The accommodation of food, and beverage sector is one of the sectors affected by the COVID-19 pandemic. In 2020, the sector experienced negative growth of up to -10.22% (y-o-y). This is due to its activities which are closely related to large-scale social activities. The two subsectors, namely the accommodation subsector and the food and drink subsector, were significantly affected. The accommodation sector or commonly known as hospitality is affected due to the prohibition of offline operation for companies and the ban on temporary travel for all tourists, both domestic and foreign. As for the food and drink sub-sector, where restaurants that are closely related to tourism are also affected. In addition, the prohibition of offline events had cut half of the revenue in that sector.
Based on this, there was a negative growth in the accommodation sub-sector by -10.13% (Y-o-Y) and negative growth in the food and drink sub-sector by -6.86% (Y-o-Y). However, along with the regulation of business activities with strict health protocols, their business activities are back on track. Even though it does not run 100%, at least the economy in that sector will improve and its business people can strategize to stay afloat. Considering that, by analyzing the growth data and improving the supporting sectors, VISI predicts that in 2021 the provision of accommodation and food and drink sector will grow by -1.30% (Y-o-Y). Even though it is still growing negatively, there has been an increase in growth reaching 8.92 points when compared to 2020.
In addition, based on the growth in 2020, a drastic decline began to occur when entering Q2/2020 and gradually began to recover in Q1/2021. This coincided with the enactment of government policies related to Large-Scale Social Restrictions (PSBB) and Work From Home (WFH). It can be seen that in Q2/2020 there was a growth of -22.02% (Y-o-Y). Based on this quarterly data and with the pandemic conditions, VISI predicts that in Q2/2021 the sector will grow by -0.16% (Y-o-Y). It is better when compared to the same period in 2020.
For additional information, the Indonesian Hotel and Restaurant Association (PHRI) noted that as many as 1,033 restaurant and hotel business establishments in Indonesia have been permanently closed due to the Covid-19 pandemic. From October 2020 to the beginning of 2021, it can be estimated that there are around 125 to 150 restaurants that are closed every month. (Source: https://ekonomi.bisnis.com)
Although business activities in this sector have resumed in operation, but the lack of recovery in tourist visits, both domestic and foreign, has resulted in a very low level of visits to restaurants and hotels. So that many business people cannot survive, especially those whose operational locations are in tourist areas.