Hotels on city’s edge attracting business, pleasure travelers

Jakarta’s satellite cities have started to develop their hospitality industries to accommodate the needs of business travelers and tourists, the Indonesian Association of Hotels and Restaurants (PHRI) says.

The chairman of PHRI’s Jakarta chapter, Krishnadi, said that Bogor, Depok, Tangerang and Bekasi had started to realize the benefits they might receive from improvements in the hospitality industry.

“It’s actually occurring in many parts of the country, not just in Jakarta’s satellite cities. It shows that business and leisure can not only be done in big cities, but have also spread to neighboring, small cities,” he said.

He cited the example of Bogor, which had tried to replicate the success of Bandung as a getaway for Jakartans during weekends by having more hotels and improving its restaurants and eateries.

“With all the facilities it has now, many people like to do business there, as they can keep working and have some fun afterward,” Krishnadi said.

Imam Sutopo, who works for an oil and gas company, agrees with Krishnadi. In the past two years, he has attended many meetings and stayed several nights at hotels in Bogor and Tangerang.

“Having business meetings at hotels outside of Jakarta can let me focus more on work. Besides, unlike meetings in those hotels, conducting meetings in Jakarta’ hotels will also mean more time goes to waste on the road due to traffic,” he said.

According to a research report from Coldwell Banker, more people prefer to stay and do business in hotels located in Jakarta’s satellite cities than in Jakarta.

In the first quarter, hotels in Bogor, Depok, Tangerang and Bekasi recorded 10 percent growth in occupancy rates to 76 percent, while the occupancy rate of hotels in Jakarta only grew 0.45 percent.

The report said that higher occupancy rates were created by a high demand for hotel rooms for business, meetings and conferences as an alternative to conducting business activities outside Jakarta.

The Coldwell Banker report also said that the renovation of several five-star hotels and changes to hotel operators attributed to the low growth in the occupancy rate of hotels in the capital. The report also said that hotel rates had surged, on average, 8.8 percent to Rp 1.4 million (US$149.35) per night.

The chairman of the Association of Indonesian Tour and Travel Agencies (ASITA), Asnawi Bahar, said that limited space in Jakarta was another factor leading organizers to hold many meetings, incentives, conventions and exhibitions (MICE) activities on Jakarta’s outskirts.

“In recent years, MICE tourism has grown so fast, but the facilities in Jakarta are not adequate to cover it. Without having to face Jakarta’s traffic, hotels on Jakarta’s outskirts are the choice,” he said.