Abstract
In an effort to replace oil revenues, Indonesia has accorded international tourism high priority in its development plans. International tourist arrivals have expanded and continue to increase rapidly as Indonesia has taken advantage of the growing world and, particularly, Asian tourist market. Domestic tourism is also growing. The opportunities and challenges faced by the Indonesian tourism industry are addressed and it is concluded that Indonesian tourism has a bright future. However, care must be taken to match emerging products with stable markets of adequate size. This requires more sophisticated market intelligence than is currently available.
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