Weak Demand Stalls Recovery of Indonesia’s Hotel and Restaurant Industry

The rising occupancy rate does not guarantee an increase in the profit for hotels in Indonesia, she added.

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Another burden that the hotel industry in Indonesia must shoulder is the increasing work-from-home lifestyle arising from the coronavirus pandemic that has damaged the earnings from Meeting, Incentive, Conference, and Exhibition (MICE) events.

Due to the adjustments in work arrangements in the new normal, Indonesia’s hotel industry has had near-zero demand for MICE events.

Challenges for restaurants

Shifting the sales method from offline to online is the main challenge facing Indonesia’s restaurant industry.

Prior to the coronavirus pandemic, restaurants across the archipelago could comfortably rely on offline types of sales.

Although the country has experienced digital acceleration, not all restaurants or small and medium enterprises are familiar with online sales.

Read also: Indonesian SMEs That Resisted Digital Adoption Collapsed during Pandemic

As such, several restaurants in Indonesia shifted from a dine-in concept to offering take-out and drive-thru services.