Main Article Content
Abstract
This report is the result of an in-depth study on the decline in hotel occupancy rates in South Sulawesi during the first quarter of 2025. This research was conducted in response to the central government's budget efficiency policy which has a direct impact on the hospitality sector, especially on the sustainability of the supply chain business (workforce, suppliers and event organizers). This study aims to: 1) analyze the impact of declining occupancy on hotel performance and operations; 2) Assess the impact of further impact on the supply chain (labor, suppliers, and event organizers). The approach of this research is qualitative descriptive with the support of quantitative data. Data collection techniques were carried out through in-depth interviews, questionnaires of 50 hotels (star and non-star), documentation studies and focus group discussions. The main findings of this study reveal that the occupancy rate has decreased significantly, especially in March 2025; the labor supply chain is structurally disrupted and FnB and laundry suppliers have experienced a drastic decrease in demand. Event Organizers are losing a strategic role in the MICE ecosystem.
The decline in occupancy not only affects hotel performance but also disrupts the stability of the supply chain of the tourism industry as a whole. Adaptation to crisis conditions is carried out by industry players through human resource efficiency, service diversification, and changes in marketing strategies. The results of this study recommend the government to review the country's spending efficiency policies, provide stimulus to the hospitality sector and strengthen alternative accommodation regulations. For business actors to be able to diversify market and service segments, integrate adaptive supply chains and cross-functional human resource training. For academics to make advanced research based on longitudinal data and adjustments to the hospitality vocational education curriculum.