People's Purchasing Power Proven Weak, Hotel Occupancy During Lebaran Low

Foto: Ignacio Geordi Oswaldo

People's Purchasing Power Proven Weak, Hotel Occupancy During Lebaran Low

Friday, 04 Apr 2025

The General Chairperson of the Indonesian Hotel and Restaurant Association (PHRI), Hariyadi Sukamdani, said that the occupancy rate or occupancy of hotel rooms in various regions during the 2025 Eid holiday fell quite significantly when compared to the same period the previous year, namely by 20%.

"As expected, it is lower than last year. Earlier I had the chance to call several regions. Solo, Jogja, Bali. That's what I checked. It did go down. It went down an average of around 20% from last year," said Hariyadi when met by reporters after attending an open house at the official residence of the Minister of Investment and Downstream Rosan Roeslani, Tuesday (1/4/2025).

In fact, according to him, the Eid holiday period is one of the peak seasons or peak moments for the hotel sector, especially outside Jakarta. Outside of that moment, the hotel occupancy rate is usually much lower.

For example, in Yogyakarta, on weekdays the hotel occupancy rate in the special region is only around 40%. However, during the Eid holiday season it should be able to increase to 85%.

"This Eid holiday is actually a booster. Because people have already used THR. Well, if it's a regular month, it's probably even worse," he said.

In addition to the occupancy rate, he said the duration of people staying in hotels has also weakened this year. This condition can be seen from the reservation time or hotel room rental which is not until the end of the Eid holiday.

"The holiday time is also not finished. Not until the 7th (April) like that. But like in Solo, they check out straight away on the 4th-5th. In Yogyakarta on the 6th, Bali also decreased. Bali was also not full until the 7th. So in general it decreased, nationally," he explained.

Hariyadi believes that the weakening of the hotel sector business this year has decreased drastically due to the weakening of people's purchasing power. So people who return to their hometowns reduce their shopping by not staying or reducing their vacation time at hotels.

"Maybe it's purchasing power. Purchasing power does seem to be problematic," explained Hariyadi.