The Chairman of the Indonesian Hotel and Restaurant Association (PHRI) in Badung, Gusti Ngurah Rai Surya Wijaya has called on tourism stakeholders to not sell accommodation at too cheap a price.
His request came amid fears of unhealthy competition among hotels that could trigger a price war on the island.
“If there is constant price warfare, the hotel business will not last long,” he said.
He added that if hotels compete too strongly against each other, in the long term the value of the return on investment would not be good because it undermines market prices.
He explained that for a new hotel, a promotional price for six months to a year is understandable, but if promotional rates are sustained, it could lead to a price war.
“Do not sell Bali at a very cheap price, but see how to improve the quality and service so that guests do not look at price alone, but also good service,” he said.
Data compiled by the Badung Tourist Office in June showed that there were 68 five-star hotels with 16,360 rooms, 642 budget hotels with 19,248 rooms, 647 cottages with 2870 rooms and 18 condotels with 2328 rooms.