Hotels to increase room rates
Fitri Wulandari, The Jakarta Post, Jakarta
Low occupancy rates coupled with the recent hikes in fuel prices, and telephone and electricity charges, as well as the increase in the minimum wage might prompt hotels to increase their room rates this year, a hotel association said.
"Increases in the room rates are unavoidable given the increasing burdens on the hotel operators as the result of low occupancy rates, and the increases in fuel and electricity prices and wages," Yanti Sukamdani, chairperson of the Indonesian Hotel and Restaurant Association (PHRI), was quoted by Antara as saying.
She failed, however, to provide details of the likely percentage increase.
Last month, the government decided to raise fuel prices by an average of 30 percent, electricity by 6 percent and telephone charges by 15 percent.
In Surabaya, Yulianto, chairman of the PHRI's Surabaya chapter said that star-rated hotels in Surabaya had increased their room rates by between 10 percent and 20 percent.
"Most five star hotels have upped their rates to an average of US$50," Yulianto said.
Diyak Muhalela, director of the Tourism Development Information Institute (Lepita) said hotels were now facing a dilemma under the current condition.
"They might lose their customers if they increase their room rates but if they don't, they might not be able to cover their operating costs," Diyak told The Jakarta Post.
According to Diyak, the average occupancy rate in Jakarta was now around 40 percent. There are 33,000 rooms in non-star and star-rated hotels in Jakarta.
"With a lower occupancy rate, how can the hotel be expected to survive?," he asked.
Meanwhile, in Jakarta, some hotels have already increased or in the process of increasing their room rates.
Diah Sedyawati, public relation officer for the three-star Ibis Kemayoran hotel said that the hotel had already increased its room rates by around 15 percent earlier this year.
"We just wanted to anticipate the increasing operating costs due to the hike in prices," Dian told The Post.
The four-star Mercure Slipi in West Jakarta also plans to raise its room rates by up to 20 percent by the end of 2002.
"We don't want to shock our customers. So we will increase the room rates in stages until we reach 20 percent by the end of this year," R. Endang Prasdianti, Mercure Slipi's public relations manager said.
The hotel has 200 rooms with prices ranging from Rp 400,000 to Rp 10 million depending on the length of stay.
Similar to the Ibis Kemayoran, Endang said that the hotel had to increase room rates to cover soaring operating cost.
"With the increased electricity and fuel costs, hotel operating costs will be up by between 50 percent and 100 percent," she added.
Some hotels however have not yet make a decision.
The Mulia Senayan, a five-star hotel in the heart of Jakarta, said that it would keep its prices unchanged.
"As of today, we haven't any plans to increase rates," said Ratna S. Idris, the Mulia's public relations officer. Known as one of the most exclusive hotels in the capital, the Mulia has around 1,000 rooms.