Northstar

TRAVEL WEEKLY ASIA O F F I C I A L D A I L I E S www.travelweekly-asia.com 16 26 October 2017 THE NEXT BALI OR A HALAL DESTINATION? Contributed by Vicky Jian, Senior Consultant, Howarth HTL Jakarta For more information, contact: Matt Gebbie, director at: mgebbie@horwathhtl.com +62 2555 8584 (office) +62 8111079659 (mobile) According to official Indonesian statistics (BPS), both international and domestic tourist arrivals to Lombok have been growing steadily in the nine years to 2016 at an annual average growth rate of 28% and 27%, respectively. Key factors include the addition of low-cost carrier routes that drove a 33% boom in international arrivals in 2014 and the addition of ferry routes from Bali feeding tourists to the northern Gilis and Senggigi. The BPS numbers (below) show that Nusa Tenggara Barat (mostly driven by Lombok) reached the targeted tourist arrivals of three million in 2016 with a further one million to be added to the target in 2017 (1.5 million international + 2.5 million domestic arrivals). Massive new additions to supply: top-tier room inventory expected to triple! By 2021, the top-tier room supply is expected to triple with 10 new hotel developments scheduled to open within the next 4 to 5 years (left). Almost half of the expected room supply will be under international brands, such as Pullman, Royal Tulip and Club Med, which will help raise Lombok's awareness internationally and regionally, broadening appeal and driving demand growth. SOURCE: BADAN PUSAT STATISTIK NOTE: TOURIST ARRIVALS TO LOMBOK REPRESENT APPROXIMATELY 90 PERCENT OF THE NTB ARRIVALS. Tourist arrivals to Lombok have been rising steadily in the past nine years, thanks to the addition of low-cost carrier and ferry routes. The closure of Jetstar ights from Perth has "encouraged" the resorts to focus on attracting domestic travelers. In 2015, almost all of the hotels suffered due to the closure of Jetstar direct flights from Perth, Australians being a top source market in Lombok. Top-tier hotel occupancy recorded a significant drop of 10% points (top). To refill the lost Australians, most resorts adjusted their strategies to offer promotions to capture more domestic and regional demand. The flipside was stagnation in ADR growth in resorts. Top-Tier New Supply Lombok Top-Tier Resort Performance West Nusa Tenggara (NTB) Tourist Arrivals

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