Kompas.com quotes the chairman of the Indonesian Hotel and Restaurant Association (PHRI), Hariyadi Sukamdani, saying that hotel occupancies in Indonesia declined 20% compared to last year’s Lebaran Holiday Period.
Hariyadi said the decline in business in the Indonesian hotel sector is based on preliminary reports he has received from a number of areas, including Yogyakarta, Bali, and Solo.
“As we suspected would happen, occupancies were lower this year. I’ve had the opportunity to call several areas of Indonesia- Solo, Jogja, and Bali. Those were the destinations I had the chance to check. Occupancies are declining by around 20% compared to last year,” shared Hariyadi, following a Lebaran open house gathering in Jakarta on Tuesday, 01 April 2025.
Hariyadi suspects the business downturn reflects the public’s reduced purchasing power. He has observed that hotel reservations are made with less lead time than last year. In addition, the length of stay at destination hotels is shorter than last year.
Speaking on the second day of Lebaran (H2), the PHRI Chairman bemoaned: “The booking reservations are very late in materializing, and we’re only at the beginning of the long holiday period and have not hit 07 April yet.”
Continuing to underline the failure of domestic bookings to hit robust levels as in years past, he said: “In Solo, guests are checking out already on 04 or 05 April. In Jogja, guests are leaving on the 6th. Bali has also experienced a shortened stay, as reflected in earlier checkouts, with few staying in their Bali hotel until the 7th.”
To establish higher occupancy rates at Indonesian hotels, Hariyadi says the government must take steps to restore budgets for government meetings and conferences. The PHRI chairman says that the government market share for some hotels is 40%.
Hariyadi added that if the government does not increase spending on the hotel sector, there will be hotels that close. He said before the Lebaran 2025 holiday, two hotels in Boor were forced to close. He warned that even more hotels would close if the government did not support them.
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