JAKARTA: Indonesia Hotels and Restaurants Association predicts hospitality business will continue to grow, although fuel price hike is inevitable. Hotel rate is predicted to increase 5%-10%, while the price of goods for food & beverage has increased earlier.
“We are still calculating the range for hotel rate hike. It will surely burden the hotel operational absorbing almost 20% of hotel production expense,” Chairman of Indonesia Hotels and Restaurants Association (PHRI) Yanti Sukamdani said today.
The electricity expense portion is 75% of the total energy expenses, while energy expense is 40% of the total production expenses. Such fuel price hike will also increase transportation and energy expenses for generator.
According to her, several PHRI officials in regional areas are planning to increase hotel tariff following fuel price hike as of April 2012. Yanti confirmed that star-hotel entrepreneurs in Yogyakarta, Makassar, and Bandung will increase rental rate around 10% per night.
It’s not easy to increase hotel room rate since most of the visitor is local tourist, while visitor with higher purchasing power is actually foreign tourist.
“It’s difficult to increase hotel rate in Bandung since hotel room in the city has been categorized as over supply. The most realistic thing is to increase 5%-10%. Such increase will affect hotel occupancy for 1-2 months,” Asmila Boutique Hotel Bandung General Manager Jamal Muhammad said. (t06/aph)