Wednesday, December 29, 2010

Indonesian Culture and Tourism Ministry urging moratorium on new hotel development in Bali Through 2015

According to The Jakarta Post, Indonesia / Asia News Network, Indonesia's Culture and Tourism Ministry officials have urged the Bali administration to temporarily halt new hotel developments on the island, saying Bali had sufficient hotel rooms for up to 2015 and building more rooms would create unhealthy business competition.
"A recent study showed that the island is already suffering from an oversupply of hotel rooms," the ministry's human resources development head, Pitana Brahmanda, said.

Before joining the ministry, Pitana was a professor at Bali's Udayana University, where his studies frequently highlighted flaws in the island's tourism development policy.

"I reported the room oversupply problem to the ministry along with my recommendation that a temporary moratorium on hotel development should be imposed until 2015," he said, adding that the minister had also been informed.

The recent study Pitana referred to was conducted by the ministry and Udayana University researchers and focused on Badung, Denpasar and Gianyar, the regions with the most developed tourist industries.

The three regencies all lie in the south of the island, where the oversupply of hotel rooms is most evident.

The study confirmed the concerns initially voiced decades ago by environmentalists and later by the tourism industry that the island's hotel development was proceeding at a pace that would hurt both the environment and the tourist industry as well.

The ministry's tourism research and development head, Henky Hermantoro, pointed out that the island had almost 10,000 surplus hotel rooms.

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