Hotels to increase room rates<\/p>\n
Fitri Wulandari, The Jakarta Post, Jakarta<\/p>\n
Low occupancy rates coupled with the recent hikes in fuel
\nprices, and telephone and electricity charges, as well as the
\nincrease in the minimum wage might prompt hotels to increase
\ntheir room rates this year, a hotel association said.<\/p>\n
\"Increases in the room rates are unavoidable given the
\nincreasing burdens on the hotel operators as the result of low
\noccupancy rates, and the increases in fuel and electricity prices
\nand wages,\" Yanti Sukamdani, chairperson of the Indonesian Hotel
\nand Restaurant Association (PHRI), was quoted by Antara as
\nsaying.<\/p>\n
She failed, however, to provide details of the likely
\npercentage increase.<\/p>\n
Last month, the government decided to raise fuel prices by an
\naverage of 30 percent, electricity by 6 percent and telephone
\ncharges by 15 percent.<\/p>\n
In Surabaya, Yulianto, chairman of the PHRI's Surabaya chapter
\nsaid that star-rated hotels in Surabaya had increased their room
\nrates by between 10 percent and 20 percent.<\/p>\n
\"Most five star hotels have upped their rates to an average of
\nUS$50,\" Yulianto said.<\/p>\n
Diyak Muhalela, director of the Tourism Development
\nInformation Institute (Lepita) said hotels were now facing a
\ndilemma under the current condition.<\/p>\n
\"They might lose their customers if they increase their room
\nrates but if they don't, they might not be able to cover their
\noperating costs,\" Diyak told The Jakarta Post.<\/p>\n
According to Diyak, the average occupancy rate in Jakarta was
\nnow around 40 percent. There are 33,000 rooms in non-star and
\nstar-rated hotels in Jakarta.<\/p>\n
\"With a lower occupancy rate, how can the hotel be expected to
\nsurvive?,\" he asked.<\/p>\n
Meanwhile, in Jakarta, some hotels have already increased or
\nin the process of increasing their room rates.<\/p>\n
Diah Sedyawati, public relation officer for the three-star
\nIbis Kemayoran hotel said that the hotel had already increased
\nits room rates by around 15 percent earlier this year.<\/p>\n
\"We just wanted to anticipate the increasing operating costs
\ndue to the hike in prices,\" Dian told The Post.<\/p>\n
The four-star Mercure Slipi in West Jakarta also plans to
\nraise its room rates by up to 20 percent by the end of 2002.<\/p>\n
\"We don't want to shock our customers. So we will increase the
\nroom rates in stages until we reach 20 percent by the end of this
\nyear,\" R. Endang Prasdianti, Mercure Slipi's public relations
\nmanager said.<\/p>\n
The hotel has 200 rooms with prices ranging from Rp 400,000 to
\nRp 10 million depending on the length of stay.<\/p>\n
Similar to the Ibis Kemayoran, Endang said that the hotel had
\nto increase room rates to cover soaring operating cost.<\/p>\n
\"With the increased electricity and fuel costs, hotel
\noperating costs will be up by between 50 percent and 100
\npercent,\" she added.<\/p>\n
Some hotels however have not yet make a decision.<\/p>\n
The Mulia Senayan, a five-star hotel in the heart of Jakarta,
\nsaid that it would keep its prices unchanged.<\/p>\n
\"As of today, we haven't any plans to increase rates,\" said
\nRatna S. Idris, the Mulia's public relations officer. Known as
\none of the most exclusive hotels in the capital, the Mulia has
\naround 1,000 rooms.<\/p>",
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"sponsor": "Okusi Associates",
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