ITT Sheraton introduces rupiah rates<\/p>\n
JAKARTA (JP): ITT Sheraton, a leading American hotel chain,
\nhas now used rupiah as the basis for payment of its rooms and
\nother services at its nine hotels across the country in a bid to
\nattract more corporate guests.<\/p>\n
The general manager of Sheraton Media, Andreas
\nTrauttmansdorff, said here yesterday that the use of rupiah rates
\nwould mean a cut in prices up to 60 percent for hotel guests.<\/p>\n
Previously, like other hotels, Sheraton used U.S. dollar rates
\nfor rooms and service. The use of the dollar, however, has become
\nnot only volatile, but also too expensive due to a continued
\ndepreciation of the rupiah against the American currency.<\/p>\n
"The rates in rupiah affect only residential meetings and
\nconferences between now and the end of February 1998," he said.<\/p>\n
The fixed rates in rupiah are available at Sheraton hotels in
\nLampung, Jakarta, Bandung, Yogyakarta, Surakarta, Surabaya, Bali
\nand Lombok.<\/p>\n
He hoped with the change, more Indonesian-based companies
\nwould hold meetings at one of Sheraton's nine hotels in the
\ncountry.<\/p>\n
"Many companies planning to hold events in the coming weeks
\nhave to put their plans on hold, as quite understandably when
\nthey are quoted in U.S. dollars," he said. "They have seen their
\ncosts rise almost 50 percent."<\/p>\n
The rupiah and other Southeast Asian currencies have been
\nunder speculative attack since early July due to a domino affect
\nof the de facto devaluation of the Thai baht. The rupiah has
\nsince lost more 35 percent of its value against the dollar.<\/p>\n
Star-rated hotels could not benefit much from the fall in
\nrupiah even though most room rates were based in dollars, not
\nonly because they had to pay more for imported products but also
\nbecause of a decline in occupancy rates, Trauttmansdorff said.<\/p>\n
"Some 1,700 room nights at the 351-room Media Hotel had been
\ncanceled for the September to December period. We expect to reach
\n60 percent to 65 percent in occupancy rates with the fixed rupiah
\nrates program," he said, adding that the occupancy rate at
\nSheraton Media currently was 50 percent.<\/p>\n
In addition to the currency upheaval, the widely published
\nreports on the country's haze problem and recent Garuda plane
\ncrash has resulted in many trip cancellations.<\/p>\n
The government has since lowered the projection for foreign
\nexchange revenue from foreign tourists this year on fears that
\nthe haze and currency problems will cause a decline in tourist
\narrivals.<\/p>\n
According to data recently compiled by the Ministry of
\nTourism, Post and Telecommunications, revenue from foreign
\ntourists will total about US$6.5 billion this year, lower than
\nthe initial projection of between $6.64 billion and $7.14
\nbillion.<\/p>\n
The number of foreign tourists will be about 5.19 million this
\nyear as compared to the previous projection of between 5.3
\nmillion and 5.7 million.<\/p>\n
It is estimated that the government will only receive $7.14
\nbillion in foreign exchange from foreign tourists next year,
\nlower than the original target of between $7.51 billion and $8.14
\nbillion. Foreign tourist arrivals are also projected to decline
\nnext year to 5.7 million from the original target of between 6
\nmillion and 6.5 million. (icn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/itt-sheraton-introduces-rupiah-rates-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}