Hotel Market

MARKET Snapshot June 2020

IN
MINUTES
Savills Research
Indonesia

Savills Hotels Team

Raymond Clement Julien Naouri Tomotsugu Ichikawa Mauro Gasparotti
Please contact Managing Director Director Director Director
us for further Asia Pacific Asia Pacific Japan Southeast Asia
information +65 6415 7570 +65 6415 7583 +81 3 6777 5184 +84 908 556 492
rclement@savills.com.sg jnaouri@savills.com.sg toichikawa@savills.com.jp Mgasparotti@savills.asia

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 DOMESTIC TOURISM

Together with the steady growth in the number of international visitor

arrivals over the last decade, domestic demand in Indonesia historically
has always been strong. With the current travel restrictions in place as a
result of the COVID-19 pandemic, Indonesia hotel industry’s first effective
steps towards recovery will predominantly depend on the return of
domestic travel. The Indonesian Government has revealed its tourism
support plan which includes incentives to airlines and travel agencies, tax
waivers for hoteliers and restaurants in selected destinations, as well as
discounts for domestic tourists.

After three months of closure, on June 8th the government finally eased
its large-scale social restrictions (LSSR), allowing more businesses to
reopen. Domestic flights resumed on the 9th of June despite Indonesia
continuing to report a high number of daily infections. According to the
Indonesian Hotel and Restaurant Association (PHRI), many hotels decided
to remain closed due to the anticipated low demand, with plans to reopen
no earlier than July. However, hotels are slowly reopening in Jakarta,
where the outbreak is under control. Operating hotels in the capital city
reported that business demand is starting to pick up while leisure demand
remains under pressure.

During this time of uncertainty, to help local demand recover, Indonesia

will need to ensure that traveller confidence levels are high.

Domestic Guests In Classifed and Non-Classified Hotels

Domestic guest numbers in Classified and

Non-Classified** hotels were reported to be

17.4x
70

60
%
R: 9.90
50 CAG more than the number
of international guests

40
million

30

95:5
20

10

0 Ratio of Domestic vs. International

2010 2011 2012 2013 2014 2015 2016 2017 2018 guests in Classified and
Non-Classified hotels
Source: BPS - Statistics Indonesia, Savills Hotels

Note:
*Classified hotel: is an establishment which uses a building or part of building especially prepared to any person to stay, eat and obtain service as well as other facilities against
payment, and it has fulfilled the requirements as a star hotel.
**Non-classified hotel: is an establishment which uses a building or part of building especially prepared to any person to stay, eat and obtain service as well as other facilities against
payment, and it has not fulfilled the requirements as a star hotel, but it has fulfilled as a non star hotel.

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 TOP POPULAR PROVINCES
BY DOMESTIC DEMAND
By Number of Domestic Guests in 2018 (latest data available)

CLASSIFIED HOTELS

West Java
Central Java
East Java
Jakarta
North Sumatra

NON-CLASSIFIED HOTELS

Jakarta
West Java
East Java
Central Java
Bali

By Average Length of Stay in 2018

Bali
Papua West Papua
Jakarta
East Kalimantan

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 OUTBOUND TOURISM

7.6
As the economy in Indonesia continues to grow, so does its
outbound tourism, demonstrating a significant appetite for travel
abroad. This also demonstrates a considerable capacity for a
growth in domestic tourism, especially at a time where international

MILLION
travel is restricted. In 2019, a total of 7.6 million Indonesians
travelled to the top five neighbouring markets in Southeast Asia.
With the current travel ban in place, a proportion of this demand
Indonesians travelled to the certainly can be diverted locally.
top five neighbouring
markets in Southeast Asia

INDONESIA

Indonesian Outbound in Top Five Southeast Asia markets in 2019

Philippines
Thailand 70,819
709,613
Vietnam
106,688

Malaysia
Singapore 3,623,277
3,109,000

Sources: Tourism Malaysia with the cooperation of Immigration Department

Republic Of The Philippines Department Of Tourism
Thailand Ministry of Tourism and Sports
Vietnam National Administration of Tourism
Singapore Tourism Board (STB)

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