Indonesia’s tourism sector reports 1.5-bln-USD losses due to COVID-19
The Indonesian tourism sector has suffered losses of at least 1.5 billion USD since January amid growing fears over the COVID-19, said Chairman of the Indonesia Hotel and Restaurant Association (PHRI) Hariyadi B. Sukamdani.
The chairman of Indonesia’s Hotel and Restaurant Association (PHRI) Hariyadi B. Sukamdani talks to the press on the impact of the coronavirus epidemic on the tourism industry (Photo: )
Jakarta (VNA) – TheIndonesian tourism sector has suffered losses of at least 1.5 billion USD sinceJanuary amid growing fears over the COVID-19, said Chairman of the IndonesiaHotel and Restaurant Association (PHRI) Hariyadi B. Sukamdani.
Hariyadi, who is also chairman of the IndonesiaEmployer’s Association (Apindo), said that of the total estimated losses, about1.1 billion USD occurred as a result of cancelations made by Chinesetourists, and the remaining 400 million USDresulted from cancelations by holiday-makers from other countries.
The losses are growing as people prefer to stayat home rather than going on vacation, he said, adding that almost all majorrestaurants and hotels in the country’s tourist destinations had now been hardhit by the sharp fall in the number of tourist arrivals.
If the situation continues, small businesses could be forced to shut downcompletely, he noted.
According to Secretary-General of the Indonesia Travel Agents Association (ASTINDO)Pauline Suharno, the fears over the COVID-19 epidemic had severely hit localtravel agencies.
As of March 12, ASTINDO recorded near 90 percent drops in sales followingbooking cancelations caused by the outbreak. Meanwhile, in February, ASTINDO’s membersrecorded a total loss of 4 trillion rupiah (270 million USD)./.
Indonesia is set to delay import duties and corporate income tax payments for six months while also expediting the repayment of overpaid taxes in new fiscal measures to shield the economy as the COVID-19 outbreak pressures businesses.
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The Indonesian government announced on March 13 that it will allocate 120 trillion rupiah (8.1 billion USD) from the state budget to stimulate the economy by providing tax incentives and subsidies for workers, businesses and families affected by the COVID-19 outbreak.
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