Indonesian Tourism Case Study

1430 Words6 Pages
Services | Indonesia's Hotel & Hospitality Industry has a Bright Future Despite the economic slowdown in Indonesia and globally, Southeast Asia's largest country continues to attract growing numbers of travellers from around the world. At the same time, Indonesians themselves are travelling around the country like never before. Demand for hotel accommodation is set to rise significantly over the coming years and decades as more holidaymakers and business people visit the country. Intensifying trade integration in the ASEAN region and increasingly affordable airfares are a boon for hotels and related businesses in Indonesia and should help the industry overcome current challenges of oversupply in some areas. Indonesia's Hotel & Hospitality…show more content…
In the current economic climate, however, with travellers watching their expenses and low-cost carriers ruling the skies, the budget end of the market offers more straightforward investment opportunities. Lower-cost services would also cater to the growing number of local business travellers, many of whom represent small and mid-sized enterprises that lack the spending power of large domestic or global corporations. With ever more Indonesians travelling for leisure, business or family visits, the country is already seeing a rise in budget and mid-scale hotel services, especially outside of Bali and Jakarta. Two or three star-rated hotels should benefit most from the expansion of Indonesia's middle income class. In any case, investors need to carefully gauge supply and demand to ensure there is no oversupply in the vicinity of a proposed project. Studying the presence of current or planned projects that can attract more visitors to the area is equally important. Existing hotels need to focus on creating unique experiences to attract guests from Indonesia or abroad and communicating this to Indonesia’s tech-savvy consumers through social media. In doing so, hotel operators can carve out niches that will sustain sufficient occupancy even when the overall market is going through a seasonal trough or economic lull. Opportunities to eclipse challenges in the long
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