Unlicensed Home Stays Proliferate, Wrecking Hotel Business in West Java

The Indonesian Hotel and Restaurant Association (PHRI) of West Java has complained that the hotel and restaurant business in West Java has been experiencing a slump from January to July 2026. They stated that occupancy increases only occur during long holiday weekends and school holidays.

Despite a rise in occupancy or hotel stays by visitors during certain long weekends or school holidays, PHRI West Java Chairman Dodi Ahmad Sofiandi revealed that the hotel business has been sluggish throughout 2026. “The mode is sluggish,” he said when contacted over the weekend, Sunday (19/7/2026).

Dodi noted that hotel occupancy rates from January to March were only around 50 percent. Meanwhile, in May to June, there was an increase in occupancy due to the long holidays and school breaks.

In fact, the occupancy of budget hotels in West Java, particularly in the city of Bandung, has experienced a drastic decline. He assessed that this is partly due to the existence of apartments, home stays, and other private properties that are very easily rented out to the public.

He pointed out that these operations do not possess licences. Dodi said the presence of privately owned home stays and apartments being rented out contributes to the decline in budget hotel occupancy.

Furthermore, hotels not located in tourist areas also tend to have low occupancy rates. He mentioned that several hotels have been forced to implement staff efficiency measures.

Dodi hopes that the sluggish condition of the hotel and restaurant business will not continue indefinitely. He expressed hope that the government will promptly consider the state of this business sector.