Indonesia Hotel Destinations - JLL Indonesia
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April | 2019 Hotels & Hospitality Group Hotel Destinations Indonesia
2 Hotel Destinations - Indonesia
“10 New Balis”
Shaping the future of South East Asia’s tourism industry
Indonesia introduced a growth strategy to replicate the economic effects of tourism in Bali, the country’s
most famous island, across 10 identified destinations. These locations were selected based on their
attractiveness as a tourist destination, as well as the extent that the location will benefit from better access
and amenities.
Lake Toba, Morotai Island
North Sumatra North Maluku
Sumatra
Kalimantan
Sulawesi
Tanjung Kelayang,
Bangka Belitung
Thousand Islands Jakarta Wakatobi, South Sulawesi
Tanjung Lesung, Banten
Mount Bromo, East Java Labuan Bajo,
Java East Nusa Tenggara
Borobudur Temple,
Central Java
Mandalika,
West Nusa Tenggara
Hotel Destinations - Indonesia 3
#1 place to visit in South East Asia
(ranked 7th globally)
Indonesia was ranked seventh out of the top 10
countries to visit in Lonely Planet’s Best in Travel 2019, the
only South East Asia country that made it to the list. Lonely
Planet prided Indonesia for its diversity in offerings that
ranged from new eco-resorts that offer orangutan encounters
in Sumatra to the tribal traditions of Papua.
4 Hotel Destinations - Indonesia
Top 5 trends and initiatives to watch in the hospitality industry
Record international visitor arrivals in Indonesia
#1 2018 marked the 12th consecutive record year for international visitor arrivals to Indonesia, registering a 12.6%
year-on-year (y-o-y) growth to 15.8 million. The rate of growth in international visitor arrivals accelerated in
recent years, achieving a compound annual growth rate (CAGR) of 13.8% from 2014 to 2018, compared to a
CAGR of 7.7% from 2010 to 2014.
International Visitor Arrivals to Indonesia (2009-2019F)
25 +26.5% y-o-y 30%
to 20 mil
+12.6% y-o-y 25%
Visitor Arrivals (millions)
20 to 15.8 mil
Annual Growth (%)
20%
15
15%
10
10%
5 5%
0 0%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019F
International Visitor Arrivals Annual Growth
Source: BPS Indonesia, JLL
The accelerated growth from 2014 to 2018 was Indonesia's Top 5 source markets
supported by the government's relaxation of visa Rank Top 5 Source International % of 2018
entry requirements and the introduction of new flight Markets Visitor Total y-o-y
routes. Arrivals
1 Malaysia 2.5 mil 15.8% 17.9%
In 2016, the Tourist Visa Free Facilities was extended
to 169 countries from 45 previously. The government 2 China 2.1 mil 13.5% 2.1%
also extended the Visa on Arrival to 61 countries to 3 Singapore 1.8 mil 11.2% 13.8%
include some of Indonesia's top 10 feeder markets
4 Timor Leste 1.8 mil 11.1% 83.5%
such as Australia, France, Japan, Saudi Arabia, United
Kingdom and United States of America. 5 Australia 1.3 mil 8.2% 3.5%
Source: BPS Indonesia
Regular direct charter flights were introduced from
several cities in China to Manado and Batam via Lion
Air and Sriwijaya Air, as well as flight routes from Indonesia’s Top 5 key visitor growth markets
Chongqing to Bintan via air carrier Citilink. Rank Top 5 Growth Markets 2018 y-o-y
Korean Air also recently started operating flights from 1 Timor Leste 83.5%
Korea directly to the island of Lombok. 2 Malaysia 17.9%
Timor Leste, Indonesia's fourth largest source market, 3 Singapore 13.8%
registered significant visitor arrivals growth, fuelled 4 United States of America 12.3%
by Garuda Indonesia and Air Timor's introduction of
5 France 4.9%
new weekly flights.
