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Inna Bali Group Loses 5,000 Room Reservations

Despite Post-Tsunami Cancellations Inna Hotel Group Still Optimistic that 2005 Sales Forecasts will Be Achieved.

(1/29/2005) The Indonesian-language Bisnis Indonesia reported on January 24, 2005, that more than 5,000 cancelled room reservations were received by the four Inna Hotels in Bali in the post-tsunami period. The Inna Group is a government-owned hotel network operating hotels in Sanur, Kuta and Nusa Dua.

The President Director of the PT Hotel Indonesia Natour (Inna Group), A.M. Suseto, suggested that the cancelled visitors had been psychologically affected by the disaster and were afraid to visit Indonesia, including Bali. "They were concerned that a similar disaster could occur in Bali, with the government of South Korea even going as far as appealing to its citizens not to travel to Indonesia at this time," he said.

In addition to cancellations from foreign tourist, a large number of domestic tourists planning on celebrating the New Year in Bali also cancelled their trips in large numbers, especially those who usually travel over land and take the sea-ferry between Bali and East Java. Suseto estimated the potential losses to his hotel network at between Rp.1-2 billion (approximately US$108,000 to US$216,000) based on room rates of Rp.200,000 to Rp.400,000 (approximately US$22-44) per night.

Strong Optimism Despite Many Set Backs

However, Suseto expressed optimism that these cancellations would not affect the Group's targeted income for 2005. "We hope that there are no more earthquakes or tsunami in Indonesia, so that we can reach the revenue targets set by the Inna Group for this year," he said. Suseto explained that the un-audited income results for 2004 of his group's hotel network reached Rp.198 billion (approximately US$$21.5 million) with a clear profit of Rp.22 billion (approximately US$2.4 million).

2002 Targets for Inna Group

"This year our targeted income is Rp.216 billion (approximately US$23.5 million) with profit of Rp.27 billion (approximately 2.94 million)," Suseto said.

He went on to explain that despite the profitable performance for 2004 and project positive results for 2005, the group still is struggling to cover the Rp. 30 billion (approximately US$3.3 million) loss incurred in 2003 in the midst of the multi-level crisis of the Bali bombing, Iraqi invasion and SAR's scare.