The hospitality industry and hotelier across the globe is generally the first to get impacted by the outbreak, and it seems likely to last to recover.
Since UNWTO declared that the coronavirus is an international health emergency, the hospitality industry and hotelier is having a nightmare. The tourist destinations that are traditionally visited by Chinese travellers are the worst affected. Destinations like Singapore, Mumbai, Dubai, Kuala Lumpur, and Indonesia are all impacted.
All the hotels booking are being postponed or some are cancelled for within this month. Hotels in Indonesia also got badly impacted due to the outbreak. Many hotels are temporarily closed down.
Detik.com reported from the Deputy-Chairman of The Indonesian Hotel and Restaurant Association (PHRI), Rainer H. Daulay, listed in 826 hotels nationwide, have been forced to close operations during the COVID-19.
The national hotel occupancy rate plunged by 40%, and it has a significant impact on the continuity of the hotel industries. As the hotels usually have a large number of employees, some hotels in Batam and Bali have asked their employees to take time off at the moment, because of no visitors at all.
As quoted from Katadata.co.id, The Deputy-Chairman of The Indonesian Hotel and Restaurant Association (PHRI), Yusran Maulana mentioned, “they are doing that for the limited time if in April, they still have no visitors, it is a disaster.” “The fasting month is also coming soon”, as he added.
The impaction on the hotelier will take a longer time, and they indeed need to do something in order to survive. But, what should they do during this outbreak?
What The Hotelier Should Do To Survive at The Moment?
Bali is well known as a tourist hotspot, but it is now reported making adjustments to respond to the coronavirus impaction, including temporarily suspending operations.
The Bali Hotel Association (BHA) acknowledged that over 100 four-star and five-star hotels and resorts in Bali are now temporarily closed for at least one month. In addition, the hotels that are still open now have less than 10% occupancy rates, while most restaurants have cut their operational hours.
Meanwhile, some hotels are still seeking their potential customers, and are rolling out cheap promotions for long-term stays. LV8, a hotel located in Canggu, is offering a one-month stay that is starting from IDR 8 million (US$481). The hotel’s normal daily rate ranges from IDR 800K until IDR 1 million.
The solution can attract those who are staying in a Kost. In Indonesia, kost means a room to rent, while you are working or studying in a different town as your hometown. However, LV8 offers a one-month stay to attract those who are currently staying in a kost.
As quoted from Liputan 6, some five-star hotels also offer the best deals package. They offer a Work From Hotel package starting from IDR 800K to 7 days stay, or you can have a one-month stay for IDR 3 million with the facilities, such as swimming pool, laundry, and room cleaning 2 times in a week.
The Work From Hotel package is actually how the Eden Hotel in Kuta, Bali attracts the potential customers, and the package is available for only 10 rooms. Hence, the hotel operations will go on track and at least, can pay their employees.
Another hospitality management does food delivery for those who stay at home. The Waringin Hospitality Hotel Group is offering a food delivery service with an affordable price for those who do not have time to cook.
The hotels that under the group are, Luminor Hotel Jemursari Surabaya, Luminor Hotel Sidoarjo, Luminor Hotel Purwokerto, and Hotel 88 ITC Fatmawati Jakarta. The hotels have the home catering starts from IDR 15K – IDR 40K. They offer the food delivery service everyday from 10.00 – 20.00 for those who are in Sidoarjo, and free shipping with minimum purchase IDR 100K.
The solution on how the hotels give the cheap promos are somehow working quite well. As some of them offered a variety of packages to support those who work from home, by providing food delivery and long-term stay at the hotel.
The Government Policy in Helping The Hospitality Industry
The Indonesian Government prepares the policy to ease the burden on the hospitality industry and hotelier workers who lost their jobs due to this pandemic. According to a spokesperson for the Maritime Affairs and Investment, the government will find new temporary jobs for them, while waiting for the hospitality industry to recover.
Jokowi has ordered his staff to prepare a number of economic stimulus for the business, especially in hospitality industries that are affected by coronavirus. In addition, Jokowi is also providing the social protection program launched by the government.
On the other hand, some hotels are transformed into residences for medical workers, but it is somehow considered as inappropriate as the hotel and the hospital function are so different. However, as long as the hotels want to work together with the Ministry of Tourism and Creative Economy, they can do it. These hotels are Novotel Cikini, Mercure Cikini, Ibis Style Jakarta Sunter, Ibis Senen, and Swiss-Belhotel Pondok Indah.
The support for fighting the coronavirus is also coming from RedDoorz. They have the latest program, Red Heroes provides 102 rooms for free, that are available at RedDoorz Plus Near Plaza Blok M and RedDoorz Plus @Thamrin. The chosen location is based on the closest 2 referred hospitals of COVID-19, which are RSPAD Gatot Subroto and RS Cipto Mangunkusumo.
Other than RedDoorz, the accommodation network OYO Hotels and Homes Indonesia are making one of their hotels to become a residence for medical workers. Country Head OYO Hotels emphasized the facilities are expected to be a solution amid the concerns of those workers who should keep their distance from their families and friends.
Apart from the government’s help, the hotelier should do more rolling out the cheap promos. Such as, those hotels that have been throwing out the promo for long-term stay is working. People might be attracted to work from hotels since they cannot go travelling at the moment. However, the hotels need to set standards of cleanliness, such as sanitizing each room, frequent hand washing for the employees, and of course clean the rooms. They also need to have a business continuity planning in motion to help them recover from this crisis.