Jakarta – Indonesia’s smooth first-round elections – voting for House of Representatives’ national, regional, executive council members – on April 5 has sent a positive message to business travellers, according to Jakarta hotels and travel management companies.

Some hotels reported above-target occupancies days after the election campaign in March.

Hotel Menara Peninsula director of sales and marketing, Mr Hendra Surip, said: “Like many other hotels, we projected business would be quiet in the first six months of the year. However, seeing that the first four days of political party campaigning went without incident, business travellers started to come.”

On election day, the hotel was running 55 per cent occupancy and the majority of guests were overseas business travellers, Mr Surip said.

International guests make up 35 per cent share of its market share. Of this, Japan, Europe and ASEAN are significant, including some Korean long-staying guests.

“We projected the year-to-date occupancy up to March at 62.7 per cent, but we managed to hit 70 per cent,” Mr Surip noted.

It was a similar picture at Dusit Mangga Dua. Executive assistant manager, Mr Riyo Wisaksono, said: “Occupancy dropped to between 60 and 70 per cent only three days before and after the election date because local businessmen stayed home to vote and activities in Jakarta slowed down due to that. Other days, our daily occupancy was up to 80 per cent.”

Its major international markets are Singapore, Malaysia Australian and Europe. Commenting on the positive outcome, Hotel Borobudur Jakarta general manager, Mr Poul Bitsch, said the peaceful elections had now led to increased bookings for the coming months.

“The presidential election is still pending, but conferences in September and October have already been confirmed and travel agents have been actively negotiating group rates. (Should the presidential election go smoothly), the recovery will accelerate in the second half of the year.”

Hana Tour, SYNERGI partner in Indonesia, director, Ms Jina Seung, added: “These businessmen have been here many times, are aware of developments in the country, and are not deterred by the political campaign and election.”

But campaigning is not over. The presidential election takes place on July 5, and for the first time, the Indonesian people will elect a president and vice-president, who must get at least 50 per cent of the votes. Otherwise, there will be a second round of voting in September.

Although nobody can forecast the outcome, Hotel Borobudur’s Mr Bitsch said it was unlikely the international business community would be affected by who the president or vice-president would be.

“What they want is a good business climate. They have been waiting to do business here for the past six to seen years (since the political and social crises of 1998).”

While the trade is optimistic about the second half, there is some concern a clear winner does not emerge.

The strategy and policies of the new government have to be spelled out before investors will return in full force, he said.