It’s Hard to Increase Room Rate

DENPASAR

Indonesia Hotel and restaurant Association (PHRI) Bali admitted that it’s hard to increase the room rate, although the price of fuel had been increased, but the tourists arrival is still low.

“Due to fuel price increase, actually there is change of operational cost around 15-20 percent increase. Logically, to get the same profit the hotel should increase their price around that percentage too,” said the Head of PHRI Bali Tjokorda Oka Artha Ardana Sukawati, in Denpasar.

However, he predicted that his friends in PHRI won’t increase their rate since they wait for more tourist arrivals to Bali. The stars hotel occupancy is around 58 percent in average and non-star hotel is still under 40 percent.

“If Bali tourism is not changed, I think it will be hard to increase the price. The hotel might do efficiency to press operational cost as an impact of fuel price increase. Efficiency of course will impact on decrease of service, such as the park lamp will be turned off quicker than usual,” he said.

The former of Gianyar Regent added that the price increase could be done if the demand from tourist increases, moreover there are many hotels have been established in Bali.

“The condition needs to be fixed, whether we want to achieve quality or just quantity. We expect that there is no duplication of existing tourism object so that it doesn’t narrowed down the tourists’ interest to visit the regions outside South Bali,” he said.

Meanwhile, the Secretary of PHRI Denpasar Anak Agung Ngurah Adhi Ardhana said that the huge number of hotel rooms becomes the problem to increase the room rate due to fuel price increase.

“Rate competition even occurs, especially for new comers. They will use their promotion cost so they could compete in accomplishing the target of tourist visit,” he said.

According to him, due to fuel price increase, the hotels face problem as their income is constant but the operational cost increases. If there are not many hotels established and tourists visit is high, the hotels could increase the room rate around 15-20 percent.

“We expect that tourism practitioners have commitment to make qualified tourism in Bali, especially for new hotels, please don’t use promotion cost to decrease the room rate since it could give impression that tourism in Bali is worthless,” said Adhi.

Filed under: The Island, Travel & Culture

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