THE PROSPECT OF HOTEL BUSINESS

Coldwell Banker Indonesia noted that 17 new hotels were ready to operate in Jakarta and surrounding area. The Jakarta capital City would be made merry by opening of a number of new hotels and the trend was felt since quarter II-2012 due to increasing demand for hotel rooms.

According to Coldwell Banker Indonesia, as Indonesia’s capital city Jakarta was offering reasonably good potential for hotel business in Indonesia. Demand for hotel rooms were predicted to increase through 2012 which was driven by growing supply in the surrounding areas especially four star hotels.

In addition to the above, Jakarta’s hinterlands like Depok and Bogor also held the same potential for growth. Among the hotels to appear were Whiz hotel and Bogor lcon whioh were scheduled to operate in 2013. One of the hotels to operate this year was in Depok area. 53% of the new hotels to operate were of four-star category.

In quarter II-2012 Coldwell Banker noted additional 140 rooms of starred hotels in Jabodetabek; room occupancy of the starred hotels in that area was 66.36%.

Three-star hotels still posted highest occupancy level, i.e. 69,72%, but the highest increase of occupancy level was in four-star hotels, around 1.55% against quarter I-2012.

Location wise, occupancy level of starred hotels in Jakarta was 67,11%, in Bogor 76% and in Bekasi 85%. Meanwhile in Tangerang, Banten occupancy level of starred hotels reached 66.21% with increase of 2.81% against previous quarter.

In line with increased occupancy and demand for hotel rooms in Jabodetabek, room rates were also increasing significantly. As a whole, average price increase of starred hotels in this region was 2.63%.

In quarter II 2012, the average room rate for starred hotel was Rp 883,109 per night. Meanwhile by star level, the average room rate of three star hotel was Rp 608,080/night, four star hotel Rp 732,819/room/night and room rate of five star hotel was Rp 1,215.857 per room/night.

It was estimated that the hotel business section in Jakarta and surrounding could constantly increase considering the increased demand in tandem with emerging new business. The increased supply was particularly with two-star to four-star hotels. Building of the new hotels was to meet demand for rooms, meeting rooms, conference rooms etc.

From the perspective of macro-economy which was projected to be 6.5% this year in addition to people’s strong purchasing power, an impressive demography including a rising middle class with high mobility, were the main determinant factors of hotel development. Demand for two wheel or four wheel vehicles, and development of middle class property which spread out all over the country, orchestrated the growth process of hotel industry.

Soon, not only in Jakarta the hotel industry would also be growth in other regions of high economic potentials including strong investment and industry. Broadly speaking, the provinces in Java posted higher per capita income compared to other provinces outside Java; so it seemed understandable that hotel development was flourishing in Java.

In time to come development of hotels outside Java such as in Sumatra, Kalimantan and Sulawesi was believed to soar up considering that those regions held abundant natural resources as underlying factor for economic activities, investment, and industry.

Agricultural and minery products which were generally processed outside Java were expected to develop and jack up regional GDP, By selling agricultural and minery products to domestic or export markets, the provinces would have their original regional income.

Development of basic infra-structures especially transportation (land, see and air), telecommunication and electricity which were well underway in the past few years were supportive to the growth of hotel industry.

The development of airports and seaports in many regions in tandem with the development of national aviation industry would spur on people’s mobility so the need for hotel accommodation of all grades would increase. Generally speaking the growth of hotel industry would be followed by growth of business, trading and restaurants as complementary factor to hotel industry.

The need for hotels was not just for staying or meeting, conventions etc but also for recreation for local and overseas tourists. The businessworld needed hotels for business meetings. Inter insular or inter city traders needed hotels to stay or transit between transactions.

The tourists and travelers, groups, families or individuals need a hotel to say and unwind as they go to visit places. Tour packages were wrapped up by travel agents in collaboration with hotels. Based on such collaboration plan, tourists and travelers might expect low price tour packages.

Business New - August 13, 2012