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Too Much a Good Thing

Bali Villas Complain Occupancy Rates are Down by 20%

Bali News: Bali, Indonesia, Bali Villa Association, BVA, Mangku Wayan Sutedja, classification system, occupancy rate
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Both commercial villas and hotels are experiencing declining occupancy rates, despite  record number of foreign tourist arrivals to Bali.

As reported by The Bali Post, the chairman of the Bali Villa Association (BVA), Mangku Wayan Sutedja, says occupancies at villas in Bali are down by as much as 20% when compared to 2013.

“This means that the amount of  tourism accommodation in Bali continues to grow and visitors (to Bali) must now be shared. Last year in 2013, the occupancy of villas averaged around 70%, but now occupancies are averaging between 40-60%,” said Sutedja.

This downturn in business has taken place during Q1 of 2014 when foreign tourist arrivals increased 14.87%. This anomaly can only be explained by declining domestic arrivals, shorter lengths of stays and a severe over-supply in accommodation.

Steadfastly buoyant despite the drop in occupancies, Sutedja said: “Our membership stands at 128 villas. There are many couples and honeymooners to Bali still using villas as their accommodation.”

The BVA has proposed a grading system to the government for villas in Bali via a ranking-system of silver, gold and diamond certification.

Silver classification is for establishments with only one bedroom, one bathroom, a garden and essential services.

Gold certification would be given to villas with additional facilities such as a swimming pool, kitchen, a management office and services that approach those provided by hotels

Diamond certification would be reserved for villas with 16 or more units serviced by a swimming pool for each villa, a general pool, restaurant, a lobby and other services similar to a five-star hotel.

Sutedja said standardization is very important to Bali’s villa industry as 2015 draws near with liberalized standards of trade between ASEAN member nations.

The BVA is hoping for a response from the government on its proposal for villa standardization and classification by June 2014.

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