Jakarta Hotel Market First Half 2007 and jan-August 2008

Jakarta Hotel Market First Half 2007
A similar trend to the final semester of 2006 continued in the 1 semester of 2007, with a number of hotels reducing their room supply. Early in the year, over 50% of rooms in The Sultan Hotel were temporarily closed , leaving approximately 505 rooms available. There is no definite plan as to the size and type of development for the above premises, as the management is still considering few options available. Hotel
Raddin Ancol was closed down in May 2007. With no new hotels opening during the review period, the total supply for 3, 4 and 5-star hotels in Jakarta declined by 3.7% to 21,200 rooms from 92 hotels. Based on the number of hotel rooms, 5-star hotels contributed the largest share of supply at 41%. Based on the number of hotels, 3-star hotels were the largest contributor to at 50%. Approximately 34.1% of the existing supply was located in the CBD.

Jakarta hotel market will see no new hotels completed during 2007. New supply is projected to enter the market in 2008-2010, totaling 2,422 rooms from 11 hotels. The 5-star hotels will contribute almost 60% or 1,344 rooms.
By 2009, the Jakarta hotel market will see a larger involvement of Aston in managing new hotels and serviced apartments in Jakarta, including Grand Aston Albergo di Bellezza (Permata Hijau, South Jakarta),
Aston Marina Ancol, Hotel & Residence (Ancol, North Jakarta), Aston SoHo, Hotel & Residence (Slipi, West
Jakarta) and Aston Mangga Dua, Hotel & Residence, (Mangga Dua, North Jakarta). Meanwhile Accor, as the major hotel operator in Jakarta, will manage 2 new hotels by 2009, adding to the 9 existing hotels managed by Accor.
During the first semester of 2007, total passenger arrivals at Soekarno-Hatta International Airport were recorded at 7,170,879 people, slightly increased by 1.12% from the level achieved at the same period last year. International arrivals grew by 3.1%,whilst domestic arrivals plunged by 9.7%.
The overall occupancy rate continued to improve over the review period, from 62.21% during the last semester of 2006 to 64.53%. All hotel categories enjoyed occupancy rate increment, led by 3 and 4 star hotels at 70.48% and 68.76%, respectively. Occupancy for 5 star hotels slightly increased to 57.29%.



Jakarta Hotel Market jan-August 2008
Property Market Overview: http://www.colliers.com
In 3Q2008, no new hotel developments were introduced to the market, a situation similar to other quarters. The hotel market remained at 21,521 rooms, comprising 5,001 in 3-star hotels, 8,213 in 4-star hotels and 8,307 in 5-star properties. New 3-star hotels are ex¬pected to enter the market by the end of this year, among them the Harris Hotel, the Aston Marina Ancol and the Kempinski Hotel In¬donesia
Over the next three years, several interna¬tional hotel operators have committed to entering the Jakarta hotel market, as indicated in the table below. Between 2008 and 2011, the hotel stock is projected to grow by 4.79% per annum.
Between January and August 2008, Indonesia welcomed 4,069,474 visitors, an increase of 36.91% over the same period in 2007, which saw 2,972,394 visitors. Likewise, foreign visi¬tors to Jakarta also increased to 979,053, up from 754,023, or an increase of 29.84% year-on-year.
The five top markets for visitors to Jakarta were Asian countries, including Malay¬sia (15.94%), Singapore (9.12%), China (7.33%), Japan (7.18%) and the Republic of Korea (4.78%).
In general, the average occupancy rate (AOR) of star-rated hotels in Jakarta experienced a rise of 0.82% quarter-on-quarter (QoQ), with the 5-star category recording a positive growth of 14.94%. By contrast, the 3- and 4-star hotel categories registered a downturn in AOR of 6.07% and 3.59%, respectively, due mainly to the Moslem fasting seasons and school holidays.
Only 3-star hotels registered a negative growth in this quarter, falling by 15.76% from Rp336,746 to Rp283,684. By contrast, 4- and 5-star hotels recorded an ARR of Rp443,486 and Rp794,464, respectively, an increase of 0.70% and 9.24%, respectively.
Generally, since early 2008, the RevPAR has shown an upward trend. On average, the RevPAR grew by around 3.04% Q0Q, which indicates that the hotel market has stepped up steadily.
With growing confidence in the security issues in the country, Indonesia has plenty of poten¬tial to become one of the big five destinations for MICE (Meeting, Incentive, Convention and Exhibition) activity within the Asia Pacific region over the next five years. This should encourage the government to provide better infrastructure to welcome inbound tourists and train more human resources in the tourism industry. This action is necessary since Indonesia currently ranks 10 in the list of primary destinations for MICE activities in the Asia Pacific region.