Hotels expect higher occupancy rates

Hotels expect higher occupancy rates

The Jakarta Post, Jakarta

The country's hotel industry is expected to grow this year,
marked with an increase in occupancy rates, if the economy grows
by an annual rate of 6 percent during the 2004-2009 period, says
one executive.

Indonesian Hotel and Restaurant Association (PHRI) chairwoman
Yanti Sukamdani said on Friday that last year's general election
-- which was successful and peaceful -- also encouraged investors
to do business in the country.

"Improvement in business will increase traveling activities,"
she told The Jakarta Post.

Yanti estimated that hotel occupancy rates in Jakarta, Bali
and Batam would increase to an average of 60 percent this year
from 55 percent last year. Capital Jakarta, Batam industrial
island and Bali tourist island have become indicators for PHRI to
monitor developments in the hotel industry.

The hotel industry, she said, was unlikely to be affected by
the deadly Dec. 26 tsunami in Nanggroe Aceh Darussalam and parts
of North Sumatra. At least 238,945 people died in the tsunami and
410,000 were made homeless.

In comparison, the industry was seriously affected by the Bali
bombings in October 2002 that killed 202 people, mostly
foreigners.

Separately, the director of communications of Shangri-La Hotel
Jakarta, Ratna Sjamsiar Idris, said that international events
such as last month's Infrastructure Summit encouraged investment
in the country, including in the hotel industry.

Yanti and Ratna said that increased investment in the country
would also encourage businesspeople to establish new hotels in
the country.

In Jakarta alone, at least two new hotels located in South
Jakarta are under construction.

Ratna said Shangri-La Jakarta was expected to increase its
occupancy rate to between 60 percent and 65 percent this year
from between 40 percent and 60 percent last year.

She said her hotel's management was optimistic that the
hotel's revenue would increase by 15 percent to 25 percent this
year.

Meanwhile, assistant public relations manager of Hotel Nikko
Jakarta, Sugeng Purnomo, said his hotel was aiming to increase
its occupancy rate to 86 percent this year from 76 percent last
year.

"We are optimistic (with the increase) because we have
established our market segment," he said, adding that his hotel's
guests mostly came from Japan and Indonesia. Japanese guests
generally stay at the hotel on weekdays and domestic guests at
weekends. (004)