Hotels struggle to shrug off Jakarta's unattractive image

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.