Association: Budget Hotels to Hit 30% in 2013 | Kontan
(The Insider Stories) — The number of budget hotels in Indonesia is growing more rapidly than other types and will likely reach 30% of total number of rooms by the end of this year, Kontan daily reported Tuesday.
Yanti Sukamdani, the head of the country’s hotel and restaurant association, was quoted as saying that the number of rooms in the country rose by 15% in the first quarter compared with the same period a year ago.
“There’s 17,250 new rooms in the first quarter,” she said, adding that the highest growth during the quarter were in Jakarta, Bandung, and Bali.
Executive Director of Indonesia Property Watch Ali Tranghanda viewed that escalating competition is forcing hotelier to develop the budget hotels. As there are more rooms available, he forecast room occupancy rate to fall to 75% this year from 86% at the end of 2012.
