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Paved Paradise, and Put up a Parking Lot

Hotel and Restaurant Association Official Call on Bali to Be More Selective in Granting Investment Licenses to New Hotels

(4/20/2012) The Bali Chapter of the Indonesian Hotel and Restaurant Association (PHRI-Bali) is calling on the provincial government of Bali to be more selective in receiving new investments in the hotel sector. In making the call, PHRI wants the island’s administrators to carefully consider that Bali is, in fact, a small island with limited carrying capacity before allowing new developments.

As reported by Beritabali.com, the vice-secretary-general of the national PHRI, Carla Parengkuan, said that any agreement to add more hotels in Bali should first look at current average occupancy rates, and only give permits for new hotels when average occupancy is above 70%.

Parengkuan said that the reality of the current situation is that average hotel occupancies are below 60%.

She also underlined that decisions to allow new hotels in Bali must also reference the capacity of flights landing at Bali’s sole airport.

Said Parengkuan: “Let’s not slowly finish it all. There are many rooms and the capacity of the airplanes is inadequate. In the end everything will be bad. There needs to be a shared perception of the problem between the provincial government and the travel industry so that future investors achieve results in accordance with their expectations.”

To this end, Carla Parengkuan said she hoped the provincial government of Bali would tighten its investment rules on new hotels.

Based on data provided by PHRI-Bali, Bali now has 62,400 hotel rooms of which the Bali Tourism Service estimates only 45,000 (72%) are legally licensed.