Bali Discovery Tours: Homepage
Bali Hotels, Bali Villas and Bali News from
Home Bali Contact Bali Practicalities Bali News Bali Services Bali Transportation Bali Sports Bali Excursions Bali Villas Bali Hotels
Home · News · Keeping it Legal
Bali Hotels, Bali Villas and Bali News from
Bali Hotels
Bali Villas
Special Deals!
MICE Handling
Bali Excursions
Culinary - Dining
Guided Tour
Bali Spas
Bali Sports
Bali Transportation
Car Rental - Selft Drive
Private Jet Charter
Bali News
Bali Services
Bali Practicalities
Bali Contact
Bali Career
Bali Update
Subscribe to our free weekly newsletter!
PATA header
PATA Gold Award 2007
Bali Update
PATA Gold Award Winner 2007
Bali Contact
Bali Discovery Tours
Komplek Pertokoan
Sanur Raya No. 27
Jl. By Pass Ngurah Rai,
Sanur, Bali, Indonesia

++62 361 286 283

++62 361 286 284

U.S.A. Fax:(toll free)

U.K. Fax:

Australian Fax:

++62 812 3819724

Bali Discovery

Bali News

Keeping it Legal

Indonesian Hotel and Restaurant Association: Illegal Villa and Hotels Blamed for Unfair Price Competition in Bali

Bali News: Bali, Indonesia, Indonesian Hotel and Restaurant Association, PHRI, Bali Villa Association, NVA, IB Purwa Sideman, licensing, illegal
Click Image to Enlarge


Price wars among villa and hotel operators in Bali – evident even during the high season – is prompting the Bali Chapter of the Indonesian Hotel and Restaurant Association (PHRI) to try to intervene to stop potentially destructive price competition.

The executive director of PHRI-Bali, Ida Bagus Purwa Sideman, was quoted by Bisnis Bali, on February 7, 2012, as blaming unhealthy price competition on unlicensed hotels and villas, seen as the driving force behind price-cutting practices.

PHRI-Bali is increasing its efforts to persuade unlicensed hotels and villas to make their operations legal as the first step in toning down the current price war.

He described the many problems encountered by hotel and villa operators in their efforts to obtain permits and licenses. Villa and hotel operators who have building permits for their structures often discover later during the permit process that their area is not zoned for commercial accommodation operations. Due to permit problems, many unlicensed villas are unable to join the Bali Villa Association (BVA), which is a part of the PHRI.

He said the unhealthy price competition is most prevalent in the villa sector. 

Sideman blamed the increasing number of unlicensed hotels and villas as fueling the price war that has become a chief concern of PHRI members. The PHRI executive said those involved in the operation of illegal accommodation enterprises and price undercutting are failing to take a long-term view of what’s good for Bali.

Taking a cynical view of the illegal sub-sector of Bali’s tourism economy, Sideman postulated that the shortsighted villa operators would probably move to other locations in 10-20 year’s time.

Seeking profit only on a day-to-day basis, Sideman said the large number of unlicensed accommodation providers are undermining local hotel operators.

In seeking to encourage illegal operators to become licensed hotels and villas, PHRI hopes to persuade operators to adopt a more long-term business approach, eliminating the unprincipled motivations that are the foundation of price wars.

© Bali Discovery Tours. Articles may be quoted and reproduced if attributed to


Plaga Wine
Bali News by Bali Update
Subscribe to the Bali Update
Receive the latest news from Bali by email!

Our [Privacy Statement] explains how we handle the data you are providing.

Bali News by Bali Update
Explore the Archive of the Bali Update
Find related articles in our news archive!

or try to use Google Search :

Home · Bali Hotels · Bali Villas · Bali Excursions · Bali Sports · Bali News · Site Map · RSS

Bali News: More News
Ace Trumps Hotels and Restaurants in Bali
Cok Ace’ Elected to Third Term as Chairman of Bali-PHRI
Unbeatable Seller Prices for BBTF 2016
Seller Discounts for Bali & Beyond Travel Fair 2016 for Confirmed Bookings Made Before November 30, 2016
The More the Merrier?
Denpasar Administration will Not Impose Moratorium on New Hotels
GO-JEK Doesn’t Deliver Grass
Famous Indonesian Musician Caught with Marijuana After Using Go-Jek Driver for a Drug Pick Up
When Passengers Roar at the Lion
Angry Lion Air Passengers Commandeer a Runway at Jakarta’s Airport
Indonesians Encouraged to Visit Australia
Australia Introducing Easier Visa Controls to Encourage Indonesians to Visit Australia
Striving for Safety
PHRI: Majority of Hotels Falling Short on Security and Safety Assessments
Buy My Horse, He's Hungry
Competing with Modernity, 80-year Old Dokar Driver in Bali’s Capital of Denpasar Faces Difficulty in Feeding Himself and His Horse
Banyuwangi Flights from Bali Axed
Garuda Indonesia Cancels Bali to Banyuwangi, East Java Flights
You Raise Me Up
New Minimum 2016 Wage Levels Announced for Badung Regency and Denpasar in Bali
RIMBA Takes Mexican Food to New Heights
UNIQUE Rooftops Bar & Restaurant at RIMBA Jimbaran Offers Authentic Mexican Cuisine
Ready, Aim. . . Wait!
Indonesia Put Stay on Further Executions While Economy Idles
All [News]!