Fiscal Discipline and Hospitality Performance: Hotel Operations and Adaptation Strategies in Bali
DOI:
https://doi.org/10.24922/eot.v13i2.03Keywords:
budget efficiency, Bali tourism, hospitality industry, IHGMA, post-pandemic recovery, contingency planningAbstract
As Bali’s tourism sector navigates an arduous recovery following the COVID-19 pandemic, the Indonesian government enacted Inpres No. 1 of 2025, a budget efficiency policy aimed at mitigating national fiscal deficits. This study examines the subsequent impact of this fiscal tightening on the hospitality industry in Bali and other Indonesian regions. Utilizing a survey of 471 General Managers from the Indonesian Hotel General Manager Association (IHGMA) alongside Focus Group Discussions (FGDs), the research reveals a significant contraction in key performance indicators. In the first quarter of 2025, Bali experienced an 8% decline in occupancy and an 18.38% revenue drop, while Jakarta suffered more severe losses due to heavy government MICE dependency. Furthermore, the 2025 Lebaran period recorded a national occupancy decline of 15% and shortened guest stays. To survive, the industry implemented multi-tier contingency plans, including market-switching strategies and temporary unpaid leave systems. This paper provides critical insights into the interplay between domestic fiscal policy and destination resilience, offering a framework for adaptive management in tourism studies.
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