Star-graded Hotel Performance: A Detailed Look

Indonesia’s hospitality sector is navigating a complex landscape, with recent data indicating fluctuating occupancy rates in star-rated hotels. While certain regions demonstrate resilience, overall figures point to a need for strategic adjustments to boost tourism and fill vacant rooms.

National Occupancy Trends

According to the central Statistics Agency (BPS), the average ROR for star-classified hotels across Indonesia reached 48.38% in January 2025. This represents a significant monthly decrease of 9.68%. Though, when viewed annually, there was a slight increase of 1.66% compared to january 2024. This suggests a potential recovery, albeit a slow one.

February 2025 saw a further dip, with the ROR recorded at 47.21%.This represents a decrease of 1.17% month-on-month and 2.24% year-on-year, indicating a continued struggle for hotels to maintain consistent occupancy.

These figures highlight the volatile nature of the tourism industry, influenced by factors ranging from seasonal travel patterns to global economic conditions. For context, pre-pandemic occupancy rates in similar periods frequently enough exceeded 60%, underscoring the ongoing impact of the global health crisis on travel behavior.

Regional Disparities: Jakarta Bucking the Trend

The BPS data reveals significant regional variations in hotel performance. While 20 provinces experienced declines in ROR between january and February 2025, 18 provinces saw increases. This divergence underscores the importance of understanding local market dynamics and tailoring strategies accordingly.

Jakarta’s Strong Performance

Notably, DKI Jakarta Province recorded the highest star-rated hotel ROR in February 2025, at 59.07%. This success is attributed to a surge in events,including concerts and exhibitions,held throughout the month. This highlights the potential of event-driven tourism to boost hotel occupancy.

This contrasts with Bali, where a decline in hotel occupancy rates is causing concern. As bali’s economy is heavily reliant on tourism, the drop in occupancy could have a significant domino effect, impacting employment and consumption. However, there is hope that the trend will reverse in March and during the high season.

In it there is accommodation and consumption. If it is disturbed by the big domino effect, including employment. But, hopefully not (it happens), the trend is indeed February down, then in march it rises again and the high season rises.
Agus Gede Hendrayana Hermawan, Head of the central Statistics Agency (BPS) of Bali Province

length of Stay: A Key Indicator

Analyzing the average length of stay provides further insights into tourist behavior and spending patterns. In February 2025,the average stay in star-rated hotels was 1.58 nights, a slight decrease of 0.04 points compared to February 2024. however, this represented a marginal increase of 0.01 points compared to January 2025, when the average stay was 1.57 nights.

Foreign vs. Domestic Tourists

A significant disparity exists between the length of stay of foreign and domestic guests. In January 2025, foreign guests stayed an average of 2.62 nights, compared to just 1.46 nights for Indonesian guests. This trend continued in February 2025, with foreign guests staying 2.37 nights on average, while Indonesian guests stayed 1.49 nights. This suggests that attracting more international tourists, who tend to stay longer and spend more, could be a key strategy for boosting hotel revenues.

Strategies for Recovery and growth

To address the challenges facing Indonesia’s hotel sector,a multi-pronged approach is needed.This includes:

• Targeted Marketing Campaigns: Focusing on attracting both domestic and international tourists with tailored campaigns that highlight Indonesia’s diverse attractions.
• Event Tourism Progress: Encouraging and supporting the association of events, conferences, and festivals to drive hotel occupancy, as demonstrated by Jakarta’s success.
• Infrastructure Improvements: Investing in transportation and tourism infrastructure to enhance accessibility and improve the overall visitor experience.
• Lasting Tourism Practices: Promoting responsible tourism that minimizes environmental impact and benefits local communities.