Client: ERIA

The study examines the transformation of Indonesia’s tourism services sector in the context of digitalisation, changing consumer preferences, and post-pandemic recovery. The study analyses the contribution of tourism to Indonesia’s economy and employment, while highlighting persistent structural challenges, including low labour productivity, high informality, skills gaps, infrastructure disparities, and regulatory constraints affecting investment and business development. The analysis further highlights the importance of innovation, digital literacy, and sustainable tourism development in strengthening sector resilience and competitiveness.