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Budget cut will hamper hospitality industry, PHRI says
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Indonesian Hotel and Restaurant Association (PHRI) chairman Hariyadi Sukamdani speaks at an event in Jakarta. (tribunnews.com/Seno)
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span lang="EN-US" style="mso-ansi-language:EN-US">The Indonesian Hotel and Restaurant Association (PHRI) has said the government’s decision to further cut spending on business meetings and working trips would negatively impact the hospitality industry.
“Hotel occupancy could fall to 50 percent nationally if the government's austerity measures are imposed. Currently, the rate is 55 to 60 percent,” said PHRI chairman Hariyadi Sukamdani recently.
Hariyadi said not many hoteliers could cope with a decline in business.
However, he said he hoped the tax amnesty, which is expected to add Rp 165 trillion (US$12.54 billion) to state coffers, could drive economic growth so that the hotel business could improve.
“We hope the government's Wonderful Indonesia tourism campaign will boost business,” Hariyadi told The Jakarta Post via phone.
The government has decided to further slash spending by Rp 133.8 trillion, in addition to a Rp 16.3 trillion cut in the June state budget revision. Around Rp 65 trillion will be slashed from ministerial and agency spending and Rp 68.8 trillion from regional funding. (vny/bbn)