Source: BPS Indonesia
Hotel Destinations - Indonesia 5
Accommodation demand growth induced by large-scale events
2018 Asian Games
Several factors contributed to the overall growth in demand surge in accommodation demand, Jakarta’s upscale/luxury
in 2018, including the quadrennial Asian Games where and midscale hotels registered significant y-o-y increases in
Jakarta and Palembang were the joint host cities. As event RevPAR in August of 40.9% and 48.2%, respectively.
organisers, officials, coaches and athletes geared up for
the multi-sport event, which began on 18 August 2018, A similar trend was observed in April 2015 when Jakarta was
international visitor arrivals to Jakarta began to peak the host city for the 60th Anniversary of the Asian-African
approximately one month prior to the event. In July, visitor Summit. During the month of April 2015, the upscale/luxury
arrivals rose by 15.0% y-o-y to about 321,000, the highest and midscale hotels segments recorded increases in RevPAR
the city has ever recorded in any month. During the event of 36.6% and 16.3%, respectively. The greater increase in the
in August and September, visitor arrivals rose by 9.8% and upscale/luxury segment was most likely due to the profile of
14.0% y-o-y, respectively. the delegates who attended the summit, which comprised
mainly of leaders and delegates of the Asian and African
Such large-scale events have proven to have positive nations.
impacts on hotel trading performance. In relation with the
Jakarta Upscale/Luxury Hotels RevPAR
Asian-African Summit Asian Games
22 to 23 April 2015 18 Aug to 2 Sep 2018
RevPAR (IDR)
+36.6% y-o-y
+40.9% y-o-y
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2018 2017 2016 2015
Source: STR, JLL
Jakarta Midscale Hotels RevPAR
+16.3% Apr 2015
Asian-African Summit +48.2% Aug 2018
Asian Games
y-o-y y-o-y
2018 International Monetary Fund (IMF) and World Bank Meeting
Bali played the host city for the 2018 IMF-World Bank meeting accommodation demand, resulting in y-o-y spikes in RevPAR
in October 2018, where more than 36,000 delegates and across all hotel chain scales.
participants attended the event.
Bali Hotels RevPAR, October 2018
During the event in October 2018, Bali received more
Luxury +58.1%
than 517,000 international visitors, 11.4% higher than
the year before and was the highest ever recorded in that Upscale +79.4%
particular month. Correspondingly, this led to an increase in Midscale +60.1%
Source: STR
6 Hotel Destinations - Indonesia
Expansion of airport infrastructure amidst soaring aviation business
#2 According to the International Air Transport
Association’s 2018 Annual Review, 7.8 billion people
are forecasted to be travelling across the globe
government plans to build a new airport
approximately 15 kilometres north of SHIA. A
feasibility study on the new airport in Jakarta is
by 2036. Of these, close to half are expected to be expected to conclude by end-2019 and will cost
travelling to, from and within the Asia Pacific region. an estimated USD7.0 billion to construct. When
With the forecasted increase in air traffic across the completed, the airport will be able to handle up to
region, several countries are expanding their airport 70.0 million passengers per annum.
handling capacities in anticipation of the surge in
travel demand. Indonesia, with Jakarta and other Other notable airport expansions in Indonesia:
regional airports such as Australia, China, Japan, • Expansion of Bali's I Gusti Ngurah Rai International
Maldives, Singapore, South Korea and Thailand, is Airport: The expansion includes aprons in the
one of the latest countries to expand its passenger western and eastern sides of the airport to allow
handling capacity. for more parking areas for the larger aircrafts. The
airport handled around 24.0 million passengers in
To cope with the rapid rise in travellers, Soekarno-Hatta 2018 and is nearing its total handling capacity of
International Airport (SHIA) opened a new terminal in 25.0 million.
