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In 2024, there were *** five-star hotels in Indonesia. In comparison, the total number of three-star hotels in Indonesia amounted to  in the same year. The hotel industry is slowly recovering from the severe impacts caused by the coronavirus (COVID-19) pandemic.

Indonesia’s hotel industry: on the road to recovery

After the government reopened borders and scraped all measures in response to the coronavirus (COVID-19) pandemic, the hotel industry in Indonesia began to regain confidence. The industry benefitted from the jump in the number of international tourists, resulting in an increase in the room occupancy rate of star-rated hotels in 2022. Nevertheless, occupancy rates are yet to recover to pre-pandemic levels. The industry is poised to continue growing and reach an annual revenue of *** billion U.S. dollars by 2027.

Domestic tourism is roaring back

Indonesia's domestic tourism experienced rapid recovery from the severe impact of the pandemic due to relatively relaxed domestic travel requirements. During the transition to a new normal period, Indonesians were allowed to travel domestically while adhering to and implementing health protocols. These measures encouraged more domestic travel activities and helped revive domestic tourism. In 2021, the hotel industry in Indonesia saw a dramatic surge in the number of domestic guests in star hotels, amounting to around ** million after hitting its all-time low of **** million in the previous year.