Employers Call Hotel Room Bookings Through Applications Ineffective: This Situation Triggers Layoffs

JAKARTA - The Indonesian Hotel and Restaurant Association (PHRI) assesses that efforts to book rooms through online applications are ineffective amid the Emergency Community Activity Restriction (PPKM) policy. This is because hotel occupancy is minimal and the cost of the applicator is high.

The head of the DKI Jakarta BPD PHRI, Sutrisno Iwantono, said that the policy made hotel occupancy fall again at 10 to 15 percent.

Furthermore, Sutrisno said that prior to the Emergency PPKM policy, the occupancy rate began to grow at the level of 20 to 40 percent.

"Online platform-based sales and delivery efforts are less effective and costly due to the high commissioning fee of between 10 and 20 percent of the sales value," he said in a virtual press conference, Monday, July 5.

Sutrisno said that the hotel and restaurant business conditions are currently on the brink. Moreover, Emergency PPKM forced shopping centers and malls to close completely. Thus, it has a negative impact on the operation of the restaurant in it.

Meanwhile, said Sutrisno, the cost of rent and electricity costs are still ongoing without any clear assistance from the government. In fact, the two costs are the highest operational components besides employee salaries.

"This situation can trigger employers to take difficult steps by stopping operations, laying off employees, and even terminating employment (PHK) which can have a wider impact on unemployment and social issues," he said.

Previously, the government officially imposed restrictions on emergency community activities (PPKM) from Saturday, July 3 to July 20, 2021. The coverage of the Java-Bali Emergency PPKM area is 48 Regencies/Cities with an assessment of the pandemic situation at level 4 and 74 Regencies/Cities with an assessment of the pandemic situation level 3 in Java and Bali.

The Coordinating Minister for Maritime Affairs and Investment as well as the coordinator of the Java-Bali Emergency PPKM Luhut Pandjaitan said that with the implementation of the Emergency PPKM, it is hoped that the COVID-19 cases in the country will be reduced to below 100,000 per day.