The Tourism Boom in Indonesia 1

A major development in the Indonesian economy during the latter pan of the 1980s has been the growth in non-oil exports, particularly from the manufacturing sector. However a development less remarked upon over the same period has been the expansion of the Indonesian tourist industry. This paper explores the reasons for this growth and examines whether the government's ambitious targets for further expansion of the sector can be realised. It also looks at the potential of the tourist sector for generating productive employment opportunities and increased foreign exchange earnings over the Repelita V period and beyond.