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Bali rate wars worry tourism chiefs
Hotel rate wars in Bali are hurting the island’s hospitality business, according to the resort island’s business leaders.
“Many property companies build new hotels, then they offer a cheap promotional tariffs to attract tourists,” Ngurah Wijaya, chairman of the Indonesian Tourism Businesses Association in Bali, told the Jakarta Globe.
According to Wijaya, the over-supply has occurred “because the administration was too lenient in issuing licences to build new accommodation and had failed to implement the (hotel building) moratorium issued by the (Bali) governor”.
“Now the focus is no longer on hospitality and service, but has shifted to price,” he said.
Recent research conducted by property consultant Knight Frank showed that Bali would have 10,466 new hotel rooms by 2014 from a total of 60 construction projects currently underway.
According to the research, as many as 3,922 rooms, or 37% of the total new room supply, had begun operations in the second half of this year.
The Sheraton Kuta Bali Resort opened last week with an introductory rate of USD225 per night which includes accommodation in a deluxe guestroom, breakfast for two, one-way airport transfer, and a daily resort credit of USD25 to use in the restaurants or at the spa.
This week Fairmont Hotels & Resorts announced a new development on the southern coast of Bali, scheduled to open in 2016.
Ian Jarrett
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