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CHAIRPERSON of the Indonesian Hotels and Restaurants Association (PHRI) and Chairperson of the Indonesian Employers’ Association (Apindo) Hariyadi Sukamdani said the potential lost from the hotel and restaurant industry due to corona (COVID-19) reached US$1.5 billion to date.
The rough calculation, taken from the calculation of the absence of visitors from China, which last year reached 2 million people with an expenditure of US$1.1 billion plus others amounting to US$400 billion.
“The calculation is still rough or in another sense the calculation is minimal because it has not included other supply chains from the hotel and other restaurant industries. For example, the hospitality supply chain there are more than 500 types of operations that involve Small, Medium Enterprises (SMEs). So, SMEs are affected. The calculation can also be worse if the community does not carry out activities,” he explained.
For information, the National Development Planning Agency has previously predicted the potential loss of foreign exchange from the tourism sector around US$530 million due to COVID-19.
Hariyadi continued, due to the corona virus, the growth target of the hotel and restaurant industry had to be revised. This year, the growth target is set at around 4.5% to 5.2%. Initially, the hotel and restaurant industry target was set in the range of 10% to 12%. Hariyadi said that the revised target also still depends on the reversal of public panic.
It is said, as a result, companies engaged in the hotel and restaurant sector must also maintain operational cash flow by removing day-to-day workers and imposing a shift system for contract and permanent workers.
“Daily employees in hospitality are certainly no longer used, this is to reduce the burden of approximately 60% and maintain cashflow of around 30% to 50%. In the restaurant too, the same, but because in the restaurant many contract employees, shift or alternating system, more or less complicated to adjust the number of employees,” he continued.
He added, the impact of the COVID-19 virus had been felt in various tourist destination areas that were most in demand. In Bali, the average hotel occupancy is currently only 20%, especially in the areas of Kuta, Sanur, Legian, Ubud and Jimbaran. [kontan.co.id/photo special]
