The World Travel Tourism Councils’ latest Economic Impact EIR reveals Indonesia’s Travel Tourism sector is expected to create more than five million new jobs over the next decade.
The forecast from the World Travel Tourism Council WTTC also shows the sector will be a driving force behind the country’s economic recovery, following more than two years of suffering. Over the next 10 years, Indonesia’s Travel Tourism sector is expected to grow at an average annual rate of 10, twice the rate of the overall economy, which is forecasted to grow by 5.1%.
The sector’s contribution to GDP will reach nearly U.S.118.4 billion IDR 1,692 trillion, injecting an additional U.S.72.9 billion IDR 1,042 trillion to the economy and representing 5.7% of the total economy.
The forecast also reveals the Travel Tourism sector is expected to create more than 500,000 new jobs every year for the next decade, reaching more than 16 million employed in the sector by 2032. By the end of this year, the contribution of the sector to GDP is expected to grow 57.2% to U.S.45.5 billion IDR 650 trillion, amounting to 3.6 of the total economic GDP, although employment in the sector is set to grow by just 2.1%, to reach just over 11.2 million jobs.
Julia Simpson, WTTC President and CEO, said Indonesia’s Travel Tourism sector is in a strong recovery, with a very bright forecast for both GDP and jobs. Although the future looks bright for Indonesia, the recovery last year lagged behind other major Travel Tourism markets due to damaging barriers to travel.
Indonesia is a critical destination that attracted millions of tourists before the pandemic and is highly reliant on the Travel Tourism sector. We commend the Indonesian government for putting Travel Tourism at the forefront of the global agenda at the upcoming G20.
It is crucial to remove the last remains of travel rules to facilitate international arrivals and in turn give a massive boost to the sector’s growth and the country’s economic revival. Before the pandemic, Indonesia’s Travel Tourism sector’s contribution to GDP was 5.6% U.S.65.4 billion IDR 934.6 trillion in 2019, falling to just 2.8% U.S.32.3 billion IDR 461.1 trillion in 2020, halving the contribution 50.7%.
The sector also supported nearly 12.4 million jobs.
Written by: Supaporn Pholrach (Joom)
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