Hotel Occupancy Falls, Mataram City Government Opens Door for Tax Incentives

The Mataram City Government (Pemkot) is responding to complaints from hotel business operators regarding the plummeting room occupancy rates since the beginning of 2026 up to April. Pemkot is allowing business operators to submit letters requesting relief in the form of Land and Building Tax (PBB) incentives. “We will first look at further developments; if feasible, there are regulations in place for reductions or relief,” said the Head of the Financial Agency (BKD) of Mataram City, Muhamad Ramayoga, on Monday (4/5/2026). Ramayoga explained that every request for tax relief must be submitted officially via letter. After that, a government team will conduct on-site verification. “If their request relates to taxes, they must submit a letter first. After the letter, whether we grant the incentive or not, the team will go down first,” he added. He also asked hotel business operators to detail the problems they have faced since the beginning of the year until April 2026 in that letter. “Regarding requests for tax relief and so on, they will submit a letter first. From the letter, a team will then go down to see (if it’s truly quiet or not). We can’t just look at it from the desk,” he clarified. Meanwhile, Mataram Mayor Mohan Roliskana assured that he will examine the problems faced by hotel business operators due to the low room occupancy rates. “We will try to examine and study it first. Then I will talk with BKD about what suggestions and problems are faced by hotel operators. Then we will see what steps we will take,” said Mohan. Previously, the hotel occupancy rate in Mataram City was recorded at 30 percent. The low occupancy rate is partly triggered by the impact of efficiencies. This condition has prompted hotel business operators in Mataram to request up to 50 percent relief on Land and Building Tax (PBB), following the decline in occupancy since early 2026.