Tourism in Indonesia is frequently associated with Bali. Although Bali is an important tourist destination within the Indonesian tourist system, a regional analysis shows that Java and specially Jakarta has a greater share in the tourist industry. Java and Bali combined offer 76 percent of the hotel supply and attract 79 percent of the International hotel demand. If tourism should be used to alleviate some of the biggest contemporary problems of Indonesia, namely hyperurbanisation and population pressure on Java and Bali, then more emphasis needs to be placed on regional distributive effects of tourism. Several approaches appear feasible: (1) improvement of the accomodation suppply and access to the outer islands; and (2) identification and targetting of those market segments with a more regionally dispersed travel pattern using a market segmentation analysis of the intra-national travel pattern of the international tourists.