Occupancy Of Star Hotels In North Sumatra Is Only 50 Percent In January 2021

Illustration. (Photo: Unsplash)

JAKARTA - The occupancy rate of star-rated hotels in North Sumatra in January 2021 again weakened or decreased compared to December 2020, driven by many factors including the ongoing COVID-19 pandemic.

"In January 2021, the average hotel occupancy rate is below or around 50 percent compared to December 2020, which was 60 percent", said Chairman of the BPD Association of Indonesian Hotels and Restaurants (PHRI) North Sumatra, Denny S Wardhana, quoted from Antara, Wednesday, January 27th.

According to Denny, who has just been re-elected as Chairman of the North Sumatra PHRI BPD for the period 2020-2025, due to the COVID-19 pandemic still ongoing, the North Sumatra Provincial Government has imposed restrictions on community activities from 14-31 January 2021 to suppress transmission of the virus.

The policy, said Denny, had an impact on the hotel and restaurant business. Moreover, he said, in January, government and private projects or activities had not yet started.

"In January, the hotel and restaurant business was only helped by ordering a place and room for the wedding party, although the number of guests was also limited due to the implementation of the process (health protocol)", he said.

Denny predicts that the hotel and restaurant business will move somewhat in February when there is Chinese New Year.

"The extent of overseas travel is still not open, it is predicted that residents will vacation in domestic/local hotels," he said.

PHRI, said Deny, predicts that only in the second quarter, the hotel and restaurant business will begin to improve and that also depends on the conditions of the COVID-19 pandemic.

An economic observer of North Sumatra, Wahyu Ario Pratomo admits, although not as strict as Jakarta, restrictions on community activities have an impact on the economic downturn in North Sumatra, especially the hotel and restaurant business.

Referring to the economic conditions in January, it is estimated that North Sumatra's economic growth in the first quarter of 2021 is only in the 1-2 percent range.