Bali hoteliers fear tariff war
The Indonesian Hotels and Restaurants Association (PHRI) Bali chapter has expressed concern over the impact that new hotels are having on hotel rates and sustainability of Bali’s resources.
“New hotels should not disturb the current tourism situation by applying low-room rates and discounted prices, which in turn would lead to a tariff war,” said PHRI chairman, Tjok Oka Artha Ardana Sukawat.
Accommodation facilities in Bali, he said, had exceeded market demand and the mushrooming construction of new hotels, villas and other facilities would lead to unhealthy business practices, as well as become a heavy burden on the island’s environment.
Sukawati told the Jakarta Post that a large number of new hotels had categorised their establishments as certain star levels without undergoing any official qualification process.
Bagus Sudibya, deputy chairman of the Indonesian Tour and Travel Agencies Association (ASITA), said most problems that occurred in the tourist industry were caused by the government’s inconsistent policies and weak law enforcement.
“The government at all levels [central, provincial and regional] only cares about how to generate as much tax and revenue as possible from the industry.
“But it never pays serious attention to seeking solutions for any emerging problems,” Sudibya said.
Ian Jarrett
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