A survey conducted by the Indonesian Hotel and Restaurant Association (IHRA) and Horwath HTL, involving 726 respondents from 717 hotels in 30 provinces, show as many as 88 per cent contemplating mass layoffs to stay afloat. This highlights the devastating impact of the government’s budget cuts, particularly on cities reliant on business events.
The survey revealed that 58 per cent of hotel businesses anticipate potential loan defaults while 48 per cent project unavoidable permanent hotel closures should the situation remains unchecked. Fifty-six per cent of respondents say a 10 to 30 per cent loss in total revenue year-on-year is likely.
The financial strain caused by rising operational costs amid reduced government travel and events will force businesses to…
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