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The terrorist bombings at Jakarta’s JW Marriott and Ritz-Carlton hotels in July have had almost no impact on the country’s domestic hotel business, which was still feeling the effects of the global economic crisis, a new study published on Monday said.

Only five-star hotels in Jakarta felt a moderate impact from the blasts, while occupancy rates for the greater Jakarta area fluctuated somewhat because locals made up a majority of its guests.

“After a downward trend in the first quarter, the Indonesia hotel market advanced with higher occupancy rates, particularly during the end of the second quarter,” said Ferry Salanto, manager of the research service division at PT Colliers International Indonesia.

Ferry said the increase was mostly seasonal, driven by Jakartans taking advantage of the mid-year school holidays “as families take their vacations, most noticeably in resort areas like Bali.”

Colliers released the report on the hotel industry for the first half of 2009.

Although Jakarta is dominated by business accommodation, after the bombings most hotels in the city and Surabaya enjoyed higher occupancy rates. This was given a boost in the middle of the year, particularly in the three- and four-star hotel segment.

On industry outlook later this year, Ferry did not expect much improvement over 2008, saying demand would remain lackluster because of the global recession.

“In terms of occupancy and average room rates, it will remain the same. Even if there’s growth, it won’t be by much,” he said.

Hotel occupancy rates would improve in the latter part of the year as part of the usual holiday cycle, Ferry said.

He added that the hotel industry was still reeling from the recession, while it was more resilient in the face of terrorism.

“What hits hotels the most is the decline in MICE [meeting, incentive, convention, and exhibitions] events, which since last year have been down because of the crisis,” Ferry said.

Hotel rooms are mostly filled by MICE clients, rather than tourists, especially during low seasons, he said.

In the second quarter of this year, average occupancy rates of Jakarta hotels rose 7.2 percent to 71.3 percent.

Average occupancy rates at three-, four- and five-star hotels also climbed, after a slight decline in the previous quarter.

Among hotels in Jakarta, four- star hotels had the highest occupancy increase of 8.3 percent to 71.8 percent, followed by five-star hotels, with average occupancy rates returning to fourth quarter 2008 levels, at 65.8 percent.

While at least seven three- and four-star hotels had occupancy rates above 80 percent in the second quarter this year, no five-star hotels did.

Hotel supply was unchanged in the three- to five-star segment in the Jakarta area, and of nearly 22,000 rooms, 23.33 percent were in the central business district.

The hotel market in Bali also showed positive growth compared with the previous quarter. Occupancy rates rose in all of Bali’s main tourist areas, and with growing room inquiries, hotels were raising room rates.

Occupancy for three-star hotels in Bali rose 6 percent to 80 percent in the second quarter, while four-star hotel occupancy rates also rose, albeit moderately, by 3.1 percent to 73.8 percent.

Bali remains a tourist magnet for foreign visitors, with around half of inbound tourists to the country coming to Bali as of June this year, according to the Central Statistics Agency (BPS).