Tourism is the sector with the most significant negative impact due to the Covid-19 pandemic. So far, the tourism sector’s contribution to the country’s foreign exchange has reached USD 15 billion p.a. However, the emergence of a pandemic caused foreign exchange from this sector to drop drastically by up to 90% because the number of tourists visiting was very low.

Based on data from Statistics Indonesia, in 2020 the hotel occupancy rate was 32.42%. There was a decrease in the hotel occupancy rate reaching 39.75% when compared to the occupancy rate in 2019. The decrease was due to social restrictions which caused the closure of almost all tourist attractions in Indonesia which caused a drastic decline in their contribution. If you look at the development at the beginning of 2021, in January the hotel occupancy rate was 30.35% and in February it was 32.40%. Not much different from the occupancy rate in 2020. In addition, based on its growth in recent years and the condition of the sector at the beginning of this year is still not good, VISI predicts that this year occupancy rate growth will still grow negatively around -36.25% or to be about 20.66%.

Meanwhile, based on the number of foreign tourist visits, in 2020 there was a decrease of up to 74.84% or a decrease of 12,054,031 tourists when compared to 2019.

In addition, the Indonesian Hotel and Restaurant Association (PHRI) noted that as many as 1,033 restaurants and hotel businesses in Indonesia have been permanently closed due to the Covid-19 pandemic. From October 2020 to early 2021, it can be estimated that there are around 125 to 150 restaurants that are closed every month. (Source:

With the pandemic conditions that have not been resolved, the tourism sector is predicted to not recover as it was in 2019 until 2023 or 2024.

The challenge faced in 2021 is to restore consumer confidence which is the main driving force for this sector. Regardless of the availability of coronavirus vaccines or therapies, second or third wave viruses, and the efficacy of safety protocols, the industry will not fully recover until tourists and service providers restore their respective psychological confidence.

In addition, there will be an imbalance in the distribution of vaccines, which risks prolonging the pandemic if countries do not coordinate to achieve equal distribution. This can affect the trend of vacationing during the pandemic which will turn into traveling in close proximity. Thus, the choice of tourist objects that take a long time, which before the pandemic was highly visited, will now be ruled out.