The costs of hotels and tours will rise in Bali next year as hoteliers prepare to raise room rates.
“The general increase will be around 10 to 20 percent. However, we believe most hotels will not charge more than 10 percent due to the tight competition with new hotels,” Deputy Chairman of the Bali chapter of the Indonesian Tour and Travel Agencies Association (Asita) Ketut Ardana, told the Jakarta Post.
For hoteliers and tour operators who maintain standards, Ardana said it was normal to see incremental increases in fees every year.
The rise in hotel rates is based on several factors such as rising arrivals, changes in exchange rates, rising labour and energy costs, and competition from other destinations in the region.
Chairman of the Denpasar chapter of the Indonesian Hotel and Restaurant Association (PHRI) Ida Bagus Gede Sidharta Putra, believes Bali is among the most popular destinations in Southeast Asia.
“In 2011, we recorded our best achievement, as shown by the very good occupancy rate for hotels both during and outside the peak season. That is our main reason for deciding to increase the hotel room tariffs,” he said.
This confidence is coupled with concern however, as many tourism stakeholders remain worried about the escalating impact of traffic congestion on the island, which could detriment Bali’s touristic image.
Ida Bagus Ngurah Wijaya, Chairman of the Indonesian Tourism Industry Association (GIPI), recommended a tourism corridor. He said; “Lanes for tourism and goods transportation should be separated to avoid traffic congestion. The local government should rearrange the transportation system so that tourism will not be disrupted.”
He also suggested that warehouse facilities currently located in the middle of the city should be relocated to port areas to minimise transport disruption. Others advocate time restrictions be placed on freight operators, so that goods vehicles are only on the street in off-peak hours.