The Indonesian Hotel and Restaurant Association (PHRI) assesses that\nthe rise in hotel occupancy throughout the first half of 2026 is not yet\na signal that the hospitality industry has fully recovered. Although\nroom occupancy rates increased during the Eid al-Fitr and school holiday\nperiods, hotel operators still face major challenges as revenues have\nnot improved accordingly.<\/p>\n
PHRI Secretary General Maulana Yusran stated that the increase in\noccupancy during the second quarter of 2026 was primarily driven by the\nschool holiday momentum. In several tourist destinations, occupancy even\nincreased by approximately 20%-30% compared to regular days. However, he\nnoted that this increase is merely seasonal and does not reflect a\nfundamental improvement in the industry.<\/p>\n
\u201cSo the answer to whether it has recovered is: no, it hasn\u2019t actually\nrecovered. It is certainly not recovered, and now we are facing new\nchallenges, such as the Iran conflict which increases operational costs\nand the cost of travelling, impacting the market,\u201d Maulana told CNBC\nIndonesia on Friday (31\/07\/2026).<\/p>\n
He explained that compared to the post-Covid-19 condition, the hotel\nindustry\u2019s performance had been steadily improving from 2021 to 2024.\nHowever, that trend reversed in 2025 after government budget efficiency\npolicies suppressed corporate activities, particularly Meetings,\nIncentives, Conventions, and Exhibitions (MICE).<\/p>\n
According to Maulana, based on data from the Indonesian Central\nStatistics Agency (BPS), the national average hotel occupancy until May\n2026 remained at 46.96%. This figure is still lower than the average\noccupancy in 2024, which reached 52.50%.<\/p>\n
\u201cWhen talking about 2026, we are still comparing it to whether 2025\nincreased or not. Post-Covid, we hoped that 2026 would be higher than\n2024, which was 52.50% year-on-year. But looking at our records and BPS\ndata, the average year-on-year up to May 2026 is still 46.96%. So, it is\nstill below 2024,\u201d he added.<\/p>\n
In addition to the incomplete recovery of occupancy, PHRI also\nhighlighted that hotel revenues remain under pressure. Maulana stated\nthat high occupancy rates do not necessarily lead to increased revenue,\nas hotels must still compete by offering discounts to attract\nguests.<\/p>\n
He noted that since the Covid-19 pandemic, hotels have found it\nincreasingly difficult to enjoy \u2018high season\u2019 periods, which are\ntypically the momentum used to raise room rates. \u201cIn terms of household\nconsumption, they pay a certain amount but receive smaller services. In\na hotel, you might achieve high occupancy, but your revenue does not\nmatch the rates expected during a high season. Even if occupancy is 80%,\nthe rate might not increase because hotels are still competing with\nnearby competitors for a limited market,\u201d concluded Maulana.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/indonesian-hotel-occupancy-rises-but-business-owners-remain-anxious-1785488053", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }