May 24, 2024
JAKARTA – Indonesia is becoming more competitive in travel and tourism as the country emerges as the most improved in a list of destinations, according to the World Economic Forum’s latest Travel and Tourism Development Index (TTDI).
The report released on Tuesday ranks Indonesia 22nd globally, up 14 spots since the last ranking from 2019, marking the biggest leap in the region.
The great improvement puts Indonesia ahead of neighbors like Malaysia, Vietnam, the Philippines and even tourism hotspot Thailand.
On a scale of 7, where 1 is the worst and 7 the best, an overall index score of 4.46 ranks Indonesia highest in the region, excluding Singapore, and above emerging-market peers Brazil and India, the report shows.
The TTDI evaluated 119 countries and regions based on factors and policies contributing to a sustainable and resilient development of the travel and tourism sector.
The United States retained its top position, while China, the world’s second-largest economy, climbed a notch higher to eighth place in the ranking.
The global recovery of tourism from the coronavirus pandemic, however, remains uneven. While 71 of the 119 ranked economies improved their scores when compared with 2019, the average index score is just 0.7 percent above pre-pandemic levels, the report shows.
Low to upper-middle-income economies accounted for 52 of the 71 economies that improved their TTDI scores since 2019.
Indonesia’s leap highlights the country’s commitment to developing its tourism sector, as reflected in its resources dimension score reaching a high 6.03.
At the same time, Indonesia also boasts a competitive edge with a score of 5.44 for price competitiveness.
Accordingly, Southeast Asia led the pack in terms of improvement for the air service agreements indicator since 2019, the report notes.
Agreements like the ASEAN-EU Comprehensive Air Transport Agreement (CATA) and the ASEAN Single Aviation Market are expected to significantly boost both intraregional and international aviation in the region.
Indonesia’s improvement notwithstanding, the report highlights the need for further investment across developing economies.
Scoring high in price competitiveness, emerging economies lag behind in crucial areas like transportation, tourism and information and communications technology (ICT) infrastructure and enabling environments that foster conducive business conditions.
Indonesia’s score in openness to travel and tourism sits at a middling 3.83, and the score for nonleisure travel resources, such as business and medical tourism, is 3.06, indicating room for improvement.
In February, Tourism and Creative Economy Minister Sandiaga Uno admitted that Indonesia had been losing foreign tourists to neighboring countries, citing inconvenient visa requirements and limited connectivity between Indonesian islands.
The global tourism sector is expected to recover from the lows of the COVID-19 pandemic and surpass the levels seen before the crisis.
This is largely being driven by a significant increase in demand worldwide, which has coincided with more available flights, better international openness, as well as increased interest and investment in natural and cultural attractions.