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Hotels see revenue decline amid budget cuts: Survey

In a survey involving 717 hotels across 30 provinces, more than 30 percent of respondents reported revenue losses of more than 40 percent in January compared to the same month last year. 

Ni Made Tasyarani (The Jakarta Post)
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Mon, April 14, 2025 Published on Apr. 14, 2025 Published on 2025-04-14T15:34:16+07:00

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Hotels see revenue decline amid budget cuts: Survey Stock photo showing a hotel bed (Shutterstock/FabrikaSimf)

H

otels across the country have seen declining revenue amid government budget cuts, with lower-than-expected performance in the beginning of this year, property consultant Colliers reported. 

In a survey involving 717 hotels across 30 provinces published by the Indonesian Hotel and Restaurant Association (PHRI) and hospitality consulting brand Horwath Hotel, Tourism & Leisure (HTL) in late March, more than 30 percent of respondents reported revenue losses exceeding 40 percent in January from the same month last year. 

Citing the same survey, Colliers Indonesia research head Ferry Salanto said in a virtual media briefing on Monday that some hotels “had implemented efficiency measures, including reducing working hours and unpaid leave”.

While the report noted that the first quarter is traditionally the weakest among the four quarters of a full financial year, it also showed plummeting hotel performance with 46 percent of respondents reporting “much worse” performance in January.

Ferry from Colliers pointed out that hotel performance in Jakarta from 2023 to 2024 had shown “positive signals” but then gradually declined since late 2024 when state budget cuts were planned and worsened further when the efficiency measures took effect in January.

Read also: Budget cuts put Bali’s event industry on brink of collapse, association says

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The decline in revenue was attributed to President Prabowo Subianto’s austerity drive for the state and regional budgets in 2025, which led to cutbacks on official trips, meetings and events held in hotels and convention centers. 

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