Published on Monday, September 20, 2010

Bali hotels group backs crackdown on illegal properties

The Bali chapter of the Indonesian Hotel and Restaurant Association says it will back moves by the island’s governor to curb hotel development in Bali.

Bali Governor Made Mangku Pastika – quoted by the Jakarta Globe - said he plans to halt the construction of hotels in key tourist areas on the island because the supply of rooms far exceeds demand. 

“There is much more supply of hotel [rooms] than demand, there have been calls for us to soon put in place a moratorium,” he said, following a meeting with tourism executives in Denpasar

Pastika said the huge number of hotels, especially in the main tourist districts had led to widespread traffic congestion.

He added that despite an increase in tourists, the average occupancy rate of hotels in Bali was only around 70 percent. The Bali Tourism Office gave a lower figure — 56 percent.

Pastika attributed the low occupancy rate to the abundance of illegal hotels and villas, which took away clients from established hotels. 

The governor said he would send a letter discussing the issue to the Culture and Tourism Ministry and the Investment Coordinating Board (BKPM). 

Perry Markus, secretary of the Bali chapter of the Indonesian Hotel and Restaurant Association, agreed the booming development of illegal hotels and villas in Bali caused low occupancy.

He estimated the number of unregistered hotels “is quite significant, at some 17,000”.

He supported Pastika’s plan to put a moratorium in place but said another solution would be to firmly enforce the law. 

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