Hotels in Yogyakarta, Bali see higher occupancy

Hotels in Yogyakarta, Bali see higher occupancy

By I. Christianto

JAKARTA (JP): The hotel industry in the cultural city of
Yogyakarta has slightly rebounded after the prolonged political
and monetary crisis. This has been indicated by an increasing
room occupancy rate in star-rated hotels in Yogyakarta.

The four-star Hotel Santika Yogya, for instance, has seen an
average room occupancy of 60.4 percent by mid-October this year.

"The figures were only 35 percent and 47 percent in 1998 and
1999 respectively," said Santika general manager Donny
Tisnantoro.

He said 70 percent of the guests were from Indonesia and 30
percent from overseas.

"It was the other way around two or three years ago. We know
that Indonesia has seen fewer foreign tourist arrivals in recent
years due to its social and political condition. Safety and
security are the main keys in tourism and travel," he said.

Santika has had luck in terms of room occupancy since the
average occupancy rate of star-rated hotels in Yogyakarta is only
30 percent.

The number of star-rated hotels in Yogyakarta has
significantly increased in the last few years despite the
visitor's average length of stay falling to less than two days of
their trip, compared to the average 10 days spent traveling in
Indonesia.

One reason why visitors spend less than two nights in
Yogyakarta is the limited variety of tourist attractions.

There are only a few places of interest, including the
Prambanan Temple, the Sultan's Palace, a silver center in Kota
Gede and Parangtritis beach.

The average occupancy rate at star-rated hotels in Yogyakarta
has not climbed over 50 percent, even before the crisis struck.

Data from the Ministry of Tourism in Yogyakarta show that the
rate was 48.32 percent in 1995, 47.78 percent in 1996 and 45.7
percent in 1996.

The worst was in 1998 when only 24.8 percent of the hotel was
filled. Last year, the figure reached 30.45 percent.

Interestingly, hotels managed by international chains have
been popping up all over Yogyakarta.

These are the Holiday Inn, Sheraton Mustika, Radisson, Hyatt
Regency, Melia Purosani, Novotel and Ibis.

Competition among star-rated hotels in Yogyakarta has become
stiffer as a result.

Star-rated hotels run by domestic companies are, among others,
Santika, Ambarrukmo, Garuda, Phoenix, Sahid and Mutiara.

In 1999, three-star hotels in Yogyakarta had an occupancy
average of 40.12 percent, the highest figure among star-rated
hotels in the city.

One-star hotels were second at 35.24 percent, followed by
four-star hotels at 32.06 percent, five-star hotels at 23.16
percent and two-star hotels at 20.87 percent.

Last year, there were 38 star-rated hotels in Yogyakarta with
3,783 rooms. Nonstar-rated hotels totaled 383 with 6,015 rooms.

Fewer visitors

Hotels in Yogyakarta are facing hard times as there are fewer
visitors in the city.

The total tourists staying at star and nonstar-rated hotels in
Yogyakarta decreased significantly to only 514,147 last year from
1.18 million in 1995. The figure in 1999, however, was much
better than the 387,928 recorded in 1998.

Out of the total tourists staying at hotels in Yogyakarta in
1999, 73,361 were foreign visitors and 440,986 were domestic
visitors.

Guests at star-rated hotels totaled 688,321 in 1999. The
figure comprised 143,105 foreign visitors and 545,216 domestic
visitors.

Among the hotels seeing an increased occupancy rate were the
five-star Sheraton Mustika Resort and Spa, Melia Purosani and
Hyatt Regency.

Sheraton Mustika saw an average of 28 percent in room
occupancy in the past six months. The highest figure was 41
percent in July, during the school holidays.

Hotel spokesperson Emma Octaviana said most guests at Sheraton
Mustika were domestic visitors.

She said various conventions were held at her hotel, helping
the room occupancy rate to rise.

Sheraton Mustika is the only hotel in Yogyakarta which has a
3,000-seat convention center, the country's largest outside
Jakarta and Bali.

By rank, the usual foreign visitors to Yogyakarta are from
France, the Netherlands, Germany, Britain, Japan, the United
States, Japan and Australia.

In the meantime, the 300-room Melia Purosani maintained a 30
percent occupancy rate over the last two months.

Hotel general manager Frans H. Staats said the figure was
better compared to last year, but everyone did expect a much
higher figure to cover operational costs.

Atik Wildan of the Hyatt Regency said the average occupancy
rate at the 269-room hotel was 45 percent in the first six months
in 2000.

Bali

The country's prime tourist destination has a more favorable
story.

Most star-rated hotels on this island have seen increasing
occupancy rates recently after a decline in 1998/1999.

Just like other parts of Indonesia, the number of foreign
tourist arrivals in Bali declined in 1999.

But the figure was much less compared to Jakarta, where
overseas travelers traditionally begin their tour of Indonesia.

Several areas in Indonesia have been shaken by a series of
outbreaks of ethnic and sectarian violence in early 1998, killing
scores of people.

After former president Soeharto stepped down in May 1998,
political instability and ethnic violence led to a dramatic drop
in international tourist arrivals to Indonesia for the first time
in a decade.

In 1998, a 16.4 percent decline in tourist arrivals meant only
4.6 million tourists visited the country.

Last year it welcomed some 5 million. This year, the
government estimates that number to reach 6 million.

In the past, Indonesia enjoyed a 20 percent annual growth in
tourist arrivals.

As one of the least affected areas, Bali is expected to
invigorate the country's damaged tourism after the significant
suffering.

Star-rated hotels have so far enjoyed increased occupancy
rates. Businessmen who travel have frequently reiterated that
Bali will need dozens of thousands of additional rooms within the
next couple of years to accommodate some 7 million visitors by
then.

There are over 100 star-rated hotels with more than 16,000
rooms in Bali, in addition to some 1,300 nonstar-rated hotels
with more than 16,000 rooms.

Year-end holidays will be the traditional moneymaker for most
hotels in Bali.

Budiarti of the five-star Kartika Plaza Beach Hotel in Kuta
said the number of guests would increase by the year-end
holidays.

She said her hotel now saw reservations averaging up to 103
percent. Conferences held at the hotel had also played an
important role in lifting the room occupancy rate, she said,
adding that 85 percent of the hotel's guests were overseas
tourists.

Melia Bali Villas in Nusa Dua has also seen an increase by
3.16 percent in its room reservations to 96.77 percent in the
last two months. The number of domestic tourists counts for less
than 1 percent at this hotel, which offers 500 rooms and 10
villas.

Reservations reached 89 percent and 90 percent at Novotel
Benoa Bali in September and October respectively. Hotel
spokesperson Dewi said most reservations came from Europe.
Domestic guests totaled some 5 percent at this hotel, which is
located in Tanjung Benoa.

The Bali Hilton International in Nusa Dua had an average
occupancy rate of 90 percent in the past couple of months.

Sukasarinadi, the public relations officer at the hotel, said
some 95 percent of the guests were foreign travelers.

Meanwhile, the Hard Rock Hotel in Kuta saw an occupancy rate
of 85 percent in July and August. The guests at the hotel were
Japanese visitors (25 percent), Australians (20 percent),
visitors from Taiwan (17 percent), Indonesians (19 percent) and
Germans (10 percent).