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Indonesia's Star-Rated Hotel Occupancy Rate Recovery: Contrasting Trends Across the Country

Over the past 12 months (May-22 to Apr-23), Indonesia has witnessed varying degrees of recovery in its provinces' star-rated hotel occupancy rates.

 Beach - Image by Sangga Rima Roman Sella on Unsplash
Beach - Image by Sangga Rima Roman Sella on Unsplash

While popular tourist destinations like Bali and Kep. Riau have experienced significant improvements, remote and less accessible locations such as Papua, Maluku, and North Kalimantan have faced a decline in performance.

Bali emerged as one of the top-performing provinces in terms of hotel occupancy recovery. During this period, Bali saw a substantial increase in its occupancy rate, rising from 16% to 43.3%. This 27.2 percentage point surge can be attributed to the province's efforts to resurrect the international market and refocus on the domestic market.

Percentage Point Growth
Percentage Point Growth

Another province that showcased significant progress in hotel occupancy recovery was Kep. Riau, particularly the islands of Batam and Bintan. This region experienced a notable 17.6 percentage point increase in occupancy rates. Kep. Riau benefits from its proximity to Singapore, attracting many Singaporean tourists seeking leisure, shopping, and recreational activities.



Among the provinces on Java, except for DKI Jakarta, several emerged as the fastest-recovering markets in Indonesia. Yogyakarta and Central Java witnessed significant improvements in their hotel occupancy rates, with increases of 14.7 and 12 percentage points, respectively.


Java's robust transportation infrastructure, dense population, and diverse attractions make it an attractive destination for domestic travelers even during challenging times. The combination of these factors contributed to the notable recovery in hotel occupancy across these provinces.



While many popular destinations experienced positive trends in hotel occupancy, some remote and less accessible locations faced challenges. Provinces like Papua, Maluku, and North Kalimantan witnessed a decline in performance over the past year.


Factors such as limited transportation options, lesser-known tourist attractions, and reduced accessibility might have contributed to the lower occupancy rates in these areas.



 

About Writer

Ross Woods is a seasoned hotel investment advisor with over 30 years of global experience in hotel asset management, portfolio management, and hotel advisory services. Known for his collaborative-based consulting style that integrates a high level of strategic and analytical expertise, his “smarts” are sought by clients to solve complex issues, make better decisions and realize the highest risk-adjusted investment returns. His clients include banks, private investors, REITs and hotel management companies in the United States, South East Asia, Australasia, Europe, and Dubai.



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