TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Jakarta hotels cut staff to stay afloat amid govt spending cuts
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
The Welcome Monument, a popular landmark in Central Jakarta, is pictured on Sept. 14, 2024. (AFP/Bay Ismoyo)
M
ost hotels in Jakarta have reported declining occupancy rates since the government cut spending on official trips and conferences, while operating costs keep climbing, forcing some to reduce headcount to scrape by.
In a survey conducted by the Indonesian Hotel and Restaurant Association (PHRI) among its members in April, 97 percent of the responding hotels said occupancy rates were on the decline.
The survey results were announced in a press release published by the lobby group on Monday.
Sixty-seven percent of the respondents said the greatest decline in revenue came from the government market segment as the central government initiated a massive national budget reallocation that restricted spending on official trips and meetings in hotels.
The cuts were made to free up additional budget funds for the government’s priority initiatives, namely the free meals program and seed funding for the new state asset fund, Daya Anagata Nusantara (Danantara).
Occupancy at star-rated hotels fell to 38.26 percent this March, according to Statistics Indonesia (BPS) data, which marked the lowest in several years and was down from 44.08 percent in March 2024.
Jakarta hotels had to rely almost solely on domestic guests, since foreign tourist visits to Jakarta were “minuscule”, according to the PHRI statement, which cited unspecified data from Statistics Indonesia (BPS) that found foreign tourists accounted for just 1.98 percent of total hotel stays from 2019 to 2023. The statement did not specify whether that number represented the national or just the Jakarta figure.
Your Opinion Matters
Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.
Enter at least 30 characters
0
/ 30
Thank you
Thank you for sharing your thoughts. We appreciate your feedback.
