With the current travel restrictions in place as a result of the COVID-19 pandemic, Indonesia hotel industry’s first effective steps towards recovery will predominantly depend on the return of domestic travel. The Indonesian Government has revealed its tourism support plan which includes incentives to airlines and travel agencies, tax waivers for hoteliers and restaurants in selected destinations, as well as discounts for domestic tourists.

After three months of closure, on June 8th the government finally eased its large-scale social restrictions (LSSR), allowing more businesses to reopen. Domestic flights resumed on the 9th of June despite Indonesia continuing to report a high number of daily infections. According to the Indonesian Hotel and Restaurant Association (PHRI), many hotels decided to remain closed due to the anticipated low demand, with plans to reopen no earlier than July. However, hotels are slowly reopening in Jakarta, where the outbreak is under control. Operating hotels in the capital city reported that business demand is starting to pick up while leisure demand remains under pressure. 

During this time of uncertainty, to help local demand recover, Indonesia will need to ensure that traveller confidence levels are high.