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s the intended increase in fuel prices nears its deadline, people in the tourist industry expressed deep concern as the hike would certainly affect their businesses.

Bagus Soediana, chairman of the Bali Tourism Transportation Association (Pawiba), said transportation rates had remained the same since 2005, despite rocketing prices for vehicle parts and fuel.

'€œWe have not changed the rates in the last eight years. The rates were decided by two organizations '€” Pawiba and Asita [the Association of Indonesian Tour and Travel Agencies],'€ Soediana said.

Soediana commented that the two organizations would have to adjust rates for travel accommodation, wages, procurement of vehicle parts and many other things.

The central government intends to raise the price of subsidized gasoline to Rp 6,500 (66 US cents) per liter and diesel to Rp 5,500 per liter, both up from Rp 4,500 per liter.

Asita and Pawiba had earlier set standard rates for transportation to several tourist destinations in Bali, including Kuta, Sanur, Ubud, Bedugul and Kintamani.

The two associations also fixed standard tariffs for airport transfers and additional visits to other tourist sites.

Ketut Eddy Darma Putra, chairman of the Land Transportation Owners and Operators Association (Organda), admitted that there would be a significant increase, around 30 percent, for transportation tariffs.

'€œWe will comprehensively study the plan prepared by Organda headquarters in Jakarta,'€ Putra said.

Putra elaborated that the planned increase in transportation tariffs was not merely caused by the fuel price hike. '€œTravel and transportation companies are other factors,'€ he said.

The current minimum wage for employees, drivers and their assistants are also a serious consideration.

'€œThere are so many calculations before we can determine final tariffs,'€ he said.

Sapta Nirwandar, deputy tourism and creative economy minister, admitted that the planned price rise would certainly have a serious impact on the country'€™s tourist industry.

'€œHotels, travel companies and creative industries are bracing for the possible impact of fuel hikes. They need to carefully calculate additional costs caused by the hike,'€ Nirwandar said.

Tourism, he was convinced, would survive and remain lucrative.

'€œI am still optimistic that the price hike will not decrease the quality of our tourism products,'€ he said.

Perry Markus, secretary of the Bali-branch Association of Indonesian Hotels and Restaurants (PHRI), was certain that hotels and restaurants would have to increase prices as operational costs would rocket.

'€œThe rise in fuel prices will be followed by other commodities,'€ he said.

Markus suggested that the hotel and restaurant industry consider prices set by neighboring countries, like Malaysia and Thailand.

'€œIt will take some time before we [PHRI members] consider increasing our rates and prices at our establishments.'€