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Two hotels in Bogor temporarily cease operations due to budget cuts
It cited budget cuts coupled by economic and tourism uncertainty in the country that had battered the meeting, incentive, convention and exhibition (MICE) segments.
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A worker prepares a hotel room in this stock photo. (Shutterstock/Dragon Images)
T
wo hotels in Bogor, West Java, will temporarily close their doors amid a drop in demand following government budget cuts that have severely impacted the hotel and event sector.
Sahira Hotels Group in Bogor, which owns the two properties, said the decision will take effect starting on March 29. Around 130 workers will be affected, excluding those working on a daily basis.
It cited budget cuts coupled by economic and tourism uncertainty in the country that had battered the meeting, incentive, convention and exhibition (MICE) segments.
“Activities at Hotel Sahira Butik Hotel Paledang and Hotel Sahira Butik Hotel Pakuan will cease until further notice,” Adly, operational director of Sahira Hotels Group stated in a letter sent to the Indonesian Hotel and Restaurant Association (PHRI) in Bogor on Wednesday.
Read also: Hotels lament cancellations amid budget cuts for govt events
Finance Minister Sri Mulyani Indrawati issued a circular letter in November last year that stipulated all ministries and institutions must cut spending on official trips by a minimum of 50 percent, following President Prabowo Subianto’s directives to reallocate budgets for priority programs.
Similar cuts were also made for spending on meetings and events held in hotels and convention centers.
