Holidays and School Breaks Drive Surge in Tourism and Spending

The holiday season in Q2-2025 is not only a time to rest, but also a major trigger for the surge in national economic activity.

Holidays and School Breaks Drive Surge in Tourism and Spending
The atmosphere of Walakiri Beach, Waingapu, East Sumba, NTT (22/7/2025). According to the Coordinating Ministry for Economic Affairs, the tourism sector is projected to be one of the key drivers in realizing the economic growth target of up to 8% in 2029. Photo: ANTARA/Rivan Awal Lingga/tom.

The holiday season in the second quarter of 2025 is not only a time for rest, but also a major trigger for a surge in national economic activity.

"Increased community mobility is indicated by an increase in the number of rail and sea transportation passengers, this is in line with the HKBN celebration and school holidays," said BPS Deputy for Balance and Statistical Analysis, Moh Edy Mahmud, in a press conference on Tuesday morning (05/08).  

BPS Deputy for Balance Sheet and Statistical Analysis, Moh Edy Mahmud, presents the results of economic growth in the second quarter of 2025 in Jakarta (05/08).

This surge was in line with the celebration of the National Religious Day (HKBN) and school holidays. Domestic tourist trips rose 22.32% on an annual basis, while transactions at Jasa Marga toll gates grew 2.86% compared to the previous quarter.

Not just traveling, people are also shopping: from transportation tickets, tour packages, to local cuisine in the destination city. This mobility flows public spending into various sectors, from transportation, accommodation, to local cuisine. 

"Transportation modes such as rail and sea freight recorded a surge in passenger numbers. On the consumption side, the other services sector, which includes recreation, entertainment, and social activities, experienced the highest growth of 11.31%," Edy said. 

This increase in travel is part of the story of Indonesia's economic growth, which reached 5.12% year-on-year (YoY) in the second quarter of 2025. Not only does this have a direct impact on the tourism sector, the surge in mobility also impacts the growth of household consumption and electronic transactions.

The impact was also seen on the digital side. Online transactions through e-commerce rose by 7.55%, and the value of electronic money and card transactions rose by more than 6%. This means that people are not only moving, but also spending, both directly and digitally.

Consumption boom driven by the middle class

This year's long holiday became a breathing space as well as a shopping event for the middle class, which dominates domestic travel. Household consumption, the largest pillar of Gross Domestic Product (GDP), grew 4.97% (YoY) and contributed 54.25% to GDP.

"Seasonal factors, especially the number of holidays and religious celebrations, boost consumption, especially in the travel and accommodation sector," Yusuf Rendy Manilet, an economist from CORE Indonesia, told SUAR (05/08).

Signs of this shopping spree can be seen in the 1.19% increase in the real retail sales index, the 7.60% surge in consumer goods imports, and the 6.26% growth in the value of electronic transactions, from debit and credit cards to digital wallets. Online shopping was no less crowded, up 7.55%.

Even so, Yusuf cautioned that this should not be read as a sign of structural improvement. "There are still big challenges, especially in ensuring that consumption growth is also evenly distributed to lower income groups," he said.

So far, transportation fare discounts and subsidies have mostly been enjoyed by the middle class - so the impact has not been fully inclusive.

Tourism: a new engine being warmed up

Tourism proved to give a boost to the other services sector, which recorded the highest growth of 11.31% on an annualized basis in the second quarter of 2025. This growth was largely triggered by an increase in domestic and foreign tourist visits during the holiday period.

In the second quarter of 2025, domestic tourist trips reached 331.37 million trips, up 22.32% compared to last year. Foreign tourist visits also rose 13.96% to 3.89 million.

"During the first semester, we recorded 113.78 million domestic tourist trips and 7.05 million foreign tourist visits," said Indonesian Tourism Minister Widiyanti Putri Wardhana in a press conference at Graha Sawala, Jakarta.

He said this growth was also driven by the transportation and warehousing sector, which rose 8.52%, and the accommodation and food and beverage sector, which grew 8.04%.

The atmosphere in the Press Conference on Economic Growth in the Second Quarter of 2025 at Graha Sawala, Ali Wardhana Building, Ministry of Economic Affairs (05/08)

Widiyanti also mentioned that the transportation and warehousing sector grew 8.52%, supported by discount programs for airline tickets, trains, and other transportation. The accommodation and food and beverage sector also recorded 8.04% growth, mainly from corporate activities and large events.

The government, said Widiyanti, is capitalizing on this momentum. "We have coordinated with the Indonesian Hotel and Restaurant Association (PHRI) to provide attractive tour packages on the August 18 national holiday, and echo 58 Indonesian Charisma Festivals until the end of the year, including the Pacu Jalur Festival in Riau," she said.

Hotels in a number of regions have even recorded bookings of up to 80% for the end of the year.

However, this potential has not been fully distributed. According to Yusuf Rendy from CORE, many potential destinations outside Bali and Lombok do not have adequate transportation access. "If access is difficult, the economic benefits will not be evenly distributed," he said.

Maintaining post-holiday momentum

The long holidays provided a strong boost, but maintaining momentum is the next challenge. To make tourism a stronger engine of growth, it requires continued investment in connectivity, promotion of alternative destinations, and training of the local workforce.

In this context, the double-digit growth of fixed investment (PMTB) of 11.51% and the 30.37% increase in government capital expenditure are positive signals.

Widiyanti emphasized that the government does not want this energy to die out once the holidays are over. Starting October, the 2025-2026 Christmas and New Year holiday campaign will be rolled out, complete with transportation promos and tour packages designed to drive travel to various regions in Indonesia.

"We want to ensure that the momentum of tourism growth does not stop at the school holiday season," he said.

Indonesia's economy grew by 5.12% in the second quarter of 2025, and this growth cannot be separated from the role of public mobility and household consumption that exploded during the holiday season. Crowded toll roads and crowded tourist attractions are a reflection of a vibrant economy, although, as economists remind us, sustainability is the next big thing.

Chairman of the Indonesian Tourism Industry Association (GIPI) Hariyadi Sukamdani said, religious holidays and long holidays encourage consumption and tourism. This is because, during long holidays, people tend to leave the house to travel and shop.

"The spike in tourist visits is mostly driven by the long holiday," Haryadi said.