Hotels and restaurants sustainability: Evidence from tourism industry in Indonesia

This study examines the level of sustainability in Indonesian hotels and restaurants within the tourism industry. Despite an increasing trend in tourist arrivals, hotel and restaurant companies have experienced a decreasing revenue, leading to concerns about potential bankruptcy. To address this issue, the study utilized secondary data from the annual reports of 13 listed hotels registered in the Indonesian Stock Exchange (BEI) over a period of five years (2016-2020). Altman's Z-score model, known for its accuracy and reliability in forecasting firm sustainability through ratio analysis, was employed. Results indicate that 61,5% of the hotels and restaurants are in the safe zone, 26,2% in the grey zone, and 12,3% in the distress zone. These findings are significant as they provide empirical evidence of a worrisome financial environment in the Indonesian tourism industry, raising doubts about the hotels' going concern.