A lack of tourism and low occupancy rates of hotels in Bali has led many hotel owners to pack up and sell their business. According to the Indonesian Hotel and Restaurant Association (PHRI), 60 hotels are currently on the market as the travel corridor remains closed and the tourism industry sees no sign of recovery.
The head of PHRI Badung, Rai Suryawijaya, confirmed that 60 hotels are currently up for sale after facing a massive decline in sales.
“About 60 hotels in Bali have decided to sell their businesses at the moment,” Suryawijaya said on Thursday (4/2).
He explained that the average hotel occupancy these days is between 5 to 7 percent, making it impossible for businesses to cover operational costs.
“The second reason is, of course, not being able to repay the bank. They are in debt, and even though the banks offer some leverage at this time, the obligation (to repay) remains.” Suryawinata added.
He predicted that the situation will worsen in the near future as the government has not yet planned to reopen the border.
Accordingly, he urged the central government to provide soft loans in order to save hospitality businesses from bankruptcy.
He explained that Bali has lost at least USD 712 million (IDR 10 trillion) every month since the pandemic struck last March.
The situation is unbearable for most people in the tourism sector of Bali. “Honestly, we can no longer survive this situation as our earnings cannot sustain operational costs to maintain the building and pay staff salary,” Suryawinata concluded.
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