The global economic slowdown and the looming threat of recession in several countries continue to cast a shadow due to the impact of the Covid-19 pandemic. This slowdown is a result of reduced business activity caused by Large-Scale Social Restrictions (PSBB) and lockdowns in many cities and countries around the world. These restrictions have led to a sharp decline or halt in the movement of tourists and business travelers both domestically and internationally.

UNWTO estimated a 30% decrease in global tourist and business traveler numbers compared to the previous year, from 1.4 billion people to just 1 billion. This decline caused economic losses of around USD 30–50 billion due to a significant drop in tourist spending across many destinations.

International tourist arrivals in Indonesia also plummeted after the government suspended Visa-Free Entry and cancelled Visa on Arrival (VOA) policies in early March 2020. According to Indonesia’s Statistics Agency (BPS), foreign tourist arrivals dropped by 59.9% in the first half of 2020, with only around 3 million visitors. This situation has put considerable pressure on tourism-related businesses such as hotels, land transport, airlines, tour & travel agencies, automotive, and other travel-related sectors.

Panorama (ticker code: PANR) was among the affected companies. In its Public Expose on Friday, August 28, Panorama reported a revenue decline of 63.72%, from IDR 1.19 trillion as of June 30, 2019, to IDR 432.13 billion as of June 30, 2020. This led to a net loss of IDR 94.54 billion, due to falling revenues, asset depreciation, losses from associated entities, and other operational costs.

To mitigate the impact, the company implemented efficiency programs across all business units and prepared products and services adapted to the new normal.

Recovery Strategy: PANORAMA SIAP

As a strategic move to restore market confidence, the company launched the “PANORAMA SIAP” program—an acronym for Healthy (Sehat), Beautiful (Indah), Safe (Aman), and Caring (Peduli). This program is an implementation of health protocols across all of Panorama’s business ecosystems.

“PANORAMA SIAP represents our internal readiness for employees, as well as external preparedness for customers and stakeholders, using methods and approaches tailored to the new normal. Panorama is ready to actively contribute to the recovery of Indonesian tourism to make it competitive again on the global stage,” said Budi Tirtawisata, CEO of Panorama, during the Public Expose.

In April, Panorama also provided shuttle buses for medical personnel working at hospitals designated for Covid-19 patients. Thanks to its training and operational experience, all Panorama business units are now well-versed in implementing health protocols without compromising customer comfort.

Various health protocol-compliant services have been developed and offered, including: physical distancing buses, private jet charters, domestic holiday packages to green zones, staycation packages, hybrid meeting packages, and other new-normal style services.

“Health protocols are mandatory across all of our products and business ecosystems. We are optimistic that Indonesian tourism can bounce back soon if we consistently adopt a disciplined new normal lifestyle,” Budi concluded.