Many Hotels and Restaurants in bali closed due to COVID-19

Laguna Garden | Saveral hotel in Bali decided to close operations as long as they were unable to pay operational costs due to the corona outbreak, thereby restoring tourist visits.

Chairperson of the Association of Indonesian Hotel General Managers (IHGMA) Bali I Nyoman Astama revealed of a total of 150 member hotels and villas, half of which have been determined to close operations. He acknowledged that the decision was taken by management because it was difficult to think of the corona virus or covid-19 which made no tourist visits.

“So if you look at it now, it’s impossible to use normal. Its extreme actions are canceled operationally while maintaining that hotel facilities are not damaged ,, “he explained when contacted by Business, Thursday (2/4/2020) While hotels that stop operating are distributed in areas such as Kuta, to Nusa Dua.

He added, decided to stop operating because it no longer needed operational costs if it continued to operate. Costs for hotel operations account for 50 percent of total revenue, while the current occupancy rate is less than 10 percent

He admitted, the impact of the closure made many workers have to take temporary leave. So far its members have tried persuasive ways by offering their employees to take time off without getting paid (unpaid leave). There are hotels that are still waiting for them to leave on leave.

“If indeed there is no new operational unpaid leave so the holiday is not paid,” he explained. On the other hand, the Badung Regency Industry and Labor Agency claimed not to know the total number of workers affected by these conditions.

Head of Badung Regency Industry and Labor Office, IB Oka Dirga, agreed to determine the number of hotels that were closed due to the Corona or Covid-19 outbreak. He claims the hotel data collection process will be completed soon, on Friday (3/4/2020), so that after completion, the data obtained will be sent to the Provincial Government of Bali and the Central Government.

“We have held the data and are still in the process, we will report back later,” he said when contacted. For the exact number of hotels and restaurants that are closed in Badung cannot be returned by Oka, to avoid incomplete information. “Throwing away too, with the current conditions, the hotel will definitely choose to close or the workers will be laid off, because tourists are issued into Indonesia,” he said.

Furthermore, he appealed to all workers who felt the immediate impact of the inclusion of hotels and restaurants in order to continue to accept the situation, and accept that this pandemic be resolved soon. Even so, it will continue to receive complaints from workers through Video Calls. “As a mediation step, we have received several complaints from workers, because they may not be face to face, we use Video Call technology,” he concluded.

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