Luxury Hotel Occupancy in Indonesia Deemed Back to Pre-Pandemic Levels

Jakarta (ANTARA) - STR’s Regional Vice President for Asia Pacific, Jesper Palmsqvuit, assesses that the occupancy rate of luxury hotels in Indonesia has returned to pre-COVID-19 levels, with even greater resilience. “This is something that should be viewed very positively, and it makes the projections for the future even higher,” Palmsqvuit said during a media gathering in Jakarta on Tuesday. Palmsqvuit noted that domestic tourists’ interest in luxury tourism across various destinations is continuously growing. This can be seen from STR’s data, which indicates that luxury hotel occupancy in Indonesia over the 12 months to March 2026 has matched pre-pandemic achievements at 64 per cent. One region he mentioned as experiencing strong growth in the luxury tourism sector is Bali. Referring to research data from C9 Hotelworks, Bali currently contributes around 25 per cent of Indonesia’s branded residence market value (luxury residential properties). In response, Director of Harmoni Bali, Edward Kusma, highlighted that to develop Bali’s potential more maximally, the government needs to address several issues, such as the prevalent waste dumping in tourist destinations and access to clean water in South Bali. The government, he said, is also advised to complete infrastructure development in several areas, so that the branded residence sector connected to hotel services can be optimised. Director of Pacific Asia Horwath HTL, Matt Gebbie, added that the growth in Indonesia’s luxury tourism sector is not just about increasing the number of tourists, but also changes in market demand patterns. “To open more tourism locations in Indonesia, first and foremost, we need access. It must be easy for luxury tourists to get there, because it’s easier to bring more people, and ultimately, it will deliver what we want, which is higher occupancy rates for destinations there,” Gebbie stated.