Hotel occupancy rate inches up in 2000<\/p>\n
JAKARTA (JP): Indonesia's hotel industry remained in the
\ndoldrums in 2000, with average occupancy rates of all star-and-
\nnon-star hotels only inching up to 40 percent from 38 percent in
\n1999, according to an independent survey.<\/p>\n
Diyak Mulahela, director of the Institute for Information on
\nTourism Development which conducted the study, said such a low
\noccupancy rate for most hotels meant that they were operating at
\na loss.<\/p>\n
Some hotels, however, enjoyed an average occupancy rate as
\nhigh as 70 percent during the year, while the worst performers
\nsaw an average occupancy rate of only 20 percent, he said.<\/p>\n
Many hotels survived the year through drastic cost-cutting
\nmeasures, Diyak said.<\/p>\n
One of these is by cutting back on staffing levels, some by
\nbetween 4 and 5 percent through early retirement schemes. The
\nsurvey said that employees' payroll accounts for between 9 and 25
\npercent of a hotel's total operational costs.<\/p>\n
Other hotels were forced to introduce efficiency measures with
\nregard to the use of electricity, water and fuels. Utilities
\naccount for between 10 and 13 percent of total costs.<\/p>\n
While some hotels managed to stay afloat, many have had to
\ndefer repaying their debts, Diyak said.<\/p>\n
Ahmad Zacky Siradj, executive director of the Indonesian Hotel
\nand Restaurant Association, said a hotel normally breaks even if
\nit has an average occupancy rate of 70 percent through the year.<\/p>\n
Diyak said occupancy rates rose slightly this year thanks to
\nthe rise in the number of foreign tourists visiting the country.<\/p>\n
The government said foreign tourist arrivals reached 3.45
\nmillion between January and October, nearly a 6 percent increase
\nover the same period in 1999.<\/p>\n
The institute predicts that the average occupancy rate of all
\nhotels in Indonesia will increase to 45 percent in 2001 based on
\nthe government's target of 5.4 million foreign tourist arrivals.<\/p>\n
Ahmad agreed that the increase next year would not be
\nsignificant because Indonesia continues to suffer a poor public
\nrelations image with constant news reports of political unrest.<\/p>\n
\"We need a better PR campaign,\" he said.<\/p>\n
He urged the government to increase the budget for promotion
\nto draw more foreign tourists into Indonesia.<\/p>\n
The Ministry of Culture and Tourism spent US$1 million on the
\npromotion of tourism in 1999 during which 4.7 million foreigners
\nvisited the country, contributing $4.7 billion to Indonesia's
\nforeign exchange earnings.<\/p>\n
Ahmad warned that the government's plan to impose a $50 fee on
\ntourist visas would deter some foreigners from visiting the
\ncountry.<\/p>\n
Tourist arrivals<\/p>\n
Meanwhile Minister of Culture and Tourism I Gede Ardika said
\non Thursday that his office had set a target to attract up to 5.4
\nmillion foreign tourists to Indonesia in 2001, a 5 percent
\nincrease from the 5.1 million targeted for this year.<\/p>\n
Ardika said that 5.4 million tourists would bring in US$ 5.4
\nbillion worth of foreign exchange, assuming that each tourist
\nspends $100 a day and stays an average of 10 days.<\/p>\n
To reach the target, he said the Ministry of Culture and
\nTourism had improved its promotion strategy, especially in
\nIndonesia's traditional markets such as Japan, Taiwan, Germany,
\nthe United States and the Netherlands.<\/p>\n
The ministry would also expand the target market to include
\nChina, Middle Eastern countries, South Africa and Eastern Europe,
\nhe said.<\/p>\n
Regarding goals to lure 5.1 million foreign tourists this
\nyear, Ardika expressed optimism that the target could still be
\nreached.<\/p>\n
The ministry recorded 3.5 million foreign tourists entering
\nIndonesia through 13 gates from January to October.<\/p>\n
\"The number could increase if we count those who entered ports
\nand came by land transportation,\" Ardika was quoted by Antara as
\nsaying.<\/p>\n
Popular destinations among tourists this year include Bali,
\nYogyakarta, Jakarta and Bintan Island in Riau.<\/p>\n
Ardika expressed hope that more foreign tourists would come to
\nthe country if political tensions ease.(05\/rid)<\/p>",
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