Indonesian Political, Business & Finance News

Hotel Association Demands Restriction on New Hotels

| Source: TEMPO
TEMPO Interactive, Jakarta: Hotel and restaurant association in Indonesia urged the Semarang Municipal administration to curb hotel growth in the city, fearing unproportional growth in number of hotels and customers.

Heru Ismawan head of the Semarang chapter of Indonesia Hotel and Restaurants Association said the restriction was needed as the increase in number of customers was slower than the number hotel rooms.

According to the association number of customers grew at between 7-8 percent annually compared to around 20 percent increase in number of hotel rooms. Occupancy rate for hotel rooms in the province was around 50 percent per month.

Heru demanded the government to protect hotel business in the province by involving the association in assessing every proposal for new hotel license.

The province has 98 star-rated hotels and 980 motel-rated lodging, with total number of rooms at 6,400. The association said the regional administration could loose the curb when occupancy rate reached 70 percent.

ROFIUDDIN
Tags: business
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