Sunday, August 18, 2013

Hotels in Bali continues to grow

Temple ceremony
Based on data from the end of 2011, Bali has 22,000 hotel rooms. This number continues to grow through 2012, there were approximately 3,400 additional rooms. Bali will add approximately 4,700 rooms in 2013, and 4,100 rooms in 2014 to 2016.

The developers and hospitality businesses see international events 2013 APEC Summit, as the momentum of the return of Bali as a world tourism destination after the tragedy. They compete to build the inn before APEC was held.

Bsertambahnya number of hotel rooms make hospitality businesses concerned and worried. They even asked the provincial government of Bali to restrict the construction of new hotels, as occupancy rates continued to decline due to the tendency of the large number of rooms.

Even so, hoteliers in Bali learn from the hard times between 2002 and 2007, and most of the hotel trying to improve performance by increasing hotel rates. Traditional hotel developers have a tendency to build up in the West and South of Bali, with its proximity to the airport. Investors learned that if they develop further from the airport or to a remote area, the hotel will be more vulnerable to downturns occupancy rate.

Oversupply of hotel rooms in Bali occurred because governments continue to allow investors increase the number of rooms. As a result, the old hotels that stood since decades ago, began shifting to a cheap hotel.

Hotels are four star below, now berokupansi session high at 30%. Lower in the off-season or regular day. It can destroy the tourism industry in Bali, because of the over supply rooms that are not in accordance with the number of tourist arrivals.

Bali as a small island has only one airport with one runway. Limitations it as one of the obstacles in selling Bali tourism optimally. The government should first fix the entrance Bali prior to authorizing the addition of hotel rooms.