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Are Baliís Traditional Inns on the Way Out?

Local City Hotel Managers in Danger of Extinction at the Hands of Branded City Hotel Chains

(7/14/2013) Wayan Rajin, operational manager of the Hotel Taman Wisata, told Bisnis Bali that competition among city hotels in Bali has become unhealthy.

While local business people have traditionally owned city hotels, the advent of chain low-cost city hotels is increasingly marginalizing the family-owned inns and hotels sector in Bali.

Rajin blames the “unhealthy competition” among city-based hotels that offer facilities found at starred hotels at room rates typically charged for “melati” or local inns. This intense state of competition is most evident with the new hotels standing on either sides of Jalan Teuku Umar in downtown Denpasar that are now displacing business from traditional city hotels.

Anticipating more city hotels will be built, the very survival of Balinese owned city hotels is now very much in doubt.

Rajin called for consistency in the application of government policy. “It’s been said that there is a limitation on new hotel, but new hotels continue to be built,” complained Wayan Rajin.

The Balinese hotelier is worried that existing owners, unable to compete with well-funded investors from outside Bali, will eventually be compelled to sell their city hotels

The head of the Denpasar Tourism Office, Putu Budiasa, responded to Rajin’s concerns by calling on traditional hotel business in Denpasar to adopt a new outlook on how they conduct their accommodation businesses. Budiasa said hotel owners must upgrade and renovate their properties in order to remain competitive. Steps must also be undertaken to train their staffs on how to serve hotel guests.