Hotel Room Occupancy Rate Bogor to Fall on New Hotel Development
The room occupancy rate for starred hotels in Bogor (West Java) is expected to decline further in 2016 as growth in demand for hotel rooms in Bogor is outpaced by growth in the hotel room supply. Bogor and the surrounding area (which includes mountain resorts) is a key cultural and tourist center in Indonesia. Located approximately 60 kilometers south of Indonesia's capital city of Jakarta, most demand (more than 90 percent) for Bogor hotel rooms comes from Jakarta.
Aan Kristiawan, Director of the Padjadjaran Suites Hotel Indonesia Group, said the room occupancy rate for (starred) hotel rooms in Bogor is expected to decline further because demand for Bogor hotel rooms is estimated to grow by approximately 25 percent (y/y) in 2016, while growth in local (starred) hotel room supply is bound to surge 56 percent (y/y) next year.
In 2014, the occupancy rate in Bogor stood at 68.6 percent. However, it is estimated to fall to the range of 55 to 60 percent in 2015, and decline further to the range of 50-55 percent next year as six new hotels will open their doors in 2016, adding some 840 new rooms.
However, it is not only growth in the supply side in Bogor that triggers the lower occupancy rate. Hotel development in nearby-located cities or regencies such as Bekasi, Karawang and the Puncak Pass also reduced demand for Bogor hotel rooms. Previously, due to a lack of hotels in Bekasi and Karawang, people who required a hotel room in these regions would go to Bogor instead. Meanwhile, hotel development in the Puncak Pass area, a popular tourist destination, has also grown, reducing the need to stay in Bogor.
Local Bogor authorities say they support investment in Bogor's hotel industry. However, they are concerned about the concentration of (starred) hotels in the Jalan Pajajaran area and therefore suggest future hotel development to take place in other areas in Bogor. Especially in the area around the Botanical Gardens (Kebun Raya Bogor) local authorities are eager to limit the establishment of new hotels.
The most popular tourist destinations in Bogor and its surrounding areas are the Botanical Gardens, the Presidential Palace, the Jaksa Waterfall, the Cisarua Safari Park, Jungleland Adventure Theme Park, and the Jungle Waterpark.
Further Reading:
• Overview & Analysis of Indonesia's Tourism Industry