EVER WONDER why, if you’re not on a pre-booked package, it always seems so easy to get a good-quality room cheaply in Bali if you go looking? The reason is simple, according to the local accommodation industry: There are more than twice as many rooms available as the holiday island needs.
The Bali chapter of the Indonesian Hotel and Restaurant Association (PHRI) says the number of star-rated hotels, so-called melati-class hotels, and tourism cottages in Bali far exceeds demand.
Beritabali.com reports that the total number of accommodation rooms in Bali is now more than 55,000 – but PHRI says demand justifies only 24,000 rooms.
The Chairman of the Bali PHRI chapter, Cokorda Oka Sukawati, says the current supply of 55,000 rooms does not yet include villas and local inns (so-called penginapan).
Bali Update reports Cokorda is worried that the current dramatic over-supply in tourist rooms will eventually result in a price war, reflected in the fact that many rooms in Bali are being sold for Rp 150,000 (US$16) per night.
“The price is only an average US$15,” he says. “All hotels have their own market. But hotels that have a price of US$800 could be reduced to US$200″ because of the possibility of a price war, Kokorda says.
Cokorda said the over-supply in rooms is most evident in areas such as Candidasa in Karangasem at Bali’s eastern end and Lovina in Buleleng along the north coast. According to Cokorda, rooms in these areas are being sold for very low prices – an inadvertently given tip for bargain-hunters.
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