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Bali Cliff Resort Closes for 6 Months

Owners Close Hotel for Urgent Renovations and Upgrade Sending 270 Employees Home on Base Pay.

(11/10/2007) In a surprise announcement, the owners of the 175-room Bali Cliff Resort announced in late March its decision to close down completely for 6 months starting from April 1, 2005, in order to undertake a complete renovation of the property.

The last remaining guest checked out of the hotel on March 29, 2005, with all forward bookings during the period of the closing now being moved to other Bali hotels.

Union Protests Decision

As reported in the Indonesian-language Bali Post, Union representatives from the Hotel protested the decision to send 270 employees home for the next six month during which time they will receive only base pay and no reimbursement for medical expenses. Following a heated meeting between worker's representatives and the management and owners held on Friday, March 31, 2005, the employees accepted the forced home assignment in return for certain written assurances on benefits and guaranteed re-employment in six months when renovations are completed.

Owners Explain

Speaking to the local press, Kristiforus Richard, the President Director of the Resort said the rooms and general facilities of the hotel first opened in 1992 no longer met with the standard of a five star hotel. Thus, in order to improve occupancies which have averaged below 15% and improve cash flows, an urgent decision was made to close the hotel and undertake a badly needed program of hotel renovation.

The Bali Cliff Resort is situated on Bali's southern Ungasan peninsula occupying a cliff top position overlooking the Indian Ocean.