The many most promising sectors in Indonesia, Hotel Investment Opportunities is one of the brightest stars in the midst of Indonesia’s improving economy. The hotel industry, including property in Indonesia, continues to show tremendous growth, especially in Jakarta, Bali and Semarang. With the substantial growth in this sector in recent years, this market is maturing and easing any concerns.
Semarang is the capital of Central Java. At first glance, Semarang may not seem as attractive as Jakarta, but it is on the right track to become one of the most popular tourist centers in Java. The diversity and architecture of the buildings in Semarang attracts both domestic and international tourists. Semarang has a good economic structure in hospitality, including properties, places to stay and restaurants. Semarang is even considered a culinary center on the island of Java.
In this article, we will discuss this promising market in Semarang and how investors start their business in this sector.
Hotel Investment Opportunities and Tourism in Indonesia
With one of the largest investments in tourism including hotels and restaurants, Indonesia experienced massive economic growth in 2013. The average economic growth of hotels is 6% – 8% per year and contributes to more than 30% of GDP annually.
In the same year, visitor arrivals in Indonesia increased by 16.37% with 808 million visitors. 35% of visitors are from ASEAN. According to the Australian Bureau of Statistics, Indonesia is also the second most popular tourist destination for Australians. The continued growth in the number of visitors who come to Indonesia provides its own momentum for the Indonesian government to improve the hotel and tourism sector, especially through improving facilities and infrastructure.
The average occupancy rate of hotels in Indonesia is around 50-70% per year and the construction of accommodation, especially hotels, is highly recommended in many popular cities in Indonesia and Semarang is one of them.
Hotel Investment Opportunities and Properties Information in Semarang
Property and hotel investment in Semarang still has many opportunities. Therefore, Semarang not only attracts tourists, but also foreign investors to take the opportunity to build more accommodation for tourists as well as residents in Semarang. The types of accommodation that are usually built in Semarang are budget hotels and boutique hotels. For more luxurious accommodation, 4-star and five-star hotels and villas and resorts are recommended.
The Semarang City Government is again holding an annual event in the field of promotion and investment, the Semarang Business Forum (Sembiz) virtually 2020, Wednesday (9/9/2020). The 14th Sembiz event presented several resource persons, including the Mayor of Semarang Hendrar Prihadi, the Director of PwC (Price Waterhouse Coopers) Indonesia Julian Smith, and the Head of BKPM RI Bahlil Lahadalia.
Although it was held virtually, it did not reduce the number of participants who took part in the event. Broadcast online via the Semarang City Government youtube, the annual business forum for the Capital of Central Java Province attracts many business participants, both domestic and foreign. In his presentation, the Mayor of Semarang, Hendrar Prihadi conveyed various investment opportunities in the city of Semarang, including providing incentives for investment. There are at least two types of incentives that we can provide, the first is BPHTB and PBB relief for asset ownership in the city of Semarang, explained the Mayor of Semarang who is familiarly called Hendi.
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Amid the pandemic, the city of Semarang opens investment
Mayor of Semarang who is familiarly called Hendi will provide local tax relief for up to 6 months from the time the business starts operating, for the hotel, restaurant and entertainment business type,” he continued.
Hendi also explained that the tourism sector is also one of the leading potentials in the city of Semarang, considering that currently the tourism sector is the largest foreign exchange contributor in Indonesia, even beating the oil and gas sector.
“Even though the Covid-19 pandemic has affected the tourism industry a lot, I am optimistic that the tourism industry can continue to develop with various adjustments in the era of new habits,” he said. He mentioned that one of them is the revitalization of the Old City of Semarang. Supporting the development of the tourism sector, he revealed that the Semarang City Government continues to strive to build supporting facilities and infrastructure, including transportation facilities.
For that, in the future we plan to build the first 6 km LRT line. This route will connect the Ahmad Yani Airport Area-Madukoro-Bulu Market which we hope will further improve mass transportation services,” Hendi continued.
Owning Property in Semarang for Lodging Business
To start a lodging business in Semarang, you have to do careful planning in advance. When you are in the planning process, there are a number of things you should consider, such as the proper building permits and licenses, and whether you are renting or owning property.
To protect your property or land like a smart investor, understanding your property rights for example homestay license property right. A homestay license allows you to run a property with 3-5 rooms. Homestay is defined as property that is rented out to tourists to stay with local families in Semarang. Tourists pay for lodging which is cheaper than other types of accommodation.
Building License property rights
A building license allows you to build property on land. The property owner is responsible for obtaining this license. For example, if you are the only tenant of the property, your landlord should obtain this license for you.