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Indonesia's Hospitality Sector: An Emerging Powerhouse in Asia Pacific

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BNN Correspondents
New Update
Indonesia's Hospitality Sector: An Emerging Powerhouse in Asia Pacific

Asia Pacific's hospitality sector is witnessing a significant metamorphosis, with Indonesia emerging as a key player, particularly in the post-pandemic world. The latest report by Hotel Investasi Strategis on hotel development for the third quarter of 2023 has painted an optimistic picture with Indonesia initiating 212 projects comprising 35,333 rooms. These numbers place Indonesia third in the region, trailing only India and Vietnam, and signify a burgeoning hospitality sector.

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Resurgence of Jakarta's Hospitality Market

As Indonesia's dynamic capital, Jakarta has shown remarkable resilience in hotel construction, bouncing back from a pandemic-induced decline. The city witnessed a dip from 16,112 rooms in the second quarter of 2019 to 8,557 in the first quarter of 2023, only to rise again to 9,369 by the third quarter of 2023. Overall, Jakarta boasts 432 hotels with approximately 56,500 rooms, recording a Compound Annual Growth Rate (CAGR) of 5% for room availability from 2017 to 2022.

North and South Jakarta Witnessing Rapid Growth

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The rebound is particularly pronounced in North and South Jakarta. North Jakarta experienced a 5-year CAGR of 8.7% in room supply, closely followed by South Jakarta at 8.2%. This steady growth underscores Jakarta's appeal to hotel developers and investors and signals a positive future for Indonesia's hospitality sector.

Strategies for Success in Indonesian Hospitality

As the hospitality sector in Indonesia continues to flourish, hotels are leveraging proven tactics and technologies to boost top-line revenues, particularly in the crowded market of Bali. Key strategies include pricing, distribution, segmentation, operational efficiency, and customer experience optimisation.

Insights into Bali's hotel competition, customer behaviours, market forces, and the impact of online and mobile channels on hotel bookings are crucial for success. Furthermore, the influence of good governance and economic performance on the growth of the Asian tourism sector has significant implications for sustainable regional tourism development.

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