May 12, 2026
JAKARTA – The country’s tourism growth showed signs of strain in the first quarter as visitor arrivals from the Middle East, Europe and America declined amid the prolonged United States-Israeli war against Iran, which has disrupted flights and rattled global travel demand.
Tourism Minister Widiyanti Putri Wardhana said the conflict had disrupted international flight connectivity after several countries in the Gulf region temporarily closed airspace, triggering hundreds of flight cancellations linked to Indonesia-bound routes.
The decline was reflected in March data, with tourist arrivals from the Middle East falling 9.51 percent year-on-year (yoy) and European visitors declining 8.5 percent yoy, while growth in arrivals from the Americas slowed to 1.55 percent yoy, according to ministry data.
Visitors from the Middle East, Europe and the US typically spend more and stay longer in Indonesia compared with tourists from other regions, Widiyanti said, making the slowdown more significant for the tourist sector despite overall gains in headline arrivals.
Average tourist expenditure in the first quarter of 2026 reached US$1,345.61 per visit, Statistics Indonesia (BPS) data show, higher than both the previous quarter and the same period last year.
Accommodation accounted for the largest share of spending at 37.23 percent, followed by food and beverages at 20.17 percent, while shopping and souvenirs contributed 11.06 percent.
Indonesia could lose up to 60,000 international visitor arrivals, along with a fall in potential foreign exchange earnings of around Rp 2 trillion ($115.2 million), the Tourism Ministry previously said.
“This shows that market diversification is very important. We cannot be too dependent on one region alone. When one market is under pressure, other markets must be able to sustain growth,” said Widiyanti, as quoted from a Tourism Ministry video published on YouTube on Saturday.
The weakness in long-haul markets was partly offset by stronger arrivals from neighboring regions. Tourist visits from Oceania were recorded as growing by 19.32 percent yoy in the first quarter, while Southeast Asia arrivals increased 18.84 percent. Visits from other Asian regions also increased by 8.03 percent yoy.
Total foreign tourist arrivals amounted to 3.44 million between January and March, up 8.62 percent from the same period last year and marking the highest quarterly figure since 2020, BPS data show.
Malaysia remained the largest source of foreign visitors in the first quarter, followed by Australia and Singapore.
”We still have to maintain the quality of visits, the value of tourist shopping and the length of stay of tourists in Indonesia,” Widiyanti added.
The Tourism Ministry has also extended the deadline for alternative accommodation providers, including villas and homestays, to obtain an official business permit until May 31.
The mandatory business permit is part of efforts to formalize the accommodation sector and strengthen consumer protection. Properties that fail to secure permits by the deadline risk being removed from online travel agent (OTA) platforms, the minister said.