An article in The Jakarta Post.
The rapid development of new hotels over the last few years has raised the prospect of unhealthy business competition in Semarang, Central Java, and environmental problems in the neighboring Yogyakarta province.
Secretary-general of the Indonesian Hotels and Restaurants Association (PHRI) Central Java branch, Yantie Yulianti, said that even though there was an oversupply of hotels in Semarang, the capital city of Central Java continued to issue licenses for new hotels.
“Hotels will compete to win guests. A price war will surely erupt,” Yantie said recently.
She said four-star hotels would likely lower their room rates to attract guests.
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Citing her latest research, Ike said that from 2012 until September 2014 there were 5,667 new hotel rooms in Yogyakarta, resulting in an increase of hotels rooms from 10,054 in 2011 to 15,731 this year.
Supply and demand is expected to reach a balance in 2019, but by then, the city might have already suffered from the environmental impacts of new hotel development.
She said that new hotels established in residential areas threatened the clean water supply for nearby residents. Poor environment management and control as well as limited green spaces and parking areas would exacerbate the problem.
Big hotels erected on small streets, she said, would lead to traffic congestion that would worsen during holiday seasons.
Ike also said the uncontrolled development of new hotels in Yogyakarta could disturb tourists. “This is very dangerous because other infrastructure cannot support the speed of new hotel development,” Ike said.
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