Indonesian Hotel and Restaurant Association In Bali: 50 Hotels And Villas Are For Sale Due To Corona, Many Of Them Have Not Been Sold

DENPASAR - Chairman of the Indonesian Hotel and Restaurant Association (PHRI) of Badung Regency, Bali, I Gusti Ngurah Rai Surya Wijaya confirmed that there were 50 hotels and villas on the island of Bali that were offered for sale to investors during the COVID-19 pandemic.

"Not bankrupt, what I know is that those are for sale. If the data is bankrupt, I don't know, if in Denpasar there are some that are permanently closed", said Wijaya, when contacted Monday, September 6.

"Offering (hotels and villas) does not mean bankruptcy. If bankruptcy or bankruptcy is a court decision. (Entrepreneurs) must cover operational costs or existing debts", he added.

Wijaya said, there was one villa that was sold in the Jimbaran area. But for the hotel, nothing has been sold.

Hotel prices are priced depending on the facilities and the size of the hotel. The PHRI estimates that there are 5-star hotels that are sold for up to IDR 2 trillion.

"Only one or two (villa) that I have monitored have sold. The others (hotels) have not, because people's purchasing power has now decreased. As far as I know, there are villas that are selling well in the Jimbaran area", he said.

"(The price of the hotel) depends on the class of the hotel. There are 5-stars that are IDR 2 trillion and some want to sell. The value is for those who know, entrepreneurs and investors who know. Yes, up to trillion depending on the facilities, land area, many rooms", added Wijaya.

Meanwhile, the 50 hotels and villas that are sold the most are in the Badung Regency area, Bali. Because the majority or 70 percent of tourism is mostly in Badung, Bali.

"In Badung, there are also in other areas in Gianyar and Karangasem. But if the majority of 70 percent are in Badung Regency, tourism facilities are", he explained.

According to him, entrepreneurs are selling hotels and villas due to the long-lasting impact of the COVID-19 pandemic. Entrepreneurs like it or not have to start a new business.

"Inevitably, they have to make a decision to try to offer", he said.

Meanwhile, so that hotel and villa entrepreneurs can continue to operate, the PHRI hopes that the government will provide soft loans. But until now there has been no decision regarding the soft loan.

“We hope to get subsidies or soft loans from the government. So, for working capital, if we start a business, it's been 1.5 years", he said.