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20 / 10 / 2017
7:33 am


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Thursday, October 19, 2017

Bali to curb hotel price war

The Bali administration is considering a special regulation to curb the ongoing price war between hotels, which some say threatens the island’s economy.

The island suffered a similar war in the aftermath of the infamous 2002 Bali bombings. With the number of foreign tourists dropping to a historic low, the hotels struggled to fund their operational costs. In the last few years, tourism experts have warned that excessive competition among hotels would return in line with the surging number of hotels on the island. Bali needs a specific regulation on standardized room rates for hotels. With the regulation, hotels do not have to offer abnormally low prices to their customers. The regulation would also provide more revenue for local administrations, particularly city and regencies, since the taxes the hotels must pay would be pegged to those standardized room rates.