Denpasar officials have confirmed that 14 hotels that are located in Denpasar have decided to permanently close their facilities due to the Covid-19 pandemic.
The Head of the Denpasar Regional Tourism Agency, Dezire Mulyani stated that 14 hotels in Denpasar city have permanently closed their doors due to lack of occupancy since the Covid-19 pandemic struck in Bali. Apart from that, another 70 hotels were temporarily closed in order to avoid any extra operational cost that might appear during these hard times.
“Many hotels in Denpasar decided to shut down their businesses since the Covid-19 struck and affected tourism in Bali.” Mulyani said Tuesday (31/8). Mulyani explained that several hotels were also forced to reduce how many workers they had on shift in order to survive and stay open despite the situation. “Some accommodation businesses were still operating, but they had to lay-off most of their workers so their businesses could survive during these hard times.” Mulyani added.
Meanwhile the Vice Governor of Bali, Tjokorda Oka Artha Ardhana Sukawati (Cok Ace) said that many of those businesses have decided to sell their assets through an online marketplace. “We’ve been spotting hotels that were for sale through an online marketplace before the Covid-19 pandemic, but the number has significantly increased since 2020.” Cok Ace said. However, Cok Ace still reminds business owners to reconsider their plan before selling their assets as it would potentially cause more negative impact to Bali’s economy. “I hope they will think twice before selling their assets to investors, as it would bring a deeper impact to our economy when more people lose their jobs.” Cok Ace concluded.