Hotels to benefit from election fears

JAKARTA (JP): Star-rated hotels in the capital expect higher occupancy rates ahead and after the June general election as many people will likely stay in them for security reasons.

President of Indonesian Hotel & Restaurant Association (PHRI), Ahmad Zacky Siradj, estimated on Tuesday the rate would likely rise to over 50 percent from the current 20 to 30 percent level.

He said the guests would include foreign journalists and election observers beside the local residents seeking security.

"It is not that we are looking forward to riots occuring during the period to help increase the (occupancy) rate, but the fact that the rates at some hotels have jumped because many people moved in last May to avoid unrest in their neighborhoods was undeniable," Zacky said.

He said the average occupancy rates increased to 80 percent during the May riots from the average rate in previous years of less than 40 percent.

Several hotels have already seen the arrival of foreign journalists to cover the campaign and election programs. But they don't see a possible massive influx of local residents.

Public relations director of Mandarin Oriental Jakarta hotel, Ria Leimena, told The Jakarta Post that about 15 foreign journalists had checked in the hotel.

She said the Mandarin expected the occupancy rate to stay stable at 28.8 percent in May and June, similar to the average rate of the first four months this year.

"So far, there are not many reservations made by either foreign or local visitors... We predict that people, especially locals, will make a decision later on, maybe around May 20," she said.

Mandarin, as well as the Jakarta Hilton International, Sheraton Bandara and several others had its occupancy rate rise to 80 percent during May last year as many local and foreign people flocked to avoid the massive unrest which led to the historical downfall of former president Soeharto after 32 years in power.

Indonesia will hold its first democratic elections since 1955 on June 8 and campaigning will begin in the middle of this month. Many people have reportedly fled the capital to avoid possible riots during campaign and elections.

No big increase

Jakarta Hilton's public relations manager Dewi Widiyanti also estimated higher occupancy rates during the campaign and election period, but didn't expect a big increase.

"But we can't make any forecasts on it. Besides, riots only happen for a couple of days, while hotels operate for much longer than that. So, really, we prefer to see the June election go smooth so that the hotel industry can recover sooner," she told the Post.

Shangrila Jakarta hotel, however, is rather pessimistic toward the occupancy rate. Communications manager Romy Herlambang said the rate would likely go down during the period.

"We forecast the occupancy rate will start to decline on May 20 and it may stay sluggish until the end of June. It may reach around 25 percent during the period," she told the Post.

Shangrila's daily occupancy rates currently stand at 54 percent, she said.

She said that the hotel started this month to offer discount packages, especially for foreign press, in anticipation of the possible decline.

According to the Ministry of Tourism, Art and Culture's pessimistic calculation, the inbound arrivals will reach its lowest levels in May with about 319,700 tourists, or a 1.5 percent decrease from April's estimated number of 324,700.

The forecast predicted the number would increase by one percent in June to reach 323,200 despite the growing fear from both national and international public over worsening political climate to occur before, during and after the June 7 general election.

Some foreign embassies have advised their citizens not to visit Indonesia until the completion of the election process, while many Indonesians are expected to go abroad to avoid possible riots during the period.

Zacky believes many locals would still find rooms at hotels here.

"The number, however, may not be as much as last year," he said, attributing the decrease to the possible exodus of locals to neighboring countries such as Singapore and Australia.

Public relations coordinator of Sheraton Bandara hotel, Esther Pormes, echoed Zacky, adding that people had learned their lessons and considered going abroad to avoid riots a better option.

"I think it is unlikely that people would flock to hotels this time," she told the Post.

The hotel's current daily occupancy rate stands at 45 percent, a slight increase from around 44.5 percent last month.

Tristan Beau de Lomenie, the General Manager of Mercure Rekso Hayam Wuruk, told the Post that his hotel chooses to make internal consolidation during the period, aiming to provide a better service to visitors who were projected to come after the situation recovered from the election.

"Let's face it, people will not come until after the election is over. So it will be useless to offer discounts or lower the prices again," he said.

De Lomenie said that Mercure's daily occupancy rates is presently between 40 and 45 percent, and it is predicted to reach about 25 percent during the election period. (gis/cst)