Despite facing a challenging economic landscape with rising Value Added Tax and government budget cuts, Indonesia’s hotel industry holds immense potential for savvy investors.
In this evolving market, hotel and resort owners need access to expert insights and actionable strategies.
Not Yet in Top 10
Indonesia’s hotel and restaurant sector is dancing to a challenging tune in 2025. From a rise in Value Added Tax squeezing consumer spending power, to government travel budget cuts and low investment, this sector is facing some tough times.
Recent data from the Ministry of Investment and Downstream Industry/Investment Coordinating Board paints a concerning picture: investment realization in this vital sector remains alarmingly low.
Deputy for Investment Services at the ministry, Iwan Suryana cited 2024 data, stating that domestic investment realization in hotels and restaurants ranks 13th.
“If we look at the contribution of hotels and restaurants, the investment was IDR 24.14 trillion (USD 1,4 billion) in 2024,” said Iwan during the 2025 National Conference of Indonesian Hotel and Restaurant Association, Tuesday February 11.
For foreign investment, the sector ranked 16th with an investment value of IDR 14 trillion (IDR 854 million) in 2024.
Based on this data, Iwan believes there’s significant room for improvement. “The contribution of hotels and restaurants still needs to be improved because they are not yet in the top 10,” he said.
Strong and Sustained Demand
Iwan emphasized the industry’s heavy dependence on tourism. Key factors like accommodation, transportation, and road infrastructure play a major role in attracting tourists, which ultimately impacts investment in related industries.
Given that the number of international tourists recorded the highest growth in the last 5 years in 2024 with 13.9 million visits (data from Indonesia’s Central Statistic Bureau in early 2025), it’s clear that the hotel business in Indonesia is very profitable.
According to the latest data from SiteMinder, a hotel distribution and revenue platform, the number of foreign tourists booking hotels in Indonesia increased by 26% in December 2024. Hotels and accommodation providers in Indonesia are also experiencing higher room rates during the holiday season, with the Average Daily Rate on the rise.
Rio Ricaro, Country Manager for SiteMinder in Indonesia, said that the stable average rate increase throughout 2024 indicates strong and sustained demand to visit Indonesia.
SiteMinder’s report shows that properties in Indonesia had the lowest booking cancellation rate in the world in 2024, at just 12 percent, 8 points below the global average. This trend reflects Indonesia’s rapidly growing and competitive hotel market.
“Minimal price variations throughout the week provide a clear opportunity for hotel business operators to adopt more dynamic pricing strategies, ensuring that this growth period can be fully maximized,” said Rio in a written statement.
Maximizing Your Investment
Amidst the complexities and possibilities of the current market, Indonesian hotel and resort operators must employ insightful tactics to elevate their property’s market value and draw in serious buyers. This is the precise reason Seven Stones Indonesia is hosting our intensive workshop, ‘Maximizing the Sale Price of Your Resort or Hotel’.
Gather with us at Trans Resort Bali on Friday, 21 March 2025, for a distinguished event featuring three leading figures in hotel and property investment.
Participants will build their professional network and discover that a hotel’s worth is not simply about occupancy and income. It’s about the guest’s holistic experience, streamlined operations, brand recognition, and how potential buyers perceive it.
Event Highlights:
• Strategic Insights: Acquire a thorough understanding of how investors assess hotel assets.
• Network Expansion: Build relationships with industry leaders and potential investors in the hotel and resort sector.
• Practical Education: Benefit from hands-on exercises and real-world examples to deepen your knowledge.
Don’t miss out on this masterclass! Limited spots are available, so secure your seat by registering today via this link http://bit.ly/hnrseminar.