14th September 2022 – Due to the oil fuel price increase, a couple of tourists have cancelled their hotel bookings in Yogyakarta. This impact is felt especially in two-star hotels that are dependent on guests staying in for income.
The Chairman of the Indonesian Hotel and Restaurant Association (PHRI), Deddy Pranowo Eryono, shows his concern for the struggle of two-star and below hotels compared to the three-star and above hotels that can stay afloat due to meetings, Incentives, conventions and exhibitions (MICE).
Around 30 percent of tourists have cancelled their hotel bookings because of the oil fuel price hike. The cancellation happened because of tourists who bought tour tickets but were reluctant to increase the price after the increase in fuel price.
People’s purchasing power is decreasing as hotel operations are increasing. Subsidies should be available if hotels are to decrease their price. Eryono hopes that there will be discounts given by either the city or district government in the form of tax. He gives examples such as Jogja Great Sale or Sleman Great Sale for two or three months as it can encourage the hotel industry.
The increase in fuel prices imposed by the Government has an impact on the tour and travel section too. This matter is told by the Deputy Chairman of the Marketing and Communications Association of The Indonesian Tours and Travel Agencies (Asita), DIY Fachri Herkusuma.
He said that the tour and travel agencies are stuck as tourists have agreed on the price of the tour packages and are not necessarily willing to adjust to the new, higher prices.
Herkusuma said that domestic tourists are open to negotiating new prices compared to international tourists. He added that not only do tour packages have an effect after fuel oil prices increased, but also other components such as restaurants too.
He is worried about the impact of fuel oil price hike will decrease tourists’ interest to travel especially with the decrease in people’s purchasing power too. He hopes that there will be aid from the Government in a form of stimulus or promotion programs considering Yogyakarta is one of 5 super priority tourist destinations.
