Sunday, September 30, 2018

Hilton hotel chain expands, beefs up operations in Indonesia

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  • Vincent Lingga
    The Jakarta Post
Singapore | Thu, September 27 2018 | 03:06 am
American hospitality company Hilton Worldwide, which manages one of the world’s largest hotel chains, is poised to restore its status as the market leader in Indonesia’s hospitality industry with 15 new hotels scheduled to open within five years.
“Four mid-market brand hotels will open in Surabaya, Jakarta and Karawaci, Tangerang, in 2019 and 2020. And Hilton’s world-renowned luxury brand Waldorf Astoria and Conrad will open in Jakarta and Bali’s Nusa Dua in 2020, to be followed by another Waldorf Astoria in Bali’s Ubud area in 2024,” Alan Watts, the president of Hilton Asia Pacific, said in Singapore on Wednesday.
Watts told Asian and Australian journalists that new properties, including the 74-story Waldorf Astoria in the Thamrin business center in Jakarta, would join Hilton’s Indonesian portfolio of five properties already in operation, namely Conrad Bali, Hilton Bali Resort, Hilton Bandung, DoubleTree by Hilton Jakarta and Hilton Garden Inn Bali Ngurah Rai Airport.
“As Southeast Asia’s largest economy with a burgeoning middle class, Indonesia is a particularly important growth market for Hilton,” Watts added.
Hilton’s global CEO Christopher Nassetta concurred that, as the largest economy in Southeast Asia and as part of the fast-growing Asia Pacific region, there were plenty of opportunities in Indonesia’s travel and tourist industry.
“The big growth in the middle-class group and the higher propensity of people to get experiences and see the world’s wonders, instead of acquiring things, will be the main driver of the tourism boom,” noted Nassetta, who is also the chairman of the London-based World Travel and Tourism Council (WTTC), the most authoritative research agency on the tourist industry after the Madrid-based United Nations World Tourism Organization (UNWTO).
Hilton Asia Pacific executives held a conference in Singapore on the eve of World Tourism Day, celebrated globally on Sept. 27.
In a related development, the UNWTO said in its latest report that international tourist arrivals globally grew by 6 percent in the first four months of the year, led by 8 percent growth in the Asia Pacific and 10 percent in Southeast Asia.
“Last year, international tourist arrivals worldwide increased by 7 percent to 1.32 billion with total spending of US$1.6 trillion. The Asia Pacific region got 324 million of the total with $390 billion in total spending,” the report said. Southeast Asia alone saw 120.34 million tourists, which generated $130.7 billion in total spending, the UNWTO added.
The growth also reflected deepening regional integration, better air connectivity and a strong demand from Northeast Asian source markets, notably China and South Korea, the report said.
Meanwhile, the WTTC noted in its latest research report on 185 economies that the travel and tourist industry had continued to play a crucial role in creating jobs, driving exports and generating prosperity through its multiplier effect.
“Over the longer term, forecast growth of the travel and tourism sector will continue to be robust as millions more people are moved to travel to see the wonders of the world. Just look at the airport expansions in almost all countries in Asia and the Pacific,” Nassetta said.
According to the WTTC, the direct contribution of travel and tourism to the GDP in Southeast Asia last year was $135.8 billion (4.9 percent of GDP) and is forecast to rise by 5.9 percent to $143.9 billion in 2018. This primarily reflects the economic activity generated by hotels, travel agencies, airlines and other passenger transportation services.
This region is expected to attract a total of 125.78 million international tourists this year, up from 121 million in 2017 and 115.5 million in 2016.
Thailand was the most popular destination in Southeast Asia with total tourist arrivals of 35 million and total spending of $57.5 billion, ranking it fourth in the world after the United States, Spain and France.
Indonesia, the world’s largest archipelagic country with a vast diversity of cultures and natural attractions and historical heritage, saw only about 12.5 million tourist arrivals in 2017 with total spending of $14 billion. The country has launched a more coordinated program and is looking to woo 17 million tourists this year and 20 million in 2019.

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