The ongoing pandemic has forced the closure of several small-scale hotels in Indonesia, and it might not be long before the bigger ones follow, should the crisis drag on.
Indonesia Hotel and Restaurant Association (IHRA) Yogyakarta Chapter reported that of its 400 members, 100 hotels have halted operations, 50 have gone bust, while 172 are still operating but “almost dying”.
OLX, an online buying and selling site in Indonesia, reported that a number of hotels in Jakarta, Bali, Bandung, Cirebon, Pasuruan and Yogyakarta have placed sales offers on the marketplace.
Deddy Pranawa Eryana, chairman of IHRA Yogyakarta chapter, said the pandemic’s damage on the sector is growing, more than a year on. “We are bleeding. Our cash flow is already severe,” he added.
The situation has been made worse by the government’s absence of concrete plans to manage the pandemic, coupled with its ever-evolving policies on travel restrictions, said Deddy.
A long-term plan and policy is needed for hoteliers to determine their business and recovery strategies, he said, adding that while majority of the severely affected hotels were small-scale properties, it could hit big players too if the current situation continues.
Over in Bali, hotels are struggling too, according to Fransiska Handoko, Bali Hotels Association’s (BHA) vice chairman. “We are all afraid hoteliers won’t (survive) until the end of the year,” she said.
At press time, BHA is conducting a survey on hotel durability during the pandemic, so Fransika was not able to reveal numbers.
To keep the hotel sector afloat, BHA has appealed to the government to disburse the second-stage grant. “The government’s tourism grant last year had helped hotels to finance operations for approximately two to three months, most of which could last until the end of 2020,” she said.
In the meantime, Sutrisno Iwantono, chairman of IHRA Jakarta chapter, wants the Jakarta city government to temporarily exempt taxes for land, building and advertising; allow hotels and restaurants to keep service charges; as well as cut water and electricity tariffs.