Over the past few weeks, we’ve been spending time with the 2025 tourism reports released by Indonesia’s statistics agency (BPS) for West Nusa Tenggara. Rather than quoting tables and charts, this article focuses on what those reports tell us at a practical level how tourism in NTB behaves, where demand really comes from and what that means on the ground.

We’ve included source links to the original reports at the end of this article for anyone who wants to dig deeper into the numbers themselves.

A quick note before you read

This article uses a few regional and tourism terms. We’ve kept things as clear and practical as possible and explain anything that needs extra context along the way.

NTB (West Nusa Tenggara) is a region in Indonesia made up of Lombok, Sumbawa and the smaller surrounding islands.
Star hotels are officially rated hotels with standardised facilities and full services, such as international and national hotel brands. These ratings are issued by Indonesia’s Ministry of Tourism.
Non-star accommodation includes villas, guesthouses, homestays and boutique stays that are not part of the star-rating system.

Tourism Seasons

Seasonality, not volatility

Tourism in NTB follows a clear and familiar seasonal rhythm. Activity builds steadily through the middle of the year, reaches its peak during high season and then eases gradually toward the end of the year.

Rather than sharp spikes or sudden drops, demand softens in a predictable and controlled way after peak months. Visitor numbers and occupancy do not fall away abruptly they taper off in line with seasonal travel patterns.

This type of cycle is typical of destinations with an increasingly established tourism base, rather than markets driven by speculative or unstable growth.

Demand Structure

NTB’s tourism demand is shaped by two distinct but complementary visitor groups.

Domestic tourism provides volume, consistency and year-round movement. Even outside peak international travel periods, local and regional visitors continue to travel, supporting ongoing activity across the region.
International tourism, while more seasonal, tends to deliver higher spend per trip. These visitors are more concentrated around peak months, lifting nightly rates and overall returns during high season.

In simple terms, domestic travel stabilises the market, while international travel enhances peak-season performance. NTB benefits from both, reducing reliance on any single demand source.

International vs Domestic Visitor Behaviour

Visitor behaviour in NTB follows a clear pattern:

Domestic travellers typically spend less per visit, but their volume creates a meaningful and consistent economic contribution across the year.
International visitors tend to stay in villas, boutique properties and higher-end accommodation. They spend more per trip but travel more seasonally.

Together, these groups create a balanced tourism economy and one that can absorb seasonal shifts without sudden contractions.

Accommodation Dynamics: Why Guest Numbers Matter More Than Occupancy Alone

At first glance, star hotels often appear to perform strongly (see reports attached) frequently recording higher occupancy rates. However, they accommodate fewer guests overall than non-star accommodation. This is not a contradiction it reflects the structure of supply.

Non-star accommodation (villas, guesthouses, and boutique stays) makes up a far larger share of available rooms across NTB. Even with lower average occupancy, this segment hosts more guests in total simply due to scale.

In practice, this means a significant share of tourism growth flows into independent accommodation rather than large hotel chains. This mirrors a broader global shift toward more personal, local and experience driven stays.

Global Context: Independent Accommodation & Domestic Travel

Clear global trend

Independent accommodation including villas, boutique stays and homestays continues to grow worldwide.

This growth is driven by traveller preference for personalised, local experiences over standardised hotel formats.

Domestic travel as a key driver

Short breaks, weekend trips and flexible travel patterns favour independent accommodation more than large hotel chains. This trend is particularly strong across Asia-Pacific markets, where domestic and regional travel plays a major role in tourism demand.

Why independent stays benefit

They are well suited to shorter, flexible trips
They offer space, privacy and local charm
They appeal to couples, families, solo travellers and repeat visitors because it is more personal

Role of booking platforms

Online booking platforms have made small properties just as visible and accessible as hotels. For domestic travellers, choosing a villa or boutique stay is now as easy as booking a star-rated hotel.

How This Relates to NTB

NTB’s strong domestic tourism base aligns naturally with these global patterns.

As visitor numbers grow, demand is absorbed first by villas, guesthouses and small boutique developments rather than large-scale hotel projects.

This supports gradual, land-led tourism growth rather than rapid, capital-intensive hotel expansion.

A Growth Signal Investors Miss

In destinations like NTB, rising visitor demand is typically absorbed first by non-star accommodation before large hotel developments emerge.

This reflects a market in a “measured growth phase”, where supply expands incrementally and organically. Most land-based tourism projects feed into this segment, which is why non-star accommodation often signals demand growth earlier than major hotel investment.

Market Maturity Insight

Several indicators point to a market absorbing growth steadily:

Demand is spread across multiple traveller types
Both star and non-star accommodation perform through peak periods
Growth is distributed gradually rather than concentrated

These are typical signs of a destination moving toward maturity rather than overheating.

Risk Profile

From a risk perspective, NTB shows strong structural resilience:

Seasonal slowdowns are expected and controlled
Domestic travel provides continuity during softer international periods
Overall performance trends remain steady rather than volatile

Together, this suggests a tourism market supported by fundamentals and structure, not speculation.

Sources:

Reports and data: BPS Indonesia Stats
Booking trends: Deep Market Insights

About Lot Line

At Lot Line Lombok, we believe local insight matters. Understanding how people live, travel and invest here is just as important as the numbers.

If you’re curious about land opportunities in any of these regions, we’re always happy to talk it through.

Real Land. Real People. Real Good.

Tourism Insights: West Nusa Tenggara (NTB) Lombok and Sumbawa