Hotels to hike rates early next year

Hotels in Jakarta are expected to hike their rates on Jan. 1 should the administration press ahead with a decision to increase the entertainment tax.

Indonesian Association of Hotels and Restaurants (PHRI) chairwoman Yanti Sukamdani said the only way for hotels and restaurants to deal with the new tax would be to pass the cost on to customers.

“We expect to increase hotel rates to offset the cost of the higher tax,” she said Sunday.

Yanti said the city’s decision to impose the 10 percent entertainment tax — the maximum amount allowed under the tax law — was regrettable.

“Other cities such as Sleman apply a 5 percent tax for hotels, as do other countries such as Malaysia and Singapore,” she said.