Hotels occupancy rates drop sharply during campaign

JAKARTA (JP): The election campaign is increasing political tension and hurting the business of hotels, which are suffering up to 50 percent lower occupancy rates, executives said yesterday.

The executives said they hoped occupancy rates would return to normal in July when school holidays begin.

The election campaigns began on April 27 and will last until May 23. The three contestants, the United Development Party, Golkar and Indonesian Democratic Party, will have five days to "cool off" before voters go polling stations on May 29.

Suryo Buwono, marketing manager for Yogyakarta's Ambarrukmo Palace Hotel, said his hotel had had a "very significant" drop in its occupancy rate.

He said many travel agents and businesses had postponed tours and conventions until after the general election.

"Domestic tourists may also worry that something might happen during the campaign, so they may choose not to go anywhere now," he said.

He said his hotel's occupancy rate was at a low of 25 percent, down from a 40 percent seasonal rate.

Suryo said the hotel was cutting costs to avoid losses.

The hotel is trying to raise its occupancy rate by attracting party-affiliated companies which take their staff on tours during the campaign.

Companies were taking their staff on tours and telling them to vote for specific parties, he said.

He said Ambarrukmo had tried, without much success, to attract party-affiliated companies.

"We expect this decline to be compensated for in June and July," he said.

Ria Leimena, public relations manager of the Jakarta Hilton International hotel, said that, although there was a slight drop in the occupancy rate, it was too early to say that the campaign had had a serious impact.

She said Hilton, which mostly catered for business travelers, was suffering more from the government's decision to ban conventions and meetings during the campaign.

Ria said the Hilton's 70 percent average occupancy rate for the second quarter had fallen to 60 percent.

She said there was no obvious drop in the number of guests on tours. "But we will only see the real trend in the next one or two weeks," she said.

Romy Herlambang, public relations manager for Shangri-La hotel in Jakarta, said her hotel had anticipated a lower occupancy rate.

"But we are using this opportunity to do renovate part of the building and reorganize the place," she said.

She said the hotel's occupancy rate had fallen from a 75 percent seasonal average to 70 percent. Most of the hotel's guests are businesspeople.

Although the number of convention guests had dropped significantly, the number of individual businesspeople remained the same, she said.

"We are still getting a lot of guests who are doing business here as individuals. I don't think they care very much about the campaign or election," she said.

The occupancy rate at the Pondok Putri Duyung resort in Ancol, North Jakarta, has also fallen slightly.

Genta, who works in sales, said her family resort had anticipated a lower occupancy rate by cutting costs until a week after the election.

"But we hope to compensate for this decline in June, when children go on their school holidays," he said.

Surabaya's Majapahit Mandarin Oriental hotel is also finding it hard to attract guests.

Ambarsari, who works for the hotel's public relations, said his hotel's seasonal rate, which ranged from 30 percent to 60 percent, had been steady at 30 percent since the campaign began. (pwn)