Price wars over hotel room rates on the island are a concern for the Bali Regional Tourism Promotion Agency (BPPD) and the Bali Provincial Government.
An increasing number of ‘starred’ hotels have been lowering their rates, with many three-star hotels apparently offering rooms for just Rp 300k, about $22, a night.
If things keep up this way, officials fear holiday-makers coming to Bali will no longer associate the island with elegance and quality.
BPPD Bali head, Tjokorda Oka Artha Ardhana Sukawati, says unease about hotel rate pricing has been felt for the past three years.
“Not only is the problem about a decline in the quality of tourism, but an economy this competitive is not healthy,” Sukawati said on Monday, as quoted by Kompas.
And so, Sukwati proposes that Bali’s government address the issue by standardizing rates.
Guideline rates should be set based on factors like a hotel’s star rating, number of rooms, and overall quality, Sukawati says.
Meanwhile, Bali Governor Made Mangku Pastika said in a press release yesterday that he is urging for the creation of a clear legal framework to standardize room rates in Bali.
Based on data from the Central Statistics Agency (BPS) in Bali, there are 281 star-rated hotels in Bali. Most of which are three-star, with 89 having that rating.
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