DIGIVESTASI - The Jakarta Hotel and Restaurant Association (PHRI) warned that hotel occupancy rates in the Jakarta Special Capital Region could potentially decline by up to 50% if the government is officially moved to the Capital City of the Archipelago (IKN) in East Kalimantan. Chairman of the PHRI DKI Jakarta Regional Leadership Board, Sutrisno Iwantono, estimates that the hotel occupancy rate could drop dramatically due to the transfer of all business and government activities to IKN. "If everything moves, including the government, hotel occupancy can drop by 50% from normal conditions," Sutrisno said, Wednesday (10/7/2024).

Currently, hotel occupancy rates in Jakarta are still stable as there is no sign of the government moving to IKN. Nevertheless, his party has begun to prepare for the possibility. Sutrisno added that every hotel has a strategy to maintain their business in Jakarta, such as maintaining customer loyalty through more aggressive and proactive marketing.

In addition, hotels are also working to improve their internal management to increase attractiveness with better service and competitive prices. "Each member has their own way to survive," he said. On the other hand, PHRI Jakarta has held a meeting with the Jakarta provincial government to understand how Jakarta's status will be defined after it is no longer the capital city. According to Sutrisno, Jakarta's status must be formulated well because it will affect the hospitality industry in the region.

For example, if Jakarta is designated as an industrial city, the future of the hospitality business will depend on the economic activities developed there. "If Jakarta becomes a trade center, people will come here to trade and stay in hotels," he explained. Furthermore, Sutrisno said that the government plans to make Jakarta a global city. For this reason, Jakarta needs to become the headquarters for global companies. "It will be difficult to make Jakarta a global city if there are no global activities here," he concluded.