Horrified, The COVID-19 Pandemic Makes Hotel Entrepreneurs Lay 50 Percent Of Employees

Hariyadi Sukamdani, Chairman of the PHRI. (Special)

JAKARTA - It has been a year and a half that the COVID-19 pandemic has hit Indonesia. Thousands of hotels were forced to close. According to Hariyadi Sukamdani, the General Chair of the Indonesian Hotel and Restaurant Association (PHRI), the number of layoffs or layoffs that occurred was around 50 percent for the hotel sector.

"This difficult situation leaves hotel entrepreneurs with no choice. They cannot extend work contracts or lay off employees. This is very, very forced to do because hotel income has decreased dramatically during this corona pandemic," he told VOI who conducted an online interview. Wednesday July 7th.

The hotel occupancy rate in Bali as a major tourist destination in Indonesia during this pandemic, he said, was only in single digits. The same thing happened in other cities such as Jakarta, Yogyakarta, Surabaya and other cities. "If the occupancy is only one digit, it is not enough to cover operational costs such as electricity, employee salaries and so on. A realistic step that can be taken is to reduce employees in addition to being efficient in other fields," he said.

Grand Sahid Jaya Hotel, Jakarta. (Dok Sahid Hotel)

The restaurant sector, according to Hariyadi, also suffered a similar blow. However, the conditions are slightly better than the hoteliers. "Restaurant entrepreneurs have also suffered serious blows. However, their conditions are slightly better than hotel entrepreneurs. Regarding restaurants, there are still online food sales which tend to still exist during this pandemic," said Hariyadi who is also the President Director of PT. Hotel Sahid Jaya International Tbk.

However, restaurant entrepreneurs whose businesses have been affected have also laid off their employees. It's just that the number is a little less. "Yes, if the percentage is 30 to 40 percent," he said.

Thousands of Hotels Roll Mat

During this pandemic, thousands of hotels fell. PHRI as the parent organization had reported this condition. During this pandemic, according to the Indonesian Hotel and Restaurant Association (PHRI), as reported by Antara, there are 1,033 restaurant and hotel businesses in Indonesia that are currently permanently closed.

"From October 2020 until now, it can be estimated that around 125 to 150 restaurants will close per month," said Chairman of the PHRI Governing Body, Sutrisno Iwantono, last Friday, February 5, 2021.

This report, continued Sutrisno, was obtained when PHRI conducted a survey in September 2020 to 9,000 restaurants and hotels throughout Indonesia, with 4,469 respondents. He also stressed that the hotel and restaurant industry is currently in a very bad situation.

The issue of the hotel and restaurant industry being hit by the COVID-19 pandemic coupled with the implementation of Emergency PPKM as it is today, was not denied by Hariyadi Sukamdani. "Indeed, the situation is very difficult for us hotel and restaurant entrepreneurs who are members of the PHRI. If someone closes their business, it is a realistic choice," he said.