Radar Bali reports that hundreds of local inns or Hotel Melati in Denpasar face bankruptcy due to their inability to answer intense competition from new budget and city hotels.
According to Denpasar tourism officials, the condition of most of the 194 Melati Hotels operating in Bali’s capital city is a matter of great concern. Many of these hotels are aged, offering minimum facilities and services to their guests who are moving their business to modern low-price budget and city hotels that have sprung up across Denpasar.
Describing an evolving problem for Melati hotels, Putu Budiasa, the head of Denpasar’s Tourism Service, said: “In addition to lacking in facilities, many city hotels in Denpasar are luring customers away with competitive pricing.”
This situation, explained Budiasa, is causing many local hotel operators to close their businesses or turn their hotels into boarding houses.
In order to reverse this trend, the Denpasar Tourism Service is routinely holding upgrading courses for local businesses on how to present attractive services, facilities and entertainment to their guests.
Budiasa admits efforts to persuade older hotels to invest in upgrading facilities and services is proving difficult, with many Hotel Melati continuing to close.
“So far, there’s only one hotel (that has managed to improve facilities). The rest are not yet able. There is a continuing decline in both the quality and the quantity of hotel melati,” Budiasa admitted.
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