Aerowisata to open more hotels

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)