Senin, 04/07/2011

Bali Remains Attractive Investment Destination
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Bali Remains Attractive Investment Destination

THE CENTRAL BUREAU of Statistics (BPS) predicts that the prospects of the Indonesian hotel industry will remain bright in the coming several years, especially 2,3 and 4 star hotels. Meanwhile, Bali will remain attractive for hotel investments only if the local government has a strong commitment to improve the quality of area infrastructure.

Bali hotel business is predicted to remain lucrative in 2011 in parallel with Indonesia’s economic growth. Such optimisms are in part based on the number of tourists visiting the island from year to year. Another factor is the rising number of middle-class people in the country. To date, Indonesia’s per capita income has reached US$3,000.

The Indonesian Hotel and Restaurant Association (PHRI) said that at this time the country’s hotel business has grown 20% from last year. This figure could rise if the government improves the quality of infrastructure which is vital to lure tourists to visit tourist destinations in different parts of Indonesia. Infrastructure quality highly determines investors’ interest to develop new hotels.

New hotel projects are so promising in Indonesia, especially in tourist destination areas. Such potentials can materialize if they are supported with better infrastructure including roads and adequate transportation means. BPS data shows that 2.32 million foreign tourists visited Indonesia in the January-April period of this year, or 7.2% higher than the same period of 2010. Meanwhile, the occupancy of star-hotel rooms in 20 provinces averaged 52%, or a 2.41% growth in the past year. BPS also recorded that 2-star hotel occupancy was 56.36% in the January-April period of this year and that it was the highest rate compared with other hotels.

Meanwhile, the occupancy of one-star hotels in the same period was only 41.89%, the lowest compared with other hotels. That development was confirmed by PHRI Secretary General Carla Parengkuan who said that, despite predictions that the Indonesia hotel industry still has good prospects, 5-star hotels are exceptional because their prospects are not that bright. “Five-star hotels are still too expensive so that they are less attractive,” Parengkuan said.

Parengkuan added that 2 and 4 star hotels have the brightest prospects since their room prices are adjusted to the financial condition of consumers and companies in Indonesia. “When put in order, the most attractive are 3, 4 and 2 star hotels,” she said. She said that those hotels are fully booked in holiday seasons and added that 2, 3 and 4 star hotels are also profitable. This is because their investments are much smaller than 5-star hotel investments.

Not surprisingly, PHRI recorded rising numbers of new hotels in several provinces, notably in North Sumatra, Bali, East Kalimantan and East Nusa Tenggara. However, of all the hotel investment destinations, Bali is still a prima donna. Beside its worldwide popularity as a tourist destination, many international events are held on the island. Not surprisingly, investors are so aggressive to build new hotels in Kuta, Nusa Dua and Gianyar.

Data at Colliers International Indonesia shows that during 2011 at least 12 star-hotels have been built and will operate in Bali including W Retreat & Spa, a 5-star hotel which will enter the market this year and is located in near golf course Seminyak and Marriot Courtyeard in Nusa Dua and Mercure Kuta Harvestland. They are 4-star hotels. The other hotels are 3-star namely Berry Hotel, Quest hotel, Kuta Central Park, Harris Sunset Kuta, Harris Junior and All Seasons. Although PHRI said that 5-star hotel investments are less promising, in 2012 five 5-star hotels will enter the Bali hotel market namely Renaissance Bali Resort & Spa in Nusa Dua; The Regent Bali and Intercontinental Sanur in Sanur; and Sheraton and The Terrace Pecatu Bali in Jimbaran.

Meanwhile, in 2013 two 5-star and 4-star hotels will enter the market namely Jumeirah Resort in Nusa Dua and The Jimbaran View in Jimbaran. Together, the 12 hotels that will start operation in 2011 will have 1,749 rooms, and there will be 792 new rooms and 459 rooms entering the Bali market in 2012 and 2013, respectively.

Rising numbers of hotel rooms following the development of new hotels in Bali require immediate anticipation by the Bali provincial government by building new infrastructure and facilities including roads. Increasing numbers of hotels and lodging houses will be meaningless if they are not supported with adequate infrastructure and facilities. Example, the quality of transportation systems on the island is not improved.

Serious attention should be given to numerous complaints from tourists about area traffic congestions. Tourists may stop coming to Bali if the local government does not improve the quality of its infrastructure and facilities. (Deddy H. Pakpahan)