UNWTO predicted that international tourism is about to grow by 30-78% globally in 2022, compared to 2021. Despite the positive outlook, the estimated figure is still 50% below the tourism sector's performance in the pre-pandemic period. Tourism recovery also depends on the policies of each country in terms of relaxing the rules related to travel. Indonesia, for instance, has set a target of 1.8-3.6 million foreign tourists in 2022 and will focus more on domestic tourists.

As the world begins to revive itself from the Covid 19 pandemic, the tourism and hospitality sector is positioning itself for growth in 2022 and beyond. The hotel and restaurant sectors are especially critical in this great reboot. The goals to revive the tourism sector prompted the government to urge all parties to work together and push several measures to reopen the country to international tourists in a careful and thoughtful manner.

“We are optimistic that 2022 is the year of tourism revival, and expect the support of all stakeholders so that tourism, as a contributor to Indonesia's GDP (Gross Domestic Product), can again show a positive performance," said Sandiaga Salahuddin Uno, Minister of Tourism and Creative Economy of The Republic of Indonesia in a webinar titled 'Indonesia's Hotel & Tourism Outlook 2022' on Thursday, February 24, 2022.

Hosted by Archipelago, together with the Indonesian Hotel and Restaurant Association (PHRI), the event was attended by various speakers from the government, industry associations, tourism players, and academics to discuss the future of the Indonesian tourism industry. The webinar also raised the issue of bleisure (business-leisure) as a factor in tourism recovery. The synergy between the MICE and leisure sectors by organizing various international-scale events is expected to contribute significantly. The webinar can be rewatched on the youtube channel - ArchipelagoIntl. 

Survival game
On the same occasion, Hariyadi Sukamdani, Chairman of the Indonesia Hotel and Restaurant Association, highlighted the importance of the role of the government and banks to support tourism recovery such as delaying interest rate hikes so that tourism players can survive until tourism conditions reach a pre-pandemic point.

“Many hotels and restaurants had been forced to close and nearly 2 million workers in the sector had lost their jobs. But with the government easing restrictions and growth of domestic tourism, occupancy rates have begun to improve. Owners must adopt technology and hygiene standards. The industry needs a holistic approach to revive as well as grow the hotel and restaurant," Hariyadi explained.

Sapta Nirwandar, Deputy Minister of Tourism and Creative Economy 2011 - 2014, added that: “Many hotel operators needed financing to upgrade their facilities and adopt new technology such as touchless systems. The tourism sector was a vital contributor to the national GDP and the government could work more closely with the private sector to help struggling hotel operators.”

"The hotel industry is currently undergoing many changes, but we are very optimistic about the recovery with the current conditions gradually improving. Archipelago prioritizes safe and comfortable services by providing touchless technology with Google Nest, greater use of mobile app, digital menus and QR codes," said John M Flood, CEO and President of Archipelago International.

Game changes and trends related to the hospitality industry were also highlighted in his presentation. These are further enhanced by the pre-existing characteristics and features, such as flexible, multi-functional spaces, improved cleanliness, sustainability, and in-room fitness.

“Archipelago International saw occupancy rates rebound in mid-2021 and was optimistic that 2022 could be a bumper year for the tourism and hospitality sector," he added. "We are excited and ready to welcome guests back to our hotels, especially when tourism conditions have improved."

In addition, Denon Prawiraatmadja, Chairman of the Indonesia National Air Carrier Association (INACA) noted that international and domestic carriers are beginning to resume flights to Indonesia, which is one of the largest air markets in the world with over 300 airports and 30 international airports.