late-2016 and has planned a fourth terminal and a third
• New Bali airport: As passenger traffic to one of
runway. In addition, Terminals 1 and 2 will be expanded
Indonesia’s most famous islands continues to grow,
to increase passenger handling capacity to 25.0 million
Bali is also planning a new airport in the north of
from 9.0 million each. the island, which will be designed to accommodate
up to 32.0 million passengers annually to relieve
The expansion of SHIA in Jakarta is expected to
congestion at I Gusti Ngurah Rai International Airport
have a knock-on positive effect on the tourism and
hospitality industry in the country. In addition to • Kertajati International Airport: The second largest
growing travel to Jakarta, SHIA aims to serve as the airport after SHIA, the Kertajati International Airport
springboard for international travellers to Indonesia’s is located about 80 kilometres off Bandung and
growing collection of tourism destinations. became operational in 2018. The airport currently
serves approximately 5.6 million passengers
Apart from the existing SHIA and Halim annually and has a maximum passenger handling
Perdanakusuma International Airport, the capacity of 18.0 million.
Tourism a driver of economic growth in Indonesia
According to the World Travel & Tourism Council, Indonesia's Travel & Tourism GDP is growing twice as fast as
the global average.
Travel & Tourism Contribution to Indonesia's GDP
2017 2018 2028
USD 58.9 USD 62.6 USD 115.8
billion billion billion
+7.8% y-o-y +6.4% per annum
from 2018 to 2028
Source: World Travel & Tourism Council
Hotel Destinations - Indonesia 7
Indonesia government sets aside IDR420.5 trillion for infrastructure projects
#3 Whilst the "10 New Balis" identified have great
potential in attracting tourists, tourism growth to-
date has been mostly challenged by accessibility and
The 2019 budget includes the construction of new
and unfinished projects such as road building and
maintenance; railway facilities and light rail transits;
infrastructure concerns. and airport construction. Should the construction of
such infrastructure projects materialise, it will provide
As infrastructure remains one of the top priorities, great benefit to the tourism industry.
the Minister of Finance for Indonesia, Sri Mulyani
Indrawati, announced in August 2018 that the State
has set aside IDR420.5 trillion (around USD29 billion)
for infrastructure projects in 2019. This translates
to a 2.4% y-o-y increase in the State’s Budget for
infrastructure, which represents about 17.2% of total
government spending.
Indonesia submits bid for
#4 2032 Olympic Games
In February 2019, Indonesia officially submitted its bid for
the 2032 Olympic Games which will take place after Tokyo
(2020), Paris (2024) and Los Angeles (2028). Indonesia
is expected to compete with other countries that have
likewise expressed interest to host the Olympic Games,
such as Australia, Germany, India, and a joint bid by North
and South Korea.
Should Indonesia’s bid be successful, it is expected to
positively impact the tourism and hospitality industries.
The ripple effects of hosting such a high-profile sporting
event is evident in Japan, which is gearing up for the
2019 Rugby World Cup and the 2020 Olympic Games. In
the lead up to these events, investment momentum has
been gathering pace over the past few years as investors
capitalise on the anticipated, ongoing tourism boom.
Correspondingly, this has also translated to improved
hotel trading performance as accommodation demand
gradually increases in the build up to these events.
The strong publicity surrounding the Olympic Games
could potentially trickle down to increased market
liquidity as investors’ interests heighten. Indonesia could
see an increase in investment activity, particularly from
foreign investors, in the years leading up to the games if
Indonesia indeed becomes successful in its bid.
