Indonesian Political, Business & Finance News

Smooth elections bring hope to hotel industry

| Source: JP

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)

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