
Indonesia's Tourism Sector Keeps Growing Into 2026, Ministry Reports
Foreign visits reached 10.58 million through August 2026, and spending per visit rose 6.36 percent. What the national tourism figures mean for South Lombok investors.
Indonesia's tourism sector kept growing through the first two years of the current government, and the Tourism Ministry says the momentum has carried into 2026. For investors looking beyond Bali, the national numbers set the demand backdrop, though on their own they say little about any single island.
Visitor numbers keep rising
Indonesia recorded 15.39 million foreign tourist visits in 2025, up 10.8 percent from 2024 and above the 14 to 15 million target. Through August 2026, foreign visits totalled 10.58 million, a rise of 5.38 percent year on year. Domestic trips reached a record 1.2 billion in 2025, and 842.15 million domestic trips were recorded through August 2026, up 4.29 percent. The domestic base is far larger than the international one, which is a reminder that much of the sector's demand is local.
The 2026 rate of growth is about half the 2025 rate, so this is steady expansion rather than a surge. The ministry also states that Indonesia's tourism growth is the second-fastest among the five major Southeast Asian economies. That comparison is the ministry's own, and the source does not publish the figures behind it.
Spending per visit is the more useful signal
Average spending by foreign visitors rose 6.36 percent in the first half of 2026, to US$1,313 (about Rp22.59 million) per visit.
Visitors spend on accommodation, food and drinks, souvenirs, entertainment and local tour packages. For property owners, spending per visit is a more useful indicator than arrival counts alone, because it shows what guests are prepared to pay across a whole stay. The figure is an average across all visitors, however, and the source does not show how spending divides between destinations. A rise in spending supports pricing, but it does not by itself show occupancy or net returns, which depend on operating costs the source does not cover.
Recognition and rankings
The ministry lists several external rankings and awards. They signal reputation and standards, not investment performance:
- 2026 Global Muslim Travel Index: Indonesia ranked joint second worldwide for Muslim-friendly tourism, alongside Türkiye and Saudi Arabia.
- Travel and Tourism Development Index: a score of 4.56, placing Indonesia 23rd globally, second in Southeast Asia and sixth in Asia-Pacific.
- Awards: 311 international tourism awards from 2025 through September 2026. These include Tripadvisor naming Bali a “Best of the Best” destination for 2026, with honours for the Komodo Islands and Gili Trawangan.
- MICHELIN Keys: 47 Indonesian hotels in the 2026 MICHELIN Guide selection, up from 33 in the 2025 selection.
The awards count is the ministry's tally, and several of the honours are destination or cuisine awards rather than measures of occupancy or pricing power.
Small operators carry most of the sector
More than 95 percent of tourism businesses in Indonesia are micro, small and medium-sized enterprises (MSMEs). This structure means that growth is spread across many operators rather than concentrated in a few large chains. For buyers, that makes operator quality and contract terms at the individual property level more important than any headline sector trend. The source offers no breakdown by island or by property type, so this cannot be read directly as a signal for any single destination.
What this means for investors
The national data is encouraging but modest. Growth of 5.38 percent in 2026 is not a boom signal on its own, and the ministry's awards are promotional context rather than evidence of returns. The more relevant question for a buyer is what a specific asset earns after costs.
For orientation, HubLombok's own estimates put honest net rental yields at 7 to 12 percent after management fees and realistic occupancy. Those estimates rest on a few inputs that are worth checking in any offer:
- Management fee: typically 18 to 22 percent of gross rental revenue.
- Booking commissions: typically 15 to 20 percent through online travel agents.
- Occupancy: a realistic stabilised level of 55 to 70 percent in years one to three, compared with 70 to 85 percent in Bali.
These are estimates, not promises, and a gross yield quoted by a developer sits well above the net figure once these costs are applied. Ownership also needs care. Hak Milik is reserved for Indonesian citizens. Non-citizens typically use leasehold (Hak Sewa), Hak Pakai, or a PT PMA holding Hak Guna Bangunan (HGB), and each route should be checked with a licensed notary before any commitment.
The question to watch is whether the 2026 pace holds through the rest of the year against the stronger 2025 base. Until island-level data is published, the national picture is best treated as a demand backdrop, not as a forecast for any particular villa or plot.
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How fast is foreign tourism growing in Indonesia in 2026?
According to the Tourism Ministry, foreign tourist visits reached 10.58 million through August 2026, up 5.38 percent year on year. That is roughly half the 10.8 percent rise recorded for 2025, so growth is steady rather than accelerating. The figures are national and do not break down by island.
Did average spending by foreign visitors rise in 2026?
Yes, according to the ministry. Average spending by foreign visitors rose 6.36 percent in the first half of 2026, to US$1,313 (about Rp22.59 million) per visit. Spending covers accommodation, food and drinks, souvenirs, entertainment and local tours. The source gives no breakdown by destination.
What does this mean for a property investor in Lombok?
National visitor data cannot be read as a Lombok or villa return figure. HubLombok's own estimates put honest net rental yields at 7 to 12 percent after management fees and realistic occupancy, as an estimate rather than a promise. Hak Milik is reserved for Indonesian citizens, so legal structure must be checked before any purchase.

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