8 Hotel Destinations - Indonesia
#5 Indonesia, Where Next
Labuan Bajo
Listed as one of the “10 New Balis”, Labuan Bajo is located As part of the government’s plan to develop Labuan Bajo into
on the western tip of East Nusa Tenggara province on the one of the “10 New Balis”, developing Komodo Airport into a
island of Flores. Labuan Bajo is known for its unique pink facility with direct international flights has become one of the
sand beaches and rugged terrain that offer beautiful sunset government’s top priorities.
views. It is also most famous for Komodo National Park
which houses a population of wild Komodo dragons, the In 2018, the Transportation Ministry launched a tender for
world’s largest living lizard. The national park was declared a the expansion and operation of Komodo Airport, which will
UNESCO World Heritage Site in 1991. Other popular activities require an estimated investment of IDR3 trillion (around
for visitors include diving and snorkelling due to its crystal USD200 million). The scope of the public-private partnership
clear waters and mountain trekking atop Padar Island. will include the construction, operation and facility
maintenance of the airport. According to the Ministry, about
According to the country’s Environment and Forestry Ministry 20 investors submitted bids, with the majority being
in 2018, there were more than 10,000 monthly visitors to the foreign investors.
Komodo National Park of which, about 95% were foreigners.
In a bid to maintain the stability of the park’s ecosystem, To achieve the forecasted increase in visitor arrivals, the
there are plans to reduce the number of visitors for long-term aircraft runway will be extended to allow the airport to
sustainability of one of Indonesia's treasures. accommodate larger aircrafts, whilst the airport terminals and
its facilities will also be expanded.
Labuan Bajo is accessible by air via the Komodo Airport,
formerly known as the Mutiara II Airport. As at March 2019, In anticipation of future demand, notable recent hotel
there are 99 direct flights from eight Indonesian cities to openings include the 205-room Ayana Komodo Resort and
Labuan Bajo, namely Jakarta, Surabaya, Bali, Lombok, the 25-room Sudamala Resort Seraya. Marriott International
as well as Bajawa, Ende, Maumere and Pupang which are also has its eye on the emerging tourist destination and will
located in East Nusa Tenggara. open a 158-room Courtyard by Marriott Labuan Bajo Komodo
Resort in 2021.
15 42 42 99
weekly flights
weekly flights weekly flights weekly flights
to Labuan Bajo
Jakarta Bali Other Indonesian cities
Source: Flightrader24 (accurate as at March 2019)
Hotel Destinations - Indonesia 9
Belitung
Nicknamed the “Maldives of Indonesia” for its clear blue Notable recent resort openings include the 128-room Santika
waters and sandy beaches, Belitung is an island that is Premiere Beach Resort Belitung and the 77-room Swiss-
located on the east coast of Sumatra which has also been Belresort Tanjung Binga Belitung. In the past two years,
identified as one of the “10 New Balis” due to its potential as several OYO-branded hotels have also opened, such as OYO
a beach resort destination. 358 Hotel Martani Belitung, OYO 399 Kelayang Beach Hotel
and OYO 503 Hotel Belitong.
Served by the HAS Hananjoeddin International Airport,
Belitung is less than an hour’s flight away from Jakarta and Belitung is envisaged to welcome new resorts in the coming
about a 90 minutes’ direct flight from Singapore. In 2018, years, including the opening of Sheraton Belitung Resort in 2020
Garuda Indonesia introduced four weekly direct flights and Mercure Belitung Tanjung Tinggi Beach Resort in 2021.
between Singapore and Belitung.
As at March 2019, there are a total of 107 weekly scheduled
flights between Belitung and Pangkal Pinang City, Jakarta
and Singapore.
