PHRI Protest Governor’s Statement about Hotel Moratorium

DENPASAR

Indonesian Hotel and Restaurant Association (PHRI) deplored the statement of Governor of Bali Made Mangku Pastika who denied the excess hotel rooms on the island.

“If talk about the occupancy rate, you must be careful. We know the data, tourist arrivals in average could only fill 62 percent of occupancy rate,” said Vice Chairman of PHRI Bali I Gusti Ngurah Rai Suryawijaya in Denpasar.

According to him, if it is seen from one or two hotels, it might be full, but the number of hotel rooms in Bali is now more than 80 thousand and this year the target of tourist arrivals to the island is 3.1 million people.

“We feel uncomfortable to hear the hotels in Bali are full and the number is still lacking. At the moment there is an international activity, hotels can be full, but most international event is only lasted for a week, where as there are 365 days a year,” he said who is also the Chairman of PHRI Badung Regency.

He added that what actually happened in Bali is excess of room supplies, thus the occupancy rates are still low and finally there is price competition. To attract tourists, many hotel managements sell rooms at a very cheap price.

“The average increase in tourist arrival is only nine percent, while the number of rooms increases 20 percent per year. So it isn’t balanced and finally price competition happens,” he said.

As a result, with an average occupancy rate of 62 percent, it is difficult for entrepreneurs to get profit while the hotel situation is worsened by the increase in electricity tariffs, fuel prices, employee wage, to food items prices.

“Moreover, the length of stay of foreign tourists in Bali is also shorter just 5.5 days and in average spending 100 dollars per day. Government should think positively and not to confuse the people with the different statement of data,” he said.

He expected that the government would synergize with PHRI to improve and promote tourism in Bali to be more advanced and increase tourist visits.

“Go on if the government wants to pass the reclamation of Benoa Bay, Badung, we have nothing to do with it. However, don’t say that our data is false. If you want to add tourist accommodation please continueas it is a government’s domain,” he said.

On the other hand, he argued that the Australian tourists that have been dominated visits to Bali have also been turning to Europe and America, while in Bali there is no addition of market segmentation.

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