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Local hotel demand soars ahead of Independence Day in Nusantara
Industry association PHRI says hotels in East Kalimantan have reached full capacity following a surge in booking demand ahead of the planned Independence Day celebrations in Nusantara, but has also assured that the resulting rate increases would normalize afterward.
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President Joko “Jokowi“ Widodo (right) talks to journalists on July 29, 2024 while visiting the new presidential palace in Nusantara, East Kalimantan. (AFP/Handout/Indonesia's Presidential Palace)
H
otels in the East Kalimantan cities of Samarinda and Balikpapan have seen a surge in demand to full capacity ahead of the 79th Independence Day celebrations in Nusantara, according to the Indonesian Hotels and Restaurants Association (PHRI).
PHRI also said the spike in demand had led to an increase in room rates, but it assured that prices would normalize following the Aug. 17 festivities.
“I think the price surge could be between 10 and 20 percent, as many people are flocking to the area in a short time. It’s a basic law of supply and demand: When demand is high and supply is limited, the prices go up,” PHRI chairman Hariyadi Sukamdani said on Monday, as quoted by news portal Kumparan.com.
State news agency Antara has reported that hotels in East Kalimantan had seen their occupancy rates rise to 90 percent due to the upcoming celebrations.
Hariyadi said the surge in booking demand had prompted some participants of the ceremony to rent residences that had been temporarily converted into guesthouses over the Independence Day holiday.
“We lacked hotel rooms, so this led to local residents coming up with the initiative to rent out their homes,” he added.
President Joko “Jokowi” Widodo and president-elect Prabowo Subianto are scheduled to celebrate Independence Day in the country’s future capital. Vice President Ma’ruf Amin and vice president-elect Gibran Rakabuming Raka, Jokowi’s eldest son, are to attend another ceremony held on the same day at the State Palace in Jakarta.
