As A Result Of COVID-19, Hotels In Indonesia Have Lost Trillions, The Occupancy Target Has Been Revised

Chairman of the Indonesian Hotel and Restaurant Association (PHRI) Hariyadi B. Sukamdani. (Mery Handayani / VOI)

JAKARTA - The Indonesian Hotel and Restaurant Association (PHRI) claimed to have suffered losses due to the corona virus or COVID-19 outbreak. The value of losses suffered by the Indonesian hotel and restaurant industry due to this virus reached 400 million United States (US) dollars or around Rp.5.6 trillion.

Chairman of the Indonesian Hotel and Restaurant Association (PHRI) Hariyadi B. Sukamdani said, in general, the impact of the spread of COVID-19 in the tourism sector is far greater than the potential losses in the hotel and restaurant sector alone.

"We have calculated that at least the loss in the tourism sector has reached US $ 1.5 billion since January to date. With a relatively rough calculation," he said, during a press conference, in the Senayan area, Jakarta, Thursday, March 12.

Hariyadi said the peak momentum for Chinese tourist visits should occur in January-February when the Chinese New Year has disappeared due to the spread of COVID-19.

He explained that the potential loss of 1.5 billion US dollars came from no flights from China, as well as flight cancellations from several countries as well as a reduction in domestic tourists. Meanwhile, the potential loss of 400 million US dollars occurred in the hotel and restaurant sector.

"Don't forget that 1.5 billion US dollars is directly involved in the hotel and restaurant industry. But the suppliers must also be counted. The supply chain for hotels is calculated for more than 500 types of supply chains for day-to-day operations. That concerns MSEs and SMEs. It's all impacted. So it's not as simple as what we imagine. But this can really stop the people's economy, "he explained.

On the other hand, Hariyadi said, the hotel and restaurant occupancy target which was previously predicted to reach 10 to 12 percent had failed to be achieved due to the COVID-19 outbreak.

"The hotel and restaurant occupancy target has changed. In terms of average hotel growth is 10 to 12 percent. If it is currently growing maybe 5 percent. That is, if there is a reversal from now," he said.