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Stemming Kuta’s Oversupply of Hotels

Bali Authorities to Require Minimum of 5,000 Square Meters for Kuta Hotel Developments and Strictly Enforce 60% Green Coefficient Rule

(2/4/2013) The chairman of the Indonesian Conference and Convention Association (INCCA-Bali), Ida Bagus Surakusuma, says discussion are underway within the government to require new hotels in Kuta to have a minimum of 50 are (5,000 square meter) of land in an effort to help control over-development of accommodation in that area of Bali.

Surakusuma, more popularly know as Lolec, told Bisnis Bali that most tourism practitioners in Bali support calls for a moratorium on new hotels in the southern part of the island. To this end, the Badung regency administration is reviewing the application process for new hotels.

The Badung administration is promising to implement rules in Kuta making the minimum lot size for hotels of 50 are (5,000 square meters) and enforce coefficient rules requiring 60% of any project remain green, open and unconstructed.

With the cost of land in Kuta now reaching Rp. 2-3 billion per are (US$200,000 – US$330,000 per 100 square meters), it is hoped that the minimum requirement of lot size and "green space ratio" will help to increase the cost of investing in a Kuta hotel project and slow down the proliferation of new hotels in that area.

Lolec, however, feels that indigenous (pribumi) investors should receive special treatment when building or upgrading hotels in Kuta and be exempted from the minimum lot size rule.