Gedung Merdeka, courtesy of Sheraton Bandung Hotel & Towers
While new hotels are countering the
room crunch in bustling Bandung, the industry is hoping the provincial
government will do more to sustain tourism. Mimi Hudoyo reports
BANDUNG, the capital of West Java province, is enjoying rapid growth in arrivals from Malaysia with AirAsia’s twice-daily service from Kuala Lumpur. In fact, the airline is considering a third frequency, according to local industry players.
The trade is now starting to tap the Thai market. For the first time, the West Java Travel Exchange held in May, invited a number of Thai outbound agents to the show. While there is no direct flight to Bandung from Thailand, the Jakarta connection is convenient.
The domestic market, especially from Jakarta, continues to be the main market for meetings and weekend getaways. Since the opening of the Cipularang toll road connecting Jakarta and Bandung, which reduced travel time from three-and-a-half hours to two hours in 2005, Bandung has seen more domestic arrivals. Last year, more than 40 million cars drove in and out of Bandung, according to West Java tourism office director, Mr Budhyana.
As such, there has been a severe room crunch in Bandung in the last couple of years, and the growth of traffic has attracted investors to open hotels in the city.
Bandung is expecting some 2,000 three- to five-star rooms to open in the next two years, including the five-star, 170-room Bandung Hilton. Kagum Group, a local investor and hotel operator, is opening 10 properties of different types in the city this year and next, with a total of 1,000 rooms.
The Luxton Bandung Hotel, a four-star belonging to the BNP Bank group, will open with 96 rooms in the Dago area by September. The group is looking at opening another three-star property in Bandung.
Aston International, which has just opened its second property in Bandung, the 100-room Aston Tropi-cana Hotel & Plaza, will add a three-star property, the 198-room Aston Pasteur City Hotel, next year.
Meanwhile, Santika Hotels & Resorts is planning to have two more properties there, one of them with a sizable convention facility.
Kagum Group is new to the hotel business, but it is a factory outlet business giant in Bandung.
Kagum Group director of operations, Mr Martono, said: “Food and factory outlet shopping have been the major draw for our domestic and Malaysian markets. We have 21 successful factory outlets and our owner considers entering the hotel business a natural step to the next level.”
Mr Martono said before 2005, Bandung’s hotel occupancy was around 50 per cent. With the increasing number of rooms in the last two years, occupancy is now reaching 70 per cent, with an average room rate of between 350,000 rupiah (US$38) and 440,000 rupiah for three- and four-star properties.
“This shows market growth is high, and our projection is the city will still see growth up to 2012,” he said.
The Luxton Bandung director of sales and marketing, Ms Lindawaty Muhlis, said: “Bandung has a good mix of markets. While Jakarta’s ratio of business to leisure is 80:20, Bandung’s ratio is 60:40. The easy access from Jakarta makes the city attractive for the MICE (meetings, incentives, conventions, and exhibitions) market, while the access from Malaysia is good for leisure business.”
The entry of new hotels, however, means direct competition for existing properties. Grand Hotel Preanger general manager, Mr Satria Pringgodani, said: “There is a positive side to the competition. It encourages the established hotels like us to renovate and upgrade.”
The hotel will be renovating its rooms and adding a ballroom with capacity for 800 people.
Holiday Inn Bandung general manager, Mr Rully Zulkarnaen, added: “We have been facing competition from new hotels, but we have managed to survive through improving our service standards. The high rate of repeat guests proves this.”
The 146-room Holiday Inn, which has an average occupancy of 85 per cent, is adding 40 club rooms and suites by next year.
Hotel Papandayan is also planning to boost its room count from 188 to 275 and add meeting facilities next year.
However, there are concerns there will be an oversupply of rooms and market saturation unless the regional government does something about the infrastructure and tourist attractions.
MG Holidays managing director, Mr Raymond, said: “What Bandung needs is a standalone convention centre to sustain or grow its MICE market.”
Other industry members said the local government should look into building more roads, preserving old buildings and reviving Braga as the centre of entertainment (the way it was during the Dutch colonial period, which earned Bandung the title of Paris van Java).
Mr Budhyana said: “Bandung has become very crowded, especially during the weekends. It also has a high rate of repeat visitors. We need to introduce new things and disperse the market to other areas.”
While Bandung will continue to be the main destination, the regional government is promoting neighbouring areas such as Tasikmalaya, for its handicraft and embroidery products; Garut, for its hotspring; and Pelabuhan Ratu, for rafting and fishing.
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