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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