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THE hotel sector is still under pressure in early 2021. The Indonesian Hotel and Restaurant Association (PHRI) estimates that the average occupancy rate for hotels as a whole is still below 20% in January this year.
According to the Chairman of PHRI, Hariyadi Sukamdani explained, in general, hotel occupancy rates in the first quarter are usually lower than other quarters in normal conditions because they are classified as low season. At the beginning of the first quarter of this year, this condition was considered to be exacerbated by the COVID-19 pandemic situation and the imposition of restrictions on community activities (PPKM).
“PPKM has a very big influence. A little information, the occupancy rate of hotels in one quarter can be different, depending on the high and low tourism season. However, on average, the occupancy rate of hotels throughout the year is around 60% under normal conditions before the COVID-19 pandemic, “said Hariyadi.
He explained, although the current occupancy rate is still low, PHRI still has hopes of a recovery in the hotel sector. One of the reasons for this optimism is the government’s COVID-19 vaccination program.
Hariyadi predicts that the effect of the rolling vaccination program on the hotel business sector can begin to be felt in the second quarter of 2020. I estimates that the overall hotel occupancy rate can reach 35%-40% after Eid year. The occupancy rate is estimated to be close to normal figures by the middle of next year.
“These projections are based on the assumption that the vaccination program can run smoothly in accordance with the targets set by the government. Hence, PHRI hopes the government can oversee the implementation of vaccination so that it goes according to plan,” he noted.
He concluded, besides that, PHRI also hopes that the government can step in to help hotel business players by helping with capital and also facilitating relief in the form of debt restructuring. [kontan.co.id/photo special]
