Bali’s governors Criticises Discount Hotel Rates

Bali’s governor has repeated calls for an end to aggressive discounting by starred hotels, saying that it threatened to cheapen Bali’s image.

I Made Mangku Pastika said that Bali had worked hard to develop an image as a “quality” tourism destination, and that “price wars” between hotels in the island’s crowded south threatened to turn it into a cheap destination. He said that hotels should set higher room rates to attract a better quality of high-spending tourists.

Aggressive competition between starred hotels means that low promotional prices are often available at top-end hotels in Bali. A recent government-funded study revealed a surplus of rooms across Bali, and no need for further construction until 2015.

Pastika said that he was considering issuing legal restraints on aggressive discounting. Five-star hotel rooms are currently often available for US$100 a night. Pastika said the minimum should be four times that amount.

“Rates for five-star hotels might be set at a minimum of $400 per night,” he said.

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