DestinationsFears of tariff wars as too many beds remain empty

Bali hotel association backs new hotel moratorium

Bali wants more visitors to fill empty hotel beds.
Bali wants more visitors to fill empty hotel beds. Photo Credit: hadkhanong_Thailand/Getty Images

DENPASAR - The Bali chapter of the Indonesian Hotel and Restaurant Association (PHRI-Bali) is continuing to press for changes that will slow new hotel development in Bali.

PHRI-Bal vice chairman I Gusti Agung Ngurah Rai Suryawijaya said the association wanted a moratorium on the construction of new forms of accommodation, including hotels and villas, together with a heightened tourism marketing campaign to attract more visitors to the island.

Rai Suryawidjaya said this would help to achieve a balance between the number of hotel rooms available and the number of visiting tourists “that will allow a more viable occupancy level of around 90%”.

The association says the current inventory of hotel rooms stands at 146,000. Of that total, some 102,000, or 70%, are located in the southern Regency of Badung, Nusa Bali reported.

Average yearly occupancy is estimated at 70% leaving the remaining 30% of all rooms unoccupied.

Rai Suryawidjaya warned that if the development of new hotels is not brought under control, the current situation of oversupply will become even worse and tariff wars between hotels would be the unwanted outcome.

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