By Susan Cunningham
BANGKOK—Fueled by steady economic growth exceeding 6% annually, the rise of Indonesia’s middle class and its impact on the hotel landscape were prominent themes at Travel Trends’ No Vacancy conference in Bangkok last week.
Of the 248 million people in Indonesia, approximately 20%–50 million–now belong to the middle class, said Sonia Kapoor, client service director for Nielsen Singapore. Now compiling between $4 and $20 each day to save or spend on leisure activities, members of this group will comprise 50% of the population by 2030, she predicted.
The number of new hotels being built or in the pipeline is unknown. The breakdown of travelers also is hazy, but Scott Blume, group CEO of PT Raja Kumar International, provided an estimate: “At least 25% is probably business travel and the travelers are staying in the 3- to 3-and-a-half-star range hotels. That’s 400,000 to 500,000 rupiah, or about $40.” … MORE