Indonesian Hotel Industry Shows Optimism for Nataru 2025/2026

Seasonal Uptick Expected Despite Current Challenges

The Indonesian hotel industry is entering the 2025/2026 Christmas and New Year (Nataru) season with cautious optimism. Despite struggling with weak consumer demand and government spending cuts throughout the year, industry stakeholders anticipate a seasonal increase in occupancy rates during the holiday period. Maulana Yusran, Secretary General of the Indonesian Hotel and Restaurant Association (PHRI), noted that historically, Nataru has always shown an increase in hotel occupancy ¹

Current Occupancy Challenges

The hotel industry has faced significant challenges in 2025, with occupancy rates in Q3 2025 remaining 4% lower than the same period last year. The primary factors contributing to this decline have been weak consumer purchasing power and government spending efficiency measures. Maulana emphasized that consumer purchasing power has been the main driver affecting hotel occupancy rates.

Industry Outlook for Nataru

While current occupancy trends remain challenging, industry players are hopeful that the Nataru period will provide a much-needed boost. The sector typically experiences a surge in demand during this time, as it is one of the peak travel seasons in Indonesia. However, the actual impact will depend on various factors including overall economic conditions and consumer confidence levels.