New Study Highlights Airbnb's Substantial Economic Contribution and Changing Travel Trends in Indonesia


Recent research by Oxford Economics has revealed that Airbnb has emerged as a crucial pillar of Indonesia's tourism industry, contributing approximately IDR 14.4 trillion to the Gross Domestic Product (GDP) and creating over 93,000 jobs in Indonesia in 2022*.

Furthermore, the report highlights a significant increase in the spending by Airbnb guests on local communities. In 2022, Airbnb guests spent a total of IDR 15.7 trillion during their stays in Indonesia. This spending encompassed various aspects, including transportation, dining at local restaurants, shopping at retail stores, as well as purchasing local crafts, and enjoying entertainment.

The report underscores the substantial contribution made by Airbnb guests to Indonesia's tourism sector. In 2022, international Airbnb guests accounted for the largest share, contributing 76% of the total tourist expenditure in Indonesia, which amounted to more than IDR 11.9 trillion.

Moreover, the report identifies two significant shifts in travel behavior since the pandemic. These include a trend towards destinations farther away from urban areas and longer stays due to more flexible working arrangements, such as remote work or working from anywhere.

James Lambert, Director of Economic Consulting in Asia for Oxford Economics, stated that Airbnb has played a vital role in the resilience and recovery of Indonesia's tourism sector post-COVID-19.

"Airbnb has been part of various trends reshaping Indonesia's tourism industry, from the shift of travel away from cities towards rural areas to the increased demand for longer-term accommodations driven by the phenomenon of living and working from anywhere," said Lambert.

Amanpreet Singh Bajaj, General Manager of Airbnb for Southeast Asia, India, Hong Kong, and Taiwan, emphasized, "The economic contribution to GDP and job creation driven by Airbnb travel in Indonesia has created a remarkable economic impact, boosting the growth of local businesses such as shops, restaurants, bars, and cafes—integral parts of travelers' experiences in any destination—and ultimately generating employment opportunities for local residents."

"The growth in longer-term stays began in 2020 due to flexible working arrangements, allowing some destinations to attract guests who stay longer and spend more in the areas where they lodge," Aman added.

Aman also explained that "Currently, tourism is more evenly distributed, allowing economic benefits to spread to more destinations, including rural and regional areas. This dispersal of tourists is also driven by Airbnb hosts who have opened up creative economic opportunities for local communities."

"We are committed to continuing to be a partner to the government and local communities in rebuilding Indonesia's tourism economy in a fair, inclusive, responsible, and sustainable manner," he concluded.

*This report features data collected over a twelve-month period from March 2022 to March 2023, marking the first year since the reopening of international travel. Currency exchange rates during the data collection period are based on exclusive data from Oxford Economics.

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