Hotel Rates in Bali Increase 15%

DENPASAR

Indonesian Hotel and Restaurant Association (PHRI) predicts room rates in Bali will rise about 15 percent from current rates, following the price hike of subsidized fuel oil (BBM).

“In the past when there is a rise of fuel prices, hotel room rates increased about 10-15 percent from the previous price. At this time we do not think it will be much different from that range,” said Chairman of the Governing Body of PHRI Bali Tjokorda Oka Artha Ardana Sukawati in Denpasar.

According to him, the increase of fuel prices resulted in the tourism industry, especially hotels raise room rates as generally the purchase for the energy sector account for 35 percent of operating costs.

“In the end we have to increase the room rate because we are also dealing with competitors so that the rates should be adjusted,” said the former Regent of Gianyar.

He said that PHRI Bali can accept the government’s plan to raise fuel prices, but the impact of rising hotel room rates will be passed on to consumers.

On the other hand, he said that the length of tourists staying in Bali in recent years is getting shorter that is less than four days, whereas prior to 2002 the length of stay reached 14 days.

He said that it is influenced by global factors such as the easy access and the quantity of flights to the island.

“We can’t avoid the global impact, what we need to do is to improve the quality of tourist destinations in Bali and set distribution scenarios that provide a destination that open possibility for a longer stay,” he said.

He said that within a short time of visit it could influence occupancy rates. Moreover, there is now the government plan to raise fuel prices which impact on the increase in room rates.

Meanwhile Association of the Indonesia Tours and Travel (Asita) plans not to raise rates if the subsidized fuel prices increase.

“We can’t raise rates as agreed with other agencies, both at home and abroad,” said Chairman of Asita Bali I Ketut Ardana in Denpasar.

It still imposes rates as agreed, although rising fuel prices will make car rental rates increasing.

According to him, the impact of such conditions has previously been anticipated by the contract clause with partners.

“Usually before signing the contract, it has been explained to the partners that there will be a correction if we face such condition as now,” he said.

Regarding vehicle rental rate increase that is certainly must wait the decision of the Bali Tourism Transport Association (Pawiba).

Formerly Chairman of Pawiba Bagus Soediana said that it would raise vehicle rental rates 10 to 15 percent as a form of anticipation of rising fuel prices.

“The increase in the rate is with the assumptions or predictions if the government raise price of premium Rp2,000 and diesel Rp1,000,” he said.

The fuel price increase will certainly have an impact on tourism transport rental rates, but the amount is not equal to the increase in fuel prices.

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2 Responses to “Hotel Rates in Bali Increase 15%”

  1. Bert Veenhuis Says:

    How does petrol increases relate to hotel room rates of 15%?
    This is unjust and will affect the length of stays in hotels by tourists.
    Each year there are already increases in room rates.
    Another 15% increase will see me reduce my 4 times per year visit to Bali to 3 visits.
    This reduces my spending in Bali by nearly 3 million per annum.
    I am sure that many visitors to Bali will make similar decisions.
    Think about itHotel and Restaurant Association….. Bali relies on tourism.

  2. gede hendra tirtana, ST. Says:

    Nice , growth . . . I love Bali.

    thanks