PHRI says election not to affect tourism sector

Dewi Santoso, The Jakarta Post, Jakarta

The Indonesian Hotel and Restaurant Association (PHRI) is hopeful that the current general election process will not harm the country's tourism sector.

PHRI chairwoman Yanti Sukamdani Hardjoprakoso said on Wednesday that she had not seen anything untoward since the start of the election campaign a few days ago.

"Thus far, the hotel occupancy rate is stable at between 45 percent and 50 percent. And I don't see that the election is having any major impact, at least, not yet," said Yanti, adding that the occupancy rate in Jakarta had reached 55 percent a couple of months ago as there were a lot of conferences and meetings being held.

The country is currently in the run-up to a general election and its first ever direct presidential election, which may become a protracted seven-month process. There has been concern about rising political tension and possible violence during the election. In fact, the rupiah and the stock market have come under severe pressure since the start of the election campaign last week, although some analysts say that the election jitters have now started to subside.

Meanwhile, the hotel occupancy rate in Bali is currently around 60 percent -- a reasonable figure considering that this is now low season (February to April).

Last year, the low season occupancy rate stood at only between 40 percent and 45 percent in Jakarta, and 50 percent in Bali, the country's main tourist destination.

When the high season comes (May to September), the rate is expected to reach between 55 percent and 60 percent in Jakarta, and between 70 percent and 80 percent in Bali.

In 2003, the occupancy rate during high season in Jakarta was 60 percent while in Bali it was around 80 percent.

The number of tourists visiting Indonesia last year reached 4.4 million, of which 1 million traveled to Jakarta, 1.3 million to Batam, and less than 1 million to Bali, leaving the rest spread throughout the country.

This year, the number is expected to increase to 5 million, with 1.2 million traveling to Jakarta, 1.3 million to Batam and 1 million to Bali, with the other 1.5 million spread throughout the archipelago.

The number of tourists is higher in Batam as the industrial island is the top destination for businesspeople from around the world.