The Bali Chapter of The Indonesian Tourism Industry Association (GIPI-Bali) supports the call for a moratorium on new hotel buildings in Bali proclaimed by former Indonesian president and PDIP chairperson Megawati Soekarnoputri.
As reported by Detik.com, the chairman of GIPI-Bali, Ida Bagus Agung Partha Adnyanya, says he agrees with Ibu Megawati and the need to call a halt to new hotel development in Bali.
“If the land conversion remains high, we should stop (new development). Fertile agricultural lands being used to build hotels? Please don’t! If the land is barren and dry, then in my opinion, new hotel construction is OK,” said Partha on Thursday, 11 May 2023.
Partha also admitted that the oversupply of hotel rooms could destroy the accommodation market by creating price wars. He said there is more than a sufficient supply of hotels, pointing out that even in the “normal” pre-pandemic period, hotel occupancies only operated at 50%. Adding: “This is an oversupply situation. What’s more, there are guesthouses and unlicensed villas.
Accommodation providers in Bali, at this point, are capable of housing around 7 million tourists.”
Partha said the Bali chapter of the Indonesian Hotel and Restaurant Association (PHRI-Bali) and the Island’s Governor have considered halting hotel development in Bali for the past five years.
Partha explained how steps to control new hotel development would prove problematic because new permits are issued on the regency or municipal level. He complained: “The permits (for new hotels) come from the government’s second echelon (tingkat II) of municipalities or regencies and cannot be controlled. My suggestion: return the control of new hotel permits and supervision to the first echelon (tingkat I) – the Provincial Government.”
Earlier, former President Megawati had recommended that investors stop building hotels in Bali, particularly hotels operated by large management companies. She expressed the opinion that hotels in Bali only profit the upper and middle classes.
Megawati also believes that an oversupply of hotel rooms in Bali will herald many tourists who will threaten the integrity of Bali’s local wisdom.
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