Dozens of hotels in Bali have officially gone bankrupt due to the uncertainty of government policy throughout this global pandemic.
The Head of the Bali Tourism Agency, I Putu Astawa confirmed that according to data from the Indonesian Hotel and Restaurant Association (PHRI) for Bali, a total of 68 hotels in Bali have gone bankrupt due to the economic instability. “PHRI recently announced that 68 hotels have gone bankrupt, while many others will potentially face the same situation due to the travel restriction policies since the Covid-19 pandemic struck in 2020.” Astawa said on Sunday (5/9).
Astawa predicted that there are many more accommodation businesses in Bali that have given up their properties since they became unable to pay their bills and debts. However, Astawa understands that most business owners must make the best decision they can in order to avoid further loss during this crisis. “This is quite understandable, as most of them tried to prevent any more damage to their financial condition and livelihood from the inevitable operation costs in running their businesses.” Astawa added.
As a response to this crisis, Astawa admitted that the provincial government has lost its ability to provide financial assistance to the tourism sector due to lack of resources. “We have already contributed in supporting our tourism businesses last year in 2020, but unfortunately we have now lost our ability to financially support them again this year as we also face the same financial challenges during this economic crisis. So I hope the people can also understand our situation.” Astawa concluded.