Indonesian Hotels Hit by Government Spending Cuts
Skift Take
In Indonesia, hotel occupancy rates in several regions have plunged to as low as 20% as the budget cuts have stripped away a vital source of income for hotels.
Business Times published an article on how Indonesia’s hospitality sector is feeling a negative impact from sweeping budget cuts under President Prabowo Subianto’s administration. The Indonesian Hotel and Restaurant Association said hotel occupancy rates in several regions have plunged to as low as 20% as the budget cuts have stripped away a vital source of income for hotels that have long been reliant on government events, official travel, and corporate retreats. The article said government spending used to account for 40% of the country’s hotel business and the pulling of this business has sparked concerns of layoffs and hotel closures.
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