ER
OVER the past year, the potential income for hotel and restaurant entrepreneurs that has been lost due to the pandemic has reached IDR50 trillion.
According to the Chairman of the Indonesian Hotel and Restaurant Association (PHRI) Hariyadi Sukamdani, said the potential is calculated from the occupancy rate of hotels with a total of 800,000 rooms throughout the country, which is minimal in 2020.
“The low level of hotel occupancy over the past year, which was only an average of 30 percent, has an impact on the income of entrepreneurs which also affects hotel staff. The direct employees at the hotel are approximately 600,000 people, we have not counted it if it is related to various ecosystems,” he said in a virtual press conference on Monday (18/1).
He said, it is possible that hoteliers will terminate their employees’ employment (PHK). However, his party has not been able to project how much the potential layoffs will be in the hotel industry. Entrepreneurs have also laid off workers but the scheme is not direct layoffs.
Occupancy Rate 40%
The Indonesian Hotel and Restaurant Association is optimistic that the hotel sub-sector property business this year will improve with an occupancy rate of 40 percent. I am optimistic that the hotel property business conditions will be better than last year. Even though positive cases of COVID-19 are rising, now people tend to be more courageous and careful to protect themselves.
“Therefore, occupancy in 2021 will reach 40% or an increase from last year’s national average of 30%. The year 2021 will be better with occupancy if nationally it will increase by 40%. The occupancy yesterday was rather good, especially at the end of the year, then in January the occupancy dropped again,” Hariyadi Sukamdani noted.
Over the past year, he continued, it is undeniable that many resorts in Bintan and Bali are still closed. The number has not been updated yet. In fact, in the field related to resorts outside Java, the conditions are affected.
Meanwhile, Chairman of the BPD Association of Indonesian Hotels and Restaurants, Sutrisno Iwantono, said that some businessmen in the hotel sector began selling hotels due to the deteriorating financial condition of companies due to pandemic pressure.
This is because the hotel occupancy rate has been eroded during the corona virus outbreak. From about 56% of the occupancy, it has now become below 20%, so that of course it will have an impact on hotel income.
He is worried that if it continues, many hotels will be closed permanently. However, his party has not yet obtained an exact figure for the number of businessmen who sold their hotel assets.
“If the condition in the next 2-3 months there is no improvement, it will be even more difficult. It is hoped that the government will help alleviate the cost burdens that can cause the hotel industry to collapse. This is with the help of eliminating PB1 taxes, corporate taxes, PBB, advertisement taxes, and land taxes. water, electricity costs, labor levies and other levies. DKI Jakarta has 991 hotels by 2019. The number consists of 397 star hotels and 594 non-star hotels,” he added.
Supported by Government Activities
Meanwhile, Senior Associate Director of Colliers International Indonesia, Ferry Salanto hopes that the performance of the hotel property sector will improve this year. Government activities at hotels are expected to return this year, including handling COVID-19 vaccination so that public confidence in carrying out business activities will recover
“Currently, there are activities in hotels, but it cannot be said that they are back to normal as before. The government is still the biggest market for hotels in Jakarta. It is hoped that by the middle of this year it will get better,” he said.
According to him, it is certain that the hotel business will not be able to recover as long as the COVID-19 vaccine has not been implemented. Hotel entrepreneurs can only hope for the success of the vaccination carried out by the government.
“In 2021 [the condition of hospitality] will depend on the handling of Covid, because the pandemic has a very rapid impact on the hotel sector,” Ferry affirmed.
Rapid handling of the pandemic, he said, would have a positive impact on hospitality. This is because this sector is highly dependent on government and private activities in hotels.
“The recovery of the hotel sector will not take place in the near future because it is still waiting for the vaccination program to be carried out by the government so that people can have free activities,” said Ferry.
In addition, another factor that makes hotel performance in Jakarta improve in mid-2021 is the government’s policy to close the door for foreigners arriving unless they have diplomatic visas and official visas related to official visits of foreign officials at ministerial level and above.
“Business visiting activities involving expatriates are not that easy to carry out. Then in April it has entered Ramadan and May has entered Lebaran, so the hotel performance starts to get busy after Eid,” he concluded. [bisnis.com/photo special]
