Hard to Deny: Indonesia’s Hospitality Sector Needs Foreign Tourists

KOMPAS.com - Bali, Bintan, and Manado need international visitors to support the hospitality sector in these three areas, according to the Indonesian Association of Hotels and Restaurants (PHRI).

Travel restrictions imposed in the three locations are hampering their hospitality sector, said PHRI Secretary-General Maulana Yusran.

Currently, Indonesia is forbidding any foreign tourists from entering its territory as stipulated in the Indonesian Ministry of Justice and Human Rights Law Number 11 Year 2020 about the Entry Ban of Foreign Citizens into Indonesia.

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Hardest Hit Bali

Based on PHRI’s data, although Bali has begun allowing entry to travelers from within Indonesia, its hospitality sector continues to face low occupancy rates and turbulence.

“If we are talking about domestic tourists, the occupancy rate of hotels in Bali is no more than 25 percent whereas international travelers contribute over 30 to 40 percent. That is based on our data until 2018,” said Maulana.

From June to July, the occupancy rate of Bali’s hotels reached around 25.7 percent despite having reopened its tourism sector.

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The weak performance of Indonesia’s hospitality sector is poised to worsen with the re-extension of partial lockdowns in Jakarta.