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
Jln. By Pass Ida Bagus Mantra,
Jln. Pucuk 1 No. 70X
Denpasar, Bali
Indonesia

24h:
+62 (0)812 3819724
Tel:
+62 (0)361 464 032, +62 (0)361 471 0242

Bali Discovery

SITE PATA ASITA
Bali News

Power Play

Higher Electrical Rates Threaten Local Hotels with Bankruptcy


Bali News: Bali, Indonesia, PLN, Electrical Power Cost, Electrical Tariff. GIPI, KDL, Indonesian Association of Tourism, Bagus Sudibya, bankruptcy, power costs
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.

       

 
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
Itís a Jungle Out There!
The Ritz-Carlton, Bali Says ĎThank Youí to Agents and the Press with a Night Adventure Safari Night
(4/22/2018)
Spanish Conquistador Lands at Nusa Dua
The Westin Resort Nusa Dua, Bali Welcomes Spaniar Oriol Montal As General Manager
(4/22/2018)
Stayiní Alive in Bali
SkŚl Retro Night to Celebrate the 1960s, 1970s and 1980s at AYODYA Resort Bali on Saturday, June 2, 2018
(4/22/2018)
Defaming the Most Sacred
Follow an Act of Sacrilege at a Balinese Temple, Calls Grow to Ban Tourists from Entering Sacred Areas of Balinese Holy Places
(4/22/2018)
RIP: I Gusti Ayu Raya Rasmi 1939 Ė 2018.
The Queen Bee of Balinese Dance has Died
(4/22/2018)
Here Comes the Sun
Baliís Green School Receives Donation of Solar Panels to Take Campus Off the Power Grid
(4/22/2018)
Horses for Underground Courses
Plans Being Drawn for Additional Underpass Near Gatot Kaca Monument at Baliís Airport
(4/22/2018)
You Take the Long Road and Iíll Take the Short Road
Buleleng Regency Ready to Provide Land for Construction of a 1.8-kilometer Shortcut Highway Between Bedugul and Singaraja
(4/22/2018)
Itís Not Easy Being Green
Complaining Health and Crops are Affected, Celukan Bawang Residents in Demand Halt to Building Second Coal-Burning Power Plant in North Bali.
(4/22/2018)
Mythical Bird Scheduled for August Landing in South Bali
Garuda Wisnu Kencana Monument Promised to be Complete by August 2018
(4/22/2018)
The Cruelest Bite of All
Motorcycle Taxi Driver Who Had Tongue Nearly Bitten Off in Rape Attack Sentenced to 5.5 Years Prison
(4/22/2018)
A Sporting Chance
Bali Hopes to Win Bid to Host 2024 National Sports Games (PON-XX1)
(4/23/2018)
All [News]!