Already Up And Down, 50 Hotels In Yogyakarta Finally Bankrupt

JAKARTA - The COVID-19 pandemic that has occurred for months has severely hit the country's hotel industry. Various restrictions on activities carried out to suppress the spread of the coronavirus have also made hotels in Yogyakarta on the verge of bankruptcy, and many have even gone out of business.

The chairman of the Association of Indonesian Hotels and Restaurants in Yogyakarta, Deddy Pranowo, revealed that dozens of hotels and restaurants in Yogyakarta were officially closed because they were unable to withstand the onslaught of operating costs every month.

"A total of 50 hotels and restaurants are closed. But mostly non-star hotels and small restaurants," he said, when contacted by VOI, Thursday, February 4.

Deddy said that his party had been struggling for almost 10 months to survive amid the uncertainty caused by the COVID-19 pandemic. However, hoteliers are no longer able to pay employee salaries, electricity rates, and even Social Security Administration (BPJS).

"The reason is they are no longer strong with cash flow because meter, pay PLN, BPJS, taxes, salaries, and others are still running, while the income is small. Even zonk, because we can live with human movement, for now, it is closed", he explained.

Apart from the pandemic, government policies, especially regarding the different terms PSBB and PPKM, also affect the potential of tourists staying at hotels. This two-period PPKM policy burdens hotels and restaurants to operate. PPKM itself is considered not optimal in reducing positive cases.

"The existence of PPKM in DIY in the first period made 30 hotels and restaurants stopped operating, aka closed permanently and then extended the second period to add 20. So a total of 50 hotels and restaurants", he explained.

According to Deddy, the total number of BPD PHR DI Yogyakarta members is around 400. Currently, around 171 hotels and restaurants are still operating. Even though I was panting because currently, the occupancy was only 5 to 10 percent.

"The remaining around 100 have chosen to close temporarily in this pandemic", he said.

Deddy said that the hotel industry entrepreneurs currently cannot do much to last longer under the pressure of the COVID-19 pandemic. Therefore, his party asked for help from the government.

"At this time we cannot do much, apart from hoping for more intensive relaxation solutions from the government just to survive", he said.