The sizeable domestic resources already invested in tourism will be complemented by this financing to support the government’s integrated infrastructure development for national tourism areas. Among key objectives, the Indonesia Tourism Development Project will seek to enhance the country’s institutional capacity to facilitate integrated and sustainable tourism development.
The project’s investment will start in three key destinations: Lombok island in West Nusa Tenggara province; the Borobudur-Yogyakarta-Prambanan triangle on Java Island; and Lake Toba in North Sumatra. Once developed, the three destinations are expected to boost the number of annual visitors to 27.3 million by 2041; a significant increase from the 15.3 million visitors in 2015. Annual tourist spending is also expected to increase, to US$3.3 billion in 2041 (from US$1.2 billion in 2015). And private investment in tourism is expected to increase more that 13-fold, to US$421 million.
Additional benefits from the project include improved access to water sources, sustainable solid waste collection services and improved sanitation, benefiting more than 2.8 million people. The project will also seek to improve natural and cultural asset management, crucial for tourism to grow. In parallel, investments in human capital will help ensure that local communities can derive long-term benefits from tourism.
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