How is the current state of the Indonesian accommodation industry?
The accommodation industry in Indonesia is growing in response to the increasing flow of tourists arriving and staying in accommodation facilities. The industry was severely impacted by the coronavirus (COVID-19) pandemic as the government imposed social and border restrictions to mitigate the impact of the pandemic. Many hotels and similar establishments were forced out of business, resulting in a decline of around one hundred such establishments in 2021.After reopening the borders and removing all quarantine requirements, as well as scraping on-arrival COVID-19 testing for international inbound travelers, accommodation in Indonesia started to recuperate. The country saw an increase in hotel room occupancy rates, crawling back to pre-pandemic levels. In 2022, the occupancy rate of star-rated hotels in Indonesia continued to increase from September to December, with an occupancy rate of more than fifty percent. Similarly, the occupancy rates of non-star hotels have been rising after plunging during the pandemic.
