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Bali Room Supply Exceeds Demand

Study Shows Bali Has Enough Accommodation to Meet Demand Through 2015. Renewed Call for Moratorium on New Building Projects.

(12/27/2010) A study conducted by the Ministry of Culture and Tourism and Bali's Udayana University has concluded that Bali is suffering from a pronounced over-capacity of 9.800 rooms for tourist visitors.

As reported by Beritabali.com, the current supply of tourist accommodation is put at 55,000 rooms and is considered more than sufficient to meet tourism demands through 2015.

In presenting the study's findings to the press, Hengky Hermantoro, the head of the tourism research and development section of the Culture and Tourism Ministry, said the over-supply of rooms in Bali should prompt a moratorium on new hotel development for five years to come. He also suggested that, if necessary, the subject moratorium should be given force of law by including the ban on new building via a provincial law (perda).

In addition to keeping the demand and supply for accommodation in balance, Hermantoro also sees justification for a moratorium due to the the need to keep development in line with Bali's overall carrying capacity.

Hermantoro dismissed the momentary "under-capacity" in room over the Christmas and New Years period as not reflective of the general supply of rooms, adding that many rooms in Bali's north, east and west remain empty even during peak travel periods.