Indonesia's Tourism Recovery Is Getting Wetter, Hotel Business Investment In 2023 Can Be Capai 300 Million US Dollars

JAKARTA - Property consultant Jones Lang LaSalle (JLL) estimates that hotel business investment volume in Indonesia will reach US$300 million by 2023.

"We estimate that Indonesia will record a total hotel investment volume of 300 million US dollars in 2023," said Vice President, Investment Sales Asia, JLL Hotels & Hospitality Group JLL Julien Naouri at an online press conference quoted by Antara, Thursday 27 October.

Julien also said that the recovery of tourism in Indonesia is estimated to be more comprehensive considering that most countries in the surrounding area have lifted travel restrictions.

"Regarding the sentiment of hotel investment this year, until September Indonesia led in terms of hotel investment value volume with a total value of 174 million US dollars," he said.

JLL also sees that until August 2022, the arrival rate of foreign tourists in major cities such as Jakarta and Bali has exceeded 2021.

The performance of luxury hotels also continues to increase, reaching a level close to pre-pandemic, especially Bali, which experienced significant growth in the Average Daily Rate (ADR) of luxury hotel or luxury class by surpassing the 2019 level, and offsetting relatively low occupancy rates.

Meanwhile, Jakarta can still rely on strong demand from domestic tourists while waiting for the arrival of foreign corporate tourists.

Previously, Chairman of the Committee for Handling COVID-19 and National Economic Recovery Airlangga Hartarto said that Indonesia could escape the pandemic if the number of cases of corona virus transmission continued to slope until February 2023.

Airlangga said that the government would evaluate the implementation of restrictions on community activities (PPKM) until the end of October 2022 to determine the next policy.

The number of cases of COVID-19 transmission in Indonesia in the last six months has been sloping and the effective reproduction rate (Rt) shows that the rate of transmission of the corona virus has been less than 1 in the last three months.