4 weekly
flights
Singapore
107 weekly
Sumatra
flights
33 weekly Pangkal
flights Pingang City
Belitung
70 weekly
flights
Jakarta
Source: Flightrader24 (accurate as at March 2019)
10 Hotel Destinations - Indonesia
Indonesia Key Tourism Statistics
y-o-y Growth
Total International Visitor Arrivals 2018 15,806,191 +12.6%
International Accommodation Guests * 2017 ** 12,414,940 +8.3%
Domestic Accommodation Guests * 2017** 70,380,700 +11.3%
Average Occupancy Rate
(Classified Hotels) (%) 2018 57.1% +1.4%
Average Length of Stay
(Foreign Guests in Classified Hotels) 2018 2.83 -0.05 days
Source: BPS Indonesia
*Accommodation guests in classified hotels only
**Latest data availableHotel Destinations - Indonesia 11
Quick Facts (2018)
International Visitors Top 5 Source Markets by Hotel Room
by Air (2018) Air / y-o-y Growth Supply Growth
(Estimated)
Mainland
▲ 6.0 million Australia India UK Japan
Bali China 2019: 3.7%
(+6.1% y-o-y) 19.3% / 5.8% / 4.5% / 4.3% /
22.4% / 2019 to 2022: 0.8%
+6.9% +29.9% +11.1% +3.4%
-1.7%
Mainland
▲ 2.8 million Malaysia Japan Singapore Saudi
Jakarta China 2019: 2.9%
(+2.3% y-o-y) 17.9% / 11.8% / 11.2% / Arabia
20.4% / 2019 to 2022: 1.9%
+0.9% -17.2% -4.2% 8.7% /
+2.4%
-8.1%
Singapore Mainland
▲ 322,964 Malaysia Taiwan Thailand
Surabaya China 2019: 12.3%
(+30.7% y-o-y) 21.1% / 9.1% / 2.5% / 2.2% /
5.0% / 2019 to 2022: 1.3%
+28.0% +20.5% -14.2% -17.4%
-8.2%
Malaysia Singapore India Japan China
▼ 155,371 2019: 3.0%
Bandung (-6.9% y-o-y) 69.0% / 18.1% / 1.5% / 0.9% / 0.8%* /
2019 to 2022: 4.0%
-10.8% -10.4% +42.1% -5.2% -12.2%*
Malaysia Singapore France China USA
▼ 138,600 2019: 2.8%
Yogyakarta (-4.9% y-o-y) 49.1% / 12.6% / 4.5% / 2.7% / 2.3%* /
2019 to 2022: 2.6%
+35.6% +18.6% +34.9% +33.6% +26.3%*
Mainland
Malaysia Singapore UK Korea
▼ 78,930 China 2019: 6.9%
Lombok (-36.0% y-o-y) 44.3% / 4.3% / 4.0% / 3.6%* /
6.6% / 2019 to 2022: 5.9%
+10.6% -8.1% +27.5% +89.1%*
+99.5%
Source: BPS Indonesia, JLL
*2017 is the latest available data12 Hotel Destinations - Indonesia
Jakarta
Quick Facts (2018/2019) Tourism
• International visitor arrivals to Jakarta by air rose by 2.3% y-o-y to 2.8 million in 2018. The
208k (-0.5% y-o-y) steady growth was attributed to the government’s visa waiver scheme introduced in 2015, as
International Visitor Arrivals by Air well as the 2018 Asian Games whereby Jakarta was the joint hose city with Palembang.
(YTD Jan 2019)
• As at YTD January 2019, international visitor arrivals declined marginally by 0.5%
2.83 days (+0.22 days) y-o-y to 208,450.
ALOS (2018)
• 5-year CAGR (2013 to 2018) for international visitor arrivals by air: 4.7%
56.9% (-1.5% y-o-y) • Domestic accommodation guests (2017; latest available data): 28.8% y-o-y growth to 10.6
million (85% of the total accommodation guests in classified hotels).
OCC (YTD Mar 2019)
Demand
IDR 2.04 mil (+2.5% y-o-y) • Mainland China remains the top source market for Jakarta in 2018, accounting for about
ADR (YTD Mar 2019) 20.4% of the international visitor arrivals. This was followed by Malaysia (17.9%), Japan
(11.8%) and Singapore (11.2%).
IDR 1.16 mil (+1.0% y-o-y) • Whilst corporate tourism constitutes majority of the tourism demand to Jakarta, the city
RevPAR (YTD Mar 2019) is also a popular stopover and transit hub for international visitors travelling to other
destinations in Indonesia.
• Around 80% of all visitors to Jakarta stay in classified hotels, underscoring the strong demand
for quality accommodation in the city.
