The Archipelago

Surabaya’s hotel business
boom ‘likely to continue’

Surabaya’s booming hotel business is expected to continue to expand with the continued rapid development of infrastructure in the city, including toll roads, and the Juanda airport and Tanjung Perak Port.

Construction consultancy PT BCI Asia-Surabaya reported that 11 of the 19 hotels currently under construction in East Java were located in Surabaya. It said the 11 hotels cost a combined Rp 1.83 trillion (about US$183 million).

Of the 11 new hotels in Surabaya, six are three-star and the rest four-star, including Hotel Santika on
Jl. Gubeng and Condotel Tunjungan Plaza 5 on Jl. Jemursari and.

PT BCI branch manager Aslakhul Umam said many investors were competing to build hotels in Surabaya because of the strong economy and development in the city, especially as many corporations were based in Surabaya and its surrounding areas.

“Besides the favorable economic conditions, which are supported by investment security, the planned construction of a number of infrastructure facilities in East Java and the growing oil and gas industry has spurred growth in the hotel business,” Umam told The Jakarta Post.

Indonesian Hotels and Restaurants Association Surabaya head Bambang Hermanto said there were many opportunities in the local hospitality business because the total room capacity of the hotels in the city was only 10,000, where as demand was estimated at 15,000 rooms.

So with the construction of the 11 new hotels providing an additional 1,650 rooms, there will still be demand for 3,350 additional rooms.

“Surabaya still needs more hotels because during the high season many hotels are fully booked. As a business city, many hotels in Surabaya are used for business purposes, such as meetings, exhibitions and other functions,” he said.

As well as recently expanding Juanda International Airport, the East Java provincial administration has also allocated Rp 60 billion from the provincial budget to build a 16-kilometer-long and 40-meter-wide highway stretching from Suramadu Bridge to Madura International Seaport-City (MIS-C) in Pernajuh village, Kocah district, Bangkalan, Madura.

The port on Madura is a container port built to ease the burden on the overloaded Tanjung Perak Port.

The project belongs to China Harbor Engineering Company. Construction of the port project is slated to commence in September this year.

Bangkalan Regent Fuad Amin said the construction of the international container port was part of the Suramadu Bridge development project.

He said his administration had also provided a 700-hectare plot of land for the port, 100 hectares of which would be used to build MIS-C Port, and the remaining 600 hectares for supporting facilities, including an industrial zone, hotels and a residential area.

Other ongoing infrastructure projects in Surabaya are also expected to have a positive impact on the city’s development, including hospitals, commercial offices, schools, industries, retail centers, transportation facilities and power plants.

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