Unlicensed Homestays Hurt West Java's Hotel Business

The hotel and restaurant industry in West Java is experiencing a significant downturn, with businesses reporting sluggish conditions from January to July 2026. Occupancy rates have seen only minor increases during extended holiday periods and school breaks, according to the Indonesian Hotel and Restaurant Association (PHRI) of West Java.

Dodi Ahmad Sofiandi, the chairman of PHRI West Java, described the business climate as "sluggish" throughout the year. Occupancy rates hovered around 50 percent from January to March. While May and June saw a temporary boost due to holidays, many establishments, particularly budget hotels in Bandung, have suffered a drastic decline in guests.

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The mode is sluggish.

Sofiandi attributes this decline largely to the unchecked growth of unlicensed accommodations, including private apartments and homestays that are easily rented out. These unregulated options are directly impacting the occupancy rates of traditional hotels, especially those not located in tourist hotspots. The situation has forced some hotels to implement staff cutbacks.

PHRI is urging the government to intervene and find solutions to support the struggling hotel and restaurant sector. The association hopes that the current downturn will not persist and that measures will be taken to revitalize the industry.

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They are easily rented out to the public. Meanwhile, their existence does not have a permit.