Economy80-90% of Hotel Rooms in Bali Are Empty

80-90% of Hotel Rooms in Bali Are Empty

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The hotel sector throughout Indonesia is sluggish, hit by the Covid-19 pandemic which has been around for more than a year. 

The policy to prohibit going home has also resulted in increasingly depressed hotel occupancy in various regions. As many as 80-90% of hotel rooms in various areas are empty, let alone entering the fasting month, including in Bali.

Chairman of the West Sumatra Indonesian Hotel and Restaurant Association (PHRI) Maulana Yusran revealed that hotel occupancy in his area is approaching its lowest point.

“Now the small occupancy in the fasting month is around 20%. West Sumatra makes a living from government activities and tourism MICE (Meeting, Incentive, Convention, Exhibition), with the largest contribution from travelers,” said Maulana to CNBC Indonesia Friday (16/4/21).

However, currently many government activities have shifted to the digital area, inevitably this trend is making hotel occupancy even lower. Even when entering the month of Ramadan at normal times, government activities that fall into the MICE category are indeed few, let alone a pandemic.

“During Eid, there are no government events at all. Hotels cannot talk about government activities that are too big anymore. So the mainstay in tourism, usually during normal times of this segment, from homecoming, occupancy increases up to 90%, so far there are collective leave, occupancy increases of at least 7 days. Now it’s a different story, “said Maulana.

Tourism areas such as Bali are also under pressure. At the moment of entering the holiday period like this, there is usually an increase, but different cases have occurred this year.

“In general, the occupancy rate of hotel rooms is still below 10% (90% empty). Because indeed the international border has not been opened for foreign tourists and is entering the month of Ramadan,” the Board of Trustees of the Indonesia Hotel General Manager Association (IHGMA) Bali told.

The hope of increasing occupancy rests on the smooth running of vaccinations. Unfortunately, the implementation is also delayed. 

This is because there is an embargo on vaccine delivery from vaccine source countries to Indonesia due to an increase in new cases in the source country of vaccines, which also has an impact on slowing down the implementation of vaccination in Bali due to limited vaccine stocks.

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