Indonesia homes in on homestays with new development scheme

In tandem with the its move to improve accessibility and increase seat capacity by two million this year, the Indonesian Ministry of Tourism has launched a homestay development programme to boost accommodation supply in the country.

Speaking at the Hotel Investment Conference Indonesia in Jakarta last week, Hiramsyah Thaib, leader of the Acceleration for the Development of Priority Tourism, Ministry of Tourism said: “We are developing connectivity into and within Indonesia, so we need to be prepared with the accommodation facilities, especially in the 10 ‘New Bali’ destinations, which we are focusing on.”


Wakatobi (pictured), one of the areas identified for development

The homestay model is chosen as it involves lesser investment, is quicker to build and will empower the community, according to Hiramsyah. “Besides, we will not be selling only rooms, but also the village tourism experience,” he said.

The government has also set up loan schemes for those interested in developing homestays.

The total development goal is 50,000 homestay accommodations by 2019, 30,000 of which are targeted in the 10 new development areas of Toba (North Sumatera), Tanjung Kelayang (Belitung), Tanjung Lesung (Banten), Kota Tua and Pulau Seribu (Jakarta), Borobudur and the surrounding areas (Jogjakarta-Solo-Semarang), Bromo-Tengger-Semeru (East Java), Labuan Bajo (Komodo, East Nusa Tenggara), Mandalika (Lombok, West Nusa Tenggara), Wakatobi (Southeast Sulawesi) and Morotai (North Maluku).

Asked about the targeted guest profiles that will sustain the livelihoods for such a huge number of homestays, Hiransyah said: “Today’s millennials look for alternatives to the (stereotype) accommodations, and they look for experiential stays. Glamping, for example, is trendy today.”

He emphasised that homestays do not necessarily mean cheap but rather unique accommodation options. Competitions for homestay designs were launched to ensure that the new lodgings boast local characteristics and meet international standards at the same time, he added.

Commenting on the plan, Bill Barnett, managing director of C9 Hotelworks, said: “Do not underestimate homestays. Look at Airbnb – it took them seven years to be as big as Hilton.”

He added that the new scheme is a good way to attract investors with small budgets to develop business for the first time in Indonesia’s new destinations.

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