According to the southeast Asian country’s Ministry of Tourism and Creative Economy, the nation smashed its target of attracting 3.6 million tourists in 2022, reaching 5.9 million – exceeding its objective by 64%.
Bouncing back
2022’s total was still only 37% of 2019’s record 16.1 million foreign visitors but a 278% increase on 2021’s low of 1.6 million in the middle of the covid pandemic.
The Ministry’s aim for this year is to increase international arrivals further, to up to 7.4 million, representing a 46% recovery on pre-covid numbers.
Hotel requirement
With the tourism statistics going in the right direction, it seems planned high end hotel projects may not be keeping up with demand.
When we last looked at Indonesia’s upscale and luxury pipeline in 2022, the figures stood at 134 sites totalling 23,520 rooms. However, this year those numbers have fallen by 9% and 11% respectively to 122 projects of 20,910 keys collectively. Nevertheless, this still represents US$2.3 billion of investment, though there is clearly opportunity to add to that number.
Capital magnet
The country’s capital, Jakarta, remains the main draw for future hotels, topping our list with at least 19 projects underway. The tourist-focused island of Bali is expecting a minimum of 15 additional hotels, while third spot is taken by Yogyakarta in south central Java with seven properties.
Newbuildings form the vast majority of high end projects, 94% of the pipeline, equivalent to 115 sites, while there are just three refurbishments and two apiece of extensions and conversions.
There are more upscale hotels than luxury ones on the way too, with a 70% to 30% split in favour of four star properties, representing 86 records as against 36 five stars.
Building boom
Construction is already taking place in 61 sites, while 28 of these high end projects are in the planning phase, and 12 further back in pre-planning. The remaining 21 are towards the end of the project lifecycle at a pre-opening stage.
The above pattern is reflected in delivery dates too, with 2024 the current apex on 33 scheduled completions. The rest of this year is due to welcome 24 more hotels, while 2025 will currently see at least 18 openings and 2026 a further 10. The outstanding 37 sites are either planned to conclude further in the future or have yet to be designated a delivery date.
Active brands
In terms of brand groups, The Ascott Limited is leading the way in high end hotel development within Indonesia, with at least 32 projects on the books. Archipelago International takes the runner up place with 18 sites, and major name Accor is planning a minimum of 13 additions.
For individual brands, The Ascott Limited’s Harris Hotels tops the list 16, while second place Aston from Archipelago International has just half that number with eight planned sites, and sister marque Aston Inn is close behind on seven.
Mövenpick moves
One of the Accor sites is Mövenpick Jakarta Pecenongan, the second Mövenpick hotel in the country’s capital. Scheduled to open its doors by the end of this year, an existing 23-storey hotel is being completely transformed in line with the style and international standards of Mövenpick Hotels & Resorts. It will house 253 rooms and suites, all featuring contemporary interiors.
Another major Mövenpick development is Mövenpick Bintan Lagoon Resort on the north coast of Bintan island. Also due for completion by the end of 2023, the 413-key property will feature amenities such as three lagoon swimming pools, unique restaurant concepts, a two-storey beach club, spacious event spaces, a ferry terminal and a vast wellness and recreation centre that will feature a gym, a spa, and kids club.
