Hotel construction in Indonesia is set to boom in coming years

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The project pipeline for the Asia Pacific region of Indonesia is looking healthier than ever, with a slew of new hotel projects to be built in the coming years. We take a look inside this upcoming hotel construction boom in Indonesia.

Indonesia’s tourism industry

Tourism in Indonesia is a large part of its economy, and is set to become even more important to this collection of Southeast Asian islands in the coming years. In 2014, tourism made up 3.2% of Indonesia’s GDP, but there are plans to increase that to 8% by 2019, which would explain the boom of hotel construction that is projected for the next few years. If this figure is to be achieved, the number of visitors to the islands would need to double to 20 million per annum. The numbers of the tourists has been increasing year on year recently, and all of these visitors need somewhere to stay. This is being propped up by government investment in tourism infrastructure, as well as getting foreign investors involved in developing in Indonesia.

Hotel construction in Indonesia: Project pipeline

Over the coming years, an incredible 137 new hotels are set to open their doors across Indonesia’s many volcanic islands. This will bring a total key count of 26,714 new rooms to the archipelago, which are sure to benefit the increased volume of tourists to the islands that is hoped for in the years to come. Considering Indonesia’s incredibly stunning natural landscapes, beachfronts and jungles, it makes sense that all of these new properties will reside in the upper tiers of the hospitality sector, with 51 projects being classed as luxury hotels, and the remaining 86 falling into the first class category.

Project stages

Perhaps unsurprisingly, most of the hotels will be concentrated in Indonesia’s most popular destinations, which are a solid bed for investors and hoteliers alike. The capital of Jakarta will receive a boost of 24 new hotels, while the tropical destination of Bali will see 30 new projects open their doors, and Ubud’s idyllic paradise will be home to nine new hotels. 26 of the total number of hotels are set to welcome guests before the end of this year, while 44 will open their doors in 2019. 2020 will see 21 projects operational, and 2021 and beyond will see the realisation of the remaining 46 projects regarding hotel construction in Indonesia.

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