Close
Bali Discovery Tours: Homepage
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Home Bali Contact Bali Practicalities Bali News Bali Services Bali Transportation Bali Sports Bali Excursions Bali Villas Bali Hotels
Home · News · Power Play
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Bali Hotels
Bali Villas
Special Deals!
Packages
MICE Handling
Bali Excursions
Culinary - Dining
Guided Tour
Bali Spas
Bali Sports
Diving
Golf
Bali Transportation
Car Rental - Selft Drive
Private Jet Charter
Bali News
Bali Services
Bali Practicalities
Bali Contact
Bali Career
Home
 
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

Tel:
++62 361 286 283

Fax:
++62 361 286 284

U.S.A. Fax:(toll free)
1-800-506-8633

U.K. Fax:
++44-20-7000-1235

Australian Fax:
++61-2-94750419

24h:
++62 812 3819724

Bali Discovery

SITE PATA ASITA
Bali News

Power Play

Higher Electrical Rates Threaten Local Hotels with Bankruptcy


Bali News: Power Play
Click Image to Enlarge

(9/28/2012)

Bisnis Bali reports that a planned 15% hike in electrical power rates will increase overall energy costs by up to 10%. For many companies in the tourism sector, expenditures for energy represent 5% of gross revenues.

“The potential 15% increase in the basic electrical tariff (KDL) will increase the energy costs for hotels by up to 6%,” warned the vice-chairman of the Indonesian Association of Tourism (GIPI), Bagus Sudibya. At the same time, Sudibya warned that a 5% energy cost against total gross revenues represents the upper limit sustainable by local hotels.

Continuing, Sudibya said: “If (energy costs) are 6% of gross revenues, that is equal to an increase of 1% from total revenues. At one time, the cost of energy was 3% of gross revenues. Clearly, the (higher cost) will reduce the profit margins of hotels which are already under pressure.”

Citing an example, he said that if a hotel receives Rp. 2 billion (US$210,000) in sales revenues the cost of electricity will be Rp. 100 million (US$10,525). This, if the basic cost of electricity increases by 15% then the cost of electrical power increases to Rp. 120 million (US$12,630).

Sudibya said the government must begin to take note of supply and demand issues in approving new accommodation permits. “it’s just not healthy to have too many rooms,” Sudibya also said rising energy costs are especially problematic in an uncontrolled competitive situation where rates are under pressure.”

Issuing a final warning, Sudibya said: “Don't allow supply (of rooms) to be out of control while electrical costs are on the increase. Many hotels owned by local businesspeople will go bankrupt.”
 


© Bali Discovery Tours. Articles may be quoted and reproduced if attributed to http://www.balidiscovery.com.


 
UBUD WRITERS & READERS FESTIVAL
 
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
Plain Spoken about Tourism
President-elect Joko Widodo Speaks to Bali About Tourism
(8/31/2014)
Bali Training the World’s Green Leaders
UN Secretary Ban Ki-Moon Visits Bali’s Green School and Praises it Revolutionary Commitment to Sustainability
(9/1/2014)
Walk a Mile in Their Shoes
Macbeth Footwear Teams Up with Solemen to Donate Shoes for the Poor
(8/31/2014)
Gypsy at the Wheel
Widespread Violation of Laws on Taxi Meter Use Damaging the Reputation of Bali as a Tourism Destination
(8/30/2014)
It's a Jungle Out There
Denpasar Zoning and Building Authorities Falling Miserably in the Enforcement of the Law
(8/31/2014)
Tough Rules for Hotel Permits in Kuta, Bali
Bali Stops Hotels on Postage Stamp Pieces of Land in Kuta
(8/31/2014)
For Fans of Fantinel
Six Outstanding Courses and Paired Wines from Fantinel of Northeast Italy at Ju-Ma-Na Restaurant – Banyan Tree Ungasan, Bali on Friday, September 19, 2014
(8/31/2014)
A Park for Pedestrians
Pedestrian Underpass at Ngurah Rai Monument at Bali Airport Set to Open in Early 2015
(8/31/2014)
We've Got Rhythm!
Bali's Famous and Inspiring Kecak Dance Has a Rich and Varied History
(8/31/2014)
Run for Someone Else’s Life
14th Chapter of Hard Rock Hotel Bali Rock ‘N Run 5 Kilometer Fun Run Sunday, November 2, 2014
(8/31/2014)
In Style and Safety to Gili Trawangan
Bounty Cruises Mounts Luxury Daily Departures from Bali to Gili Trawangan
(8/29/2014)
In Urgent Need of Connections
PLTU Celukan Bawang Aiming to Start Producing Electrical Power for Bali in December 2014 - a Year Behind Schedule
(8/31/2014)
All [News]!
 
Tourism and Transport Tourism Agents