“ Once infrastructure developments have been implemented by the government, the number of hotel operators will expand across Indonesia’s secondary cities at a more aggressive rate than they are now. ”
We established the company in 2012 because we saw the huge potential for the hotel industry in Indonesia. Indonesians by nature are very hospitable people, and we have capitalised on this culture by delivering excellence in our services. This is the foundation of our company and is one of the important factors as to why Indonesia is fast becoming a tourist destination hub in Southeast Asia.
In terms of the national development of the hospitality sector, the western part of Indonesia has outpaced the eastern part of the country which demonstrates the many untapped opportunities in these regions. Our company recognises this potential and with the rise in domestic tourism and travel, we can cater to this underserved segment and expand our focus from major cities to secondary ones.
Currently we operate 22 hotels, with 17 in Indonesia, 1 in Malaysia and 4 in Myanmar; we are also in discussions to enter the Philippines, Thailand and Laos. Although competition will be high, we believe we have the necessary resources to achieve this goal. Furthermore, as a hotel management business, we provide complete support to our clients who utilise our services; this can range from the training and education of human resources, to setting out guidelines and best standard practises as well as cooperating together to achieve set targets and goals.
For the short-term the market is quite fragile, we see certain areas where growth has been stagnant, but we also see opportunities in the hospitality sector as there are still many underdeveloped regions for local as well as international tourism. This is why the government is also pushing every province to develop its hospitality sector in order to boost and spread the number of domestic and international travellers to other parts of the country. In spite of this slowdown, our hotels have been performing well; we have an effective strategy in place that allows us to achieve sustainable growth. The core of our strategy lies in the close synergies we form with our clients and customers that value our integrity, reliability and highest level of professionalism.
I think the government should focus on secondary cities in Indonesia. We are looking in these areas as it is more feasible to develop hotels in these regions than in the big cities. This has been due to the increasing cost of land in major cities and thus many hotel operators have expanded to more rural areas. Moreover, with the rise in purchasing power of the middle-class, we see more domestic travellers venturing into secondary cities in Indonesia as the country becomes better connected. This is where we see a new shift in approach for the hospitality industry and our company’s focus going forward.
There are many areas, especially in eastern Indonesia, which we can potentially develop, such as Papua and Maluku. Once infrastructure developments have been implemented by the government, the number of hotel operators will expand across Indonesia’s secondary cities at a more aggressive rate than they are now.
We need to ingrain better professionalism into Indonesia's human capital especially at the managerial level. It is continuously improving as there is greater exposure, knowledge and experience available to managers now. At Topotels, we have the highest standards in terms of professionalism within our business operations such as adhering to standard operating procedures and achieving targets. For the hospitality aspect, we provide training in order to change the mindset of our staff for them to become more service-oriented coupled with a sense of belonging and responsibility. It is very important for our workforce to obtain these skills as they are important for our company’s expansion plans if we are to compete globally.
Furthermore, through our adept human resources, we have gained the trust of owners of hotels who look to us for clear guidance when they choose us to operate their hotels. Trust is certainly an important aspect of our industry and our business portfolio showcases the highest standards in service and quality that we provide.
We are very open to work with international investors especially in terms of capital investment because one of the main challenges for developing property in Indonesia is the cost of buying land and high bank interest rates. We have in-depth insights into potential areas for hotel development, and our experience in the industry means that we can assist in every level of project development from land purchasing to human resources training. Moreover, with the current government’s focus on improving the tourism industry as well as infrastructure initiatives, we believe that the hospitality industry can only continue to grow and play an integral role of Indonesia’s economy.
The Indonesia’s tourism and hospitality sector can become very lucrative in the future for investors. The hotel industry is a long-term business and international investors need to be prudent when venturing into this sector in Indonesia. With our company’s experience in the industry, we can assist and collaborate with investors to initiate the best business channels in order to achieve mutual benefit.