VIVAnews - The current global financial crisis has caused several hotel managements in Bali cut their room rates. For example the three-star Melasti Beach Hotel in Legian. It cuts its initial rate of US$96 per night by US$51 per night to US$45, and is throwing in breakfast for free.
The four-star Dinasty Hotel, Tuban, reduces its rate from US$145 to US$80. "Some [owners] of two-star and three-star hotels are panicking and decide to cut rates," said Executive Director of Bali Hotels Association, Djinaldi Gosana, as quoted from Australian local newspaper The Age on Monday, Feb. 16.
Gosana went on to say that the rate slashing is "A bad idea. We know from experience after the Bali bombings that once we cut the rate, it's very difficult to raise it again."
Meanwhile, although high-end hotels are sharing the pain, they are more reluctant to reduce rates, Gosana said. Instead, they are offering bonus nights, meals or spa treatments to wealthy guests who are used to lavish lifestyles.
Rate cutting may lead to a negative impact for hotel owners. But for tourists, this is good news. "I know a lot of people who have cancelled trips to Europe and are instead coming to Bali," said Fiona Healy from Melbourne, who spent two weeks on the island.
Total foreign arrivals hit a record 1.97 million last year as the island recovered from the impact of the 2005 terrorist attack. The second biggest market behind Japan, Australia accounted for more than 300,000 visitors, up 51 percent from 2007.
The Bali Tourism Authority estimated that the number of foreign visitors will drop by 8.6 percent to 1.8 million this year.
Translated by: Bonardo Maulana Wahono
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