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No Room for More Rooms in Bali

Governor Pastika Writing to Regents and Mayor Asking, Again, for a Halt to New Hotel Construction in Bali


Bali News: Bali, Indonesia, Made Mangku Pastika, moratorium on new hotels, hotel overcapacity, hotel price war
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(2/8/2014)

A long-standing circular memorandum authored by Bali governor Made Mangku Pastika’s for a moratorium on new hotel projects in the south of the Island has been completely ignored by regents and mayors who continue to grant new hotel licenses at unprecedented speed.

Perplexed and frustrated by massive oversupply of accommodation rooms in Bali, Governor Pastika is preparing another letter to regional and municipal administrators in an effort to halt new construction.

Quoted by Radar Bali, Pastika said: "I have drafted another letter. It's an affirmation of the moratorium. We express the hope and do not order the moratorium. We can't order a moratorium as that would exceed my authority as Governor."

Pastika refused to confirm when the new letter would be sent to the regents and mayor in Bali, saying the letter was still being drafted.

The governor has long advocated a halt to new hotels being built in South Bali. His desire is that new construction be diverted to other, less developed, areas of Bali as a means of a more even distribution of wealth to the more impoverished areas of the Island.

"The problem is that the regents keep issuing building permits. It's so difficult to implement a moratorium," complained Pastika.

The governor said the failure to heed his desire to halt new hotel construction in Bali has resulted in the current severe overcapacity of hotel rooms in Bali's south and the resulting unhealthy price competition taking place between hotels. "Rates are going down. Quality is also declining. This is terrible for Bali as a whole," said Pastika, expressing his concerns that the image of Bali is threatened by overbuilding of new hotels.

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