Notable Openings
Alila SCBD Supply
227 rooms • According to BPS, there is a total of 326 classified hotels providing 46,899 rooms in 2018.
Aloft Jakarta Wahid Hasyim
• JLL estimates that 750 and 1,756 classified hotel rooms were added to the existing supply in
180 rooms
2017 and 2018, respectively. In 2019, we forecast classified room supply to increase by 2.9%
Best Western Senayan Hotel
y-o-y, or approximately 2,139 rooms.
137 rooms
InterContinental Pondok Indah • From 2019 and 2022, classified room supply is projected to grow at a CAGR of about 1.9%.
311 rooms
Swiss-Belhotel Rasuna Epicentrum
Outlook
323 rooms • Incoming hotel supply is expected to add pressure to Jakarta’s hotel trading performance in
the short-term, as the market continues to absorb the new supply of 2017 and 2018.
• Expected greater connectivity along the Sudirman corridor is expected to revitalise hotel
submarkets in conjunction with the opening of the MRT.
Selected Upcoming Hotels • In the medium- to long-term, trading performance is expected to remain positive, as foreign
Park Hyatt Jakarta (2019)
and local investment in the country’s capital increases amidst significant reforms from the
St Regis Jakarta (2019) government.
The Langham Jakarta (2019)
Waldorf Astoria Jakarta (2020)
Parkroyal Jakarta (2022)
Source: BPS Jakarta, BPS Indonesia, JLL, STR (Mar 2019)
Note: Jakarta trading performance refers to Upscale/Luxury segment, comprising 19 hotels in the basket.
ADR – Average Daily Rate, RevPAR – Revenue per available room, OCC – OccupancyHotel Destinations - Indonesia 13
Bali
Quick Facts (2018/2019) Tourism
• Regarded as one of Indonesia’s most famous islands amongst leisure travellers, Bali
452k (+31.1% y-o-y) continues to enjoy healthy growth in international visitor arrivals by air, increasing by 6.1%
International Visitor Arrivals by Air y-o-y to 6.0 million in 2018. The visitor growth was supported by the IMF-World Bank meeting
(YTD Jan 2019)
in October 2018, which saw more than 36,000 delegates and participants in attendance.
3.17 days (-0.05 days) • Air travel to Bali remains as the most popular mode of transport, comprising 99.3% of total
ALOS (2018) international visitor arrivals.
• Visitor growth to Bali continued on an uptrend as at YTD January 2019, extending its growth
58.4% (+6.0% y-o-y) by 31.1% y-o-y to 452,405 from 345,191.
OCC (YTD Mar 2019) • 5-year CAGR (2013 to 2018) for international visitor arrivals by air: 13.1%
• Total Domestic Visitors Arrivals (2017; latest available data): 1.1% y-o-y growth to 8.7 million
IDR 2.07 mil (+4.7% y-o-y) (60.5% of the total)
ADR (YTD Mar 2019)
Demand
IDR 1.21 mil (+11.1% y-o-y) • Mainland China remains as the top visitor source market for Bali, accounting for about 22.4%
of the total international visitors by air in 2018. This was followed by Australia (19.3%), India
RevPAR (YTD Mar 2019)
(5.8%) and the United Kingdom (4.4%).
• Visitors from India registered a strong y-o-y growth of 29.9% in 2018, mainly attributed to
Notable Openings the sound bilateral relations between Indian and the Indonesian governments, as well as an
Capella Ubud increase in direct flights connecting Bali and India.
22 rooms
• 5-star and 4-star hotels accounted for the majority of visitor stays in classified hotels in 2017
Element by Westin Bali Ubud (latest available data), accounting for approximately 38% and 33% of all classified guests
152 rooms
stays, respectively.
Fairfield by Marriott Bali Legian
160 rooms • Top Key Growth Markets – India (+29.9%), USA (+23.8%) and Singapore (+14.8%)
Kempinski Nusa Dua Bali
475 rooms
Supply
Renaissance Uluwatu • According to BPS, there is a total of 551 classified hotels providing 52,927 rooms in 2018.
