Turns out, Star-Rated Hotel Rooms Were Quiet in July 2022: Here's Why

Indonesia's hotel industry saw a decline in performance in July 2022. This is despite the fact that hotel stays and staycations were trending among the public as the Covid-19 pandemic gradually subsided.

The Central Statistics Agency (BPS) reported that the hotel room occupancy rate (TPK) for star-rated hotels in July 2022 experienced a slight decrease of 0.51 points compared to June (month-on-month/mom), reaching 49.77%. However, the July 2022 TPK increased by 27.39 points compared to July 2021 (year-on-year/yoy).

"The July decrease is easily understood due to the end of school holidays and the conclusion of events, particularly the G20 side events and several weeks of sporting events in various regions," said BPS Head Margo Yuwono in a press release on September 1, 2022.

(read: Star-Rated Hotel Occupancy Rate Increased to 49.85% in May 2022)

Furthermore, the TPK for non-star-rated hotels in July 2022 was recorded at 24.69 percent, up 9.55 points compared to the July 2021 TPK and up 0.77 points compared to the previous month.

By province, the highest occupancy of star-rated hotels in July 2022 was not concentrated on Java Island. The Special Region of Yogyakarta had the highest national TPK for star-rated hotels, at 62.17%. The TPK for non-star-rated hotels in this province was recorded at 24.88%. This was followed by East Kalimantan (Kaltim) with 61.23% for star-rated hotels and 25.56% for non-star-rated hotels. Next was Lampung with a star-rated hotel TPK of 57.92% and 30.78% for non-star-rated hotels.

Meanwhile, provinces with the lowest occupancy were also spread across many provinces. Provinces with the lowest TPK for star-rated hotels were Aceh, Maluku, and West Sulawesi (Sulbar). According to BPS data, star-rated hotel occupancy in Aceh was only 32.45%, while non-star-rated occupancy was 23.66%. In Maluku, star-rated hotel occupancy was only 31.92%, followed by 17.14% for non-star-rated hotels.

The average length of stay for foreign and Indonesian guests at star-rated hotels during July 2022 was recorded at 1.61 days, unchanged from the previous month. However, this figure decreased by 0.21 points compared to July 2021.