Aerowisata to open more hotels

JAKARTA (JP): Local hotel and tour operator PT Aerowisata will soon open a new property and acquire at least two hotels in Bali as part of its expansion plan, a company executive said here on Wednesday.

Aerowisata executive vice director Toto K. Sugiarto said on Wednesday the company would open in December the 20-room Pool Villa Club in Lombok, adjacent to its existing Senggigi Beach Hotel.

Aerowisata also will acquire in 2000 two existing hotels located in Kuta and Nusa Dua in Bali, he said.

"The reason for the expansion is simply because we want to reestablish Aerowisata's image as one the country's most integrated hotel and tourist operators," he said.

Aerowisata, a subsidiary of national flag carrier Garuda Indonesia, currently manages a total of three hotels in Bali, Lombok and Bandung. It previously owned and operated more than five hotels and resorts nationwide.

Toto said the expansion of the company's hotel business would also be achieved through franchising contracts with other local operators.

The company has signed franchising contracts with two hotel operators in Jakarta and West Sumatra, he said.

He also said Aerowisata planned to expand its ticketing and promotion business, currently the domain of subsidiary Satriavi Tours & Travel.

"We're planning to invite foreign travel operators to cooperate in the form of a joint cooperation or joint venture," he said.

The company currently is "shopping around" to select future strategic partners to expand its business in Japan, western Europe, Australia and the United States, he said.

He said Aerowisata restructured a number of its subsidiaries to make them more attractive to foreign partners, including improving their human resources and streamlining their businesses.

Aerowisata has two other subsidiaries, the Aerowisata Catering Service, which supplies foods and beverages for all airlines flying to and from Indonesia, and Mandira Transportation, which mainly arranges transportation for Aerowisata employees.

Toto said a successful realization of the company's expansion plan would depend to some degree on the restructuring of the financially ailing Garuda.

Garuda is still working out a proposal to restructure its US$1.36 billion in debts, mostly owed to offshore lenders. The government pledged last week to inject $62 million annually for the next eight years to help Garuda pay its aircraft leasing fees.

Toto, however, said he was upbeat Aerowisata itself would be able generate some of the funds needed for its expansion due to its improving financial performance.

"We've been doing very well recently. Our finances are in excellent condition," he said, declining to reveal total turnover but predicting the company would post a 23 percent increase in turnover from last year to this year.

Toto said Aerowisata allocated over $1 million for the company's restructuring and to develop information technology. (cst)