Star-rated occupancy was 52.52 per cent in August 2026 | Occupancy for villas or any individual property | | Geographic policy | Government wants wider regional distribution | That investment has already moved beyond Bali and Jakarta |

The distinction between hotel and villa data is especially important. The ministry reported star-rated hotel occupancy of 52.52 per cent in August 2026, up 2.01 percentage points year on year. Average occupancy from January to August was 49.56 per cent, up 2.30 percentage points. These figures indicate improvement in the hotel segment described by the source. They should not be presented as evidence of villa occupancy or as a direct forecast for Lombok accommodation.

Indonesia’s Tourism Score Is Rising. The Investment Map Is Still Uneven · Illustration: HubLombok (AI-generated)

What This Means for Investors

The national direction creates a reason to watch Lombok, not a reason to assume that every project will benefit. Investors should look for evidence that broad policy priorities are turning into destination-level conditions: reliable access, visitor services, digital connectivity, safety, and attractions with a clear role in the local offer. The index identifies several of these as national improvement areas, but diligence must establish what is true at the site and project level.

Local property figures provide a separate reference point, not a conclusion from the WEF report. In South Lombok, realistic stabilised villa occupancy is 55 to 70 per cent in years one to three, while honest estimated net rental yields are 7 to 12 per cent after management fees and realistic occupancy. Those ranges should be assessed on their own assumptions and should not be derived from national hotel occupancy or the tourism investment total.

For investors considering land, the local convention is to compare prices per are, with one are equal to 100 square metres. The verified South Lombok ranges span from Rp30–50 million per are in Bumbang to Rp300–400 million per are in Kuta. These are market reference ranges, not a promise of appreciation. A national improvement in competitiveness cannot tell an investor whether a particular parcel is correctly priced, legally suitable or well connected to visitor demand.

The prudent reading is therefore two-part. Indonesia’s score and realised investment figures point to a stronger national tourism position, while the government’s own remarks acknowledge concentration and gaps in readiness. Lombok may be relevant to the intended regional expansion, particularly through its tourism special economic zone, but investors still need to test the local proposition rather than underwrite a policy aspiration as a completed market shift.

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