Entrepreneurs Wait For The Realization Of Incentives For Hotel And Restaurant Tax Free Due To COVID-19

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JAKARTA - The Indonesian Hotel and Restaurant Association (PHRI) stated that the impact of the outbreak of the corona virus or COVID-19 was not only on income. PHRI Deputy Chairman Maulana Yusran said the impact on the hotel business was on the fate of employees, where some hotels were forced to make the decision to temporarily lay off their employees.

Moreover, he said, the six-month hotel and restaurant tax-free incentive stimulus promised by the government had not been realized. He revealed, in the hotel and restaurant business there must be minimal occupancy, in which, in one year, not all months are profitable for the hotel business or it is called low season. Usually, he said, low season occurs from January to March, and during the fasting month.

"The conditions from January to March (2020) are indeed low season but the lows really drop. From 12 months, there are eight months they can get what is said to be high season, that's normal. But with conditions like this, the drop is too far. impact on the operations of each company being disrupted, "he said, when contacted by VOI, in Jakarta, Monday, March 9.

Maulana explained, when it comes to tourism, not all potential tourists make hotel reservations when they arrive at their destination. Because, most of them have prepared vacation planning in advance. However, with COVID-19, many bookings have been canceled.

"So now they have started their initial start temporarily. But it is not impossible (layoffs) can happen, if (the decrease in occupancy) continues for two to three months (in the future)," he said.

The toughest conditions for hotel and restaurant entrepreneurs are two months before Idul Fitri or Lebaran. Maulana said this was because in facing Eid the company had to pay the 13th salary for all its employees.

On the other hand, Maulana revealed, the incentive stimulus in the tourism sector, namely the hotel and restaurant tax exemption for six months that was announced by the government has not been realized. In fact, the incentive reportedly took effect in early March.

"Yes, until now we have not felt it. That's the information that the system will take effect from March but until now there has been no execution. There has been no implementation of the statement. So it has not had an impact (help). Because what has been delivered has not been realized," he said .

Maulana hopes that the government will not only provide incentives to the marketing sector, namely by exempting hotel and restaurant taxes. However, he said, it should also provide relaxation to the business. The goal is so that this condition does not have an impact on terminating the work relationship (PHK).

"The business is also being paid attention to. How to save the business so as not to have a wave of layoffs. For example, there is no consideration of our electrical costs, tax relaxation and regional distribution, and the obligation to pay banks should be seen," he said.

Even though it has experienced a decline in the end, said Maulana, hotels still incur high operating costs. Among other things, he said, the cost of electricity, levies and local taxes, and paying obligations or loans in banks.

"So we hope that there is relaxation in there. Like other countries that do, for example Singapore they do it to employees or employees. How they do it directly to their employees, such as providing incentives. There are other countries doing it to help their industry directly provide incentives, "he said.

Meanwhile, for marketing incentives, said Maulana, hotel and restaurant entrepreneurs are currently needed. However, this impact is actually not that significant when compared to the relaxation of the business sector.

"So for example, hotel restaurant tax is only for the market but does not help the business. Because hotel and restaurant taxes are collected when there are buyers," he explained.

Maulana also hopes that the central government can collaborate with local governments to help hotel and restaurant businesses stay alive amid the COVID-19 outbreak.

"So the local government is helping there. So don't subsidize it using APBN funds. It's sorry for the burden at the center. Even though that's the domain of the regional government. That must be seen there," he said.

Previously, an economist from the Institute of Development Economics and Finance (Indef), Faisal Basri, stated that the government's efforts to provide incentives to the tourism sector amidst the stress of tourist visits due to the corona virus were ineffective. The reason is, according to him, COVID-19 makes people reluctant to travel, let alone travel.

"People don't want to travel, people don't want to go to crowded places of hotels or restaurants. Now crowded places are being discounted. It's that headache. The most important thing to deal with the corona virus is not with plane discounts," said Faisal to the media crew, Friday, March 6, 2020.

Regarding the policy to temporarily exempt hotel and restaurant taxes for 10 destinations, Faisal said, this actually made local governments lose their revenue and worsened the economy.

"For tourist areas, the main revenue for the regional government is very dominant from hotel and restaurant taxes. For example, Bandung, from hotels alone has high revenues, trillions of taxes. This compensation actually weakens the regional economy," said Faisal.

According to this senior economist, the appropriate sector to be given incentives when the corona virus outbreak occurs is public health, not the tourism sector. "The most important thing to deal with this corona virus is a strong public health policy response. So a strong public health policy response, don't just talk to maintain health," he said.

Information management, said Faisal, also needs to be improved. In Singapore, for example, developments regarding the corona virus are given directly to the public through their respective devices.

"In Singapore, the citizens are in WA twice every day about how the progress related to COVID-19 was conveyed by the government there (Singapore)," said Faisal.