SURABAYA: Hotel industry is worrying on the government plan to tighten budget following a delay of rising fuel prices will affect the activities of MICE (Meeting, Incentive, Convention, and Exhibition).
Chairman of the Association of Hotels and Restaurants (PHRI) in Surabaya Bambang Hermanto said most of the four-star hotel in Surabaya depend their business on the activities of government agencies. In fact there are several hotels that 90% of their business is counting on the activities done by government agencies.
"The routine and mainstay markets for hotel in Surabaya are the events which are held by government, such as working meetings, seminars, workshops and other meetings. Even the contribution can reach 70%," he told Bisnis today.
Businessmen, he said, are worrying if the government budget tightening policy will be followed by budget cutting on several government agencies that would reduce the routine activities.
The impact of the budget cutting can be worsened by the cancellation of their event schedule. Currently the average occupancy hotel in Surabaya has reached 70% or higher than the previous month's position which was still below 60%.
Based on the records of PHRI, the peak season of government activities followed by a rise in hotel occupancy is usually in a period of May-June. Meanwhile, before fasting month the activity will be slow down and will be writhing again one month after the Eid-el fitr holiday.
In Surabaya, there are 40 units of star hotels with a total room of 600 rooms, while the number of non-star hotels reaches to 25 units with 1,313 rooms.
The data includes the new hotels that will be opened in 2012. It is known that between 2012 and 2013, there will be some new condominium hotels, such as Skyland Harris, Ciputra World which are also ready to operate. (T03/aph)
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