The Gianyar Regency Tourism Service is warning that plans are being made to move against hostels operating in Ubud that are threatening the very existence of locally owned homestays.
The chairman of the Ubud Homestay Association (UHSA), I.B. Wiryawan, said on Monday, January 30, 2017, that the homestays were a mainstay of the Ubud tourism industry. Already suffering from the appearance of budget hotels in Ubud, homestay owners are confronting a new challenge via a price war instigated by hostels.
Wiryawan said that the concept of hostels is not contemplated in the current laws covering tourism accommodation.
As reported by Bali Post, homestays offer rooms for rent with one or two beds; hostels can have as many as ten beds in a single room. Hostels sell accommodation “by the bed” for as little as Rp. 75,000 to Rp. 100,000 per bed per night. Meanwhile, homestays in Ubud sell accommodation starting from as little as Rp. 300,000 per room.
According to Wiryawan, this creates price competition that threatens the continuing operation of homestays.
Separately, the head of the Gianyar Tourism Service, A.A. Bagus Ari Brahmanta, estimates that there are 20 hostels now in operation in Ubud, promising to curb the opening of new hostels in the Regency to avoid an open price war with homestay operators.
If necessary, Brahmanta said his office would deploy local enforcement officers (Satpol PP) to make hostels become homestays with fewer beds per room.
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