The chairman of theBali Hotel and Restaurant Association (PHRI-Bali), Tjokorda Oka Artha Ardhana Sukawati (Cok Ace), says the use of homes owned by foreigners and rented out as home stays are damaging the interest of legitimately established hotels in Bali.
Cok Ace, who also serves as the regent of Gianyar, said on Tuesday, January 22, 2013, homes owned by foreigners that that are rented out to foreign visitors are clearly a threat to formal accommodation providers in Bali.
Quoted by Bisnis Bali, he said, “If it can be proven that these homes are being rented commercially, then this accommodation must also follow the rules on business registration in Bali.” He added that home rented out to the public demand more official supervision by the government.
Citing the difficulty of tracking down such businesses, he called for the assistance of all parties, particularly the members of local communities, to report the illegal accommodation businesses to the appropriate government agency.
He contends that by allowing the continued existence of illegal home stays both the legal competition and the public suffer from the lack of tax revenues lost to these businesses.
Coke Ace concluded by saying the PHRI strongly objects to private homes being converted to illegal home stays. Such fraudulent business, he said, lead to unhealthy competition among legally founded accommodation providers.
“In the business world such practices can lead to unpredictable consequences,” he warned.
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