Hotels Crisis in Indonesia and Malaysia

The Covid-19 pandemic has severely impacted the global travel and tourism industry and today TTGAsia have highlighted the issues being faced by hoteliers in Indonesia and Malaysia.

In Indonesia the Yogyakarta chapter of the Indonesia Hotel and Restaurant Association (IHRA) has reported that of its 400 members, 100 hotels have stopped all operations, 50 have gone bust and 172 are still operating but “almost dying”.

“We are bleeding. Our cash flow is already severe.”

Deddy Pranawa Eryana, Chairman, IHRA Yogyakarta chapter via TTGAsia

In Bali there is also concern that without further government support the hotel sector will be severely damaged.

Chairman of the Jakarta chapter of the IHRA has called for the Jakarta city government to give financial aid to the sector including a temporary exemption on taxes for land, building and advertising and a cut in water and electricity tariffs

“We are all afraid hoteliers won’t (survive) until the end of the year.”

“The government’s tourism grant last year had helped hotels to finance operations for approximately two to three months, most of which could last until the end of 2020.”

Fransiska Handoko, Vice Chairman Bali Hotels Association (BHA)

The number of hotels in Bali, Bandung, Cirebon, Jakarta, Pasuruan and Yogyakarta being put onto the market has increased recently as the sector struggles to survive.

In Malaysia the continuing Movement Control Order (MCO) alongside the state of emergency has raised concerns for the future of much of the hotel sector which had been surviving on domestic tourism and travel.

Teo Chiang Hong President of the Malaysian Association of Hotel Owners (MAHO) has called for more assistance for the hotel sector to help businesses survive. He has called for an increase in the wage subsidy for staff and an extension to the discount on electricity charges among other measures.

“We feel that if the government is not able to give further assistance as per our request, it is pertinent to allow hotels to do business and operate as normal with the specified SOPs, so that hotels are able to generate revenue to sustain the business and not having to close down, downsize or terminate employees.”

Teo Chiang Hong, President of the Malaysian Association of Hotel Owners via TTGAsia

The CEO of the Malaysian Association of Hotels (MAH), Yap Lip Seng has urged the government to consult closely with the Ministry of Tourism, Arts and Culture in the hope that some reductions in travel restrictions and Standard Operating Procedures (SOP) could be made.

“The tourism industry had in fact proven itself since the first MCO in March 2020 and had operated in full compliance of standard operating procedures, and the hotel industry even introduced its own hygiene and safety certification, the Clean & Safe Malaysia label, incorporating standards beyond base requirements of health authorities.”

“If the Ministry of Health is confident of such SOP, it should also work and serve the business community and encourage investments.”

Yap Lip Seng, CEO Malaysian Association of Hotels via TTGAsia

Photo credit Saepul jr on Unsplash

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