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Giant Tourism Business Threatened to Bankrupt, Already Selling Assets to Favorite Birds

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IDXChannel The ongoing COVID-19 pandemic has had a major impact on the tourism sector. Some tourist attractions are threatened with bankruptcy, some have started to sell assets to cover losses.

For example, the largest tourist attraction in East Java, the Jatim Park Group. One of the mainstay holiday destinations in Batu City, Malang, East Java, it began to stumble due to minimal public visits so it was unable to cover operational costs and employee salaries.

Marketing and Public Relations Manager of Jatim Park Group Titik S. Ariyanti admitted that every month the management of Jatim Park Group always spends operating money of no less than Rp 4 billion per month.

The money is earmarked for several expenses ranging from salaries of 1,700 employees, payment for electricity, Wifi, taxes, to buying medicines to water plants, to animal feed at the three zoos that are managed.

The amount of salary for these workers has even made efficiency up to 50 percent per person. This 50 percent salary receipt has been applied to all Jatim Park Group workers since 1.5 years of the COVID-19 pandemic.

“Almost 1.5 years, 50 percent of employees pay. If the UMR is calculated, let’s say Rp 3 million in Batu City on average 1 person, who gets a salary of 1.5 million per person,” said Titik.

The threat of bankruptcy is also said to have overshadowed the board of directors of the East Java Park Group, even though so far his side together with the directors and other workers have never thought about it. However, with the lack of visitors, especially when it is closed, it is not operating and there is no income, this could happen.

“Even now, if we open the number of visitors who come, it doesn’t cover Rp. 4.5 billion, every month we talk about overdrawn. If we can’t survive, not to mention we will gradually sell some of our assets, if it doesn’t last until the end of this year. It means going bankrupt, we have to prepare it all because this is the biggest risk for everyone,” he explained.

“We don’t want to lay off employees at all, but we must be prepared with all possibilities. Layoff employees, which we have never thought about, and there is no desire to lay off employees at all, but maybe it is one of the best decisions, ” he added.

The same condition is also experienced by the tourist attraction of Graphic Cikole Tourism Terminal, Lembang, West Bandung, West Java. One of the biggest tourist attractions in West Java, it is also starting to get weak and even have to give up 12 macaws to be sold to cover operational costs and employee salaries.

Eko Suprianto, an entrepreneur and owner of the Lembang Graphic Cikole Tourism Terminal (TWGC), West Bandung Regency, had to sell his 12 macaws to cover operational costs and employee salaries.

“The birds (Macaws) have been sold, there are about 12 in total. This is to cover the company’s operational costs,” he said starting the story, Tuesday (27/7/2021).

Eko continued, the selling price of the 12 macaws reached Rp. 2 billion, with the lowest price of Rp. 30 million and the highest tag of Rp. 200 million. However, there are also birds that are given to colleagues and friends for care.

Meanwhile, all that is left now is the Bali Starling and the Deer. This has to be done because of the decrease in visitors due to the ongoing Covid-19 pandemic and the implementation of Emergency PPKM.

“Hopefully conditions will recover quickly, Covid-19 will disappear, so tourism will return to normal. Because if it continues like this it is difficult for tourism business actors to survive,” he said.

He has also reduced employees to be temporarily furloughed from around 200-300 people, now living in the range of 100 people. Because, it is not strong enough to pay the salaries of employees whose total reaches more than Rp. 500 million per month.

Eko continued, tax payments to the KBB Regional Government must also be temporarily suspended. This has happened from December 2020 to May 2021. An official letter has been sent to the KBB Regional Government to delay tax payments. However, it will be paid back when the tourist attraction is back in operation.

“Local taxes from December, January to May have not been paid. I paid the June one, but I was fined. The problem is it’s still difficult, the tax paid is from the income of consumers or visitors, what if the business is closed, “explained Eko. (RAMA)

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