Indonesia tourism supply grows but occupancy remains below pre-pandemic levels

The Indonesian tourism industry has not yet returned to pre-pandemic levels, according to data from the Indonesian Tourism Industry Association (GIPI). While the supply of hotel accommodations has grown significantly—increasing by 20.4% from 27,607 units in 2021 to 34,702 units in 2025—occupancy rates remain below 2019 benchmarks. The average occupancy rate in 2025 reached 49.26%, which is an improvement over the 36.64% seen in 2021, but still falls short of the 54.99% recorded before the Covid-19 pandemic.

In a separate regional development context, experts suggest that the Bandungan area in Semarang could expand its tourism offerings through sport tourism. There is also a call for collaborative planning to ensure that geothermal energy development at Mount Ungaran can coexist with local tourism and environmental preservation, emphasizing the need for dialogue between stakeholders to support regional economic growth.