Jakarta's star-rated hotels regarded less competitive
Jakarta's star-rated hotels regarded less competitive
JAKARTA (JP): Star-rated hotels in the capital will be less
competitive as they offer higher room rates compared with hotels
of the same class in the region, according to a senior tourist
agency official.
Head of the Jakarta Tourism Agency, Fauzie Bowo, told The
Jakarta Post Thursday evening that despite Jakarta still having
an insignificant number of rooms in star-rated hotels, hoteliers
should follow the region's trend in lowering room rates.
"There are some 14,000 rooms of three, four and five-star
hotels in Jakarta, much lower than the number of hotel rooms in
other cities in neighboring nations," he said during a party held
by the Jakarta Hilton International Hotel.
There are currently more than 5,000 rooms in five-star hotels,
more than 5,300 in four-star hotels and more than 4,200 in three-
star hotels available in Jakarta, which has a population of about
10 million.
By 1998, an additional 3,100 rooms in five-star hotels are
expected to enter the market, including the reopening of
refurbished hotels.
Hilton International's vice president for sales and marketing
in Asia-Pacific and Australia, Jeffrey Gan, said Singapore with a
population of 3 million, for instance, had some 32,000 rooms in
star-rated hotels.
Singapore is similar in size to Jakarta, with 620 square
meters of land.
Fauzie said the government had in the meantime approved a
number of hotel projects which would offer an additional 10,000
rooms in star-rated hotels.
"It's important to notice room rates in entering global
competition, especially with hotels being a business of service
and price," he said.
Room rates are much higher than those in Singapore, Kuala
Lumpur, Manila and Bangkok.
In the first semester of 1996, rooms in star-rated hotels in
Jakarta averaged US$109.81. In Singapore rates averaged $109.76,
Bangkok $68.23, Beijing $94.13, Kuala Lumpur $80.21 and Manila
$100.94.
However, Jakarta's average room rate is still lower than Hong
Kong's $153.17, Seoul's $159.40, Shanghai's $112.20, Sydney's
$126.23, Taipei's $131.57 and Tokyo's $178.37.
Meanwhile, Gan said the Hilton planned to expand in Indonesia
through its newly established joint venture company.
Hilton started its business in the country more than 20 years
ago by operating the Jakarta Hilton International, which is owned
by PT Indobuilco, a private firm controlled by businessman Pontjo
Sutowo. In addition to the Jakarta hotel, Hilton also runs two
other hotels owned by Pontjo, the Patra Surabaya Hilton in
Surabaya, East Java, and the Bali Hilton International in Nusa
Dua, Bali.
Conrad, a subsidiary of Hilton, plans to open a five-star
hotel in the Sudirman Central Business District on Jl. Sudirman,
just in front of the Jakarta Hilton.
Gan said that his company set up earlier this year PT Kelola
Graha Santana, which was 60 percent owned by Indobuilco and 40
percent by Hilton.
"We are looking for secondary locations like Yogyakarta and
Ujungpandang in South Sulawesi and a couple of other locations in
Indonesia," he said, refusing to disclose further details of the
plan.
He said the new company would welcome potential partners in
the planned hotel projects.
Hilton operates more than 160 hotels in almost 50 nations
worldwide. (icn)