Two Weeks Before Eid, Tourism Growth Not Yet Visible

JAKARTA, KOMPAS – Two weeks before Eid al-Fitr, the level of hotel reservations and domestic travel packages is less lively. Instead of increasing public enthusiasm, the trend is actually slowing down compared to last year's Eid. The momentum of this Eid is feared to not be optimal amidst the sluggish economic conditions.

Chairman of the Indonesian Hotel and Restaurant Association Hariyadi Sukamdani assessed that the level of hotel reservations during this year's Eid is actually slower than last year. In fact, it is now exactly two weeks before the Eid celebration.

"Hotel occupancy (today) is still bad, an average of around 20 percent. For Eid, we don't know yet, it's still not visible. The point is, for the destination areas for homecoming travelers calculated H-14, it is indeed slower than last year," said Hariyadi when contacted in Jakarta, Sunday (3/16/2025).

Last year, out of 100 available rooms, the hotel had secured reservations for 50 rooms or half capacity on D-14 of Lebaran. Currently, there is a decline in the reservation rate trend of around 30 percent.

"Indeed, the hope is that closer to the D-day, around D-5 or D-3, the (trend) will increase, hotels can pick up," said Hariyadi, who is also the Chairman of the Indonesian Tourism Industry Association.

When asked the reason behind the slowdown in the reservation trend, Hariyadi could not confirm. However, he believes the trend during the peak season will remain higher than normal.

He also predicted that the hotel occupancy rate would reach 80-100 percent, like last year's Eid. However, the figure depends on the favorite hotel and its location. "On average, 80-85 percent (occupancy) can be, the same as last year," he said.

Occupancy rates are influenced by various variables. Two of them are the increasingly even distribution of hotels and infrastructure development.

New hotels that are more widely spread provide many accommodation options for tourists. In Yogyakarta, for example, tourists choose to stay in Gunung Kidul and Boyolali because of the density of Sleman and the city area.

In addition, the Surakarta-Yogyakarta Toll Road is planned to be operational during the upcoming Lebaran. This also contributes to hotel occupancy for both areas and the areas passed through.

According to the Secretary General of the Association of Indonesian Tour and Travel Agencies (Asita) Budijanto Ardiansjah, the trend of travel during the upcoming Eid has indeed shrunk slightly. He suspects that this is due to the condition of people's purchasing power which is still sluggish.

This year, there are not too many requests coming in, although he admitted that it is a bit difficult to distinguish between the movement of people for homecoming and tourism. "If we take the total, the government's target this year is also not too optimistic. However, let's see on the D-day," said Budijanto.

The still-low tourism trend ahead of Eid is also thought to be due to the government's "late" announcement of domestic flight ticket discount policies.

On the one hand, the government's efforts to provide discounts on domestic airline tickets have been able to slightly increase the level of ticket reservations, at least up 5-10 percent compared to before the announcement.

However, although the decrease in airline ticket prices has slightly boosted public interest, the effect is not very large.

"It's called peak season, sometimes the number of flight ticket availability and demand are not the same. So, we hope that when the flight ticket discount is announced, there are still seats available. I'm afraid there are only a few left, or even sold out. So, it doesn't have much effect," he said.

Similarly, the General Chairperson of the Indonesian Travel Agent Association (Astindo) Pauline Suharno said that she was a little disappointed because domestic Eid ticket discounts were only announced about a month before Eid.

In fact, if it was announced well in advance or the government at least urged airlines to open promotions from the start of the discount announcement, travel agents could still encourage people to travel domestically.

According to Pauline, the ideal announcement of flight ticket discounts should be made seven months before the big day, while Budijanto thinks it should be at least two months before the big day.

"We have been selling (airline tickets and travel packages) since August-September last year (2024). If (ticket prices) are lowered from last year, that would be even better. We want to divert travelers from abroad to domestic," said Pauline.

He explained that people generally have planned their Lebaran trips from the previous year in August-September. Meanwhile, in February, they usually buy tickets for school holidays in June or even for Christmas and New Year.

"So, it's a shame, because actually we could get more domestic travelers during the Lebaran holiday season. Indonesian customers have been educated to buy (tickets) far in advance so the price is cheaper. If it's close, it's expensive," he said.

On the other hand, as the Lebaran season approaches, business actors cannot intervene much in price components such as providing promotions and discounts during peak seasons. Such efforts are usually only possible during normal times (low season).

So far, what can be done is limited to adding services, such as preparing more food variants and providing special vehicles to take customers to shopping centers.

"Hotel (room) prices are all made dynamic. For example, if the rooms are not full until D-3, the price does not increase. However, if occupancy increases closer to D-day, the price is automatically more expensive," said Hariyadi.

The main destinations for travelers during the upcoming long holiday are still similar. Domestic destinations include Yogyakarta; Surakarta and Semarang in Central Java; Bandung and Cirebon in West Java; and Malang in East Java. Bali is a destination visited after Lebaran because it is relaxing (leisure).

Meanwhile, the highest movement before and after Eid is the Umrah pilgrimage to Mecca, Saudi Arabia. On average, plane tickets to the Middle East are full, even after Eid.

In addition to the Middle East, another country that is still a favorite is Japan because it coincides with the cherry blossom season in late March-early April. Other destinations are Hong Kong, Europe, and China.

On April 5, 2025, the Chinese ethnic community commemorates the Day of Grave Pilgrimage or Ceng Beng. As a result, many people of Chinese descent also return to their hometowns, such as Medan (North Sumatra) and Pontianak (West Kalimantan).

Pauline recommends that people be smart in planning their trips. Affordable ticket prices can be obtained if purchased well in advance. The holiday calendar also needs to be considered, especially since the government tends to add holidays closer to the D-day.

"Just book the ticket first, no problem. There are airline tickets or tour packages that are covered by insurance, so if there is a trip cancellation, it can still be protected by insurance," said Pauline.

The sluggish public enthusiasm ahead of Eid is also related to the sluggish economic conditions in recent times.

Senior economist at Paramadina University Wijayanto Samirin assessed that the decline in economic activity in certain sectors ahead of this year's Eid was caused by declining purchasing power. This is in line with the fading economic optimism of the community.

"The trend of declining purchasing power has occurred since the middle of last year and continues until now, even Bank Indonesia data shows that retail spending fell 4.75 percent (year on year) in January and is expected to happen again in February," said Wijayanto.

This condition is worsened by the drastic efficiency policy of the State Budget (APBN) at the beginning of the year. "Citizen optimism is also fading due to the trend of layoffs (PHK) which is expected to skyrocket in the coming months," he said.

The holiday allowance (THR) also does not have much impact on the Eid celebration. Because, in the midst of economic uncertainty, people tend to spend their money more carefully. Moreover, with the phenomenon of "eating savings", people's savings are generally also running low.

However, tourism experts believe that the Lebaran movement will still be felt. Moreover, the government has made various interventions, such as establishing work flexibility (work from anywhere/WFA) and providing discounts on airline tickets and toll rates.

Founder of Indonesia Tourism Strategis Taufan Rahmadi said, with various interventions, tourists can work and enjoy holidays in the country. Hotel and lodging occupancy is also expected to increase, as well as car rental services and tourist motorcycle taxis.

The issue that needs to be anticipated is excessive tourism or overtourism which can reduce tourist comfort. Infrastructure readiness, such as transportation, accommodation, and public facilities, also need to be considered.

"If this momentum is managed well, it is not impossible that this year's Eid will be a turning point for the transformation of the national tourism industry to a higher level," said Taufan.