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)