Tracing the Impacts of Corona Virus Outbreak on Hotel Business, Here's the Explanations

TRIBUNBATAM.id - The outbreaks of Corona virus or Covid-19 has an impact on various sectors, including hitting tourism.

In Indonesia, the hotel and restaurant business sector has felt the impact of the Corona virus outbreaks since January 2020.

Chairperson of the Indonesian Hotel and Restaurant Association (PHRI) Haryadi Sukamdani said several PHRI studies showed a decline in the hotel sector in January and February 2020. Then how big the impact of Corona on the hotel business? 

Hotel occupancy plummeted 

For example, in the Riau Islands Province, hotel occupancy rates decreased 30 percent to 40 percent compared to the previous year. While the average hotel occupancy rate is only 20-30 percent.

PHRI revealed, there was a decline in the target of Chinese and Korean tourists in Riau Islands Province in 2020.  

Meanwhile due to the lack of hotel guests, many hotel employees were asked to take time off.

PHRI estimates that this condition will worsen if hotel occupancy rates in Riau continue to occur until April 2020. 

The impact of the corona virus outbreak also hit the hotel business in Bali. PHRI said that hotel occupancy rates dropped by 60-80 percent, especially in the favorite tourist areas of China, namely Nusa Dua, Tuban and Legian.

Currently PHRI said, Chinese tourists are the biggest contribution of tourists in Bali. Therefore, the decline in Chinese tourist arrivals due to the corona virus outbreak has a profound impact on Bali tourism.

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Not only that, corona outbreaks also have an impact on the level of occupancy of hotels in the areas of Ubud and Sanur which are favorite locations for European and Australian tourists to stay. The number of decreases in hotel occupancy in the area is 20-30 percent. 

Until now, PHRI recorded 40,000 hotel rooms being canceled with a total loss of Rp 1 trillion.

While in Manado, there was a 30-40 percent decline in tourist arrivals from China. During this time, 70 percent of tourists who come to Manado are Chinese tourists.

As for Java and Makassar, hotel occupancy rates can still be supported by local or domestic tourists.

Hotel businessman, Maulana Yusran felt very well the impact of the decline in hotel occupancy. He was worried, if this happens in the long run, the hotel business could close down.