Sandiaga Uno: Capital City Relocation won't Affect Hotel Business in Jakarta

TEMPO.CO, Jakarta - Indonesia’s Tourism and Creative Economy Minister Sandiaga Uno said the relocation of the capital city to East Kalimantan will not substantially and fundamentally affect the hotel business in Jakarta for the long term.

“In the US, for example, the hotel occupancy rate in New York remains high although the capital city is in Washington DC. This is similar to Sydney or Melbourne that log high hotel occupancy rates, and their economic activity keeps increasing,” said Sandiaga in a speech at Indonesia Tourism Outlook 2023 held in Jakarta, Wednesday, January 28, 2023.

He said the facts were part of the factors that made him optimistic that investment in the hospitality sector in Jakarta will keep going better. 

The Jakarta Hotel and Restaurant Association (PHRI) chairman Sutrisno Iwantono demanded the central and regional governments immediately come to a clear plan regarding the future of Jakarta following the capital relocation.

He opined that it could possibly cause serious impacts on the business of lodging and restaurants in the city. “The fate of hotels and restaurants really depends on the fate of Jakarta.”

To date, Sutrisno went on, it remained unclear whether Jakarta will be a financial city, a trade city, an industrial city, or a tourism city. According to him, if this issue reaches conclusion, hotel and restaurant business players could thus adjust their business.

ANTARA

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