207 rooms • According to the supply data tracked by JLL, 1,723 classified rooms were added in 2018.
Six Senses Uluwatu Bali • The classified room supply is forecasted to increase by 4.4% in 2019, which translates to
103 rooms approximately 2,326 rooms.
• From 2019 to 2022, classified room supply is projected to grow at a CAGR of 1.1%, whilst
Selected Upcoming Hotels taking into consideration that not all announced projects will materialise.
Andaz Bali (2019)
InterContinental Bali Canggu (2019)
Outlook
Jumeirah Bali (2019) • Recent improvements in air connectivity, notably from Europe and several Chinese cities, to
Ngurah Rai International Airport have helped to support the strong growth in international
Shangri-La Nusa Dua Resort &
tourism arrivals. We expect continued growth in arrivals from Mainland China, buoyed by
Spa Bali (2019)
more direct flights between key cities in China and Bali.
W Bali - Ubud (2020)
• In the short-term, we envisage quality hotel RevPAR to increase moderately, driven by
increases in occupancy.
Source: Bali Government Tourism Office, BPS Indonesia, JLL, STR (Mar 2019)
Note: Bali trading performance refers to Upscale segment, comprising 24 hotels in the basket
ADR – Average Daily Rate, RevPAR – Revenue per available room, OCC – Occupancy14 Hotel Destinations - Indonesia
Lombok Surabaya
Tourism
• In 2018, Lombok experienced a significant decline in international • Surabaya experienced significant growth in international visitor
visitors by air of 36.0% y-o-y to 78,930, which was mainly attributed to arrivals by air, increasing by 30.7% y-o-y to 322,964 in 2018.
the natural disasters that occurred within the year. Government efforts to prioritise tourism development in Tengger and
• As at YTD January 2019, Lombok was still feeling the impact from Semeru in East Java is expected to benefit Surabaya, which is seen as
a series of national disasters as total international visitor arrivals a key gateway into East Java due to its international connectivity.
declined by 62.0% to 2,102 from 3,151 in the previous year. • As at YTD January 2019, Surabaya received a total of 23,872
• 5-year CAGR (2013 to 2018) for international visitor international visitor arrivals, reflecting a 10.6% decline from the 26,700
arrivals by air: 14.3% over the same period last year.
• Domestic accommodation guests (2017; latest available data): 6.6% • 5-year CAGR (2013 to 2018) for international visitor arrivals by air: 4.8%
y-o-y growth to 1.1 million (78% of total accommodation guests in • Total Domestic Visitors (2017; latest available data): 10.4% y-o-y
classified hotels) growth to 22.7 million (98.6% of total visitors)
Demand
• In 2017 (latest available data), Malaysia remained as the top • In 2018, Malaysia remained the top international source market for
international source market, accounting for 44.3% of the total Surabaya, accounting for about 21.1% of all international visitor
international visitor arrivals by air. This was followed by Mainland arrivals by air. This was followed by Singapore (9.1%) and the
China (6.6%) and Singapore (4.3%). Mainland China (5.0%).
Key Growth Markets (2017; latest available data) Key Growth Markets (2018)
Mainland China +99.5% Malaysia +28.0%
Korea +89.1% Singapore +20.5%
Germany +40.2%
Supply
• According to BPS in 2017 (latest available data), there is a total of • According to BPS in 2017 (latest available data), there is a
65 classified hotels providing 4,118 rooms. total of 94 classified hotels providing 13,267 rooms.
• From 2019 to 2022, classified room supply is projected to grow at • From 2019 to 2022, classified room supply is projected to
a CAGR of about 5.9%. These include Club Med Lombok, Pullman grow at a CAGR of 1.3%, whilst taking into consideration
Mandalika Beach Resort Lombok, Swiss-Belinn Lombok and The that not all announced projects will materialise. These
Legian Sire Lombok. include DoubleTree by Hilton Surabaya, Grand Mercure
Maha Cipta Surabaya, Swiss-Belhotel Darmo Surabaya and
Westin Surabaya.
