Here are 5 Indonesian hospitality sectors that are slated to perform well this year

Business hotels are expected to grow by up to 8%.

Based on the observations of the Colliers Indonesia Hospitality Services team, since early 2022, the performance of the hotel sector in Indonesia has been seen to have quite positive and significant development.

Satria Wei, Head of Hospitality Services says, “Given the positive potential and outlook within the hotel sector in 2024, there are also other positive prospects for various sectors in the hospitality industry”.

Below are some sectors in the hospitality industry that are projected to grow well in 2024.

• Business Hotel

Based on our team observation, the overall business hotel performance is expected to see an increase of around 6% to 8% from 2023. The positive performance outlook for business hotels in 2024 is driven by MICE activities, which are predominant in both the private and government sectors.  

• Resort Hotel

In 2024, we observe an improvement in the performance of Resort Hotels compared to 2023. For hotel owners or investors, the most important aspect is for the hotel to possess a well-defined identity and concept. Therefore, the trend of transitioning from non-branded to branded hotels in resort hotels will also be a strategic move that requires careful consideration and execution. Trend of family vacations is expected to endure and grow. The number of rooms catering to family types is anticipated to increase in 2024.

• Entertainment

Colliers projections indicate an increase in demand for Spa, Wellness Entertainment, Sports Club, and Sports Entertainment, leading to a notably higher number of outlets opening, particularly in Indonesia in 2024 compared to 2023. Based our observations, for Spa or other Wellness Entertainment businesses, in 2024, the focus will still be centered on tourist destinations such as Borobudur, Labuan Bajo, Danau Toba, and Bali. Meanwhile, for Sports Entertainment, the emphasis will be on business cities such as Surabaya, Makassar, and Medan.

• Food and Beverage (F&B)

F&B business with a well-established brand is considered more sustainable compared to those without. In terms of awareness, reaching the public is easier, especially given the inquisitive nature of the Indonesian people. Therefore, we observed there is a growing prevalence of foreign F&B brands entering Indonesia.

• Golf Courses

The popularity of this individual sports began to rise within the Indonesian community in 2020 during the Covid-19 pandemic. Golf, traditionally associated with elite and older generation, has now emerged as a newfound favorite among the younger generation. This shift has been a significant factor contributing to its growth until 2023. One opportunity to boost revenue is to collaborate with businesses like F&B outlets, hotels, or real estate. This is due to the demand for entertainment that aligns with the target market.