Hotels struggle to shrug off Jakarta's unattractive image

Fitri Wulandari, The Jakarta Post, Jakarta

As the country shows some signs of economic recovery and political stability, the hotel industry in Jakarta has started efforts to improve the capital's image in a bid to lure more visitors.

"This is the best time to start turning things around. Otherwise things will get worse for the hotel industry in Jakarta," Ade Suryanto, senior founder of Hotel Specialists, which groups hotel managers and experts in Jakarta, told The Jakarta Post over the weekend.

Ade pointed out that improving the capital's image was a tough mission, which could only be achieved if all tourism-related industries, including travel agencies, the airline industry and the provincial government work hand in hand.

That is why, Ade said, his organization had started approaching all those parties.

"We can't work alone. By using the global network of hotel chains and airlines, we can make the most of public relations for the capital," said Ade, who is also room division manager of Hotel Borobudur.

An increase in the number of visitors will not only benefit hotels but cause a multiplier effect on the capital's economy as dollar spending will increase.

The number of foreign visitors to Jakarta has declined over the past five years, dealing a blow to the capital's hotel industry, as the capital has been labeled by many an unsafe place for world travelers, thanks to political unrest, demonstrations, riots, crimes and floods.

The Sept. 11 attack on the United States made the situation worse as foreign travelers perceived Jakarta and the rest of Indonesia, with the exception of Bali, a breeding ground for terrorists.

George Benney, the chairman of the Jakarta International Hotel Association (JIHA), which groups Jakarta's four and five star hotels, said his organization fully supported the Hotel Specialists campaign.

"Five years ago, Jakarta was named a convention city. But now, multinational companies are reluctant to hold international meetings here because of security conditions," he told The Jakarta Post over the weekend.

Jones Lang LaSalle Hotels' survey shows that the number of international visitors to Jakarta in 2001, either for business or leisure had remained flat since 1998 with around 1.1 million visitors. In 1996, the capital city welcomed 1.7 million international visitors.

The survey also shows that the hotel occupancy rate in Jakarta is the lowest in Asia with only 30 percent.

Amid the low number of tourists, hotels have started a price war in order to lure as many guests as possible. As a consequence, hotel rates have dropped.

Jones Lang LaSalle Hotels said that the average five-star hotel rate in Jakarta was US$70.

"With lower yields and increasing expenses such as electricity, wages, our profitability for the moment is zero," said Benney, who is also general manager of the Mandarin Oriental Hotel.

Benney agreed there should be a concerted effort to improve the capital's image under the coordination of the Jakarta administration.

The administration also needs to appoint a credible spokesperson who is experienced in facing journalists.

"With the support of the hotel industry, like hotel groups with international connections, we can communicate a better image to the international community," he added.

Ade suggested the administration organize a professional international event to put Jakarta back on the international travelers map.

"We could hold, for example, a music festival in Jakarta which could last a week because one day would not have an effect.

"The press would flock to Jakarta, and we could send a clear message to the world," he said.