JULY 31, 2024
MARKET BRIEF
Jakarta Hotel | H1 2024
Jakarta Hotel | H1 2024
At the beginning of the first half of 2024, the Jakarta hotel industry experienced slower growth compared to the latter half of the year. The slowdown was primarily due to the Ramadhan season, during which government and business activities typically quiet down. However, the market remained strong as MICE activities resumed after Eid, and numerous musical events were hosted in the city during this period. Unlike previous years, the General Election held in the first half of 2024 had minimal impact on occupancy rates in Jakarta’s hotel market. Hotel performance is projected to continue improving until mid-Q4 2024.
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New hotel supplies primarily seen in Central Jakarta and the CBD
Between January and June 2024, Jakarta welcomed five new hotel facilities. These include the Ibis Jakarta Raden Saleh (3-star), Ashley Tang Menteng Jakarta (4-star), BW Express Tanah Abang (3-star), Movenpick Jakarta Pecenongan (5-star), and Pan Pacific Jakarta (5-star) located in Central Jakarta and the CBD area. These additions contributed a total of 1,073 rooms to the city’s hotel supply. Despite these new openings, the existing hotel landscape remains predominantly dominated by 4-star hotels. |
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Average occupancy rates decreased to 63.1% in the first semester of 2024
During the first half of 2024, the Jakarta hotel market faced a slowdown, resulting in average occupancy rates declining to approximately 63.1%. The election week in February and the Ramadhan season in March contributed to this dip in occupancy. However, there was a subsequent rise in demand from offline activities, including MICE events, weddings, and musical concerts. Notably, government and corporate MICE events played a significant role. Furthermore, despite some Jakartans traveling out of the city during the school holiday season, several branded hotels in Jakarta still experienced an increase in occupancy rates, driven by family staycations. |
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Room rates slightly decreased despite high demand for group bookings and activities
The Average Daily Rate (ADR) of hotels in Jakarta hovered around IDR 820,000 in H1 2024. This figure represents a slight decline of approximately 2% compared to the previous semester. The dip in ADR can be attributed to hotels offering competitive special rates and benefit packages for group activities following Eid al-Fitr. Meanwhile, the Revenue Per Available Room (RevPAR) during the same period was approximately IDR 530,000, reflecting a 13% decrease from the second semester of 2023. |
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Jakarta continues to thrive as a MICE center despite no longer being the capital
Despite the development plan for Ibu Kota Nusantara (IKN), which seeks to replace DKI Jakarta as the center of Indonesian government, Jakarta is anticipated to retain its status as a MICE (Meetings, Incentives, Conferences, and Exhibitions) hub, alongside Bali. This is because Jakarta boasts superior facilities to support MICE activities, including adequate transportation access and purpose-built venues for international-scale events, while IKN, being in its early stages, does not yet have comparable MICE infrastructure. Thus, Jakarta’s hotel occupancy remains a critical factor, as around 40% of Jakarta’s hotel segment relies on government-related bookings. To address this, a strategic MICE development plan is essential for Jakarta, especially as it continues to thrive as a major business center in the national landscape. |
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ITIF 2024 – Momentum to increase investment in sustainable tourism and creative economy
The 2024 International Tourism Investment Forum (ITIF) took place at the Swissôtel PIK Avenue in Jakarta on June 5-6, 2024. This significant event provided a platform for discussing investment matters, exploring growth strategies, and fostering strategic partnerships. The theme of ITIF 2024 was “Elevating Tourism Investment for Sustainable Growth,” emphasizing the importance of sustainable tourism development. Notably, during the forum, five Memoranda of Understanding (MoUs) were signed, representing a total investment value of IDR 862.8 billion (approximately 52.9 million US dollars). |
APPENDIX: ECONOMIC INDICATORS
