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Image: Luxury abounds in Bali tourism. Credit: theluxurytravelexpert.com

The Head of Badung Hotel and Restaurant Organization (PHRI), I Gusti Ngurah Rai Suryawijaya, expressed his opinion yesterday that Bali must target a quality and sustainable tourism. To achieve the target, he advised hotels to eliminate hotel room price wars by setting a minimum selling price.

The purpose of the plan is to protect hotel employees, destinations and the employers themselves. “The tourism competition here is extraordinary. 5 star hotels set the room rate of 4 star hotel rates, and so on. If this continues, Bali will always be remembered as a cheap tourism destination around the world,” he said on Governor Regulation Plan (Ranpergub) Focus Group Discussion (FGD) which discussed Bali Tourism Governance Management at the Province Tourism Board Office on Tuesday.

According to Rai Suryawijaya, the room rates of Jogja hotels are far more expensive than Bali hotels, even though the Bali hotel quality is better. In Singapore, five-star hotel room rates can reach Rp 3-4 million per night for a regular room. Meanwhile, Bali hotels, which have private pool facilities and better overall qualities, only set their room rates at around Rp. 1 million per night.

He opined that this is an irony in the middle of an investment that could reach hundreds of billions of rupiahs. “This is not good. If we see it from the entrepreneurial perspective, they won’t get any profit and suffer losses,” he added.

Rai Suryawijaya added, currently there are around 146 thousand hotel rooms in Bali. With annual total foreign visits that reach currently approx. 6.3 million, the average occupancy rate is only 67 percent. It means 33 percent of hotel rooms are vacant. Therefore, Bali must have the courage to conduct a study related to carrying capacity. He also advised a more extreme step by carrying out a moratorium every three or five years. [He’s presumably talking about a hotel moratorium, which wasn’t clear in the article. Ed]

After that the room rate has increased, there is another positive impact, which is less land conversion to build hotels. “I think the government will support it, if the occupancy rate increases 20 percent to 85 percent, with income automatically increasing. Then the room rates will be increased 20 percent, and the target of 6 trillion rupiah can be increased to 8 trillion rupiahs,” he concluded.

Showing 8 comments
  • Clive Matthews
    Reply

    Surely the economice rule of “Supply and Demand” should apply, any attempt to “Fix” minum rates eliminates competition. There is an oversupply of hotels and that is why room rates are resonable. If however, Bali starts to “Fix” prices Australian and aother tourists will vote with their pocket and go elsewhere. I have holidayed in Bali 55 times now and go there for 3 reasons, Price, short time of travel and the lovely Balinese People. You would do much better for Bali tourism by eliminating those American and European hotel owners where the bulk of the tourist money goes out of Bali.

  • David Stevenson
    Reply

    An Inexpensive holiday is one of the major reasons tourists go to Bali…raising the prices will definitely reduce tourists..we as a family go 2x times a year coz we can afford it…we like the prices because we have more spending money…we leave tens of millions of rp on
    each visit..as do most tourists ..put up hotel prices over the board and the general population will lose out ..every tourist will have less to spend and leave less moneu in Bali…a very negative effect on the people of Bali.who work hard ..and you the Greedy tourism board will receive less income as well.
    The tourism board sits in a little room every day formulating ways to Fleece the tourist .with yet another tax.charge.fee .for whatever they can Dream up.
    The GREED will destroy BALI.
    My family and I are beginning to look elsewhere for our next holidays.
    Fiji is a very affordable destination .

  • vicki gleeson
    Reply

    you are joking where did they get this clown from singapore is spotlessly clean ,by comparison bali is a cesspool try cleaning up bali first

  • Brendda Doe
    Reply

    Yes cheap prices at a tourist destination means “cheapo” tourist. Set the price bar higher. I’m in agreement with the Tourism Governance. Let’s set Bali’s standard’s high.

    • Brendda Doe
      Reply

      Do you all dislike Bali intensively. Or are you one of the multitude of “Cheapo” tourist who just can’t handle a Price increase.. Good stay away from Bali. The price bar is getting higher. Ha ha goodbye Cheapskates.

  • Joaquina Romero
    Reply

    Hahaha, the only thing the government wants is to earn more money, instead of worrying about having good roads so that traffic is not hellish, do sidewalks and clean them (which shame the sidewalks of Raya Seminyak the shit they have), etc. . You have to do many things to make it a quality tourism.

  • Rob Schwenke
    Reply

    hilarious,Third world infrastructure and he wants western world prices…Singapore…No rubbish ,no traffic jam, no polluted ocean, no open drains, no septic etc etc …There might be some flash hotels around but its third world competing with Vietnam,Cambodia,Sri Lanka etc…

  • Taco
    Reply

    Many factors influence tourist arrivals. Price/comfort is a major one. Raise the price you will get less tourist. It is simple,the amount of millionaires is far less than those who are not millionaires, so to say to less rich people to stay away will cut in your own fingers. After all in south east asia competition is fierce, Indonesia, malaysia and thailand are trying to attract the same tourists. Traffic jams and pollution do not work in Bali favour. But anyway, I have heard that many farmers are complaining of lack of labourers, so there will always be some work to done and money to be earned.

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