ASIATODAY.ID, JAKARTA – Tourism across Southeast Asia has rebounded strongly in the post-pandemic period. However, amid the region’s rapid recovery, Indonesia’s position is increasingly under pressure.
Rather than leading the resurgence, Indonesia is losing competitiveness to Vietnam and Singapore—two countries that have moved aggressively to capture global travel demand.
Data from the ASEAN Statistics Division (ASEANStats) show that international tourist arrivals to ASEAN surpassed 127 million in 2024. Around 85.7% of these arrivals were concentrated in five countries. Thailand ranked first with 35.5 million visitors, followed by Malaysia (25 million), Vietnam (17.6 million), Singapore (16.5 million), and Indonesia, which trailed in fifth place with 14.3 million visitors.
Senior Analyst at NEXT Indonesia Center, Sandy Pramuji, said the figures highlight Indonesia’s weakening competitiveness in the regional tourism race.
“Indonesia is now lagging behind its neighbors, particularly Vietnam, which has overtaken Indonesia for two consecutive years,” he said in Jakarta on Sunday, January 18, 2026.
Vietnam Accelerates, Indonesia Falls Behind
Vietnam presents the starkest contrast in post-pandemic recovery. International arrivals surged from just around 4,000 visitors in 2021 to 12.6 million in 2023, before rising further to 17.6 million in 2024. This performance outpaced Indonesia, which recorded 11.7 million visitors in 2023 and 14.3 million in 2024.
According to Sandy, Vietnam’s rapid ascent has been driven by serious investment in tourism infrastructure and air connectivity.
“Vietnam has moved decisively, with projects such as Long Thanh International Airport, which is projected to handle up to 100 million passengers annually. Indonesia, by contrast, continues to struggle with limited international air connectivity,” he explained.
The impact is evident in market share. Indonesia accounted for 13.51% of ASEAN’s tourism market in 2022, but this fell to 11.45% in 2023 and declined further to 11.28% in 2024.
Meanwhile, Vietnam and Singapore have steadily strengthened their positions as regional tourism and transit hubs.
Losing the Chinese Tourist Market
Indonesia’s competitiveness gap is even more apparent in attracting tourists from China, a key driver of global tourism recovery.
In 2024, Chinese arrivals to Indonesia reached only 1.2 million—far below Thailand (6.7 million), Vietnam (3.7 million), Malaysia (3.3 million), and Singapore (3.1 million).
“This is not merely a marketing issue; it reflects deeper structural problems,” Sandy noted.
“Limited direct flight connectivity, insufficiently targeted promotion, and the inconsistent readiness of destinations beyond Bali make Indonesia less attractive to Chinese travelers.”
Bali Overcrowded, Diversification Stalls
Domestically, Indonesia’s heavy reliance on Bali has become an increasing liability. The island is showing clear signs of overload, including chronic traffic congestion, waste management problems, and mounting environmental pressure from land conversion. These issues are gradually eroding the quality of the visitor experience.
The government has launched the “New Bali” initiative and designated five Super Priority Destinations (SPDs) to diversify tourism growth.
However, destinations such as Lake Toba, Borobudur, Mandalika, and Labuan Bajo continue to face serious challenges related to service ecosystems, connectivity, and investment sustainability.
Meanwhile, Likupang in North Sulawesi has lost momentum after being dropped from the list of top priorities in the 2025–2029 National Medium-Term Development Plan.
“If the Super Priority Destinations fail to attract significant international visitor flows, the massive infrastructure investments risk becoming physical projects with limited economic impact,” Sandy warned.
A Turning Point or Permanent Decline
As Southeast Asia’s largest country, endowed with vast natural beauty and cultural diversity, Indonesia should be a major magnet for international tourism.
Without comprehensive reforms, however, its position will continue to erode—not only to Vietnam, but also to Singapore, a much smaller country that excels in connectivity, service quality, and efficiency.
“The choice is clear,” Sandy concluded.
“Indonesia must undertake bold reforms to improve the quality and competitiveness of its tourism sector, or accept that tourism revenues will increasingly flow to neighboring countries.” (AT Network)
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