Smooth elections bring hope to hotel industry

JAKARTA (JP): The Indonesia Hotel & Restaurant Association said on Tuesday the peaceful general election brought the ailing hotel industry hope of recovery.

Secretary-general Rianto Nurhadi said the relatively smooth polls on Monday would contribute to long-term stability and security in the country.

"If the peaceful situation continues, I believe the hotel industry will be able to recover within a year," he told The Jakarta Post.

Indonesia, which has been marred by religious and ethnic clashes over the past several months, held its most democratic elections in over 40 years on Monday. Fears that the elections would be marred by unrest were not realized, although there is still concern the losers of Monday's polls could cause clashes.

The public relations director of the Mandarin Oriental hotel in Central Jakarta, Ria Leimena, shared Rianto's optimism, adding that a fair ballot count was important to ensure the immediate recovery of the hotel industry as well as other business sectors.

"If the results of the vote are accepted by all parties, no troubles will occur and business can return to normal," she told the Post.

The occupancy rates of local hotels have continued to drop due to a decline in the number of foreign visitors. Riots and unrest across the archipelago have discouraged most foreign tourists from visiting the country.

He predicted an upswing of business activities after the elections would boost the occupancy rates and average room rates of hotels.

Hotels occupancy rates currently stand at between 20 percent and 40 percent on average, or about half the average occupancy rate before the economic crisis. (cst)