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Indonesia’s Booming Nation-wide Investment in New Hotels

Bali News: Indonesia, Hotel Investment, Panorama, Accor, Aston, Santika, Tauzia, Carlson Rezidor, Dafam, Mari Elka Pangestu
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The largest amount of investment in Indonesia’s tourism sector is in the hotel and restaurant sector, according to the Minister of Tourism and the Creative Economy, Mari Elka Pangestu.

Quoted by the State News Agency Antara, Pangestu said: “The largest amount of investment in tourism is dedicated to the development of hotels and restaurants.”

In 2013, tourism investment in Indonesia totaled US$ 602.648 million comprised of US$462.47 million in the form of foreign investments and the remaining US$140.18 million in domestic investments.

The Minister cited examples of several anticipated sources of new tourism investment via hotel developments at second and third-tier cities by the Santika, Tauzia and Dafam Hotel Groups.

Minister Pangestu specifically cited the aforementioned domestic hotel companies as pursuing an aggressive expansion program. “These operators plan to add 140 hotels before 2015,” she added.

The Minister also mention the Carlson Rezidor Group as a foreign operator joining forces with the PT Panorama Group with plans to build 20 new hotels in the next 5-7 years. Four of these hotels will begin construction this year in Lampung, Bali, Makassar and Bandung with a total initial investment estimated at US$250 million.

The Minister continued, “There are also foreign operators working together with domestic investors to expand their business.”

At this time there are also 76 Aston Hotels, including the Aston Belitung, which just opened. Aston plans to open 150 more hotels in the coming 3-4 years.

Meanwhile, the Accor Group has been operating in Indonesia for 20 years and now runs 70 hotels in 24 cities, Accor is targeting to open 100 hotels with 20,000 room by 2015.

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