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November 20, 2024 | 03:05 pm
TEMPO.CO, Jakarta - The Indonesian Hotel and Restaurant Association (PHRI) projects hotel occupancy rates to drop by up to 10 percent during the 2024 Christmas and New Year holidays compared to the same period last year. PHRI Chair Hariyadi Sukamdani said this was partly due to the recent surge of online gambling practices.
"So, when we talk about occupancy, there may be 10 percent lower compared to last year. That’s a possibility,” said Hariyadi during a press conference on Tuesday, November 19, 2024.
Hariyadi reckoned that the main issue contributing to the hotel occupancy drop is the decrease in purchasing power, especially among the lower- and middle-class citizens. He also attributed the drop to the rising popularity of online gambling within the aforementioned social groups.
"The decline in purchasing power has a significant impact, but our analysis also showed this is linked to online gambling, which affects the supply chain,” Hariyadi stated.
Previously, he explained there is a wide and interconnected supply chain within the hospitality sector. This connection covers micro, small, and medium enterprises (MSMEs) as suppliers of food ingredients to the hotel's sanitation facilities, which primarily come from middle- to lower-class communities.
“What is popular in the lower and middle-class community is online gambling,” said Hariyadi. “Thus, we hope the government is earnest in eradicating online gambling.”
Nevertheless, according to Hariyadi, PHRI continues to anticipate and respond to the decline in hotel occupancy during the holiday season, including through offering packages with more competitive pricing, attractions, and benefits.
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