In communities across Indonesia, tourism provides more than a source of income; it creates opportunities for economic mobility, entrepreneurship and long-term growth. Tourism creates more than jobs — it creates pathways out of poverty. Across destinations such as Bali, Lombok and Java, sustainable tourism helps local workers, entrepreneurs and families earn income, start businesses and improve their quality of life. As visitor numbers increase and development projects expand, the economic benefits of sustainable tourism in Indonesia continue to create opportunities for communities that depend on tourism-related industries.

Poverty and the Promise of Tourism

Although Indonesia has made significant progress in reducing poverty over the past two decades, many rural communities still face economic hardship. According to the World Bank, Indonesia’s national poverty rate fell from approximately 24% in 1999 to below 9% in recent years, lifting millions of people out of poverty. However, families in rural areas often continue to rely on seasonal work, agriculture and informal employment that provide unstable incomes and limited opportunities for advancement.

Poverty can restrict access to education, health care and transportation, making it difficult for families to improve their economic situation. Sustainable tourism helps address these challenges by creating jobs, supporting local businesses and attracting investment to underserved regions. By connecting travelers with local guides, drivers, restaurants, accommodations and artisans, tourism generates income that remains within communities and supports long-term economic growth.

Recovery After the Pandemic

The COVID-19 pandemic exposed the vulnerability of tourism-dependent communities when international travel came to a sudden halt. Indonesia recorded a 75% decline in international tourist arrivals in 2020 compared to 2019, disrupting livelihoods for millions of workers who depended on tourism-related industries. Many drivers, guides, hospitality workers and small business owners experienced significant income losses as visitor spending disappeared almost overnight. In response, Indonesia partnered with international organizations to rebuild the tourism sector through sustainable development initiatives that prioritized local communities, environmental protection and economic resilience.

The United Nations Educational, Scientific and Cultural Organization (UNESCO) supported community-based tourism programs that encouraged cultural preservation while helping local residents benefit directly from tourism revenue. As tourism recovered, workers gained access to new opportunities through infrastructure improvements, workforce training and digital business development programs. Indonesia’s average monthly wage now exceeds 3.5 million rupiah ($196), while minimum wages have increased by more than 30% since 2020, reflecting broader economic recovery efforts. These initiatives focus on creating long-term opportunities rather than short-term recovery.

The United Nations and Sustainable Tourism

The United Nations (U.N.) has also recognized tourism’s role in supporting economic recovery and sustainable development. According to U.N. News, tourism generates employment opportunities, supports local entrepreneurship and creates pathways for women and young people to participate in economic growth. These benefits become especially important in developing regions where employment opportunities may be limited. By investing in sustainable tourism practices, communities can strengthen local economies while preserving cultural and environmental resources for future generations.

A Local Entrepreneur’s Story

Barna, owner of Rizkynata Bali Tours and Transfers, has experienced these opportunities firsthand. Before the pandemic, he built a successful career in Bali’s tourism industry and watched visitor spending on support drivers, guides, restaurants, hotels and small business owners throughout the region. According to Barna, tourism creates opportunities for families to earn stable incomes, invest in their futures and improve their overall quality of life. He has seen local entrepreneurs expand their businesses and create jobs as tourism demand increases.

When international travel slowed during the pandemic, Barna returned to his hometown in Java and helped his brother manage the family farm. Many tourism workers made similar decisions and temporarily found work in agriculture, construction and retail. Although these industries helped families earn income during difficult periods, they often provided fewer opportunities for growth than tourism-related work. As visitor numbers recovered, many workers returned to tourism and rebuilt their businesses. Barna’s experience demonstrates the importance of creating resilient local economies that can adapt to economic disruptions.

Infrastructure and Investment

Today, communities across Indonesia continue to benefit from investments in sustainable tourism infrastructure. In destinations such as Lake Toba and Lombok, tourism development projects upgraded roads that connect villages, tourism sites, airports and ferry terminals, making travel faster and more reliable for residents and visitors. The projects also expanded access to clean water, improved wastewater management systems and upgraded public sanitation facilities, helping protect local ecosystems while improving public health. According to the World Bank, these investments supported approximately 1.15 million jobs, helped more than 20,000 tourism businesses establish an online presence and provided skills certification to more than 84,000 tourism professionals. By improving infrastructure and expanding economic opportunities, these initiatives help communities attract investment, support local businesses and strengthen long-term economic growth.

Digital Tools for Small Business Growth

Digital technology has expanded access to economic opportunities for entrepreneurs across Indonesia. Barna uses Facebook and TikTok to connect with travelers and market his services to international visitors. He believes digital platforms allow small businesses to compete more effectively while reaching customers they might never meet through traditional advertising. His long-term goal is to create a transportation network that connects travelers with local drivers across Bali and Java, creating additional income opportunities for workers throughout Indonesia.

Rather than increasing prices during slower seasons, Barna focuses on providing reliable service, affordable rates and positive customer experiences. He believes strong customer relationships, repeat visitors and positive reviews create sustainable business growth. His approach reflects the values behind the economic benefits of sustainable tourism in Indonesia, where local entrepreneurs rely on trust, quality service and community support to build successful businesses that contribute to local economic development.

Looking Ahead

Barna remains optimistic about the future. He plans to diversify his income through agriculture and additional business ventures while continuing to expand his tourism company. He hopes future generations of his family will benefit from the opportunities tourism has provided him. His story demonstrates how sustainable tourism can reduce economic vulnerability, strengthen local economies and create pathways toward financial stability. As Indonesia continues investing in tourism development, entrepreneurs like Barna show how innovation, resilience and community partnerships can drive lasting economic progress and help communities move closer to sustainable prosperity

– Kianna Hines

Kianna is based in Brooklyn, NY, USA and focuses on Good News and Global Health for The Borgen Project.

Photo: Barna