The Bali government is making changes to the way hotels do business in Bali. Mangku Pastika, who is the Bali Governor, has said he is ready to create new regulations for the hotels relating to hotel rate standards, as a way to control the out of control growth of Bali’s tourism accommodations. “If they want to sell room with more expensive or cheaper price, they can, but they have to pay 10 percent from the standard rate,” he said.
Pastika explains that the hotel rate standard policy will be an assertive action that has been constructed to respond to the Bali hotel construction boom and the incredible competition that had the potential to create a tourism image that Bali was a cheap place to visit.
“We will compile the governor regulation after getting recommendations from Indonesia Hotel and Restaurant Association (PHRI) Bali, so that the regional government just needs to collect the 10 percent tax. The only problem is whether PHRI is brave enough, but I am,” Pastika said.
According to the Bali government, this type of policy relating to standard hotel rates is not uncommon. Countries around the world participate in this process. The key is it has to be part of an online tax collection system.
Many within the government agency are surprised at the phenomenal growth in Bali, especially in the hotel industry. Rooms that are being sold for cheaper than the going rate cause a problem for the industry and it leads to financial loss for the government.
“What happen actually? Can we prove the claim that there is money laundering? As they could be rich men who only want to search for prestige for their relation,” he said.
Regional Representative (DPD) Chief of PHRI Bali Tjokorda Oka Artha Ardana Sukawati has already confirmed that the Governor’s policy to set a standard hotel rate will be supported.
This could work to the advantage of villa rentals, because these units are never sold at less than market price and with hotels forced to play fair, many more will look at what Bali villas have to offer, and how they can enjoy an enormous amount of benefits compared to simply staying in a hotel. Bali has many villas located around the island and offer you a vast choice in the type of accommodations you are seeking – whether it’s a quite ‘off the beaten track’ villa, or one located in the midst of city action.