After the official announcement of COVID-19 cases in Indonesia, hospitality industries were hit hard when hotel occupancy fell sharply. Occupancy level was reported to have fallen below the regular low seasons. Even prior to the announcement, the February ADR performance had already dropped 6.8% month-to-month. We anticipate this will continue to deteriorate in March until the outbreak can be contained.
Amidst the hardship, hoteliers have taken some preventative measures to cope with the situation. Some hotels have already ceased operations because the recent low occupancy cannot cover operating costs. Operating hotels should consider efficiency by closing some cafés, restaurants or wellness facilities inside the hotel or only running several floors and offering room only (without breakfast).