During the COVID-19 pandemic the only industry that might not succeed was the hospitality industry. Hospitality is one of the socio-economic sectors that plays an important role in the economy in Indonesia. However, this sector is vulnerable to the dangers of the COVID-19 pandemic and caused the economic setbacks that result. This study investigates the impact of COVID-19 on the Indonesian hospitality industry using data from several sources. The methodology of this paper is based on relevant facts about the impacts that have occurred as a result of COVID-19 in Indonesia. The study found that many hotels were closed due to the COVID-19 pandemic. COVID-19 also caused unprecedented job and income losses, resulting in millions of jobs and billions of dollars in lost revenue potential. It further recommended a raft of safety and health protocols as the industry gradually reopened. In this paper we will look at the problems that the service industry will face and a solution might be suggested.
Coronavirus or COVID-19 is a large family of viruses that cause mild to moderate upper respiratory infections, such as flu. Many people are infected with this virus, at least once in their lives.Coronavirus infection is caused by the Corona virus itself. Most corona viruses spread like other viruses in general, such as sprinkling saliva (swollen and sneezing), touching an infected person's hand or face, touching eyes, nose, or mouth after handling an item that has been exposed to saliva with corona virus, feces or feces (rare). Corona virus (Covid-19) has had a significant impact on various sectors in Indonesia, one of which is the tourism sector. This is reflected in the rise of hotels that decided to close temporarily. Chairman of the Indonesian Hotel and Restaurant Association (PHRI) Hariyadi Sukamdani said, until Monday (6/4/2020) there were already 1,226 hotels closed. The Indonesian Hotel and Restaurant Association (PHRI) rate, the Corona outbreak is very pressing on the tourism industry in Indonesia. Not only that, the hospitality industry which is related to tourism will also be affected.
Based on PHRI data, the tourism industry has lost potential income from tourists of US $ 4 billion or equivalent to Rp 60 trillion from January to April this year due to the Corona pandemic. Even so with the domestic hotel sector that lost potential revenue of around Rp 30 trillion. The Indonesian economy has declined since the Corona virus. Chairperson of the Association of Indonesian Restaurant Hotels (PHRI) of East Java Dwi Cahyono admitted that since the Governor's and the city and local government circular was announced to close the area's door, the hotel industry experienced a very significant decrease in room occupancy rates. According to him, this decline began to be felt since President Jokowi announced a positive corona patient. However, this decline was not experienced by all regions.
Business in the service sector, especially hotels and restaurants in Indonesia collapsed due to the corona virus. As stated by Deputy Chairperson of the Indonesian Hotel and Restaurant Association (PHRI) Maulana Yusran revealed the collapse in the business sector was due to the implementation of physical distancing policy in the effort to prevent transmission of COVID-19 by the Government of Indonesia. Hospitality and restaurants is a business sector that requires a crowd or a crowd in a location. In the midst of the corona virus pandemic outbreak, physical distancing finally limited the scope of community movement, which then impacted the declining income of business people in the hotel and restaurant sector. The hotel occupancy rate in Indonesia continues to decline. In fact, now the occupancy rate is below 20 percent, affected by physical distancing policy. For that reason, in handling the corona virus, Maulana also advised that the government, in addition to prioritizing public safety, also could assess the economic impact in Indonesia. When viewed from a situation, certainly in the midst of a situation like this all activities are inhibited. We have to be social distancing, we have to do work from home and so on. Stunted activity will have an impact on the service sector, for example hotels. The hotel is a place for people traveling out of town for example or people traveling for other reasons. For example doing business, traveling, so. If many activities are hampered, the accommodation sector will automatically collapse.
Coronavirus, now globally carrying a pandemic status, has caused crises around the world with its impact on the hotel industry which is potentially heavier than 9/11, SARS, and the financial crisis in 2008. But this time, the hotel industry has experienced a sudden decline. By placing humans at the center of situations, viruses produce a deep fear, confusion, and affect us in a very emotional way that this generation has never felt. Of course, above this, physical confinement worsens the situation. At the business level, the impact of the crisis has reached every industry in the world, with travel and tourism taking a big blow. Many hotels find themselves empty and want to fill the lobby and rooms that were full. However, this severe situation has provided space for solidarity throughout the world with many hotels throughout the world providing their place to accommodate medical staff, first responders, or hospital patients who do not suffer from coronavirus.
Promoting business must be done in a positive manner, showing benefits to customers and providing travelers with light at the end of the tunnel. Industry players must consider how to emotionally and sensitively accept travelers who have been locked up in their homes after the lock is opened. Because of the worldwide impact of COVID-19, humans will enter a new era of post-crisis world that requires industry players to adjust their approach to new travelers. This will enable new concepts to be developed that aim to benefit people who need emotional retreats and focus on psychological well-being. However, many travelers rely on the hotel industry to understand, businesses alike need the right decisions made by the public. World travel may not be canceled but rescheduled for the near future. By being sensitive to each other, respecting each other, and showing solidarity, both companies and consumers must receive the same message: live for today and plan for tomorrow.