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Jakarta Post

Bali witnessing fierce hotel price wars

  • Desy Nurhayati

    The Jakarta Post

Denpasar   /   Tue, December 18 2012   /  10:05 am

Tourism stakeholders have said the booming property business in Bali that has resulted in a host of new accommodation facilities is hurting the island’s hospitality business.

The shifting trend in business from hospitality to property has caused fierce price competition between hotels, especially during peak season.

“This shifting trend has worsened hotel price wars. Many property companies build new hotels, then they offer a cheap promotional tariffs to attract tourists,” Ngurah Wijaya, chairman of the Indonesian Tourism Businesses Association in Bali, said recently.

This had occurred because the administration was too lenient in issuing licenses to build new accommodation and had failed to implement the moratorium issued by the governor, he said.

“Now the focus is no longer on hospitality and service, but has shifted to price,” he said.