West Java PHRI Complains of Sluggish Hotel Business Throughout 2026, Some Forced to Streamline Staff

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

PHRI West Java Chairman Dodi Ahmad Sofiandi stated that the hospitality business has been sluggish since January through July 2026. He mentioned that occupancy or hotel guest stays only saw an increase during certain long weekends or school holidays. "The mode is sluggish," he said when contacted this weekend, Sunday (19/7/2026). Dodi noted that several hotels have been forced to streamline their staff.

He stated that hotel occupancy from January to March was only around 50 percent. Meanwhile, from May to June, there was an increase in hotel occupancy due to the long holiday and school break. However, the occupancy of budget hotels in West Java, particularly in Bandung City, has experienced a drastic decline. He assessed that this occurred partly due to the presence of apartments, homestays, and other accommodations that are very easily rented out to the public.

In fact, he said, these operations do not have permits. Dodi stated that their existence contributes to the decline in budget hotel occupancy. Additionally, hotels not located in tourist areas also tend to have low occupancy rates. Dodi expressed hope that the sluggish hotel and restaurant business conditions will not persist indefinitely. He hopes the government will promptly consider the state of this business sector.