Indonesia Is Targeting More Indian Tourists

STR reported China hotel data for the week ended March 1. Hotel RevPAR in China was down -4.6% year over year. The results were up against an easy -8.7% decline in the year ago week. ADR was down -5.1% year over year for the week while occupancy was up +0.6%.

The Vietnam Ministry of Culture, Sports and Tourism has issued the Tourism Development Stimulus Program with the theme “Vietnam veo-Timeless Journey, Endless Love.” In a nutshell, this is designed in the hopes of fostering the attraction of international tourists to Vietnam this year, targeting tourists from Poland, Czech Republic and Swiss Confederation with things like a visa exemption policy and other favorable conditions to welcome tourists. Vietnam officials said the Tourism Development Stimulus Program will offer many products and services with preferential prices, increasing experiences for tourists. Tourist areas, tourist attractions, historical relics and scenic spots will exempt or reduce entrance fees for tourists according to legal restrictions. Tourist transportation, accommodation, food and beverage, entertainment, shopping and health care are offered up to 50% discounts depending on each service item and conditions announced by tourism, transportation and service providers.

The Embassy of the Republic of Indonesia hosted a networking event to discuss India’s growing outbound travel trends and Indonesia’s plans to attract more Indian visitors. The event highlighted India’s position as Indonesia’s largest market in South & Central Asia and the sixth biggest source of international visitors with 710,688 Indian arrivals in 2024, surpassing the annual target of 488,568 by a wide margin. For 2025, Indonesia’s Ministry of Tourism has set a target of welcoming 918,480 Indian tourists, largely driven by the introduction of direct flights from India. The country is rolling out a comprehensive strategy that includes travel exhibitions, sales missions, collaborations and exclusive familiarization trips. Their super priority destinations they are marketing to Indian tourists include Bali, Jakarta, Lake Toba, Borobudur, Mandalika, Lombok and Labuan Bajo. Visa free entry from 15 prominent tourism source markets include India, and is expected to further ease travel and attract more visitors when approved.

India-based accommodation provider OYO plans to open a thousand serviced hotels in Indonesia by the end of 2025. The new hotels will focus on major urban areas including Jakarta, Bandung, Surabaya and Makassar. Additional cities included in the expansion are Palembang, Bandar Lampung, Bekasi and Sidoarjo. Many of these hotels are expected to fall under OYO’s premium sub-brands including Sunday, Townhouse Oak, and Collection O.

Accor’s midscale Mercure brand opened a new hotel in East Java, Indonesia. The new Mercure Madiun is located near key attractions such as INKA Railway Museum, Madiun Train Station and business districts. The hotel has 153 guest rooms including deluxe rooms and privilege suite rooms, all reflecting the city’s locomotive industry. Amenities include a swimming pool, fitness center and a Kids Club. Flexible meeting facilities will be enhanced by the upcoming Grand Ballroom which will accommodate up to 700 guests. The group is also launching a new property in Garut City Center, West Java in January 2025. The Mercure Garut City Center will have 160 rooms and suites, swimming pool, gym, and a restaurant. Accor said their Mercure brand expansion continues with more than 1,000 properties across 70 countries.

Accor also said they have reached a significant milestone in its sustainable journey in Australia and New Zealand, with more than 200 hotels now eco-certified. This represents over 50% of Accor’s network in the region. In Australia, over 190 hotels have achieved Sustainable Tourism Certification from EcoTourism Australia. Across the Tasman, more than 20 have earned the Gold Sustainable Tourism Business Certification from Qualmark New Zealand. Over 70 additional hotels across Australia and New Zealand are currently undergoing the eco-certification process. Accor has a global ambition to have 100% of their network eco-certified by 2026. Accor operates more than 400 hotels in the Pacific region.

Melia Hotels International signed an agreement with Vietnam’s CityLand Group to open the new five-star Melia Phu Quoc Forest Bay in 2028. The resort will be Melia’s third property on Vietnam’s largest island, joining Melia Vinpearl Phu Quoc in the northwest and SOL by Melia Phu Quoc in the south. The resort is located along a pristine 700-meter beachfront and will span 21 hectares within the Bai Thom master plan. The project will be developed in two phases with the first phase set to open in 2028, introducing 128 luxury villas and 130 rooms while the second phase, expected to be completed by 2030, will add 108 more villas, bringing the total capacity to 773 rooms. Contemporary villas will range from two to five bedrooms, each with private pools. There will be multiple restaurants and bars along with an oceanfront swimming pool, wellness center with a gym and luxury spa, kids club, and an event space for weddings, conferences and large events. Melia had six hotels and resorts in Vietnam at the start of 2022 but now has 20 hotels in operation and six in the pipeline.

South Australian-based Accord Property announced a four-star, 120-room hotel as part of Mount Barker’s Summit Precinct plan. The proposed $50 million development will be built on land owned by the Mount Barker District Council at Springs Road and is part of a larger plan to improve visitor accommodation and attract investment. The hotel will be the first major tourism project in the 50-hectare Summit Precinct which already includes the Summit Sports and Recreation Park and will soon open the Summit Aquatic and Leisure Center in late 2025. Accord said a planned $15 million wellness center will be integrated with the hotel in future stages. The development application for the hotel is being reviewed by the State Commission Assessment Panel.

Indian Hotels Company Limited has expanded its portfolio in the state of Punjab with the signing of two new hotel projects in Ludhiana. Both Gateway and Ginger hotels will be integrated into a larger mixed-use development scheme. The Gateway Ludhiana will feature 110 keys, an all-day diner and bar, a gym and swimming pool and a 5,000 square foot ballroom. The Ginger Ludhiana will offer 100 keys, the brand’s all-day dining option Qmin, a bar, a gym and a banquet hall. IHCL is partnering with owner Hampton Sky Realty on the hotels. They will increase IHCL’s presence in Punjab to five hotels including four that are under development.