The government said it is set to see an increase in occupancy rate of hotels to 75 per cent this year, from an estimated 50 per cent last year.Culture and Tourism Minister Jero Wacik said an increase in the occupancy rate will boost investment in the hotel sector.

Acik said the number of foreign tourists is expected to rise significantly this year encouraging investors in the hotel industry.

According to chairperson of the Association of Hotels and Restaurants (PHRI) Yanti Sukamdani, from 2000 to 2005, investment in the hotel and restaurant sector totaled only $415 million in the country.

Last year the number of visitors to the country dropped to an estimated 4.9 million from 5.3 million in the previous year or falling far short of the target of 6 million.
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