Hotel Industry Under Pressure as Employers Fear Bigger Wave of Layoffs

April 11, 2025 | 07:58 pm

TEMPO.CO, Jakarta - Chairperson of the Indonesian Hotel and Restaurant Association (PHRI) Hariyadi B.S. Sukamdani stated that layoffs have already begun in several hotel businesses. He warned the wave could grow larger if economic conditions remain unstable.

“[Layoffs] have already happened. The wave will only get larger if this continues to be unstable,” Hariyadi told Tempo on Wednesday, April 9.

Layoffs have been occurring since the first quarter of this year. While not always labeled as such, many workers have lost their jobs. “While it is not a layoff technically, since we no longer use daily workers, those who were recruited based on occupancy rates are no longer being employed. Contract workers whose contracts have ended are not being renewed. So it is effectively the same as layoffs—those people are not working anymore,” he said.

The downturn is evident in falling hotel occupancy during the Eid holidays, driven by declining consumer purchasing power.

Hariyadi noted that Eid is typically the most favorable period for spending, boosted by holiday allowances (THR). “It is not just hotels—recreational venues like zoos have also seen a drop. Friends in the retail sector are also complaining, so all of this points to declining purchasing power,” he added.

In Batu City, East Java, hotel occupancy during the 2025 Eid holidays stood at 70 percent. PHRI Batu Chairperson Sujud Hariadi said this was lower than during the same period in 2024. “Hotel occupancy this Eid holiday is 70 percent, down from last year’s 85 percent,” he said on Monday, April 7, 2025, as quoted by Antara.

In Surabaya, occupancy reached only 60 percent—a 30 percent drop from last year’s 90 percent. “Compared year-on-year, hotel occupancy during the Eid holiday is only 60 percent, down 30 percent from last year,” said Puguh Sugeng Sutrisno, Daily Chair of PHRI Surabaya, on Monday, as quoted by Antara.

PHRI Serang Chairperson Yurlena Rachman reported hotel occupancy during Eid in Serang Regency was only 80 percent. “This year saw a 20 percent decline compared to last year, which was nearly 100 percent,” she said, also quoted by Antara.

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