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Fees Drive Bali's Art Shop Sector

Large Commissions Used to Lure Tour Guides and their Guests to Gianyar's Artshops.

(5/18/2009) BisnisBali tells of how intense competition among art shops throughout the Gianyar regency of Bali has resulted in the widespread payment of commissions and fees to tour guides able to bring customers through the doors of the local shops.

Commissions, ranging between 20-30%, are now very widespread among handicraft shops where such payments are seen as beneficial to both the shops and the guides.

Ekayanti, a sales staff at a silver shop in Celuk, said, "when we serve the guides well and give them 'tips' larger than other stores, they are certain to come back to our shop."

Ekayanti went on to relates how the relatives size of the "tip" paid the guides is all part of the individual marketing strategy of each art shop.

The size of the fee, of course, is eventually reflected in the price charged to consumers. Shops paying large commission will have retail prices 100% to 200% higher than their competitors who pay little or no commission.

The newspaper report concludes that if the commission system is left to go its own way, the amount of the commission will escalate even further, together with the price of merchandise. And, this, of course, may eventually damage the image of Bali tourism as a whole.