Hotels Closed So 1,642, Entrepreneurs Are Dizzy Want Any More Strategies To Increase Occupancy

JAKARTA - The spread of the corona virus pandemic or COVID-19 in Indonesia is increasingly widespread. The impact of this virus is increasingly felt by entrepreneurs, especially hotels. This is because the tourism sector is the one affected by the outbreak of this virus.

Chairman of the Indonesian Hotel and Restaurant Association (PHRI) Hariyadi Sukamdani said that due to the outbreak of the COVID-19 virus in Indonesia, 1,642 hotels were closed. This number is up from the previous 1,174.

"1,642 hotels (closed) as of April 13. Losses for four months with an estimated 710 thousand rooms, approximately Rp 3 trillion," he said, in a video conference with journalists, in Jakarta, Thursday, April 16.

Hariyadi explained, high operational costs with small income have made hotels unable to survive in the midst of this COVID-19 pandemic. According to him, hoteliers have also made efficiency by reducing expenses in order to survive.

"We cut all costs, number one is labor. Second, electricity. The third is banking. We control these three components. If the unpaid leave is closed so that there is no energy cost and ask the bank to pay the minimum portion," he said.

According to Hariyadi, hoteliers are currently maintaining several staff, namely security and engineering for hotels that are closed. Meanwhile, hotels with operating conditions are housekeeping, room service and front office services. This is because the hotel occupancy at the national level is already very low.

"Now it's below 10 percent, it's too low," he said.

Initially, said Hariyadi, hoteliers still had hopes that with the entry of the month of Ramadan or the fasting month, there would be a flow of homecoming which could provide income for the hotel. This is because hotels will be used for isolation for those who come from outside the area.

"However, from all real sectors we hope that homecoming will not happen. Because the situation is more difficult than handling health," he said.

Meanwhile, COO of Omega Hotel Management Kurnia Sukrisna said that this pandemic had caused eight of its hotels to close out of a total of 16 managed hotels. Meanwhile, most of those still operating belong to investors and are trying to survive.

"But from us as operators there is a guide line. Around this March we have prepared a what if mitigation plan so that it is clear enough for our internals and investors," he said.

According to Kurnia, if the occupancy of the hotel is far from the initial target of 50 percent, it will be very difficult for the hotel to survive. Moreover, with the burden of workers, as well as operational costs. Therefore, he admitted, he did not expect more occupancy to remain in good numbers.

"Because after all, if it's 10 percent, (from) 50 percent depending on the star, of course it will be very hard to survive. Indeed, many try to offer work from hotels, or whatever. But yes, many also fail and plan to close. We also have operations. currently there is something like that, but it is more of a special price, "he said.

Kurnia said, this situation really made all hoteliers in an exciting condition. Because, at this time the COVID-19 outbreak has not yet been completed, meanwhile entrepreneurs must also think about strategies to deal with the post-pandemic situation of this virus.

"Right now our love is experiencing COVID-19, it is still on. We don't know (until) when. After COVID-19, the recession is already in my way. So for us, this is short, medium term, it is rather heavy depending on each person's breath. , "he said.

According to Kurnia, in the midst of the pressure of COVID-19, his party is trying not to rationalize employees or layoffs (PHK). However, he did not guarantee that this outbreak would continue.

On the other hand, Kurnia revealed, his party's strategy was to maintain hotels that were still operating by increasing promotions through digital marketing or through online media. Because, in current conditions, almost everyone is inseparable from cell phones.

"All promotional activities are still ongoing for those who are open. So we still do the relationship management with customers," he explained.

Meanwhile, Kurnia said, the number of hotel occupations managed by his party varies, because it depends on which hotel the hotel is in.

"There are various kinds, in Sampit somehow a night can be 44 percent. In Cirebon it can be around 20-25 percent. The average is 25 percent," he said.

Layoffs

Previously, as a result of the COVID-19 pandemic, hotel employees were sent home. Some even ended up termination of employment (PHK). From the data obtained by VOI from the Indonesian Hotel and Restaurant Association (PHRI), as of April 1, 2020, 1,174 hotels have closed. With details, there are employees who are on leave status, some are on leave without pay, and some have laid off their employees.

Head of PHRI DKI Jakarta, Krishnadi said, the occupancy rate of hotels in the country since early March has indeed decreased significantly compared to January or February.

"January-February still varies, in the range of 40-60 percent. So in early March it dropped to 20 percent. At the end of March it was even worse, it was below 10 percent," he explained to VOI, Saturday, April 4.

In fact, according to him, in normal conditions, the hotel was busy in April. The occupancy in March when conditions were normal, said Krishnadi, should be at its highest.

"Well, this is actually below 10 percent. In fact, I am sure, now it is below 5 percent. Never mind calculating the percentage, there are those who stay 1 to 10 doors away," said Krishnadi.

As a result, the manager temporarily closed the hotel. This was also done because he followed the government's appeal. Now what is affected, is the employees who have to be laid off, and even have to be laid off.