Bali hotels slash rates to attract tourists
Hotels in Bali are slashing room rates amid falling occupancies as the global economic downturn takes its toll on the tourism-dependent economy.
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% from 2007.
However, the recovery is expected to be disrupted amid the international credit crunch, with the Bali Tourism Authority estimating foreign visitor numbers will drop 8.6% to 1.8 million this year.
Hotels are scrambling to fill rooms. Budget and mid-range properties popular with Australians are offering the steepest discounts, with some halving published rates, while upmarket resorts hit by a slowing in the executive market are trying to be more creative in their response to the downturn.
“Some two- and three-star hotels are panicking and cutting their rack rates,” said Bali Hotels Association executive director Djinaldi Gosana.
“That’s a bad idea. We know from experience after the Bali bombings that once we cut the rate, it’s very difficult to put up again.”
Meanwhile, although top-end hotels are sharing the pain, they are more reluctant to reduce rates, Djinaldi said.
Instead, they are offering bonus nights, meals or spa treatments to wealthy guests who are reining in lavish lifestyles.
Source: http://tvnz.co.nz/view/page
Add comment February 16th, 2009