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Jakarta Post

'Hospitality rules need revision; business becoming more costly'

  • Bambang Nurbianto
    Bambang Nurbianto

    The Jakarta Post

Jakarta   /   Sat, November 10, 2018   /   08:36 am
'Hospitality rules need revision; business becoming more costly' A cleaner prepares a room at the INNA Hotel in Kemayoran, Central Jakarta. (The Jakarta Post/Adeline Sunarjo)

The Indonesian Hotel and Restaurant Association (PHRI) has called on the government to deregulate the hospitality and tourism industry because existing regulations are no longer compatible with current conditions.

“Our call for deregulation is to improve competitiveness because existing regulations have made the business costly,” said PHRI deputy chairman Maulana Yusran at the 2018 Hotel Week Indonesia event, which was held in Jakarta on Thursday.

He added that the hospitality and tourism industry was affected by high licensing fees, taxes, regional levies, water resource taxes and certification costs.

The industry also faced various other problems including an oversupply of rooms, digital disruption (the appearance of business competitors in the digital era), price wars and certification disputes, Maulana added.

He said many hoteliers were complaining about Government Regulation No. 55/2016 on regional tax and levy that imposed taxes for complimentary/free of charge services introduced by hotels and restaurants.   

They were also not happy with Law No. 28/2009 on terms and conditions and the procedure in regional tax collection, he added.

Maulana also pointed out that the types and categorization of hospitality and restaurant businesses should be expanded because it was not compatible with current conditions.

For example, he said, there was a hotel tax, which did not apply to condotels, villas, tourist houses and homestays, etc. He also stressed the need to change the terms of restaurant tax into a more broader term. (bbn)