Publication: Visitors Welcome: Infrastructure and Capacity Building Create Jobs in Indonesia’s Tourism Sector
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2025-05-12
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2025-05-12
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From 2001 to 2012, Indonesia enjoyed strong economic growth, averaging 5.6 percent per annum, while the poverty rate halved to 11 percent. The employment rate reached a two-decade record high in 2019, with 67.5 percent of youth and adults in the labor force. However, growth and job creation have since slowed: youth unemployment is relatively high, at 20.6 percent in 2022, and only 53.0 percent of women are in the labor force. Tourism is a promising sector, with the potential for inclusive and sustainable growth and increased employment. According to the World Travel and Tourism Council (WTTC), every 1 million dollars of spending in travel and tourism in Indonesia supports 1.7 million dollars in gross domestic product (GDP) and around 200 jobs, of which 67 are direct jobs. Moreover, 58 percent of almost 7 million hotel and restaurant workers in Indonesia are women. Constraints to growth and competitiveness in Indonesia’s tourism sector include: (i) poor government coordination and weak implementation capacity; (ii) poor access to and quality of tourism specific infrastructure; (iii) limited tourism workforce skills, hindering the quality and availability of services; and (iv) a weak enabling environment for private sector investment and business entry. Addressing these is key to unlocking Indonesia’s potential to develop a world-class tourism industry.
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“World Bank. 2025. Visitors Welcome: Infrastructure and Capacity Building Create Jobs in Indonesia’s Tourism Sector. © World Bank. http://hdl.handle.net/10986/43178 License: CC BY-NC 3.0 IGO.”
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