As the adverse effects of the pandemic continue to damage the tourism industry of Bali, several hotels have declared bankruptcy after being unable to repay their debts.
As a response to this situation, the Indonesian Tourism Minister, Sandiaga Uno, asked the banking sector to facilitate better solutions for affected hotels.
“This should be our main priority as we don’t want to see permanent damage within this sector,” said Sandiaga during an interview in Kuta on Sunday (31/1).
He urged both private and governments owned banks to help hotels by restructuring their loans.
“We’re currently waiting for the stimulus package of USD 704.6 million (IDR 9.9 trillion) that we have asked from the central government to provide for the tourism industry in Bali.” Sandiaga Uno added.
He also stated that permanent damage to tourism would cause the unemployment rate to spike in the near future.
The employees who are still working become wary as the occupancy of hotels continues to drop. More businesses are facing financial insecurity which can lead to a surge in unemployment.
Recently, Swiss-Bel Hotel – Segara Nusa Dua in southern Bali was declared bankrupt by the supreme court as of Sept 14/20.
Meanwhile, the Managing Director of The Nusa Dua Bali, I Gusti Ngurah Ardita, hopes that the central government prepares a much needed solution to the national tourism sector.
Additionally, Ngurah Ardita said that the lack of domestic visitors and uncertainty of the government to reopen the international corridor have resulted in the bankruptcy and financial instability of numerous hotels.
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Maria Switzerland
Monday 1st of February 2021
The Balinese have given their hearts, souls, sweat and blood for generations to build up the tourist industry in Bali. If not for the last few thousand westerners keeping the island alive with some local tourism supporting the 20 or 30% of hotels and businesses still open, then the whole economy would be be bankrupt and maybe never return as well be almost impossible for locals to start up again. Throwing money at a broken industry will not solve anything longterm, like a sticky plaster on a open wound, will only last a few days or weeks. Many travelers will come by their thousands of they allow ppl to come in with negative covid tests, they can also test on arrival and restart the economy. Why not?
Aine Mcfadden
Tuesday 2nd of February 2021
@Maria Switzerland, I totally agree!
Aine Mcfadden
Tuesday 2nd of February 2021
@Maria Switzerland,
Bob
Tuesday 2nd of February 2021
@Maria Switzerland, The problem of allowing foreign tourists to come to Bali is that Covid is rife here and they could catch it here and take it back home with them. They must eliminate the virus from Bali first.
Wayan Bo
Monday 1st of February 2021
It's perhaps a Karma. - For example Puri Bali Hotel in Jimbaran, there cottages are today nearly the same as they was in first part of 1980's at the time when they didn't have swimming pool and with walls closed restaurant, but open one with a parrot. The price for cottage stay for a day in first part of 1980's was around four or five USD, how much is it today? Answer: Hounderds of USD's. - The crime rate is significantly growing since 1980's, in 1980's it was nearly unimaginable that tourists become victims of crime. At this times there wasn't devices, such iPhones but much more expensive juwelerys that tourists are carrying with themselves without any risk. Bali was at this time more or less, such safe place like today's Monaco's Monte Carlo in Europe.
Paul Morris
Monday 1st of February 2021
Dear Tourism minister the pandemic is now 10 months old and nothing has been done to help many people in Bali who no longer have jobs and have not had any support from your government. Australia gave the Indonesian govt $1.2 billion dollars to help support the Covid-19 crisis some of this money should have been used in Bali to help the many starving people to be at least able to put food on the table for their families. Don’t worry about giving money to empty hotels there will be no International tourists coming to Bali until 2022 open your eyes and look what is happening around the world the virus is getting worse by the day.