THE IMPACT OF THE 2025 BUDGET EFFICIENCY POLICY ON THE HOTEL INDUSTRY IN PALU CITY
Keywords:
Budget Efficiency, Hospitality Industry, PADAbstract
This study aims to analyze and understand the impact of the 2025 budget efficiency policy on the sustainability of the hospitality industry in Palu City. This research applies William N. Dunn’s policy evaluation theory. The study uses a qualitative method with a case study approach, where data were collected through interviews and documentation involving four key informants. The results show that the 2025 budget efficiency policy has a significant impact on the hospitality industry in Palu City. These impacts are reflected in the decline of hotel occupancy rates, a decrease in revenue of approximately 30–40%, and a reduction in contributions to Local Own-Source Revenue (PAD). In addition, the policy also affects hotel operational efficiency, including workforce reductions, service limitations, and business strategy adjustments. From a policy evaluation perspective, the policy is considered effective in reducing government expenditure; however, it has not fully taken into account sectoral impacts, particularly on the hospitality industry which is highly dependent on government activities.
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