FOR FOCUS ISSUE -- SUNDAY 24
\n;JP;ICN;
\nANPAc..r..
\nFocusissue-hotel-outlook<\/p>\n
I. Christianto
\nContributor
\nJakarta<\/p>\n
Heading for better days<\/p>\n
After years of stagnant business, the hotel industry is
\nestimated to have better days this year thanks in part to an
\nimprovement in the country's economy.<\/p>\n
Property consultant Collier Jardine says improvement in the
\ndomestic economy, the government's strong commitment to protect
\nthe safety of foreigners and the end of the United States-led
\nattack on Afghanistan would create a more conducive environment
\nfor the Indonesian hotel industry.<\/p>\n
Hotel owners expect that the change in the business climate
\nwill bring new fortunes for their accommodation facilities after
\nseveral years of hardship.<\/p>\n
\"We hope a change in the business environment will bring new
\nhope that the hotel industry will see better days,\" a hotel
\nexecutive said.<\/p>\n
The crisis in the world's travel industry following the
\nterrorist attack on the United States in September last year
\ncaused a sharp drop in the number of foreign visitors to
\nIndonesia, causing difficulties to the country's major hotels.<\/p>\n
The impact became even worst after local Muslim radicals
\nlaunched protests against the U.S.-led strikes against
\nAfghanistan.<\/p>\n
Indonesia saw some 5.1 million foreign tourist arrivals last
\nyear, an increase from 5.06 million people in 2000. Although
\nthere was a slight increase, foreign tourist arrivals during the
\nyear were far below the government's target.<\/p>\n
With the fewer than estimated foreign tourist arrivals,
\ncompetition among 822 star-rated hotels, mostly in Jakarta and
\nBali, became fierce. The competition became even fiercer
\nfollowing the opening of a few new hotels late last year.<\/p>\n
The new hotels are the three-star FM1 Boutique Hotel in Slipi,
\nthe four-star Alila Hotel and the five-star JW Marriott in Mega
\nKuningan, Jakarta. The five-star Le Meridien in Jakarta also
\nadded more rooms.<\/p>\n
Thirty-four hotel projects with a total of 11,394 rooms in the
\npipeline have been canceled or postponed due to the deepening
\neconomic slowdown.<\/p>\n
These projects would have contributed to a 52 percent increase
\nin Greater Jakarta's total hotel inventory. There is no
\nindication as to when the projects will resume.<\/p>\n
Data from Colliers Jardine shows the number of rooms operated
\nby five-star hotels has reached 8,878, representing 41 percent of
\nthe total rooms offered by star-rated hotels in Jakarta.<\/p>\n
Four-star hotels offer 8,012 rooms or 37 percent of the total,
\nwhile three-star hotels offer 4,764 rooms or 22 percent of the
\ntotal.<\/p>\n
By location, Central Jakarta, with 13,636 hotel rooms,
\naccounts for approximately 82 percent of Greater Jakarta's total
\nhotel room supply. This is followed by South Jakarta (3,510
\nrooms), West Jakarta (2,060 rooms), North Jakarta (1,226 rooms),
\nJakarta outskirts (1,170 rooms) and East Jakarta (52 rooms). Of
\nthe overall supply of hotel rooms in Greater Jakarta, 37 percent
\nof them are located in the city's central business district
\n(CBD).<\/p>\n
In order to survive from the sharp competition, each hotel
\nadopts specific marketing concepts to lure guests. The Alila
\nJakarta, for example, uses its personalized service to attract
\nguests. \"Our location in Pecenongan is our challenge, but we have
\nintroduced a personalized service to win over the market,\" Nadira
\nAlatas Sri Wijanarko of the Alila said.<\/p>\n
The Alila Jakarta, opened in May 2001, is designed for
\nindividuals who enjoy a contemporary lifestyle. For example, the
\nhotel has a special ladies floor. The hotel has an interesting
\ninterior and architecture, which makes it distinct.<\/p>\n
Nadira said the hotel targeted local businesspeople, who
\nconstitute 80 percent to 90 percent of the hotel's guests.<\/p>\n
\"We also offer high-speed Internet access in some rooms,
\nespecially for guests seeking broadband connection,\" she said.<\/p>\n
FM1 Boutique hotel, which opened in September last year,
\nadopts a different strategy to lure guests, such as by focusing
\non entertainment. Located on Jl. S. Parman, the hotel, which has
\n45 rooms, runs 25 karaoke rooms.<\/p>\n
Unlike the others, the all-suite Aston Hotel Jakarta uses the
\nluxury of its accommodation to attract guests.<\/p>\n
Nieke Handayani, Aston's marketing and communications manager,
\nsaid guests had more advantages when staying at the all-suite
\nhotel.<\/p>\n
\"With the same amount of money, a guest can enjoy more
\nspacious rooms and feel at home while staying at the Aston,\" she
\nsaid.<\/p>\n
One of the new hotels, JW Marriott Hotel, which is located in
\nthe diplomatic area of Mega Kuningan, is optimistic that it will
\nbe able to compete with the old players despite the unfavorable
\nstate of the hotel industry.<\/p>\n
The hotel's director of marketing, Andreas Kohn, said there
\nwas no good or bad times for a hotel to open its doors. \"We
\nopened just at the right time,\" he said.<\/p>\n
The 28-year Hotel Borobudur uses its modern security system to
\nlure guests, especially VIPs. At least three heads of state have
\nchosen to stay at the Borobudur hotel when visiting Indonesia
\nthis year thanks to its security system.<\/p>\n
The hotel is located in a 23-acre garden full of century-old
\nmahogany trees, a rarity at other local hotels. It also has high-
\nspeed Internet access in some rooms.<\/p>\n
Jasmina Janik, director of sales and marketing at Borobudur,
\nsaid more world leaders would stay at the hotel when Jakarta
\nhosted international events over the next few months.<\/p>\n
\"Borobudur is also constantly improving its services,
\nfacilities and amenities in addition to the popular menus at its
\nrestaurants,\" she said.<\/p>",
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