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Indonesian Government Will Relax Meeting Ban
Hotels in Indonesia can finally sigh with relief after the country’s government made it public that it would relax ban on government meetings in hotels. That will help local hotels keep their bookings and increase occupancy rates.
The executive director of Indonesian Hotel and Restaurant Association (PHRI) Cyprianus Aoer announced that the government decided to allow meetings in hotels again as they had problems with occupancy after such a decision.
Initially, the step was considered a way to save as meetings and conferences of governmental organizations cost the budget around $394 million. However, the ban affected not only hotels, but also farmers and fishermen who delivered food to hotels. The ban relaxation is particularly important for hotels in remote areas, where almost a half of revenues come from events organized by government. At the same time, big hotel chains in such cities as Jakarta, Yogyakarta or Bali have not experienced any severe drop in occupancy despite the ban.
In November 2014 Indonesian government issued a circular that prohibited government authorities from organizing events and meetings at hotels if their office buildings could accommodate those meetings. As in most cases government events were organized at hotels, the ban resulted in a drop of occupancy in hotels across the country. Most hotels reported the decrease of occupancy of 5% from 55.91% to 50.13%.
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