COVID-19 cases have weakened the tourism sector in Bali. This condition caused several hotels to be sold by the owners. They sell their assets because they are unable to pay operational costs and employees’ salaries.
As reported from kompas.com, I Gusti Agung Ngurah Rai Suryawijaya, the Chairman of Indonesian Hotels and Restaurants’ Association (PHRI) in Bali Province, confirmed this issue. He said about 60 hotels were sold by their owners, of which 20 of them had been sold before the pandemic.
During the pandemic, hotel occupancy rates are only 5 to 7 percent. Of course, that amount can’t accommodate their operational costs. This condition makes some entrepreneurs sell their assets.
Putu Astawa, as Head of the Tourism Office in Bali Province, also confirmed that the pandemic is not the only reason for this hotel-selling issue as it has happened before the pandemic.
Several hotels were sold because they were built using loan funds. This condition made entrepreneurs choose to sell their property due to the tight conditions.
Astawa added that the hotels built using non-loan funds and owned by state-owned enterprises still survive even today. The surviving hotels are expected to be still in a quite large number.
Both of them hope for the central government’s support to lend low-interest funds to entrepreneurs. Meanwhile, I Wayan Koster, the Governor of Bali, is currently working on the solution.
“And we pray that the pandemic will pass soon so that tourists will come to Bali (again) and the economy will recover more quickly,” said Astawa.