Electricity Tariff Increases, Budget Hotels Get Rates Rise

"Star-class hotels have contracts with the managers of travel agents and travel agent until the end of the year so that hotel managers can not raise tariffs unilaterally," said Dedy Eryono Pranowo, Secretary of the Association of Indonesian Hotels and Restaurants (PHRI) Special Region of Yogyakarta, Thursday (17 / 6).

Increase in electricity tariff over 900 watts to 18 percent automatically add the cost of hotel operations. So that inevitably the managers must be clever-clever financial management. To anticipate higher losses, the hotel may only raise tariffs on certain days such as New Year a national holiday and is not bound by the contract.

According to him, due to the increase in electricity tariff is the most feel the impact is jasmine-class hotel. For the hotel operating costs reached 60 percent of overall costs. Jasmine hotels certainly would raise rental rates between 10-15 percent. "If rates rise, the risk is definitely a lot of guests who complain," he said.

Deddy also propose to the local government to intensify promotion of tourism in Yogyakarta so that tourists visit to Yogyakarta will be increased further. We increased tourist visits, hotel occupancy will automatically rise.

Ipung Purwandari, jasmine Permata class hotel owner, said the plan to increase electricity tariffs would make it would raise room rates by 10 percent. "For the common room we will certainly raise the fare, but for a regular customer we will give discounts," said Ipung.

According to him, every month it must spend an average of Rp 5 million per month to pay for electricity. If rates are not raised then the hotel will experience large losses

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