Outlook
• The Mandalika Project, one of the largest of its kind in South East • Apart for the recent government efforts to focus on tourism
Asia, is expected develop Lombok into a key tourist destination, and development in East Java, the completion of the planned and
boost tourism arrivals to the island. ongoing infrastructural developments, which ranges from toll
roads to an airport expansion, are expected to further boost overall
connectivity to Surabaya.Hotel Destinations - Indonesia 15
Bandung Yogyakarta
Tourism
• International visitor arrivals by air to Bandung fell by 6.9% y-o-y to • International visitor arrivals by air posted a y-o-y decline of 4.9% to
155,371 in 2018. 138,600 in 2018, on the back of a stronger base in 2017.
• As at YTD January 2019, international visitor arrivals largely remained • 5-year CAGR (2013 to 2018) for international visitor
unchanged y-o-y at 11,351 visitors. arrivals by air: 10.0%
• 5-year CAGR (2013 to 2018) for international visitor arrivals by air: • Domestic Visitors (2017; latest available data): 55.0% y-o-y growth to
-2.5% 6.5 million (94.9% of total visitors)
• Domestic Visitors (2016; latest available data): 17.9% y-o-y decline to
4.8 million (96.5% of total visitors)
Demand
• Malaysia remained the top source market for Bandung, accounting • Malaysia remained as the top source market for Yogyakarta in
for 69.0% of all international visitor arrivals by air in 2017 (latest 2017 (latest available data), accounting for about 49.1% of all
available data). This was followed by Singapore (18.1%) international visitor arrivals by air. This is followed by Singapore
and India (1.5%). (12.6%) and France (4.5%).
Key Growth Markets (2017; latest available data) Key Growth Markets (2017; latest available data)
India +42.1% India +50.4%
Australia +31.9% Malaysia +35.6%
Korea +10% France +34.9%
Supply
• According to BPS in 2017 (latest available data), there is a total of • According to BPS, there is a total of 117 classified hotels providing
118 classified hotels providing 10,004 rooms. 26,141 rooms in 2017 (latest available data), with no notable
• From 2019 and 2022, classified room supply is estimated to completions in 2018.
grow at a CAGR of 4.0%. These include Citadines Kings Bandung, • From 2019 to 2022, classified room supply is projected to grow at
MGallery Ciwaruga Botanica and Pullman Bandung City Centre. a CAGR range of 2.6%. These include Citadines Punaka Yogyakarta
and Novotel Suites Yogyakarta Malioboro.
Outlook
• Bandung is increasingly being positioned as a leading innovation • Given Yogyakarta’s proximity to Borobudur, planned infrastructural
hub for creativity and entrepreneurship. The proposed Bandung works, including the Yogyakarta-Bawen toll road, will enhance the
Technopolis is envisioned to be the centre of Indonesia’s tech city’s accessibility. Furthermore, the tourism sector is set for a further
industry and aims to attract foreign direct investment from boost, with Borobudur selected to be amongst the "10 New Balis”.
multinational corporations. In turn, this is expected to translate to
increased accommodation demand, especially from
corporate guests.Talk to us about your hotel ambitions
Mike Batchelor Giuliano Esposito
Chief Executive Officer Senior Vice-President
Strategic Advisory and Asset Management
Asia
Asia
mike.batchelor@ap.jll.com
giuliano.esposito@ap.jll.com
Sashi Rajan Corey Hamabata
Senior Vice-President Senior Vice-President
Strategic Advisory and Asset Management Investment Sales
Asia Asia
sashi.rajan@ap.jll.com corey.hamabata@ap.jll.com
Tay Sze Min
Associate Research
Asia
szemin.tay@ap.jll.com
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