Faisal Basri: Hospitality Sector Increases Sharply

By : Ridwan And Aldi Firhand. A | Wednesday, September 20 2017 - 16:40 IWST

Economist of Faculty of Economics and Business University of Indonesia, Faisal Basri
Economist of Faculty of Economics and Business University of Indonesia, Faisal Basri

INDUSTRY.co.id - Jakarta, Economist, Faisal Basri said that the decline in purchasing power was due to the decrease in the price or the rise. According to him, indeed there is a decrease in the segment of 40 percent down, but the role of 40 percent down only 17 percent of total overall spending. That is, the remaining 83 percent of the increase.

"We do not deny that there is a certain segment of society that experienced a decrease in purchasing power, but totally not," said Faisal to INDUSTRY.co.id in Jakarta, Wednesday (20/09/2017).

Faisal does not dismiss that there is a decrease in consumption of some types of goods due to behavioral behavior. "At the moment, there is really a shift and it is reflected," he said. "Based on data I have seen there is growth in the non laiser sector that is staggering and there is a sharp increase in the laiser sector or Hospitality which consists of hotel, restaurant, recreation and culture sector" he explained.

According to him, nowadays people are more willing to set aside money only for recreation and culture. "Perhaps this is a compensation for the stress of life in big cities full of traffic jams and high work intensity, so they need to be clean and this is on the track," Faisal said.

Furthermore, Faisal proposed for the retail industry to immediately switch to industry 4.0 and digital economy. "It's always been a sign that the business of this model should be changed." Imagine for 30 years the business model does not change when the strategic environment changes, yes he will be bullied, "he said.

Faisal reiterated that the retail industry should immediately make changes to its business model in order to avoid weakening the business. "This change is actually not happening suddenly, the beginning of the starting line down, they can not bear it for long, and what happens? Extinction," Faisal closed.

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