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BY THE end of 2022, Jakarta will have a total supply of 42,500 new hotel rooms. This amount comes from three-star hotels to luxury hotels.
The number of hotel rooms is up 1.6% on an annual basis. This report is contained in the 2022 Property Market Review & 2023 Projections Facing Global Economic Issues released by the property consulting firm, Cushman & Wakefield.
According to the Director of Strategic Consulting, Cushman & Wakefield, Arief Rahardjo, the hotel market in Jakarta is still in the recovery stage and is not as good as it was before the pandemic. The total supply that is expected to operate in 2023 is only 600 hotel rooms, still far below the total new supply before the pandemic in 2019 of 2,400 rooms.
“In the last few years, the hotel market in Jakarta has not shown its best performance. The average new supply in the capital in the last 10 years has only been around 1,700 hotel rooms per year. The lifting of Indonesia’s international travel ban on January 12, 2022 is considered an important milestone for the recovery of the country’s tourism and hotel sector in 2022,” he said.
He explained, throughout 2022, an increase in business trips and company meeting activities was observed to have contributed to a decrease in the hotel vacancy rate from previously 63 percent in 2021 to 52 percent in 2022.
“Increased meeting activities from the government and political parties will continue to reduce the vacancy rate in 2023 which is the year of preparation for the general election,” Arief concluded. [sources/photo special]
