Thursday, January 15, 2015

Oversupply of Hotel Rooms in Bali, Makasar and West Java

The Indonesian Hotel and Restaurant Association (PHRI) has again suggested to the Government to put a temporary freeze or moratorium on permission to build new hotels in a number of areas in Indonesia suffering from an oversupply of hotel rooms.

Wiryanti Sukamdani, the chairman of the PHRI, recently told the press assembled outside the office of the Indonesian vice-president, “We have made our recommendation based on the fact that there are a number of areas with too many hotels, such as Bali, Makassar and West Java.”

Sukamdani’s comments were made following a meeting held with the vice-president and a number of board members of the PHRI to discuss the condition of the national hotel sector.

Recent policies to limit the number of government meetings at hotels has reduced hotel incomes across Indonesia. This situation prompted the PHRIto take concrete steps and request a moratorium on new hotels in selected areas from the government. 

While hoping that the government might reconsider or, at least, loosen the restriction on government meetings in hotels, the PHRI also called on the vice-president to improve connectivity and accessibility to help boost tourism numbers. Equally important, according to PHRI, is the need for improved airports that will facilitate both domestic and international tourism arrivals. 

PHRI is also asking the government to consider the injection of promotional funds to help promote tourism across the nation.

In response to the plea of PHRI, a spokesperson for the Vice-president’s office said the government will increase promotional spending for tourism from Rp. 250 billion to Rp. 1.2 trillion.

The spokesman also pledged that money saved by the government in reducing meetings at hotels will be diverted to addressing infrastructure issues, such as the upgrading of airport facilities.

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