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Hotels expect drop in occupancy during year-end holidays
Hotel businesses are expecting a lower occupancy rate during this year's Christmas and New Year season compared with last year, as the country grapples with weakening purchasing power.
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Holiday travels: Passengers line up to check in at the departure terminal of Sultan Hasanuddin International Airport in Maros, South Sulawesi, on Dec. 22, 2023. Airport operator records showed nearly 95,000 people traveled to and from the airport between Dec. 19 and 21 ahead of the 2023 year-end holiday. (Antara/Arnas Padda)
H
otel businesses are expecting a drop in occupancy rates during this year's Christmas and New Year season compared with last year, as the country grapples with weakening spending power.
Indonesian Hotels and Restaurants Association (PHRI) chairman, Hariyadi Sukamdani, said that the average occupancy rate was projected to decline to 45 percent from around 50 percent recorded during the Christmas and New Year season last year.
As of Nov. 19, hotel businesses have recorded sluggish booking performance compared with last year, which has resulted in the lower performance projection for the upcoming holiday season, he said.
“On a national scale, we see a possibility [of an occupancy decrease of] up to 10 percentage points compared with last year,” Hariyadi said during a press conference in Jakarta on Tuesday.
Read also: Ticket price drop expected before year-end holidays: Deputy Minister
However, he noted that favorite hotels, such as those located in Malioboro, Yogyakarta, might be able to retain their performance.
Indonesia’s gross domestic product (GDP) growth has slowed down every quarter this year on the back of a slowdown in household spending, which economists attribute to weakening purchasing power.
