Sustainability is no longer a side conversation in the hospitality industry, it’s the blueprint for long-term success. As environmental regulations tighten and stakeholder expectations evolve, hotel owners must adopt sustainability strategies that align with global standards and deliver measurable outcomes. This is not merely an ethical decision but a strategic imperative that impacts operational efficiency, brand positioning, and long-term financial performance. However, crafting and implementing a robust sustainability strategy can feel complex. Hotel owners and executives need more than good intentions; they need specialist expertise to turn ambition into action.

The Indonesian hospitality industry is grappling with the effects of the government's budget austerity policy, introduced in November 2024, according to a recent survey conducted by the Indonesian Hotel and Restaurant Association (PHRI) and Horwath HTL. The survey, which gathered responses from 726 hoteliers across 30 provinces, highlights significant concerns regarding declining market performance, with 83% of respondents indicating an unfavourable start to 2025. Government-related demand, historically comprising 5-7% of hotel business, and MICE-related demand, making up 6-21%, have been drastically affected.

The hospitality industry thrives on providing experiences, but today’s most successful hotels and resorts prove that sustainability isn’t just good for the planet. It’s a game-changer for the bottom line. Gone are the days when ESG (Environmental, Social, and Governance) initiatives were viewed as a “nice-to-have.”