Roaring business: A file picture showing shoppers at the Tanah Abang market during Ramadan in Jakarta. The spending spree in the fashion category was at its peak during Ramadan and occurred in all regions. — AP
JAKARTA: Visits to shopping centres or malls during the Muslim holy month of Ramadan and the Idul Fitri holiday this year have exceeded their pre-pandemic levels by 30%.
Indonesian mall operators said this was due to a soaring number of travellers and the easing of public activity restrictions (PPKM).
“The average visit rate to shopping centres during Ramadan and the Idul Fitri holiday this year amounted to 120% to 130% of the 2019 figure,” chairman of the Indonesia Shopping Centre Association (APPBI) Alphonzus Widjaja told Kontan on Tuesday.
He explained that the average visits to shopping centres in 2020 were around 50% of pre-pandemic levels.
This increased slightly to around 60% in 2021.
In May 2020, almost 200 shopping malls were reported to be temporarily closed with operators hardly making any profit, especially during the Idul Fitri season.
This year is the first Ramadan and Idul Fitri after three consecutive years of restrictions due to the Covid-19 pandemic.
Since the PPKM policy was lifted, shopping centres have started to hold several events and activities that have increased the number of visits.
The APPBI chairman highlighted that the spending spree in the fashion category was at its peak during Ramadan and occurred in all regions.
This upward trend, according to Alphonzus, will support the overall performance of 2023 as Ramadan and the Idul Fitri holiday are the major events for mall visits in Indonesia, aside from the Christmas and New Year holidays.
Peak shopping centre visits during Ramadan occurred one to two weeks before Idul Fitri, according to a Tourism and Creative Economy Ministry report which was presented recently. The closer to the Idul Fitri holiday, the greater the spending that occurs.
At the launch of the report, Tourism and Creative Economy Minister Sandiaga Salahuddin Uno said Indonesians spent almost 2.7 million rupiah (RM817) on average during the Idul Fitri holiday, exceeding the ministry’s target of 1.9 million rupiah (RM579).
Sandiaga said, based on the survey conducted by the ministry, the largest expenditure went on transportation with a 23.4% share, followed by accommodation at 22%, food and beverages at 20% and the purchase of souvenirs, fashion and crafts at 14%.Looking at the trend, Sandiaga said, he revised the potential economic turnover of the tourism and creative economy sectors to 335.3 trillion rupiah (RM102.18bil) from 240 trillion rupiah (RM73.2bil).
In line with the ministry’s findings, the Indonesia Retail and Tenant Association told Kontan, retailers in shopping malls saw an uptick in sales of around 30% during Idul Fitri compared with regular days.
Lifestyle centres, restaurants, salons, theatres and cafes, saw the largest increases in sales during Idul Fitri, he said.
After Idul Fitri, retail businesses are banking on the elections next year, which are usually followed by an increase in money circulation and thereby spending in shopping centres, he said. — The Jakarta Post/ANN
