THE branded economy hotel sector, which is already thriving in Indonesia, is now attracting more middle and high-income travellers.
Speaking at the 4th annual Economy Hotels World Asia yesterday, Aston International’s vice president of sales and marketing, Norbert Vas, pointed out that Indonesia’s emerging middle class is driving the growth of economy hotels in the country.
He said: “(Indonesians) are choosing budget hotels because they simply do not see the need to spend too much on a hotel. The hotel experience is not as crucial to Indonesians as compared to Western markets such as Europe.”
Said Marc Steinmeyer, president director of Tauzia Hotel Management: “Economy and budget hotels don’t necessarily attract the low end of the market. Individuals who chose to stay in economy properties still desire quality but at the right price and location.
“Indonesians and Asians in general are highly brand-minded. (They) are averse to risk, preferring the reliability of known and established brands,” he added.
Apart from a flourishing economy and the ease of obtaining financing, the strong demand for branded budget accommodation is also fuelling development outside Jakarta and other major cities, hoteliers pointed out.
“We intend to open hotels wherever Garuda (Indonesia) flies to. However, we would advise developers not to open hotels in Semarang or Solo, where our hotels are struggling. Lombok – which has been touted as the next Bali for the last 15 years – is finally making headway, and it is where it would be sensible to invest (in) next,” said Aston’s Vas.
For Adwien Dhanu, president, Jayakarta Hotels & Resorts, Kamarang in Jawa Barat is a key market due to growing foreign investment and the existence of a big industrial estate, while South Kalimantan’s Banjanmarsin is another key market due to its upcoming airport expansion that will improve its regional connections.
